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Tag Archives: coal imports

Will Panamax and Capesize Coal Shipments Rise or fall? The Answer May Lie with China’s New Coal Restrictions

03 Wednesday Dec 2014

Posted by Angela Chao in Dry bulk shipping

≈ 4 Comments

Tags

Australia, China coal trade, Chinese economy, coal imports, coal trade, dry bulk shipping market, energy consumption, Indonesia, low-quality coal, thermal coal

Panamax container ship

There would be a significant upside for the coal trade and demand for Capesize and Panamax shipments

China has been and remains a significant player in the dry bulk shipping market, especially in coal trade. It is the largest importer and producer of thermal coal. Australia and Indonesia are the primary providers of coal to China, contributing roughly 70% of its total 2014 thermal coal imports.

The Chinese economy has been growing steadily at an annualized rate of roughly 6-7% so far. The strong economy means new construction, jobs, improved health and population growth, etc. – all of which increases energy consumption. An improved standard of living also spurs calls for environmental protection, and to this end the Chinese government has created a number of new restrictions for coal production and consumption designed to clean up the air. How these new restrictions are implemented will impact the future of coal imports and exports, and by extension the dry bulk shipping market.

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Waiting for 4th Quarter Results

29 Wednesday Oct 2014

Posted by Angela Chao in Dry bulk shipping

≈ 2 Comments

Tags

Brazil, capesize market, Capesize rates, coal imports, dry bulk market, Indonesia’s ban, shipments of coal, unprocessed minerals

Bulker_at_sunsetAll are waiting for 4th quarter final results to know whether to celebrate a recovery or hunker down for a depressed dry bulk market.

Political turmoil across the world combined with shaky economic realities has produced a less than stellar year for the dry bulk shipping industry. However, several factors, if fully realized in this last quarter of the year, could help to turn things around.

A number of negative factors weighed heavily on the dry bulk shipping market this year. The US experienced an unusually harsh winter while Europe enjoyed a mild one, resulting in significantly reduced east-bound shipments of coal. Indonesia’s new ban on unprocessed minerals was implemented in January, affecting shipping performance throughout the year. China saw one of its wettest summers on record, which allowed it to increase hydropower production but at the cost of coal imports. And, to compound the Chinese situation, new taxes designed to protect domestic coal miners went into effect this month, depressing coal imports. Continue reading →

Dry Bulk Market has Failed to Live Up to its Optimistic Expectations

27 Sunday Jul 2014

Posted by Angela Chao in Dry bulk shipping

≈ 5 Comments

Tags

BDI, Chinese housing market, Chinese imports, coal imports, Iron ore prices, Shipping vessel rates, vessel deliveries

steep drop in iron ore prices

Steep Drop in Iron Ore Prices

Forecasters expected a robust performance in the dry bulk shipping market for the second half of 2014, but a market recovery has failed as of yet to materialize. A number of less than favorable variables have eroded those early predictions. Factors such as a steep drop in iron ore prices, by as much as $40 per ton since the year’s start, were thought to increase iron ore movement, but record-breaking stockpiles of iron ore at China’s ports and Australia’s emergence as a pre-eminent iron ore supplier have precipitated a steady decline in BDI. By mid-month, BDI was down by 10% standing at 732 points, continuing its slow decline. Shipping vessel rates followed suit, with the Panamax below $5kpd and Capesize below $9kpd. Australia’s spot charters are up by 31% from the same time a year ago, negatively impacting the performance of Brazilian and other shipping countries. Adding to the fire is China’s decreasing coal imports and growing coal stockpiles, such as at Qingdao port where stockpiles are up by 47% from the beginning of the year. Chinese regulators have tightened up trade financing regulations, negatively impacting the performance of Panamax and Capesize, with year to date losses of 68% and 78% respectively. A weakened Chinese housing market is also not helping. Continue reading →

Summary of First Two Months of 2014

25 Tuesday Mar 2014

Posted by Angela Chao in Dry bulk shipping

≈ 18 Comments

Tags

Chinese imports, chinese steel industry, coal imports, coal industry, coal markets, coal shipping, iron ore imports, iron ore markets, iron ore shipping

Iron IndustryChinese imports, a barometer for assessing iron ore, fell by 30% in February of this year, to 61.2 million tons. The first two months of 2014 were better than the same time period a year ago, but February numbers are at the lowest level since March of 2013. Following suit, iron ore prices have also fallen from $135 per ton at the beginning of the year to its current level of approximately $105 per ton. The falling price of iron ore has reignited the Chinese appetite for importing iron ore, and stockpiles at Chinese ports are climbing again reaching 99mt, versus an all-time high of 101mt in 2012.

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About Me

Angela Chao
Chairman and C.E.O. of Foremost Group, a leading shipping and trading enterprise, Angela Chao is an active businesswoman who serves on several boards and loves to volunteer. Angela comes from a loving and supportive family of Chinese descent. The Chao family dedicate themselves to serving and contributing to society.

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Recent Posts

  • A Review of Dry Bulk Shipping Performance and Its Challenges in 2016
  • Several Indicators Point to Long-Term Recovery in Capesize Market
  • Is Obsession with Brexit Creating a Blind-spot for Economists?
  • Angela Chao’s Mixed Bag of News for the Dry Bulk Shipping Industry
  • Consolidations in China’s Steelmaking Industry are Healthy and Necessary

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Tags

Baltic Capesize Index BDI Capesize rates China Chinese economy coal imports coal shipping Crude Oil Dalian Commodity Exchange dry bulk market dry bulk shipping dry bulk shipping market freight rates iron ore Iron ore prices iron ore shipping Iron ore shipping vessels shipping industry steel steel industry

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