The effects of nickel ore and bauxite export bans could linger
With Indonesia having no intention of reversing its policy and few alternatives, year-over-year growth will likely continue to fall until the end of 2014.
Although the grain and soybean trade makes up a smaller share of the dry bulk trade in terms of volume (~10%), grain and soybean are some of the more inefficient cargos to load.
As thermal power output growth has fallen, so has the growth for China’s coal imports from Indonesia and Australia—the two key countries that supply seaborne coal.
As the seaborne iron ore trade enters seasonally strong periods toward the second half of 2014, iron ore shipments will eventually rise, supporting shipping rates for Capesize and Panamax vessels.
Of all the major dry bulks, iron ore shipments make up the largest share of the total dry bulk trade (~30%). These ores are mainly shipped from Australia and Brazil.
Being a rapidly growing economy with a large population of 1.35 billion people, China’s demand for energy is rising significantly and playing a major role in the crude tanker industry.
If there’s one factor that we might have missed before, it’s Europe. As the United States continues to produce more crude oil, some of this oil has to go somewhere.
U.S. crude oil inventory and refinery inputs can help investors get a sense of whether refineries are going to import more crude oil or not.
Based on imports from countries such as Kuwait, Colombia, Venezuela, Saudi Arabia, Iraq, and Brazil, four-week moving average year-over-year growth jumped from -0.98% to 8.69%.
While drier weather will allow coal companies along the eastern coast of Australia to resume operations, China’s coal port inventory is another key factor to look at.
Over the past few months, grain and soybean prices have risen higher on the back of supply issues, lower-than-expected plantations, uncertainties in Ukraine, and higher export demand.
Although soybean exports tend to rise and peak in May, as new crops are harvested and sold overseas, Brazil’s soybean exports are expected to fall in April.
As per the Bureau of Resources and Energy Economics, Australia seeks to increase its iron ore exports 19% to 687 million tonnes in 2014.
Rio Tinto operates the Dampier and Cape Lambert ports near Port Hedland, which are used by BHP Biliton, Fortescue, and Atlas Iron.
Western Australia produces over one-quarter of the world’s iron ore, and its exports volumes account for 42% of global shipments, excluding domestic use.
Higher-grade crude yields larger volumes of premium products such as gasoline, but it doesn’t yield as many lower-value products due to chemical differences.
China’s total nickel ore imports are increasing rapidly, so it’s urgent for the country to figure out a way to deal with Indonesia’s export ban.
On April 2, 2014, the EIA announced that the United States imported 6,851 thousand barrels of crude oil a day for the week ending March 28, 2014.
A survey by Bloomberg pointed out that traders and factories in China held about 29 million metric tonnes of nickel stockpiled at ports.
China’s official PMI For the month of March, China’s official PMI (purchasing managers’ index) inched up to 50.3 as compared to 50.2 recorded in February, allaying fears of slowdown in…