This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.
“he second quarter of this year has certainly brought some exciting developments in the freight rates of large bulk carriers. This will be analyzed in (inaudible) and establish a reason why they came about. And also the prospect at which Diana could signal a long-term improvement in the earnings of large bulk carriers.”
“According to Commodore Research steel prices in China have finally started increasing, but remain about 13% lower than where they stood a year ago. These stockpiles are also finally beginning to come down. However, they still remain about 9% higher than a year ago.”
“For this year, iron ore imports are estimated to reach 779 million tons, up 8% compared to 2012. According Morgan Stanley Research, modest capacity expense and the new mining regulations in Brazil were the feedstock for metal as go from 2% to 4%, could hurt long-term growth of the long haul Brazilian iron ore supply.”
“after increasing for nine out of the last ten consecutives weeks. China’s iron ore core profile stood at 73 million tons, which is a relatively high level, which we have not seen since January this year.”
“mining companies have continued to produce high volumes of coking coal partly because they have long-term take or pay contract with infrastructure providers, which means that it has been more expensive for them to cut output than to continue producing at lower price.”
“essentially what we are looking at now in the increased importation of primarily steam coal in China, which was in the past an insignificant number. So that is one thing we’re focusing on. The other is that we are seeing now increased quantity is coming out of Australia both from new mines and new coal imports that the logistics import has been improving…So, all in all we have coal underpinning here demand for bulk carriers especially Panamax…we are positive on coal transportation both metallurgical and thin coal.”
“The charter is equivalent to the running expenses for the ship, up to now we have not seen that situation shaping up. So, up to now, the rates which are quoted in the chartering market are more bridged to the running expenses. So of course if you have both resulted very expensively you are loosing money, but if you buy lesser today you are not loosing money, therefore the forces which are bringing the balance equilibrium is not there. And I strongly believe that we are going to go through that before we see better times.”