Funds Slash Commodity Bets by Most in 18 Months (Source: Bloomberg)
Funds reduced bets on rising commodity prices by the most in any week since February 2010 on mounting concern that a weakening global economy will slow demand for raw materials. In the week ended Aug. 9, speculators cut their net-long positions in 18 commodities by 19 percent to 989,110 futures and options contracts, government data compiled by Bloomberg show. Copper holdings plunged 61 percent, the most since June 2010, and bullish gold bets fell to a five-week low. The Standard & Poor’s 500 Index slumped 13 percent in the three weeks ended Aug. 11. About $2.3 trillion was erased from U.S. equity values over the period amid Europe’s debt crisis, speculation that the economy is slowing and S&P’s downgrade of the government’s AAA credit rating. The benchmark gauge for U.S. shares dropped to within 11 points of a bear market.
Senate could okay nomination of CFTC nominee in Sept
WASHINGTON, Aug 11 (Reuters) - The U.S. Senate could move quickly in September to approve the nomination of Mark Wetjen as a Democratic commissioner at the U.S. futures regulator, a move that could prove crucial as the agency implements a range of sweeping new Wall Street reforms. The earliest the full Senate could move to confirm Wetjen was Sept. 6 when it returns from a nearly month-long recess. Wetjen was approved last week by the Senate Agriculture Committee, which oversees the U.S. Commodity Futures Trading Commission.
Corn (Source: CME)
US corn futures end quiet as the market was underpinned by Thursday's USDA report. After a highly volatile week across commodities and equities, action was subdued, a day after corn surged on the USDA data, in which the crop's projected size was cut more than expected and many traders think the crop ultimately will be even smaller. Near-term weather forecasts are favorable for the crop, limiting price gains, although traders say note damage from a scorching July. Spot-month corn plunged to start the week and rallied after that, gaining 6c/bushel on the week. CBOT September corn fell 3/4c to $7.01 3/4 while all other contracts rose. December rose 1/2c to $7.14 1/2.
Wheat (Source: CME)
U.S. wheat futures closed mostly lower in a modest retreat from Thursday gains. Traders took a breather after a volatile week, which included strong gains Thursday as the wheat market chased corn prices higher. That support was lacking as corn prices were essentially flat. While corn has been the focus in the grains, worries about the spring wheat crop could continue to support Minneapolis prices, analysts say. Spot-month CBOT wheat gains 3.4% on the week. CBOT Sep wheat ends up 1 1/4c to $7.02 1/2 a bushel, but other contracts lower. MGEX Sep wheat down 1 1/4c to $8.61 1/4 and KCBT wheat down 12 cents to $7.96.
Rice (Source: CME)
US rice futures fell for a second day on increased output expectations from the USDA. The government's brighter production outlook caught some traders by surprise, fueling selling in the wake of a monthly crop report Thursday. Yet, lingering uncertainties about how much August heat will hurt crops in the southern US should prevent a significant slide, analyst say. Harvest has started in southern Arkansas and will pick up speed during the next several weeks. CBOT November rice drops 5 1/2c, or 0.3%, to $17.13/hundredweight
U.S. corn at one-week top, soy rises on bullish USDA report
SINGAPORE, Aug 12 (Reuters) - Chicago corn futures gained more ground , rising half a percent to trade near a 1-week top, while soybeans rose for a third straight day as a government forecast of lower production continued to buoy the markets.
"The USDA report provided a fundamental reason for higher corn prices," Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said in a report.
China 2011 corn output seen up 3 pct at 182.5 mln T - CNGOIC
SHANGHAI, Aug 12 (Reuters) - China will likely harvest 182.5 million tonnes of corn this year, up 2.96 percent from a year earlier, according to the latest estimate by an official think-tank, lifting the production forecast slightly from its estimate in July.
The China National Grain and Oils Information Centre (CNGOIC) also said 2011 soybean output was expected to fall 10.5 percent from last year to 13.5 million tonnes.
Recent rains benefit Argentina wheat - exchange
BUENOS AIRES, Aug 11 (Reuters) - Abundant rains in Argentina since mid-July have created favorable conditions for the 2011/12 wheat crop, whose planting is almost finished, the Buenos Aires Grains Exchange said on Thursday.
Argentina, which according to the exchange will see 4.6 million hectares (11.4 million acres) sown with wheat, is a leading wheat exporter and sends most of its shipments to neighboring Brazil.
La Nina seen threatening Argentine soy, corn crops
BUENOS AIRES, Aug 11 (Reuters) - Argentine soy and corn crops, set to be planted in the weeks ahead, will face a threat of the same La Nina-related dryness that reduced yields last season, weather experts are predicting.
Satellite maps show that La Nina -- a cooling of the ocean surface off western South America which causes dryness -- may be worse in Argentina this year than in neighboring grains powerhouse Brazil.
Summer rain moves EU towards bumper maize crop
HAMBURG, Aug 11 (Reuters) - The European Union is set for a bumper maize crop this summer, signalling happy times ahead for farmers seeking animal feed and for purchasers of materials to make breakfast cereals, analysts said on Thursday.
Argentine Wheat Crop Looks Good (Source: CME)
Argentina's 2011-12 wheat planting is virtually complete with the crop developing well across most of the farm belt, the Buenos Aires Cereals Exchange said in its weekly crop report Thursday. To date, 98.4% of the expected 4.6 million hectares have been planted with wheat, the exchange said. While the crop is showing some signs of damage from flooding in Entre Rios province and frost in the central fields, most of it is in good shape, the exchange said. Meanwhile, farmers are wrapping up the 2010-11 corn harvest, with 97.2% of the fields cleared so far. The exchange forecasts production of 21 million tons. Sunflower seed planting is 8.5% complete, with area seen at 1.86 million hectares, according to the exchange. Argentina is the world's third-largest soybean exporter; ranks second in corn, first in soymeal and soyoil; and is a leading exporter of wheat and sunflower seed oil.
Estimates for Argentina's 2011-12 crop production in million of hectares (HA) or millions of metric tons (MT). (One hectare equals 2.47 acres.)
Rice Set to Climb as Thailand Imposes Curbs (Source: Bloomberg)
The smallest increase in rice stockpiles in five years means global grain inventories will extend a decline that already drove food costs to a record. Combined global stores of wheat, corn and rice will drop 2.5 percent to a four-year low as farmers fail to keep pace with demand, the U.S. Department of Agriculture estimates. Rice prices will rise more than 20 percent by December as inventories expand 1.1 percent, compared with a 29 percent gain in the past four years, a Bloomberg survey of 13 millers and traders showed. While wheat and corn prices as much as doubled last year, rice retreated as the United Nations’ global food-inflation index jumped 25 percent. Rice advanced 15 percent since May, potentially worsening the lives of the 1.1 billion the World Bank says live on less than $1 a day. Wheat fell 20 percent since the middle of February on prospects for a bigger crop.
China Lifts Grain Output Forecasts (Source: CME)
China raised its output forecasts for key grain sectors, increasing its outlook for corn by 3% from last year to 182.5 million metric tons compared with a July forecast of 181.5 million tons. Wheat output is likely to rise for the full year by 1.4% to 116.8 million tons, the state-backed China National Grain and Oils Information Center said in a report. The government has already said that mid-year wheat production rose 2% on year to 111 million tons. Rice output is forecast to increase by 1.8% to 199.3 million tons, compared with July's estimate of 197.6 million tons, it said. The CNGOIC revised down this year's soybean output forecast to 13.5 million tons, down 11% from a year earlier, compared with a decrease of 7.9% to 14 million tons in July. Rapeseed output is forecast to fall 4.5% to 12.5 million tons, compared with 12.8 million tons in July, the center said.
Rice Body Advances Trials Of GM Crop (Source: CME)
The International Rice Research Institute plans to advance its ambitious program to genetically modify rice that is enriched with beta-carotene to the human-trial phase, subject to approvals from authorities in both the Philippines and the U.S., an IRRI scientist said. The GM rice, which has been dubbed "golden rice" after the yellow-orange hue of the grains, will be tested on humans to confirm that the beta-carotene in the rice helps increase vitamin A levels once ingested. "We are working through the regulatory steps to obtain all the biosafety approvals for golden rice from the Philippine authorities," Gerard Barry, IRRI's project leader, said on the sidelines of the Asian Food Security Conference. Although the trials will be conducted in the Philippines, approval is also needed from U.S. authorities since American institutes are involved in the project, he said, without specifying any timeframes--either for the approvals or trials.
Subjects in the control group will eat white rice, while the two experimental groups will consume golden rice and golden rice plus vitamin A, respectively, for a specified period, Barry said. Critics have said that an unrealistic amount of golden rice will have to be eaten to raise vitamin A levels in people who suffer from a deficiency of the essential nutrient. Barry said a recent study showed that 150 grams of uncooked golden rice, once cooked, is enough to supply 50% of the daily vitamin A needs of an adult. Around 670,000 children die and 350,000 go blind every year because they are vitamin A-deficient. Farmers won't have to pay more for the seeds of golden rice than for ordinary rice seeds, thanks to government and philanthropic funding aimed at reducing the incidence of vitamin A deficiency, Barry said. The researchers chose rice to address the vitamin A deficiency because more than half of the world's population depends on the grain to meet 80% of its food calorie requirement.
US Harvest Outlook Swayed By Heat Wave (Source: CME)
A July heat wave over the Midwest forced the U.S. Agriculture Department to slice its one-month-old forecast of the U.S. corn harvest by a deeper-than-expected 4%, signaling that rising retail food prices could continue to sting consumers even as the direction of the sluggish U.S. economy grows more uncertain. In its first forecast based on actual field surveys, the USDA said it expects U.S. farmers to harvest 12.91 billion bushels of corn, which would be the third-biggest crop ever and 3.8% bigger than the 2010 harvest. Still, the USDA had to shelve the prediction it made in early July for U.S. corn farmers to harvest a record 13.47 billion bushels of corn this fall. In trading at the Chicago Board of Trade Thursday, the corn futures contract for December delivery jumped 3.7%, or 25.5 cents, to settle at $7.14 a bushel. The heat wave, in which most of the Midwest states recorded one of their top 10 hottest Julys ever, struck just as the nation's most valuable crop was in its delicate pollination stage.
"All those 90-degree days couldn't have come at a worse time," said Alan Kemper, a Lafayette, Ind., farmer who has stopped selling corn from this crop until he can be certain how much he will actually harvest. The plant damage likely means that U.S. farmers for the second consecutive year won't keep up with surging demand for the crop, dropping U.S. corn reserves by August 2012 to the lowest levels since the mid-1990s. A ubiquitous ingredient in the U.S. diet, corn is used to make products such as sweetener and breakfast cereal and to fatten cattle, hogs, chickens and dairy cows. It is also used by the rapidly growing biofuels industry to make ethanol. Economists and food executives said the USDA report signals that the price of corn, which has roughly doubled over the past 12 months, could continue to stoke food inflation at least until the size of the 2012 harvest becomes clear.
Michael Swanson, an economist at Wells Fargo & Co., said he expects retail food prices to climb 3.5% to 4.5% in 2012, continuing this year's rise in food prices. The federal government's consumer-price index for all food was up 3.7% over the 12 months ended in June, the most recent period reported, while prices in grocery stores were up 4.7%. Chicken producers are among the hardest hit by this grain-price squeeze because industry giants, leery of surrendering market share, have been slow to cut their production as a way to force up the prices they can charge restaurants and supermarkets. "This report means we face high corn prices for another year," said Mike Cockrell, chief financial officer of Sanderson Farms Inc., a poultry producer based in Laurel, Miss. "That means chicken prices are too low."
The high price of corn is sending ripples all throughout the food sector. Many Midwest farmers decided in the spring to plant more corn at the expense of other crops. That gamble, plus less-than-ideal weather this growing season, is combining to shrink the potential size of several crops compared with last year, including soybeans, wheat, sorghum, oats and barley. "We're bidding against everybody for corn, from the ethanol plant to China," said 54-year-old Brad Bouma, who raises thousands of dairy cows near Plainview, Texas. J.P. Morgan analyst Ann Duignan estimated in a client note the USDA harvest outlook adds another $5 billion to U.S. farm cash receipts for the upcoming crop year compared with her estimate last month, lifting the total to almost $150 billion.
SE Asia Genetically Modified Crops Seen Taking Off In 2012 (Source: CME)
The adoption of genetically modified crops in South East Asia is likely to increase considerably over the next few years as a slew of initiatives involving corn, cotton, sugarcane, potatoes, rice and eggplant start to bear results, an industry executive said. The spread of GM crops in the region has been slow due to concerns over bio-safety, but there has been a gradual change in that view. Global cultivation of genetically modified crops hit one billion hectares in 2010 but bulk of it has been in North and South America. Next year is crucial for transgenic crops in the region because commercial planting of new GM varieties is expected in Indonesia and Vietnam, said Randy A. Hautea, global coordinator of International Service for the Acquisition of Agri-Biotech Applications, an agency that tracks the adoption of GM crops worldwide.
The multi-location trials in both GM corn and GM sugarcane in Indonesia and GM corn in Vietnam are now complete and bio-safety approval for commercial use is expected in 2012, he said on the sidelines of the Asian Food Security Conference. This will likely be the first commercial cultivation of GM sugarcane anywhere in the world. Hautea said this is significant because global prices of agricultural commodities are on the rise and an improvement in yields through the use of pest-resistant varieties can limit the need for imports. He cited the example of the Philippines, which imported 500,000 tons corn annually before it permitted transgenic corn eight years ago, making the country nearly self-sufficient in corn production. Around half the country's yellow corn crop is now the transgenic variety. Both Indonesia and Vietnam import GM corn from the Americas and local cultivation will be a logical next step, he noted.
Hautea said a large body of research on GM crops in Southeast Asia is being done by government-run institutions as part of national efforts to boost agricultural productivity. A case in point is developing drought resistance in Indonesia's sugarcane crop through genetic modification, crucial for many islands of Java, he said. The Indonesian government has also launched field trials for GM potatoes to tackle the Late Blight Disease, using the same technology deployed in Bangladesh and India, Hautea said. Meanwhile, research on transgenic rice, eggplant and cotton is being conducted in the Philippines. Growers in Myanmar have been informally planting GM cotton for a few years and in 2010, the government officially allowed its use in the country. Around 75% of Myanmar's cotton growers now use transgenic seeds, Hautea said.
Sugar consolidates, digests Brazil data; coffee firms
LONDON, Aug 12 (Reuters) - ICE sugar futures were steady in early trade , underpinned by another downward forecast for the Brazilian sugar crop, while arabicas edged up with activity expected to centre on position rolling. ICE October raw sugar futures were little changed, supported by a downward revision in Unica's forecast for centre-south Brazil cane output to 31.57 million tonnes, down 2.5 percent from its July estimate of 32.38 million tonnes.
India's rubber imports jump 12 pct in July- Board
MUMBAI, Aug 12 (Reuters) - Imports of rubber in India, the world's second-biggest consumer, provisionally rose 11.97 percent on year to 20,127 tonnes in July as tyre makers cashed in on lower customs duties, the state-run Rubber Board said in a statement.
Rubber imports rose 10.4 percent in April-July to 62,056 tonnes. Shipments are expected to touch a record of 200,000 this fiscal year.
Philippine sugar languishes; premiums set to fall
SINGAPORE, Aug 12 (Reuters) - The Philippines is desperate for buyers for its massive raw sugar stocks, but quality concerns have kept traders at bay, prompting some trading houses to offer the sweetener at a discount, dealers said on Friday.
The Philippines wants to sell 200,000 tonnes of sugar this year because of a surplus in domestic production, but so far only 66,000 tonnes have been booked for shipment to Japan, Indonesia and South Korea.
India may discuss more sugar exports on Friday-report
NEW DELHI, Aug 12 (Reuters) - A panel of Indian ministers could meet on Friday to discuss allowing further sugar exports, the Business Standard newspaper reported, on top of the one million tonnes of unrestricted shipments allowed so far this year.
The newspaper cited an unnamed government official.
Colombia coffee output falls for fourth month
BOGOTA, Aug 11 (Reuters) - Colombia's coffee output fell for a fourth consecutive month in July, shrinking 33 percent versus the same month last year to 530,000 60-kg bags, the growers' federation said on Thursday.
Exports from the world's No. 1 producer of high-quality Arabica beans slumped 25 percent to 458,000 sacks, the federation said in a statement.
Guatemala opens first-ever sugar import quota
GUATEMALA CITY, Aug 11 (Reuters) - Guatemala, a major sugar exporter, announced on Thursday its first-ever sugar import quota to fill a supply gap caused by a smaller harvest and sugar smuggling into neighboring Mexico.
Guatemala is losing around 40,000 tonnes of sugar each year as smugglers ferret the sweetener illegally across the border to Mexico where they can fetch higher prices, the Economy Ministry said.
Brazil's sugar output falls further--Unica
SAO PAULO, Brazil, Aug 11 (Reuters) - Brazil's main center-south sugar cane crop estimate was cut for the second month in a row as frost, flowering and falling yields continued to drag down milling results, cane industry association Unica said Thursday.
Unica put the center-south's sugar output this season at 31.57 million tonnes, down 2.5 percent from its July estimate of 32.38 million tonnes.
Asia Dry Bulk-Panamax rates to rise on Indonesia coal demand
SINGAPORE, Aug 11 (Reuters) - Rates for panamax dry bulk carriers on key Asian freight routes are expected rise over the next week, supported by the limited availability of prompt tonnage to move Indonesian coal shipments.
In the capesize market, rates are seen steady with investors balancing increased iron ore demand with lingering oversupply problems, shipbrokers said on Thursday.
China pushes hi-tech for shipbuilders to unseat S.Korea
SINGAPORE/HONG KONG, Aug 11 (Reuters) - China should regain its status as the world's leading shipbuilder in the next few years if domestic suppliers such as China Rongsheng and Yangzijiang Shipbuilding quickly modernize their drydocks and close the technology gap with South Korean competitors.
South Korea surpassed China as the industry's most sought after shipbuilder in the first half of this year as shipowners ordered more liquefied natural gas (LNG) tankers, mega containerships and other complex vessels in which South Korea specializes.
China gasoline exports to slide further in second half
SINGAPORE/BEIJING, Aug 8 (Reuters) - A fall in China's gasoline exports is likely to accelerate in the second half of the year as growth in local demand and reduced refinery runs slash the volumes available for overseas sales.
Reduced sales by Asia's second-biggest exporter could potentially lift gasoline refining margins after a fall from May's two-year high, as demand from top importers such as Indonesia increases.
Oil slips below $108 on USD strength, demand fears
LONDON, Aug 12 (Reuters) - Oil slipped below $108 a barrel reversing direction after two straight days of gains, as the dollar strengthened and concerns about oil demand in industrialised nations weighed on prices.
"There is still some scepticism around as to whether the fundamentals are strong enough to justify further price increases so some market participants are starting to take profits," said Carsten Fritsch, an analyst at Commerzbank in Frankfurt.
Indonesia steel consumption may rise 3.8 pct in 2011 -producer
JAKARTA, Aug 12 (Reuters) - Steel consumption in Indonesia in 2011 will rise as much as 3.8 percent compared to last year, due to a rise in state funded projects, said an official at Krakatau Steel , the country's biggest steel maker.
Indonesia, Southeast Asia's largest economy, is forecast to consume 8.2-8.3 million tonnes of steel this year, compared with 8 million tonnes in 2010, Irvan Kamal Hakim, Krakatau Steel's marketing director told a news conference late on Thursday.
Spending delays wilt Japan's reconstruction steel demand hopes
TOKYO, Aug 11 (Reuters) - Steel demand in Japan will fall short of expectations as political wrangling holds up cash injections after a devastating March 11 earthquake and tsunami, while the construction sector is battling a deep slump, hobbled by a strengthening yen.
Japan's construction steel sector has shrunk nearly in half over the past two decades, and the absence of large additional demand amid weak prices will further dent prospects, speeding a revamp of giants such as Nippon Steel Corp and JFE .
U.S. Steel raising prices, cites costs
NEW YORK, Aug 11 (Reuters) - U.S. Steel Corp , whose second-quarter profit and sales missed Wall Street estimates, is raising prices as soaring raw material costs eat into margins, Chief Executive Officer John Surma said on Thursday.
"We informed our customers that that was what we were doing," he said when asked about analyst reports the steelmaker raised prices by about $60 per ton -- or roughly 10 percent.
Indonesia steel consumption may rise 3.8 pct in 2011 -producer
JAKARTA, Aug 12 (Reuters) - Steel consumption in Indonesia in 2011 will rise as much as 3.8 percent compared to last year, due to a rise in state funded projects, said an official at Krakatau Steel , the country's biggest steel maker.
Indonesia, Southeast Asia's largest economy, is forecast to consume 8.2-8.3 million tonnes of steel this year, compared with 8 million tonnes in 2010, Irvan Kamal Hakim, Krakatau Steel's marketing director told a news conference late on Thursday.
Brazil steel outlook weak, but iron strong
SAO PAULO, Aug 10 (Reuters) - Brazilian steel mills are going through a peculiar and worrying moment: Mining iron ore is making more money for them than producing slabs and rods.
And the situation might persist for quite a while, causing more stress for investors, who have dumped shares in the sector this year.
India 2010/11 iron ore exports down 17 pct after revision-trade body
NEW DELHI, Aug 10 (Reuters) - Iron ore exports from India fell 17 percent in the year to March 2011 to 97.6 million tonnes, up from an earlier estimate of 95 million tonnes, on rising costs and slow efforts in southern Karnataka state to resume shipments, a trade body said in a statement on Wednesday.
India, the world's third-largest exporter of the steel-making raw material, exported 117.4 million tonnes in 2009/10, the Federation of Indian Minerals and Industry (FIMI) said.
UK aluminium smelter power plant must switch from coal
LONDON, Aug 11 (Reuters) - The coal-fired power station which supplies all of the energy to Rio Tinto Alcan's Lynemouth aluminium smelter in northeast England, must switch to biomass generation if it is to have a long-term future, a spokesman for the company said.
The company has yet to decide separately, in a strategic review, whether it will keep, sell or close its Lynemouth assets, which comprise the smelter and power plant.
China demand for resources to rise-Australia trade min
MANADO, Indonesia, Aug 12 (Reuters) - China will need large quantities of Australian raw materials as its industrialisation and urbanisation race ahead, despite concerns about weak global economic conditions, Australian Trade Minister Craig Emerson said on Friday.
Emerson also hinted that a fall in the Australian dollar amid the volatility that has jolted global financial markets for the past week was good, saying its strong currency had hurt manufacturing and exporters.
METALS-Copper pares gains on eurozone debt, global growth fears
SHANGHAI, Aug 12 (Reuters) - Copper fell, heading for a weekly loss of more than 2 percent a day after its biggest daily gain in nearly 9 months, as fears over the health of French banks and debt contagion in the euro zone outweighed positive sentiment on the strength of Chinese consumption.
"The copper markets have not moved much today. I think we will continue to see some range-bound volatility over these two weeks, with prices operating near the bottom of the range," said Jinhui Futures deputy general manager Lin Yu Hui.
Asia physical gold demand strong; Tokyo discount falls
SINGAPORE, Aug 12 (Reuters) - Gold's discount in Tokyo fell to its lowest since the end of 2010 as lofty gold prices triggered scrap selling, while robust investment demand elsewhere in Asia helped gold premiums in Hong Kong and Singapore remain steady.
The gold discount in Tokyo stood at 75 cents per ounce below spot prices on Friday on the back of large gold scrap selling, said a dealer at a Tokyo-based bullion house.
PRECIOUS-Spot pares losses on growth worry, Europe debt woes
SINGAPORE, Aug 12 (Reuters) - Spot gold pared early losses, putting it on track for its best week since February 2009 as worries about the euro zone debt crisis and global growth drive investors to safe havens.
"We've seen some new investors getting in the market at high price levels," said Dick Poon, manager of precious metals at Heraeus in Hong Kong.
Shippers say China, India can offset U.S., Europe woes
BANGALORE, Aug 11 (Reuters) - Business from China and India is robust enough for shippers such as Paragon Shipping , Box Ships Inc and Seanergy Maritime Holdings not to be losing sleep over financial crises in the United States and Europe, executives said.
Brokers, including Intermodal and Wells Fargo Securities, have said the market volatility sparked by Standard & Poor's U.S. sovereign debt rating cut and Europe's debt crisis, could trip the global economy into a double-dip recession and land a body-blow to dry bulk trade and the shipping sector generally.
Baltic index rises, financing fears weigh on sector
LONDON, Aug 11 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose for a second day on Thursday, helped by iron ore bookings to China.
Brokers said the spectre of growing financial turmoil, tighter bank financing and rapid fleet growth would keep dry bulk freight rates under pressure in the coming months.
Asia Dry Bulk-Panamax rates to rise on Indonesia coal demand
SINGAPORE, Aug 11 (Reuters) - Rates for panamax dry bulk carriers on key Asian freight routes are expected rise over the next week, supported by the limited availability of prompt tonnage to move Indonesian coal shipments.
In the capesize market, rates are seen steady with investors balancing increased iron ore demand with lingering oversupply problems, shipbrokers said on Thursday.
China pushes hi-tech for shipbuilders to unseat S.Korea
SINGAPORE/HONG KONG, Aug 11 (Reuters) - China should regain its status as the world's leading shipbuilder in the next few years if domestic suppliers such as China Rongsheng and Yangzijiang Shipbuilding quickly modernize their drydocks and close the technology gap with South Korean competitors.
South Korea surpassed China as the industry's most sought after shipbuilder in the first half of this year as shipowners ordered more liquefied natural gas (LNG) tankers, mega containerships and other complex vessels in which South Korea specializes.
