Supramaxes outperform Capesizes: Eagle Bulk

Spanish Market: Agriculture, Coal
05/08/22

Demand growth for the "minor bulks" carried by Supramax dry bulk carriers is outpacing that of "major bulks" typically carried by larger Capesize bulkers, contributing to higher returns for shipowners focusing on the medium-sized segment, according to shipowner Eagle Bulk.

Minor bulk cargoes, comprised of commodities like bauxite, cement, and fertilizers, are typically smaller than the iron ore and coal cargoes loaded on to the much larger Capesize bulkers. From March 2021-March 2022, 68pc of Eagle Bulk's overall cargo mix for its fleet of 52 medium-sized vessels was comprised of minor bulk cargoes.

According to the company, superior growth fundamentals for minor bulks are "evident" as overall minor bulk demand in 2022 is expected to grow 1.1pc while demand for major bulks will decline by 0.8pc.

Eagle Bulk cited data that shows demand for iron ore, coal and grain, the trade-driving "major bulks" of the dry bulk market, are projected to decline by 0.5pc, 0.3pc and 2.8pc, respectively, in 2022. Meanwhile, demand for minor bulks such as "agribulks", or agricultural products other than grain, "forest products" such as lumber, and aluminum base material bauxite is projected to grow in 2022 by 1.1pc, 1.3pc, and 7.9pc, respectively.

"This is the primary reason Supramaxes have been the best performing asset class this year, outpacing Capesizes by $8,000/day even though they're one-third the size and cost about 40pc less," the company said.

The average time charter equivalent (TCE) rate in the second quarter for Eagle Bulk rose to $30,207/d, up from $21,580/d a year earlier. The increase was attributed by Eagle Bulk to shifting grain and coal trade routes because of the war in Ukraine increasing ton mileage for dry bulkers, which was positive for fleet utilization and, "in turn, supportive of rates".

Profit in the quarter rose to $94.4m, assisted by the sale of a 2004-built Supramax for $15.8m, up from the prior year's much lower $9.2m profit after the company purchased two 2015 scrubber-fitted for $44m. Along with the sale of the Supramax, profits rose in the quarter as a result of the competitiveness of Supramax and Ultramax bulkers compared with other segments of the dry bulk industry.

By Ross Griffith

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29/04/25

India’s TSPL starts up torrefied bio-pellet plant

Singapore, 29 April (Argus) — India's private sector utility Talwandi Sabo Power (TSPL) has set up a torrefied bio-pellet manufacturing facility in the northern state of Punjab, to ensure steady biomass supply to its 1.98GW coal-fired plant. The pellet plant has a capacity of 500 t/d or 182,500 t/yr of torrefied bio-pellets, and use agricultural stubble or residue as feedstock, according to TSPL, a unit of mining conglomerate Vedanta. The Punjab region generates around 15-20mn t/yr of crop stubble, according to TSPL. The plant had already purchased over 800,000t of agricultural stubble, which it will convert to around 640,000t of torrefied bio-pellets. The utility is also targeting to reduce "5pc use of coal daily" by replacing the fuel with torrefied bio-pellets. TSPL also co-fires 450 t/d of torrefied biomass that is purchased from other suppliers in the open market. The utility typically seeks torrefied pellets made from agricultural residue with a minimum of 50pc raw material from stubble, straw, or crop residue from rice paddy. The gross calorific value of pellets procured for its plant usually ranges between GAR 3,400-5,000 kcal/kg. Vedanta's aluminium unit had also used biomass briquettes for power generation. Its alumina refinery in Lanjigarh, Odisha consumes about 20 t/d of biomass briquettes, according to Vedanta. The briquettes are made from agricultural residue sourced from farmers in India. By Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US winter wheat recovers with much needed rain

28/04/25

US winter wheat recovers with much needed rain

St Louis, 28 April (Argus) — The outlook for US winter wheat improved sharply over the week ending 27 April following much needed rain. US winter wheat acres rated in good-to excellent condition gained four percentage points over the prior week, according to US Department of Agriculture (USDA) data, reaching 49pc of the crop. Kansas, the largest US winter wheat state by acres, had been trending towards being a point of concern as the good-to-excellent ration for the wheat crop in the state had fallen by 10 percentage points from the week of 6 April. With the recent update, Kansas winter wheat was rated 47pc in good-to-excellent condition, 14 percentage points ahead of the five-year average. Other key winter wheat states improved as well, with the good-to-excellent ratios in Nebraska and Texas increasing by three and four percentage points, respectively. In contrast, crop conditions in Wyoming continued to fall, down 37 percentage points from the five-year average with only 2pc of the crop rated in good-to-excellent condition. The week ahead could see additional improvements for Kansas and Texas, with large portions of the two states projected to receive a half an inch of rain or more over the next seven days according to the National Oceanic and Atmospheric Administration (NOAA). Colorado and Wyoming are projected to receive rain as well, but current estimates suggest it is likely to be too far west, and too small an amount to have a significant impact. Corn, soy planting pace divided by rain US corn planting remained largely on-pace, with 24pc of the crop planted as of 27 April, two percentage points ahead of the five-year average according to USDA data. Large gains were made across the western half of the US corn belt, with Minnesota, Nebraska, South Dakota, Iowa, Missouri and Kansas advancing 12 percentage points or more during the week. In states east of the Mississippi River, the pace of planting has been slower due to wet fields and continuous precipitation. As of 27 April, corn planting in Illinois was 10 percentage points behind the five-year average, while Wisconsin and Indianan were both three percentage points behind. Soybean planting made progress as well, increasing by 10 percentage points from the prior week to 18pc planted. The week ahead is likely to see planting advance more slowly and could result in the discrepancy in planting pace between the eastern and western half of the US increase. Heavy precipitation is projected to occur across most of the central US starting the evening of 28 April, and persist into the middle of the week according to NOAA projections. By 1 May, precipitation is expected to be mostly moved out of the western portion, with rains projected to occur east of the Mississippi into the coming weekend. By Ryan Koory Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil to hold auction to recover degraded land

28/04/25

Brazil to hold auction to recover degraded land

Sao Paulo, 28 April (Argus) — Brazil's finance, environment and agriculture ministries will host a second auction to recover 1mn hectares (ha) of degraded lands in all Brazilian biomes except the Amazon, the national treasury said on Monday. The auction will be a part of Eco Invest, a currency-hedging program targeting renewable and low-carbon projects to draw foreign investment, announced in February 2024. The finance ministry and central bank developed the program with the World Bank and the Inter-American Development Bank. The auction is part of New Brazil, a wider energy transition project within the finance ministry. The project aims to finance conversions of degraded lands in different biomes to sustainable and productive ecosystems through private investments. The Amazon biome, the most hit by deforestation, will receive a "customized and exclusive auction" that will be announced later, the environment ministry said. Participants must submit project proposals to the national treasury by 13 June. The government expects to raise up to R10bn ($1.76bn) in the auction. Land-use change and deforestation Emissions from land-use change and deforestation in Brazil reached 1.06bn metric tonnes of CO2 equivalent (tCO2e) in 2023, down by 24pc from a year earlier, according to greenhouse gas tracking platform SEEG. These activities have been leading Brazil's total emissions since 1990 — when historic tracking began — followed by agriculture and cattle raising and the energy sectors. There are currently 280mn ha of farmlands, of which around 29pc are degraded. The government aims to recover up to 40mn ha of grasslands in the next 10 years, the environment and climate change ministry said. The Eco Invest auction will finance the first round of the initiative, dubbed the Green Way program, according to the agriculture ministry. Brazil aims to reduce its total greenhouse gas emissions by 67pc by 2035 from its 2005 levels and sees reducing deforestation as one of its main ways to achieve that goal. The country will host the upcoming UN Cop 30 climate summit in Belem city, in the Amazon biome, as the administration looks to lead the global energy transition . By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump works to blunt renewables growth

28/04/25

Trump works to blunt renewables growth

Washington, 28 April (Argus) — US president Donald Trump has started to impede development of renewable energy projects he sees as boondoggles, but he is facing challenges to his attempts to halt government funding and tax credits for the sector. Trump has attacked wind turbines and solar projects as part of a "Green New Scam" that should not be built, based on his preference for the fossil fuel-fired and nuclear power plants he says are more reliable and affordable. Trump selected a cabinet of like-minded individuals who oppose renewables and see little urgency to address climate change. He was elected to end the "nonsense" of building renewable resources that are heavily subsidised, make the grid less reliable and raise costs, energy secretary Chris Wright said in an interview on Earth Day. Interior secretary Doug Burgum on 16 April ordered Norwegian state-controlled Equinor to "immediately halt" construction of the 810MW Empire Wind project off New York. Trump had already ordered a freeze on future offshore wind leases , and suspending Empire Wind's permits is likely to spook investors even outside the renewables sphere. To reverse course on a fully permitted project is "bad policy" that "sends a chilling signal to all energy investment", American Clean Power Association chief executive Jason Grumet says. The US last week separately said it would impose anti-dumping duties on solar components imported from four southeast Asian countries that will range from 15pc to 3,400pc. Those duties — in effect from June to support US solar manufacturers — will be in addition to a 10pc across-the-board tariff the US imposed this month on most imports. Solar industry groups have said that steep import duties will make new installations unaffordable, stunting the industry's ability to grow. Trump has had less success in his push to axe support for renewables approved under Joe Biden. On 15 April, a federal judge ordered the administration to unfreeze billions of dollars for clean energy projects provided by the Inflation Reduction Act (IRA) and 2021 infrastructure law. The administration lacks "unfettered power to hamstring in perpetuity two statutes", judge Mary McElroy wrote. In a separate ruling on 15 April, judge Tanya Chutkan prohibited the administration from suspending $14bn in grants distributed to nonprofits under the IRA for a greenhouse gas reduction programme. The administration is appealing both rulings. Targeting the windfall Trump could further undermine the growth of renewables by convincing Republicans in Congress to use an upcoming filibuster-proof budget package to repeal or narrow the IRA's tax credits for wind, solar and other clean energy projects. Critics of that law see the potential for $1 trillion in savings by repealing its tax credits, which could offset the costs of more than $5 trillion in planned tax cuts. But there appear to be enough votes in each chamber of Congress to spare at least some of the IRA's energy tax credits. In the Senate, where Republicans can only afford to lose three votes, Alaska's Lisa Murkowski and three other Republicans signed a joint letter this month saying "wholesale repeal" of the tax credits would fuel uncertainty and undermine job creation. In the House of Representatives, where Republicans have a similarly slim majority, 21 Republicans voiced concerns earlier this year about repealing all of the tax credits. Renewables are on track to overtake natural gas as the largest source of US electricity by 2030 — assuming the tax credits and climate rules enacted under Biden remain intact — the EIA stated this month in its Annual Energy Outlook . The amount of power from renewables under the EIA's existing policy baseline by 2035 will increase by 135pc to 2.8bn MWh, while gas-fired power will decline by 14pc to 1.6bn MWh over the same time period. By Chris Knight Baseline US net power generation Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cement sales at India’s Dalmia fall on year in Jan-Mar

28/04/25

Cement sales at India’s Dalmia fall on year in Jan-Mar

Singapore, 28 April (Argus) — Indian cement maker Dalmia Bharat reported a 2.8pc decline on the year in January-March sales, although sales increased by a sharp 28pc on the quarter because of an uptick in demand. Bombay Stock Exchange-listed Dalmia sold 8.6mn t of cement over January-March, down from 8.8mn t a year earlier but well above the 6.7mn t sold in October-December 2024. Sales rose by 2pc to 29.4mn t in the 2024-25 fiscal year ending 31 March. Cement demand was "relatively slow" in the first three quarters of the last fiscal year at 3-3.5pc growth, while the industry's full-year growth is estimated at 4-5pc, the company said. It expects cement demand to grow by 7-8pc in the current year. The year-on-year decline in sales in January-March was because of a higher base in the year-earlier period, when the company sold 0.6mn tthrough a tolling arrangement in January-March 2024, Dalmia told investors on 24 April. This arrangement was discontinued in July 2024. Power and fuel costs fell by 7.2pc from a year earlier to 945 rupees/t ($11.10/t) of cement in January-March. This was primarily because average fuel consumption costs fell by $19/t on the year to $95/t in the latest quarter. Cement plants use petroleum coke and thermal coal as fuel in cement kilns. The Argus -assessed delivered India price of 6.5pc coke averaged $98.38/t for October-December, down by almost 25pc from the average of $131.04/t a year earlier. Most of the US high-sulphur coke that Indian cement makers consumed in January-March would typically have been booked in the previous quarter, considering a voyage time of approximately six weeks. Revenue from sales fell by 5pc on the year to Rs40.91bn in January-March, a sharper decline compared with the 2.8pc drop in sales volume because of lower cement prices. The fiscal year's revenue also slipped by almost 5pc to Rs139.8bn. The company reported higher cement prices this quarter, and it is reasonably optimistic about the sustainability of recent hikes. It expects the rising industry consolidation in cement industry to eventually give producers a higher pricing. Dalmia's profits increased by 37pc on the year to Rs4.4bn over January-March, but the annual profit declined by 18pc to Rs7bn from the year earlier. Dalmia Bharat added approximately 5mn t/yr of cement capacity in 2024-25 to 49.4mn t/yr. It had earlier announced an aspiration to raise cement capacity to 75mn t/yr by 2027-28, but details have not yet been made public. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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