Tue Feb 7, 2012
CAPE TOWN (Reuters) - South Africa will encourage companies to process raw minerals before they are exported, the mines minister said on Tuesday, to increase value-added jobs in the resource industry.
Africa's largest economy is keen to diversify its mining sector through the processing of raw minerals before export, known as beneficiation.
"A beneficiation strategy has been adopted by government. Five minerals which will be a priority are manganese, iron ore, coal, platinum and titanium," Susan Shabangu told a news briefing on the sidelines of an annual mining conference.
She said the strategy would not lead to a "complete ban on exports", but did not give futher details.
South Africa accounts for about 80 percent of global platinum supply, so any move to add value to the precious metal will be keenly watched by markets.
Saddled with an official jobless rate of 25 percent, South Africa is desperate to create jobs.
(sourced Reuters)
Showing posts with label iron ore and coal. Show all posts
Showing posts with label iron ore and coal. Show all posts
Tuesday, February 7, 2012
Tuesday, January 10, 2012
Iron ore and coal hauling costs fall
Tuesday, 10 Jan 2012
It is reported that Hire costs for the largest ships hauling raw materials such as iron ore and coal fell the most in more than three years as Chinese demand for cargoes weakened.
London based publisher of freight rates on maritime routes that daily rents for capesizes tumbled 18% to USD 17,821 the lowest price since August 30. The drop was the biggest since October 2008. Rates have plunged 46% from the 2011 high of USD 32,889 on December 12.
Mr Richard Lee a freight and iron-ore trader at Barclays Capital in London said falling Chinese imports of iron ore and coal are cutting demand for shipping. Domestic iron-ore prices have declined relative to the cost of foreign cargoes and price caps have reduced the Asian nation purchases of coal.
Mr Philippe van den Abeele MD of Castalia Fund Management Ltd a London-based adviser to a hedge fund trading shipping derivatives said “The drop is being caused by just a complete lack of cargoes at the beginning of the year. It’s becoming a bit of a dock-site as capesizes seeking work gather around trading hubs.”
(sourced Biz.thestar.com.my)
It is reported that Hire costs for the largest ships hauling raw materials such as iron ore and coal fell the most in more than three years as Chinese demand for cargoes weakened.
London based publisher of freight rates on maritime routes that daily rents for capesizes tumbled 18% to USD 17,821 the lowest price since August 30. The drop was the biggest since October 2008. Rates have plunged 46% from the 2011 high of USD 32,889 on December 12.
Mr Richard Lee a freight and iron-ore trader at Barclays Capital in London said falling Chinese imports of iron ore and coal are cutting demand for shipping. Domestic iron-ore prices have declined relative to the cost of foreign cargoes and price caps have reduced the Asian nation purchases of coal.
Mr Philippe van den Abeele MD of Castalia Fund Management Ltd a London-based adviser to a hedge fund trading shipping derivatives said “The drop is being caused by just a complete lack of cargoes at the beginning of the year. It’s becoming a bit of a dock-site as capesizes seeking work gather around trading hubs.”
(sourced Biz.thestar.com.my)
Thursday, December 15, 2011
Government update on cargo handling at major ports in India
Thursday, 15 Dec 2011
A reduction in iron ore traffic driven by a mix of ban on iron ore exports and slower demand from China continued to pull down the total load handled at major ports in November.
During the month, the two key commodity groups that registered a decline in traffic handled at major ports were iron ore and coking coal. Major ports handled 45.67 million tonnes cargo, a 0.51% drop against the same period last year.
The reduction in iron ore export cargo of 2.6 million tonnes was more than the increased handling of finished fertiliser, container traffic and thermal coal during the month. These were the three commodity segments that got the maximum incremental traffic of 2.18 million tonnes to the ports during the period.
Cargo handling by major ports
(In million tonne)
On a cumulative basis, the major ports handled 370.68 million tonnes between April to November, registering a 1.33% growth. This was on the back of lower handling of iron ore, fertilizer and coking coal.
The slower growth at major ports is also due to higher cargo handled by non major ports administered by the state governments. The non major ports account for about 35% of total traffic.
(Sourced from BL)
A reduction in iron ore traffic driven by a mix of ban on iron ore exports and slower demand from China continued to pull down the total load handled at major ports in November.
During the month, the two key commodity groups that registered a decline in traffic handled at major ports were iron ore and coking coal. Major ports handled 45.67 million tonnes cargo, a 0.51% drop against the same period last year.
The reduction in iron ore export cargo of 2.6 million tonnes was more than the increased handling of finished fertiliser, container traffic and thermal coal during the month. These were the three commodity segments that got the maximum incremental traffic of 2.18 million tonnes to the ports during the period.
Cargo handling by major ports
| | Nov 11 | Change %(YoY) |
| POL | 14.72 | 1.87 |
| Iron ore | 4.79 | -35.4 |
| Fertliser finished | 2.01 | 69.52 |
| Fertilizer raw | 0.77 | 12.4 |
| Coal thermal | 3.89 | 14.88 |
| Coal coking | 2.03 | -12.5 |
| Container tonnage | 10.01 | 9.3 |
| Other cargo | 7.41 | 1.9 |
| Total | 4.56 | -0.5 |
(In million tonne)
On a cumulative basis, the major ports handled 370.68 million tonnes between April to November, registering a 1.33% growth. This was on the back of lower handling of iron ore, fertilizer and coking coal.
The slower growth at major ports is also due to higher cargo handled by non major ports administered by the state governments. The non major ports account for about 35% of total traffic.
(Sourced from BL)
Monday, November 21, 2011
Australian govt wins crucial support for mining tax
Mon Nov 21, 2011
CANBERRA (Reuters) - Australia's government is set to pass laws for its 30 percent mining profits tax later this week after agreeing to lift the starting threshold and promising more scrutiny of coal seam gas projects in a deal to win support from three key independents.
But the changes, which will cost about A$20 million a year in lost government revenue, have upset the Greens, whose support is needed to pass the laws, and done little to allay concerns of small and mid-tier mining companies.
Under the agreement with independent lawmaker Andrew Wilkie, the government will lift the starting profits threshold for the tax from A$50 million to A$75 million, although smaller iron ore miner BC Iron said the changes would give no relief to smaller companies.
"It's like painting that house full of termites" BC Iron Chief Executive Mike Young said. "To put A$75 million into context, at current iron prices, that's our margin on maybe 1.2 million tonnes."
Gillard's government, which holds a one-seat majority with support from one Green and the three independent lawmakers, wants the mining tax passed by the lower House of Representatives by the end of the week.
The government wants the tax on iron ore and coal mine profits, due to start in July 2012, to raise about A$7.7 billion in its first two years, and Treasurer Wayne Swan said the changes meant the biggest miners would pay the most.
"Most of this money will now be paid by the largest miners in this country," Swan told parliament.
A government deal with two other independents, Tony Windsor and Rob Oakeshott, earmarks A$200 million over five years for scientific research into coal seam gas projects, to allow governments to better assess the impact on water and farming.
GREENS WARY
The government wants to slap the proposed tax on big iron ore and coal miners as part of reforms designed to balance its budget and reallocate wealth from the mining industry, now enjoying the biggest boom in a century, to other sectors.
The government and global miners BHP Billiton, Rio Tinto and Xstrata agreed on the mining tax in 2010, but smaller miners such as Australia's Fortescue Metals Group have complained that the tax favors big miners.
But Simon Bennison, chief executive of the Association of Mining and Exploration Companies, said his group will continue to push for the tax to be based on a production threshold instead of a profit threshold.
Bennison said 10 million tonnes per year would be a good starting point.
"Iron ore prices are not going to stay at high levels forever, they have already fallen quite a lot and the profitability levels of companies are all different," he said.
The mining tax will help the government return the budget to surplus and fund a 1 percentage point cut in the company tax rate to 29 percent, portrayed as a boost for non-mining sectors, especially those hit hard by a strong local currency.
But the Greens, who want the tax rate to be lifted to 40 percent and for the tax to also apply to uranium and gold mines, said they now wanted to be sure the government did not cut other areas of the budget to fund Wilkie's amendments.
"We are going to ensure that the public interest be upheld here. We will be talking to the government in the coming day or two," Greens leader Bob Brown told reporters.
The government needs the Greens to pass the mining tax through parliament's Senate upper house, where a vote is due in early 2012.
(sourced Reuters)
Thursday, November 3, 2011
Australia introduces a new bill that would put 30 pct tax on miners
Thursday, 03 Nov 2011
AP reported that Australia's government has introduced legislation to impose a 30% tax on the burgeoning profits of iron ore and coal mining companies that are feeding Chinese demand.
The legislation introduced to Parliament on November 2nd 2011 is not certain to pass since key independent lawmakers have yet to state their support. The tax would replace the current royalty tax on tonnage levied by states.
Prime Minister Dr Julia Gillard's minority government needs the support of at least four of five uncommitted lawmakers for the tax bill to be implemented in July 2012.
Assistant Treasurer Mr Bill Shorten told Parliament that mining companies' profits have risen 262% in the past decade.
(Sourced from Associated Press)
AP reported that Australia's government has introduced legislation to impose a 30% tax on the burgeoning profits of iron ore and coal mining companies that are feeding Chinese demand.
The legislation introduced to Parliament on November 2nd 2011 is not certain to pass since key independent lawmakers have yet to state their support. The tax would replace the current royalty tax on tonnage levied by states.
Prime Minister Dr Julia Gillard's minority government needs the support of at least four of five uncommitted lawmakers for the tax bill to be implemented in July 2012.
Assistant Treasurer Mr Bill Shorten told Parliament that mining companies' profits have risen 262% in the past decade.
(Sourced from Associated Press)
Thursday, October 27, 2011
Coal and copper units lift Teck Resources profit
Thu Oct 27, 2011
* Q3 adj EPS C$1.26 vs C$0.77 a year earlier
* Q3 net EPS C$1.37 vs C$0.54 a year earlier
* Q3 revenue up 40 pct to C$3.38 bln
By Euan Rocha
TORONTO, Oct 27 (Reuters) - Teck Resources' third-quarter net income more than doubled, largely because of strength in its coal and copper businesses, the diversified Canadian miner said on Thursday.
Investments in new equipment, plant upgrades and people have resulted in substantial increases in coal production, while investments at Carmen de Andacollo in Chile and Antamina in Peru have boosted copper production from those two operations, the Vancouver, British Columbia-based company said.
Teck said it continued to advance other late-stage copper development efforts, particularly its Quebrada Blanca and Relincho projects in Chile.
The company said net income rose to C$814 million, or C$1.37 a share, from C$316 million, or 54 Canadian cents a share, a year earlier.
Excluding gains from asset sales, foreign exchange losses and other one-time items, earnings rose to C$1.26 a share from 77 Canadian cents.
Teck said the results reflected higher copper and coal sales volumes and favorable prices for all our major products, especially copper and coal.
Negative factors included a stronger Canadian dollar, higher operating costs and a C$113 million after-tax pricing adjustments arising from the decline of copper prices late in the quarter.
Gross profit rose more than 50 percent to C$362 million in the copper business and increased more than 90 percent to C$954 million in the coal business. Earnings from the zinc business rose 35 percent to C$255 million, the company said in a statement.
Quarterly revenue rose 40 percent to C$3.38 billion.
Teck said late on Wednesday that its board has authorized a 33 percent increase in its semiannual dividend.
The company also said it had reached an agreement to sell 5.6 million tonnes of coal to its customers in the fourth quarter at an approximate average price of US$255 per tonne.
Teck said it continued to discuss further coal sales with its customers.
(sourced Reuters)
* Q3 adj EPS C$1.26 vs C$0.77 a year earlier
* Q3 net EPS C$1.37 vs C$0.54 a year earlier
* Q3 revenue up 40 pct to C$3.38 bln
By Euan Rocha
TORONTO, Oct 27 (Reuters) - Teck Resources' third-quarter net income more than doubled, largely because of strength in its coal and copper businesses, the diversified Canadian miner said on Thursday.
Investments in new equipment, plant upgrades and people have resulted in substantial increases in coal production, while investments at Carmen de Andacollo in Chile and Antamina in Peru have boosted copper production from those two operations, the Vancouver, British Columbia-based company said.
Teck said it continued to advance other late-stage copper development efforts, particularly its Quebrada Blanca and Relincho projects in Chile.
The company said net income rose to C$814 million, or C$1.37 a share, from C$316 million, or 54 Canadian cents a share, a year earlier.
Excluding gains from asset sales, foreign exchange losses and other one-time items, earnings rose to C$1.26 a share from 77 Canadian cents.
Teck said the results reflected higher copper and coal sales volumes and favorable prices for all our major products, especially copper and coal.
Negative factors included a stronger Canadian dollar, higher operating costs and a C$113 million after-tax pricing adjustments arising from the decline of copper prices late in the quarter.
Gross profit rose more than 50 percent to C$362 million in the copper business and increased more than 90 percent to C$954 million in the coal business. Earnings from the zinc business rose 35 percent to C$255 million, the company said in a statement.
Quarterly revenue rose 40 percent to C$3.38 billion.
Teck said late on Wednesday that its board has authorized a 33 percent increase in its semiannual dividend.
The company also said it had reached an agreement to sell 5.6 million tonnes of coal to its customers in the fourth quarter at an approximate average price of US$255 per tonne.
Teck said it continued to discuss further coal sales with its customers.
(sourced Reuters)
Australian mine tax wont extend beyond coal and iron ore - Mr Ferguson
Thursday, 27 Oct 2011
Bloomberg cited Mr Martin Ferguson Australian Resources and Energy Minister as saying that Australia, the world biggest exporter of iron ore and coal, isn’t considering extending the scope of its new mining tax to cover other commodities.
He said that “We clearly entered into agreement with the mining industry last election and we remain committed to that agreement.”
Mr Ferguson said “Don’t believe everything you see in the media. We have basically an agreement with the mining industry and that’s basically been nailed down.”
The tax, forecast to raise AUD 7.7 billion in its first two years from July 2012 will be used to lower the corporate tax rate to 29% from 30%, encourage retirement savings and pay for roads and railways.
(sourced from Bloomberg)
Bloomberg cited Mr Martin Ferguson Australian Resources and Energy Minister as saying that Australia, the world biggest exporter of iron ore and coal, isn’t considering extending the scope of its new mining tax to cover other commodities.
He said that “We clearly entered into agreement with the mining industry last election and we remain committed to that agreement.”
Mr Ferguson said “Don’t believe everything you see in the media. We have basically an agreement with the mining industry and that’s basically been nailed down.”
The tax, forecast to raise AUD 7.7 billion in its first two years from July 2012 will be used to lower the corporate tax rate to 29% from 30%, encourage retirement savings and pay for roads and railways.
(sourced from Bloomberg)
Saturday, October 15, 2011
Indian Railways to rise in freight rates by 15pct
Saturday, 15 Oct 2011
BS reported that at a time when the industry is suffering from high inflation, the railways have decided to go for a more than 15% across the board rise in freight rates through the imposition of an extraneous hike in tariff. The move is meant to help the railways garner more revenue and is likely to translate into an INR 6,000 to INR 7,000 crore burden on the industry.
A 10% busy season charge on the base freight rate will be applicable from October 15th 2011. The railways will also impose a five per cent development surcharge from October 15th 2011 on the net tariff, comprised of the base freight rate and various demand management charges, under the dynamic pricing policy.
Unlike earlier, the busy season charge will be levied on all commodities except containerized cargo and certain automobile traffic. It is likely to continue till June 30th 2012.
All the commodities will be charged at the rate of 10%, with 100% exemption to container operators and automobile traffic moved in NJMG, BCACM and BCCNR wagons. Other charges like punitive charges for overloading, penal charges on misdeclaration and freight concession (discount rebate) will also be granted on the net tariff rate.
The railways had in 2007 imposed a 2% development surcharge to replace the safety surcharge levied earlier. That will now be levied at the rate of five per cent. Development surcharge will be calculated over and above the 10% busy season charge that has become applicable on the base freight rates from this month.
Though the railways did not increase freight rates at the time of the Budget in February, it has adopted the surcharge route to generate more revenue. For instance, in April this year it imposed a surcharge of five per cent on the coal and coke group. On all the other commodities, a seven per cent busy season charge was imposed. Similarly, it had imposed a surcharge on iron ore last year. Not only is the surcharge this time one of the highest so far, but it is also uniformly imposed on all commodities.
Before the introduction of the dynamic pricing policy in 2006, the railways' passenger fares and freight rates remained unchanged round the year and across all routes, even though tariffs for airlines and road sectors varied depending on the demand and the season. According to the dynamic pricing policy, the rates for non-peak season, non premium services and empty flow directions are less than the general rates; the rates for peak season and premium services could be higher than normal.
For freight, the non peak season is July 1 to September 30. For the passenger segment, this period is January 15 to April 15 and then July 15 to September 15 but the railways do not follow variable pricing for passengers.
An official on the condition of anonymity said generally an increase in freight rates was decided on need basis, depending on the amount of revenue required to be generated. He added that "The railways have not increased the base freight rate but only tinkered with the extraneous charges."
Officials defended the decision, saying the railways did not pass on the burden to customers despite an increase in input costs on account of fuel price hikes and higher wages.
(sourced from BS)
BS reported that at a time when the industry is suffering from high inflation, the railways have decided to go for a more than 15% across the board rise in freight rates through the imposition of an extraneous hike in tariff. The move is meant to help the railways garner more revenue and is likely to translate into an INR 6,000 to INR 7,000 crore burden on the industry.
A 10% busy season charge on the base freight rate will be applicable from October 15th 2011. The railways will also impose a five per cent development surcharge from October 15th 2011 on the net tariff, comprised of the base freight rate and various demand management charges, under the dynamic pricing policy.
Unlike earlier, the busy season charge will be levied on all commodities except containerized cargo and certain automobile traffic. It is likely to continue till June 30th 2012.
All the commodities will be charged at the rate of 10%, with 100% exemption to container operators and automobile traffic moved in NJMG, BCACM and BCCNR wagons. Other charges like punitive charges for overloading, penal charges on misdeclaration and freight concession (discount rebate) will also be granted on the net tariff rate.
The railways had in 2007 imposed a 2% development surcharge to replace the safety surcharge levied earlier. That will now be levied at the rate of five per cent. Development surcharge will be calculated over and above the 10% busy season charge that has become applicable on the base freight rates from this month.
Though the railways did not increase freight rates at the time of the Budget in February, it has adopted the surcharge route to generate more revenue. For instance, in April this year it imposed a surcharge of five per cent on the coal and coke group. On all the other commodities, a seven per cent busy season charge was imposed. Similarly, it had imposed a surcharge on iron ore last year. Not only is the surcharge this time one of the highest so far, but it is also uniformly imposed on all commodities.
Before the introduction of the dynamic pricing policy in 2006, the railways' passenger fares and freight rates remained unchanged round the year and across all routes, even though tariffs for airlines and road sectors varied depending on the demand and the season. According to the dynamic pricing policy, the rates for non-peak season, non premium services and empty flow directions are less than the general rates; the rates for peak season and premium services could be higher than normal.
For freight, the non peak season is July 1 to September 30. For the passenger segment, this period is January 15 to April 15 and then July 15 to September 15 but the railways do not follow variable pricing for passengers.
An official on the condition of anonymity said generally an increase in freight rates was decided on need basis, depending on the amount of revenue required to be generated. He added that "The railways have not increased the base freight rate but only tinkered with the extraneous charges."
Officials defended the decision, saying the railways did not pass on the burden to customers despite an increase in input costs on account of fuel price hikes and higher wages.
(sourced from BS)
Wednesday, October 12, 2011
Coking coal imports slip on costlier dollar, poor demand
Wed,October 12, 2011
By Sadananda Mohapatra
Kolkata/ Bhubaneswar: Coking coal imports dropped for the first time in last three months despite price fall in global markets as costlier dollar and an ailing steel industry demand squeezed import orders, said experts and traders.
In April-September period, coking coal imports through Kolkata and Haldia was 2.83 million tonne, down by 16 per cent compared with the same period last year. Imports at Visakhapatnam port dropped by 15.3 per cent and at Paradip, the decline was 3.3 per cent for the same period, data from Indian Ports Association showed.
These three eastern Indian ports account for almost 60 per cent of India's coking coal import. In April-September, total imports declined by 0.4 per cent year on year, after growing 2.3 percent in April-August and 9.3 per cent in April-July period.
"The main reason for coking coal import drop is the depreciation of rupee against the dollar. The rupee has weakened by almost 6 per cent in the last month. Even though coking coal rates have gone down in dollar terms in global markets, Indian importers were unable to take the opportunity as dollar became costlier here,” said Sandeep Jain, commodity analyst with Karvy Comtrade.
Coking coal is currently priced at $280 per tonne, down from $310 a tonne in July-August. The rates have come down as supply has improved from major exporter Australia after devastating flood there affected production in January.
India imports coking coal mainly from Australia and Indonesia to feed its speedily expanding steel industry. Of late, steel mills in India are running below their normal capacity because of shortage of iron ore availability as restrictions in major producing states like Orissa and Karnataka brought down productions.
"Steel industry demand for coke has come down given the higher rates for iron ore. Some steel plants have raised steel prices while traders are importing steel, which gives better return than coking coal imports,” said Arun Bhattoria, a Kolkata-based coal trader. (sourced BS)
By Sadananda Mohapatra
Kolkata/ Bhubaneswar: Coking coal imports dropped for the first time in last three months despite price fall in global markets as costlier dollar and an ailing steel industry demand squeezed import orders, said experts and traders.
In April-September period, coking coal imports through Kolkata and Haldia was 2.83 million tonne, down by 16 per cent compared with the same period last year. Imports at Visakhapatnam port dropped by 15.3 per cent and at Paradip, the decline was 3.3 per cent for the same period, data from Indian Ports Association showed.
These three eastern Indian ports account for almost 60 per cent of India's coking coal import. In April-September, total imports declined by 0.4 per cent year on year, after growing 2.3 percent in April-August and 9.3 per cent in April-July period.
"The main reason for coking coal import drop is the depreciation of rupee against the dollar. The rupee has weakened by almost 6 per cent in the last month. Even though coking coal rates have gone down in dollar terms in global markets, Indian importers were unable to take the opportunity as dollar became costlier here,” said Sandeep Jain, commodity analyst with Karvy Comtrade.
Coking coal is currently priced at $280 per tonne, down from $310 a tonne in July-August. The rates have come down as supply has improved from major exporter Australia after devastating flood there affected production in January.
India imports coking coal mainly from Australia and Indonesia to feed its speedily expanding steel industry. Of late, steel mills in India are running below their normal capacity because of shortage of iron ore availability as restrictions in major producing states like Orissa and Karnataka brought down productions.
"Steel industry demand for coke has come down given the higher rates for iron ore. Some steel plants have raised steel prices while traders are importing steel, which gives better return than coking coal imports,” said Arun Bhattoria, a Kolkata-based coal trader. (sourced BS)
Friday, September 16, 2011
POSCO to form iron ore and coal JV Colombia
Friday, 16 Sep 2011
POSCO said that it would set up a company in Colombia for iron ore and coal resource development in an effort to secure a stable supply of key materials.
The venture with Blue Pacific of Colombia, an iron ore and oil developer, will be formed late this year at the earliest, the Korean steelmaker said.
But POSCO gave no details.
The steel company also said it has signed a preliminary agreement with Colombian auto parts maker Fanalca to build a steel pipe plant, which could have an annual capacity of 200,000 metric tons.
According to Posco, demand for steel pipe is expected to reach 200,000 tons in 2015, compared with an estimated 30,000 tons in 2013, as the Latin American country begins several oil and natural gas development projects in the next few years.
(Sourced from koreajoongangdaily)
POSCO said that it would set up a company in Colombia for iron ore and coal resource development in an effort to secure a stable supply of key materials.
The venture with Blue Pacific of Colombia, an iron ore and oil developer, will be formed late this year at the earliest, the Korean steelmaker said.
But POSCO gave no details.
The steel company also said it has signed a preliminary agreement with Colombian auto parts maker Fanalca to build a steel pipe plant, which could have an annual capacity of 200,000 metric tons.
According to Posco, demand for steel pipe is expected to reach 200,000 tons in 2015, compared with an estimated 30,000 tons in 2013, as the Latin American country begins several oil and natural gas development projects in the next few years.
(Sourced from koreajoongangdaily)
Monday, February 28, 2011
Baltic index rises, capesize market seen pressured
Monday,28 February 2011
he Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, turned barely positive on Friday, although sentiment was expected to remain weak due to a glut of vessels.
The index rose 0.24 percent or 3 points to 1,245 points, after falling in the four previous sessions. That slump followed ten days of gains.
"The main drag on rates this week was a lull in Chinese iron ore fixtures due to record stockpiles," said Jeffrey Landsberg, managing director of dry bulk consultancy Commodore Research. "This affected capesize rates.
"Gains are certainly possible for the coming week," he said.
Earlier this month before the modest rally, the index, which tracks the cost of shipping key commodities such as iron ore, cement, grain, coal and fertiliser, reached its lowest in two years.
The Baltic's main index has remained erratic since 2009 because of swings in Chinese demand for iron ore, the primary ingredient of steel.
"Since the capesize debacle has begun, $4,500/day to $5,000/day has been the artificial level that owners have maintained as a floor for average capesize rates," Landsberg said.
"Despite capesize vessel supply exceeding demand, owners have resisted chartering out their capes when rates have reached current levels."
The Baltic's capesize index .BACI fell 0.3 percent, with average daily earnings dropping to $4,653 in an ninth session of falls. Capesizes typically haul 150,000 tonne cargoes such as iron ore and coal.
"Capes in all regions are apparently unable to shake off the problems presented by significant oversupply and activity remains too limited to provide any boost in rates," Braemar Seascope said.
The Baltic's panamax index .BPNI fell 0.06 percent, with average daily earnings dropping to $14,530, falling for a fifth day after 12 sessions of gains previously. Panamax vessels usually transport 60,000-70,000 tonne cargoes of coal or grains.
"Grain fixtures have been slow to emerge, with Chinese buyers remaining quiet," Braemar said.
Adding to economic headwinds in western industrialised countries, a major source of shipping demand, are inflationary fears in China, which could potentially lead to further interest rate rises and a pullback in demand for ore, delivering another setback for shippers.
China's consumer confidence index dropped in the fourth quarter, the second consecutive quarterly decline, as expectations for rising prices hurt sentiment. While there are indications of some vessel cancellations and delays, analysts expect deliveries to gather pace between 2011 and 2012.(source: Reuters)
The index rose 0.24 percent or 3 points to 1,245 points, after falling in the four previous sessions. That slump followed ten days of gains.
"The main drag on rates this week was a lull in Chinese iron ore fixtures due to record stockpiles," said Jeffrey Landsberg, managing director of dry bulk consultancy Commodore Research. "This affected capesize rates.
"Gains are certainly possible for the coming week," he said.
Earlier this month before the modest rally, the index, which tracks the cost of shipping key commodities such as iron ore, cement, grain, coal and fertiliser, reached its lowest in two years.
The Baltic's main index has remained erratic since 2009 because of swings in Chinese demand for iron ore, the primary ingredient of steel.
"Since the capesize debacle has begun, $4,500/day to $5,000/day has been the artificial level that owners have maintained as a floor for average capesize rates," Landsberg said.
"Despite capesize vessel supply exceeding demand, owners have resisted chartering out their capes when rates have reached current levels."
The Baltic's capesize index .BACI fell 0.3 percent, with average daily earnings dropping to $4,653 in an ninth session of falls. Capesizes typically haul 150,000 tonne cargoes such as iron ore and coal.
"Capes in all regions are apparently unable to shake off the problems presented by significant oversupply and activity remains too limited to provide any boost in rates," Braemar Seascope said.
The Baltic's panamax index .BPNI fell 0.06 percent, with average daily earnings dropping to $14,530, falling for a fifth day after 12 sessions of gains previously. Panamax vessels usually transport 60,000-70,000 tonne cargoes of coal or grains.
"Grain fixtures have been slow to emerge, with Chinese buyers remaining quiet," Braemar said.
Adding to economic headwinds in western industrialised countries, a major source of shipping demand, are inflationary fears in China, which could potentially lead to further interest rate rises and a pullback in demand for ore, delivering another setback for shippers.
China's consumer confidence index dropped in the fourth quarter, the second consecutive quarterly decline, as expectations for rising prices hurt sentiment. While there are indications of some vessel cancellations and delays, analysts expect deliveries to gather pace between 2011 and 2012.(source: Reuters)
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