Vale 30 ships total 2 billion 550 million $Valemax type ore ship (ship shipyard sale) order finally finalized, these new ships will be Waigaoqiao Shipbuilding (location of news), North CSIC (location of news), Yangzijiang (position and comment on the news) in the sea industrial (Jiangsu) (news commentary position) construction.
According to the trade winds reported that orders the vale of the Valemax type ship a total of 30 ships, ship China east ore (China Ore Shipping, China COSCO joint venture), merchants (stock) and ICBC leasing has the transaction conditional agreement.
The new ship will be jointly built by the 4 China shipyard, cost about $85 million per ship, the highest price compared to the previous Valemax ship 140 million dollar gap significantly. The 30 new vessels will be delivered starting from 2018, after the delivery of long-term lease to the vale.
Among them, China ore custom-made 10 ships will be built in Waigaoqiao shipbuilding. The 10 merchants ship respectively by Waigaoqiao Shipbuilding (4 vessels), Qingdao Beihai shipbuilding industry (position Review News) (4 aircraft) and China shipping industry (Jiangsu) construction; ICBC leasing orders to Yangzijiang shipbuilding industry and the north, the Yangtze River shipping industry received a total of 6 ships, North CSIC received 4 ship.
Last May, China ore and merchants and vale signed a "long-term transport agreement". The content of the agreement for renting Chinese ore, Vale fleet seaworthy ship transport of iron ore, manganese ore, the cooperation between the two sides for a period of 20+5 years. While ICBC leasing existing 4 VLOC will ship by the third party enterprise management, to be 2017-2018 new 10 ship VLOC after delivery, or set up their own operations team, but may also continue to make the third party enterprise management.
Future orders will further increase?
According to a report by Broker's Firm Lorentzen & Stemoco released in December, after a series of transactions, Vale Valemax ship will be based on the original 35 ships on the ship, and further to 74.
Although the news about the expansion of the fleet has no uniform caliber, but according to the Lorentzen & Stemoco statistics, has added 39 type Valemax ships in the "generation" after the boat may.
Among them, the 9 ship is from the Japanese market, Nippon Steel lease based on custom-made. Part of a new ship by mol and NYK in imabari shipbuilding order, the other part is by Kawasaki NS United in the village of steamboat and shipbuilding orders.
The shipping exchange bulletin reported earlier, in fact, according to the vale every year to the amount of iron ore Chinese, the new 30 VLOC ship is far from enough. First of all, the new vale digging new iron ore mines will be put into operation in 2018, when its iron ore production will increase 90 million tons per year, 70% of which about 63 million tons will be shipped to Chinese. A 400 thousand ton VLOC per year can be completed in Brazil - Chinese voyage of about 4, the volume of about 1 million 600 thousand tons / year, which can be calculated 30 ship VLOC annual new capacity is about 48 million tons, compared with the increment of 63 million tons per year of Shang Xian. Secondly, the original 35 ships in the vale of VLOC, about 20 ships in 1995-1996 by the single shell VLCC transformation, has been 20 years of age, although the design life of 25 years, but due to severe wear, is expected to be 2016-2017 years of retirement. It is estimated that 30 VLOC is just the first ship built after or otherwise 20~30 VLOC needs new ship.
"Sell the boat" beset with troubles internally and externally, from the allocation of risk
On the one hand, the future of China's new normal has been established, the demand for iron ore has peaked. On the other hand, in 2018 there will be at least 42 VLOC designed for China from Brazil, the transport of iron ore, the Chinese market in the future really have such a big demand?
Just a few days ago, a river valley executives said that this year will be 70 million tons of global iron ore production capacity is closed, and another 30 million tons of production capacity will also face risks".
However, Vale CEO fee Muli on the Chinese market confidence, in November last year Fei Muli said, next year vale will transport of 1.8 million tons of iron ore to China, to 2019 transportation goal is 3 million tons. Fei Muli believes that, despite the current overcapacity in China's steel market, but after the adjustment of the industry, China's steel consumption demand will not be reduced.
But even more troubling is that the performance of Vale is extremely bad.
Vale 2015 financial results show. 2015, Vale achieved total revenue of $$, compared to 2014 decreased by $. Revenue decreased $. In the fourth quarter of 2015 total net loss of $8 billion 569 million, third quarter total net loss was $2 billion 117 million. The basic business income for the fourth quarter of the third quarter to $1 billion 32 million negative, negative 961 million dollars.
On January 12th, Vale said, covering the potential costs until the end to the sale of assets to improve solvency, the company has reduced the $3 billion line of credit. A part of the funds will be used to pay the first quarter of 2016, the maturity of bonds.
In order to make up the difference, Vale is selling assets, including its largest ore ship.
Vale has undoubtedly suffered ore slump hit, and analysts expect the company's cash flow will be negative in 2016.
"Sell the boat" and "pay by the China turnaround," a large number of building new ships to drive down costs and enhance competitiveness, the idea is very good, but the future of the market whether it is wishful thinking? But if the risk is borne by the enterprises will eventually Chinese.
Share orders, certainly must share the risk.
