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Dry Bulk Market: Could Coal Become the “Savior” of the Dry Bulk Market?

The disruption in the iron ore seaborne trade this year has been well documented, together with the negative impact that this development has had in the Capesize dry bulk segment. However, analysts point out that coal trade could prove to be a dampening factor in the market, helping to alleviate part of the demise of the first few months of 2019. In its latest weekly report, shipbroker Allied said that “the collapse noted in the iron ore trade volumes has steered several ship-owners to seek alternative sources of earnings. With ...

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More Iron Ore Expected From Brazil But Probably Not Enough To Cut Sky-High Prices

A supply squeeze on iron ore which has driven the price up by 35% over the past three months is showing its first sign of easing, though perhaps not for long with pent-up demand likely to give the steel-making material a second wind which could see the price surge through $100 a ton. Pressure on iron ore is expected to ease after a court decision in Brazil cleared the way to re-start production at the mothballed Brucutu mine, one of several closed after a second dam-collapse disaster raised doubts about ...

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Coal Exports: The Trump Administration and Western States Take Action to Open Ports for Shipment of Coal

On April 10, 2019, President Donald Trump signed an Executive Order seeking to address permitting and policy obstacles preventing the export of coal and other energy resources through West Coast ports. New port facilities and improvements have been halted or delayed by state, local and tribal governments in California, Washington and Oregon.[1] The Executive Order is the most recent, but certainly not the only, response to efforts to stop interstate shipment and export of coal. The Executive Order requests a report on the economic impacts of blocking exports of domestic ...

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China still dominates U.S. soybean exports despite trade war

Even with an ongoing trade war, China was the top destination for U.S. soybeans during the first half of the current marketing year, and the Asian country will help determine whether American beans can meet the U.S. government’s full-year export targets. Data published by the U.S. Census Bureau on Wednesday showed that the United States exported 4.58 million tonnes of soybeans in February, the largest volume for the month in three years. Some 46 percent of those shipments were to China, the largest monthly share in a year. Those February ...

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Baltic Dry Index climbs to 790, up 23 points

Today, Thursday, April 18 2019, the Baltic Dry Index climbed by 23 points, reaching 790 points.

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Dry Bulk FFA: One Step Forward, Two Steps Back for the Capesize FFA Market

Capesize The positive news of Vale hoping to restart Brucutu in 72 hours was partially offset by BHP confirming that they will ship 8 million tonnes less than forecast due to Cyclone Veronica. Following the push up of rates late Tuesday, we eased in Asian hours before finding some more support when Europe opened. Volumes were healthy with the curve from April through Cal 21 paid steadily throughout the day. The physical market is yet to show any significant gains and these need to come to fruition if the paper ...

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India’s coal imports surge 40% owing to washery shortage

Coal India’s (CIL) delays in setting up coking-coal washeries inflated the country’s coal imports by $3 billion or over 40% in FY18, steel companies have estimated. The firms have warned that imports of the fuel, which could drive up India’s goods trade and current account deficit, could rise further if adequate number of domestic washeries are not set up in the public and private sectors. In letters sent to steel and coal ministries, the Indian Steel Association (ISA) has pointed out that if the situation does not improve, import bills ...

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Dry Bulk Market: New Peaks a Thing of the Past as Harsh Reality Sets In

With the first quarter of 2019 already past us, it’s now becoming increasingly obvious that the dry bulk market will find it hard to experience a third consecutive year of recovery, not to mention new peaks. In its latest weekly report, shipbroker Allied Shipbroking said that “a mere 6 months ago, the prevailing sentiment was that 2019 would be the third year of a consecutive recovery in the market, with the shared prevailing thought being that the market was finally ready for new peaks. Strong fundamentals and bullish sentiment were ...

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BIMCO Sees Hard Times Ahead for Capesizes

China’s increased use of scrap metal for its production of crude steel is fundamentally critical to the dry bulk shipping industry. Mostly Capesize ships are impacted by this, way beyond the temporary iron ore export disruptions in Brazil and Australia. Chinese steel production grew by a massive 12.6 million tonnes (+9.2%) in the first two months on 2019 as estimated by China Iron and Steel Association (CISA). During the same period, Chinese imports of the paramount steel production ingredient, iron ore, fell by 5.6%, or 10.3 million tonnes. All numbers ...

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Potential US-China trade deal would boost US met coal exports, uplift global economic activity: Seaport

While a US-China trade deal might lead to a prompt response in met coal exports from the US to China, the larger outcome would be an improved global economy and boost to the steel market, a Seaport Global report said Tuesday. Seaport analysts Mark Levin and Nathan Martin noted Xcoal’s Jack Porco’s claim that if an agreement between the US and China is reached, and coal is included, the market should expect to see a prompt response from the US and a surge in exports. “A trade deal that includes ...

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Baltic Dry Index climbs to 767, up 18 points

Today, Wednesday, April 17 2019, the Baltic Dry Index climbed by 18 points, reaching 767 points.

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A Chinese punch on Panamaxes

China’s decision to restrict its coal imports in 2019 below 2018 levels will dent demand for Panamaxes, but an ongoing tussle with Australia could be the silver lining. The Chinese government plans to curb the country’s coal imports by 3%-4% in 2019, translating into a decline of about 10 million tonnes. Indonesia, Australia, Russia and Mongolia are the major coal suppliers, which together accounted for more than 95% of imports in 2018. Mongolian trade is over land, but the dip in trade from other key locations will be detrimental for ...

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Chinese firms lift Australian coal orders, as curbs tipped to end

Chinese private power companies have started to buy contracts for Australian thermal coal, which could signal an end to China’s import restrictions that have sent prices plummeting. Earlier this year, China placed unofficial restrictions on Australian low-grade coal imports, forcing ships laden with thermal coal – which is used in power plants – to go through onerous customs procedures. Other nations such as Indonesia have not faced the same restrictions. Opinion has divided on whether the restrictions have been driven by economic or political factors, with some suggesting China is ...

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Scorpio Bulkers inc. Announces sale and leaseback agreements for six dry bulk vessels

Scorpio Bulkers Inc. announced yesterday that the Company has agreed to sell and leaseback six Ultramax vessels (SBI Antares, SBI Bravo, SBI Hydra, SBI Leo, SBI Lyra and SBI Maia) to AVIC International Leasing Co., Ltd. Upon completion, which is estimated to take place in the second quarter of 2019, the Company’s liquidity is expected to increase by up to $62.4 million in aggregate, comprising up to $52.6 million upon closing after the repayment of outstanding debt and an additional tranche of up to $9.8 million for installation of exhaust ...

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US wheat delegation in Brazil to gauge import demand under quota

A delegation representing the United States wheat industry is visiting Brazil this week to talk to millers and food industries to gauge potential for higher import demand once a tariff-free quota is implemented, a local wheat group told Reuters. Rubens Barbosa, president of Brazil’s wheat milling association Abitrigo, said he met the head of U.S. Wheat Associates, Vincent Peterson, and the chief executive of the Kansas Wheat Commission, Justin Gilpin, on Monday to discuss the U.S.-Brazil wheat trade. The U.S. delegation, which also included wheat producers and a trader from ...

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