The Daily Fixture/Index List of 31st July 2012

The Daily Fixture/Index List of 31st July, 2012

FIXTURES - 31/JUL/2012


Baltic Exchange Daily Fixture/Index List 31/07/2012


BDI 897 (DOWN 18) BCI 1194 (DOWN 6) BPI 982 (DOWN 28)

BSI 1032 (DOWN 15) BHSI 580 (DOWN 13)

Last published BDTI 645 (UP 2) BCTI 580 (DOWN 2)


TIMECHARTER

'Cape Kassos' newbuilding 83000 dwt dely ex yard Sundong 30 July
trip via Australia redel Singapore-Japan $8500 daily - Oldendorff
'Iron Lindrew' 2007 82191 dwt dely Hsinta, Kaohsiung 1/5 Aug trip
via Queensland redel EC India $8500 daily - Panacore
'India' 2011 80561 dwt dely US Gulf 3/8 Aug trip redel East Med
$9000 daily + $225000 bb - Egyptian Bulk Carriers
'Medi Baltimore' 2005 76469 dwt dely Sepetiba 14/16 Aug 2 laden legs
1st steels to US Gulf redel Skaw-Cape Passero $9000 daily + $200000 bb
- Ultrabulk -

'Cape' 1997 73048 dwt dely EC South America 10/20 Aug trip redel
Singapore-Japan $14000 daily + $400000 bb - Priminds
'Monte Pelmo' 2000 72917 dwt dely Liverpool 1/5 Aug trip via USEC
redel India $17250 daily - Panacore
'Belnor' 2010 58000 dwt dely Beihai spot trip via Indonesia redel
Philippines $7000 daily - Jaldhi
'Red Fin' 2011 56780 dwt dely Vietnam spot trip via Indonesia redel
India approx $12000 daily - Cargill -


PERIOD


'Oceanis' 2001 75211 dwt dely Xinsha mid Aug 17/23 months trading
redel worldwide $9250 daily - Ultrabulk -
27/07>
'Naias' 2006 73546 dwt dely China Aug/Sept 17/23 months trading redel
worldwide $9250 daily - Ultrabulk

ORE


'TBN' 160000/10 Seven Islands/Redcar 5/10 Aug $6.15 fio

Industry Updates 31.07.2012


INDUSTRY UPDATES
31st July, 2012
STEEL, METALS AND MINING
Close
COAL
Chinese thermal coal price slumps to lowest since 2009

China’s benchmark price for thermal coal fell for a 12th week to the lowest level since 2009 as electricity demand slowed and hydropower output increased.

According to the China Coal Transport and Distribution Association “Coal with an energy value of 5,500 kilocalories per kilogram at the Chinese port of Qinhuangdao dropped to a range of CNY 620 per tonne to CNY 635 per tonne”

Data compiled by Bloomberg shows that the midpoint was 0.8% less than a week earlier and the lowest price since October 19th 2009.

Electricity output in June stalled from a year earlier as China’s economy expanded in the second quarter at the slowest pace in more than three years. Demand for coal-fired power, accounting for 80 percent of the country’s needs, also fell as dams supplied more electricity amid increased rainfall.

Stockpiles at Qinhuangdao, which delivers half the nation’s seaborne domestic coal supplies, fell 0.9 percent from a week earlier to 8.47 million tonnes

Inventories were above 8 million tons for the ninth week, declining 1.2 percent this month, compared with 11 percent in July 2011, data compiled by Bloomberg show. Port stockpiles typically fluctuate during this time of the year as utilities draw down local supplies and replenish fuel from delivery harbors to meet peak summer power demand.
(Steel Guru)
Chinese coal demand to continue to fall in H2 2012 - CNCA
According to the China National Coal Association, China's coal industry will remain in the doldrums in the second half of 2012, with a further fall back in the demand for the fuel and protracted rapid growth in market supply.

Mr Jiang Zhimin VP of CNCA said that China's coal demand continued to fall in the first half of 2012 and coal consumption in the country rose 2.8% YoY to 1.97 billion tonnes, but the growth rate was 6.6 percentage points lower than the same period of 2011. Contrary to weakened demand, China's coal supply increased sharply in the interim.

The fixed asset investment in the coal sector grew 23.1% YoY in the first half to CNY 210.3 billion. The figure is 2.7 percentage points higher than the investment growth among all industries.

Moreover, China's coal production in the January to June 2012 period gained 5.6% to 1.91 billion tonnes on an annual basis. However, it saw a decline in coal deliveries during the period. The railroad carried a total 1.166 billion tonnes of coal in the first half, up 4.5% from the prior year.

In June 2012 alone, the figure was 176 million tonnes, down by 5.5% YoY and 11% MoM lower than in May 2012. The main ports handled 312 million tonnes of coal in the first half, down by 4.1% YoY. Coal shipment in June 2012 fell by almost 20% to 45.23 million tonnes.

Besides, China soaked up more coal from other countries in the first half when net imports surged by 77.5% YoY to 134.08 million tonnes. The supply glut of coal has led to mounting stockpiles in the country. Up to the end of June 2012, total coal stocks in China came to 278 million tonnes. The stocks at coal mines and key power plants posted a YoY rise of over 30% and that at ports up 67.3%.

Mr Jiang also pointed out that it remains unpredictable that how long the downturn will last and to what extent it would affect the coal industry, but seems not pessimistic about the prospect of the industry.
(Steel Guru)
Coal India board to meet tomorrow to discuss fuel supply pacts
The Coal India Board is going to meet tomorrow to deliberate on the issues related to signing of the fuel supply agreements (FSAs) with power firms, including coal imports and changes in the penalty clause of new FSAs.

The Board meeting, scheduled to be held in Kolkata, may also discuss pooling of coal prices in case the state-owned coal producer goes for imports of the dry fuel to meet the demand, sources said.

The two issues, supply of minimum assured coal supply to power firms and penalty to be paid by the Coal India for not supplying the minimum stipulated quantity, have held up signing of FSAs for many months nows. Even the intervention of the Prime Minister's Office (PMO) has failed to resolve the deadlock so far.

While Coal India says it can not guarantee more than 65 per cent of required coal as minimum assured supply, power producers have been pitching for keeping it at 80 per cent levels.

In a meeting held on July 6, the PMO is believed to have directed power companies and Coal India to sign the pact at 65 per cent of the total coal contracted for the current financial year. Besides, it had also suggested increasing the minimum supply level to 80 per cent, gradually in about four years.

However, the state-owned coal producer had postponed its Board meeting twice this month on the pretext of not receiving the written communication from the PMO on the decisions taken in that meeting.

The Power Ministry, on behalf of the firms in the sector, has suggested that Coal India should go for imports to meet the shortages in domestic supplies. It had also asked for pooling of the price of imported and domestic coal to neutralise the impact of higher prices of imported coal.

According to the official data, only 27 power plants, of 48 in all, have so far signed the supply agreements with the state-owned coal giant. These include Adani's Mundra Power plant, Lanco's Anpara Power, Reliance Power's Rosa Power Project and CESC.
(Economic Times)
IRON ORE
CEMENT
Competition commission of India imposes Rs 397 crore penalty on Shree cement
Competition watchdog CCI today imposed a penalty of Rs 397.51 crore on Shree Cement for indulging in restrictive trade practices.

The Competition Commission of India (CCI) has imposed the penalty on Shree Cement while issuing final order in the case against cement manufacturers and their trade body Cement Manufacturers Association (CMA).

"The Commission has also imposed a penalty on Shree Cement Ltd at the rate of 0.5 times of its profits for the years 2009-10 and 2010-11 aggregating to Rs 397.51 crores," CCI said in a statement.

The CCI, it added, "found eleven cement manufacturers, including Shree Cement Limited and CMA in contravention of the provisions of the Competition Act, 2002, which deal with anti-competitive agreements including cartels".

It also asked the company to refrain from such anti-competitive activities in the future. With regard to other companies, the CCI said as they were fined earlier, it was not imposing any penalty on them again for the same period of contravention.

Industry Updates 30.07.2012


INDUSTRY UPDATES
30.07.2012
STEEL, METALS AND MINING
Orissa Mineral Development Corporation gets Moef NOD TO MINE AT Odisha
Orissa Mineral Development Corporation Limited (OMDC), a subsidiary of RINL, received a nod from ministry of environment and forests to mine three-million tonne of iron-ore and 2.4 lakh tonne of manganese from leases it already owns at Kolha Roida in Odisha.

Hindustan Steelworks Construction Limited (HSCL) is likely to get the job of contract mining at OMDC's Kohla Roida mine complex in Odisha.

When mining operations actually resume at the complex, it will greatly benefit RINL which does not have captive iron-ore mines. So long, the steel company has been dependent on sourcing iron ore through merchant purchases from state-owned mining major, NMDC Limited.

Incidentally, OMDC owns reserves of 200-million tonne of iron-ore and 40-million tonne of manganese in Odisha.

RINL got steel ministry approval to acquire 51% stake in OMDC in 2010. The latest development is likely to boost prospects of RINL, which is slated to hit the market as part of its forthcoming initial public offer.
(Economic Times)
Close
COAL
Chinese coal demand growth to fall in 2012

China's coal consumption rose 2.8% YoY to 1.97 billion tonnes in the first half of this year, but such a growth rate was still 6.6% points lower than the same period of 2011.

Meanwhile, coal prices continued to fall since November last year. The China Coal Price Index (CCPI), published by China National Coal Association (CNCA) and China Coal Transport and Distribution Association (CCTD), slid by 16.8 points to 186.2 points as of June 29 compared to the peak it hit in early November.

China's coal consumption will continue to increase in line with the development of the Chinese economy, which is expected to reach around 4 billion tonnes for the whole year of 2012. But the demand growth will slow from a year ago.
(Steel Guru)
Coal buyers see defaults as prices slip: Traders
Indian coal markets are seeing scattered defaults among end-user and trade buyers in part because of a 20 percent slide in prices this year, although the vast majority are honouring their contracts, Indian trader said. International coal prices have slumped to about $85 a tonne for South African cargoes from comfortably over $100 in December because of oversupply and tepid Asian demand.

The weakness of the rupee against the U.S. dollar, along with ever-tightening credit availability, is squeezing the trade middlemen who are holding high-priced imported coal inventories, traders have said."There are some defaults by smaller traders and also two cement makers," said a source at one of India's biggest coal importers, who declined to be identified.

South African producers, who supply India's traders and cement and sponge iron makers, said they had not experienced any direct Indian defaults but were wary of any indirect impact.

A default by any player on a cargo re-sold several times in a chain would have a ripple effect, producer sources said. "We've not had any direct problems. They really have performed well as far as we're concerned but I have heard that a minority of the smaller players have had issues," one producer said.

"Some buyers (end-users) are actually defaulting now on fixed price contracts because they are being offered so much coal, of various origins, which were defaulted on by China," said an Indian trader who sells to both the Indian and Chinese markets. "These distressed cargoes are being offered at huge discounts so the buyers just take them instead," he added.

"I have a cargo for China due to load in the next week which I've already agreed to drop the price on. I'm just hoping that it will be loaded and paid for," he added. The discounts offered vary on a case-by-case basis, depending on how desperate the seller is to shift the cargoes, said an Indian coal market player who confirmed hefty discounts were on offer.

"On a standard $90 per tonne FOB deal, traders may offer $6-7 per tonne discount," he said. India has 6 million to 7 million tonnes of thermal coal in inventories at its main ports, most of it imported at prices substantially higher than those at present.

Following a slew of defaults by Indian players in 2005, the industry has made strides to gain a reputation for meeting contracts, even when the market has plunged. Suppliers flocked to the Indian market after widespread defaulting and price re-negotiation in China earlier this year.

Problems in the Chinese coal market have undermined Indian traders in their efforts to rebuild their reputation for meeting. contract terms, Indian traders have said. Some have experienced direct defaults from Chinese buyers, while Chinese defaults have led to some Indian counterparties trying to escape from contracts, they said.

End-users who had enquired for prompt cargoes are now sidelined, buried under cheap offers and saying they will not return to the spot market until August or September, they said. "We have stockpiles of South African coal (in India) which were earmarked for customers but are just going to have to sit there. We'll be bleeding until Q4," the first Indian trader said
.
(Economic Times)
Turkish coking coal imports up 45pct in May

According to the data provided by the Turkish Statistical Institute, in May this year Turkey's coking coal imports fell 4.2% compared to the previous month and were up 44.5% compared to May 2011 totaling 2.14 million tonnes.