India's largest coal handling agency - Mjunction

Logistics
down rates and increased vessel supply. Going
by the way the market is poised right now,
rates might improve. There are many cargo
requirements building from the US, Gulf and
ECSA which should be good news.
But, demand for iron ore is likely to slow
down in some segments which might result
in rates to stabilise. In the long term, rates
would improve as China and other European
countries would be looking to replenish their
stocks before the end of the winter holidays.
On the whole, there is a strong chance that
rates might improve in the coming week.
Baltic Dry Index
The absence of sustained demand and low
interest in chartering vessels have resulted
in fluctuations in the freight rates which
were reflected in the way the Baltic Dry
Index (BDI) moved over the past one month.
But, rates have improved and are going
steady since the beginning of October. After
beginning on 2741 points on September 1, the
BDI improved to 2995 points on September
10. However, it displayed strong volatility
over the next few days and slid to 2452 points
on October 1, improving again to 2727 points
on October 22.
Much of the volatility in the BDI during
September was owing to high fluctuations
in the Capesize rates. The Baltic Capesize
Index (BCI) which began on 3643 points on
September 1 improved to 4024 points on
September 8. However, low demand from
China pulled down the Index over the next
few days and the BCI declined to its lowest
at 3104 points on September 23. Improving
demand for vessels later pulled up the BCI
to 3149 points on October 1 but it rebounded
strongly to record 4373 points on October 22.
The Baltic Supramax Index (BSI) too,
declined over the past one month. After
beginning on 2029 points on September
1, the Index improved to 2046 points on
September 10. Around the end of the month,
the Index slipped to 1843 points on October
1, rebounding later to 1894 points on October
8. However, it declined later to 1791 points
on October 22.
The Baltic Panamax Index (BPI) which had
began on a low of 2955 points on September
1 improved to 3396 points on September 9.
However, it declined later to 2412 points on
October 1 and slid further to 2403 points on
October 8. It declined again to 2219 points on
October 22.
Railways traffic improves in Sept
Sarbani Haldar
Traffic movement by the Indian Railways has improved in September 2010 as
compared to the same period a year ago. For this month too, coal movement
by the Indian Railways strongly improved while traffic volumes for iron ore
and other cargoes remained low. During September 2010 the traffic movement
by the Indian Railways improved 2.35 percent as it moved 71.47 million tons
(mt) of freight traffic compared to 69.83 mt moved by it during the corresponding
period of the previous year. However, with regard to the traffic volumes moved
in August, the Railways witnessed a decline in its traffic in September. In August
2010, the Indian Railways had moved 74.20 mt of freight traffic.
According to the recent data published by the Indian Railways, during
September 2010, the total coal movement improved by 7.09 percent to 31.89 mt
as compared to 29.78 mt of coal moved by it during the corresponding period
of the previous year. Incidentally, the coal traffic movement by the Indian
Railways during the month has declined by 6.86 percent as compared to 34.24
mt of coal moved by it during August 2010.
The coal movement for the washeries witnessed the strongest improvement
of 33.33 percent to 0.12 mt as compared to 0.09 mt of coal moved during the
corresponding period of the previous year. Besides, coal movement for steel
plants improved 7.69 percent to 3.64 mt as compared to 3.38 mt moved during
the corresponding period of the previous year. Other than this, coal traffic
movement for public use improved 10.91 percent to 6.81 mt as compared to
6.14 mt moved during the corresponding period of the previous year.
Meanwhile, iron ore traffic moved by the Indian Railways continued
to decline even for this month. As per the data, during September 2010, iron
ore movement by the Indian Railways declined by 20.14 percent to 8.92 mt
as compared to 11.17 mt moved by it during the corresponding period of the
previous year. During August 2010, iron ore movement by the Indian Railways
fell by a massive 23.56 percent to 9.41 mt. In terms of volumes, however, iron ore
movement by the Railways has declined. In September 2010, the Indian Railways
moved 8.92 mt of iron ore. Volumes of iron ore meant for exports, moved by the
Indian Railways, more than halved during September 2010 as compared to the
corresponding period of the previous year. As per data in September 2010, iron
ore meant for exports declined by 50.99 percent to 1.98 mt as compared to 4.04
mt moved by it during the corresponding period of the previous year.
However, pig iron and finished steel movement by the Indian Railways
improved by 6.43 percent to 2.65 mt in August 2010, as compared to 2.49 mt
moved by it during the corresponding period of the previous year. Besides,
movement of raw material for steel plants, except iron ore, have improved 3.13
percent to 0.99 mt as compared to 0.96 mt moved by it during the corresponding
period of the previous year. In September 2010, cement movement by the Indian
Railways increased 4.03 percent to 7.23 mt as compared to 6.95 mt moved
during the corresponding period of the previous year.
Container service movement during September 2010 has witnessed a
massive improvement of 29.43 percent to 3.43 mt as compared to 2.65 mt
moved during the corresponding period of the previous year. Other goods
movement by the Indian Railways during September 2010 declined by 8.70
percent to 5.14 mt as compared to 5.63 mt moved during the corresponding
period of the previous year. Meanwhil,e the total traffic movement by the
Indian Railways during the period April 1, 2010 to September 30, 2010
improved 2.34 percent to 438.20 mt as compared to 428.16 mt moved during
the corresponding period of the previous year.
COAL INSIGHTS 67 October 2010