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Monday, November 19, 2018

Commodities Trader News

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COFCO Says Brazil Needs More Logistics Investments

Brazil could compete better in global agriculture markets if it increased infrastructure investment and diversified its transport network, an executive at COFCO International, the Chinese commodities trader, said on Monday.Eduardo Gradiz Filho, head of grains and oilseeds for COFCO in the country, said at an agribusiness conference that Brazil's port infrastructure is adequate but the country still relies too much on trucks to ship farm products, which is inefficient.Solving what he called "logistical bottlenecks" is Brazil's greatest challenge over the next few years to leverage its competiti

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Blockchain Benefits Still Murky for Most Commodities Trading

Commodity firms and banks have been diving into blockchain pilot schemes over the last two years but the new technology's application for most trading has likely been over-hyped, a report by Boston Consulting Group (BCG) said.Blockchain, originally the platform behind cryptocurrency Bitcoin, is viewed by some as a solution to inefficiencies, improving transparency and reducing to the risk of fraud. But BCG believes its potential has been exaggerated.A high-tech ledger, blockchain…

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Cargill Aims to Cut Ship Emissions 15% by 2020

Cargill Inc aims to cut carbon emissions from its international shipping unit by as much as 15 percent by 2020, to meet U.N. regulations to reduce pollution and demands from some of its food manufacturer customers for more environmentally-friendly operations.The global commodities trader, which was scheduled to announce the emissions goal late on Monday, told Reuters the reduction of CO2 per cargo-ton-mile was targeted at its time-chartered fleet. But overall, Cargill plans to cut total greenhouse gas emissions on an absolute basis across all company operations by 10 percent by 2025.Cargill…

Trafigura Hires Asia-Pacific CEO

Global commodities trader Trafigura said on Monday it had hired former asset manager Chin Hwee Tan as its chief executive officer for the Asia-Pacific. Tan will be responsible "for continuing the growth of Trafigura's business across the region", Trafigura said in a statement. Prior to joining Trafigura, Tan was the founder of the Asian operations of Apollo Global Management LLC, a global alternative investor with over $185 billion in assets under management, Trafigura said. Reporting by Florence Tan

Cargill to Close London Shipping Unit as Sector Crisis Worsens

Global commodities trader Cargill will close its London shipping office in another sign of the worsening crisis battering the dry freight market, the company said on Thursday. Financial markets have been in turmoil since the start of the year due to worries over the health of the world economy, China's finances and the fallout from low oil prices. The dry bulk sector -- which transports commodities such as coal and grain -- has been particularly hurt by slower Chinese business at a time when the sector is struggling with huge overcapacity.

(Photo: Glencore)

Glencore CEO Glasenberg Plans to Retire in 3-5 Years

Glencore Chief Executive Ivan Glasenberg has told investors he plans to retire from the commodities trader and miner in three to five years, Bloomberg reported on Monday.Glasenberg has started training three to four people to succeed him in the job, but did not disclose the shortlist of candidates, Bloomberg reported, citing people familiar with the matter.Glasenberg, who is also the company's second-largest shareholder with a 8.56-percent stake, according to Refinitiv Eikon data…

Image: Quadrise Fuels International plc

Quadrise Fuels Signs MoU with Freepoint Commodities

Fuel oil technology firm Quadrise Fuels International said it had signed a non-binding memorandum of understanding with commodities trader Freepoint Commodities to provide commercial opportunities for its MSAR fuel technology product.The Synthetic fuel developer said that this followed the effective end of a trial in Saudi Arabia for a combustion boiler project that would have used MSAR due to the lack of an agreement between the utilities involved. MSAR is a low viscosity oil in water emulsified synthetic HFO.Freepoint…

Trading Firm Trafigura Looks to Build U.S. Deep Water Oil Port

Global commodities trader Trafigura has applied to build a deep water port in Texas, United States, that would be able to load supertankers, the company said on Monday, supplying badly needed oil export infrastructure to the country.The company said it had applied for a permit on July 9 via its subsidiary Texas Gulf Terminals.The United States began exporting crude oil in 2016 after the ban on exports was lifted but while its production and therefore exports keep hitting new highs…

Image: Trafigura

Trafigura to Build U.S. Deep-Water Oil Port

Swiss commodities trader Trafigura has applied to build a deep-water port in Corpus Christi, Texas, on the Gulf of Mexico, which will be able to load supertankers, reports FT.The report said that the plan would see the commodity house build an offshore deepwater port facility  with a view to accommodate very large crude carriers (VLCC) capable of carrying more than 2m barrels of crude. It requires approval from the US Department of Transportation’s maritime division.According to a Reuters report…

Photo: Port of Corpus Christi

Corpus Christi Port to Build Oil Export Terminal

Port to build oil export terminalPrivate equity firm Carlyle Group will partner with the Port of Corpus Christi, the top oil export hub in the United States, to develop a major crude oil export terminal on Harbor Island.Carlyle's announcement comes as infrastructure in the U.S. oil industry struggles to keep up with record levels of production, driven by the Permian shale patch in West Texas. Both international buyers and American producers are waiting for export capacity to increase.Corpus Christi has its own plan to expand operations to handle larger export tankers.

Dieleman Takes over as Cargill Shipping Head

Commodities trader Cargill has appointed a new head of its shipping business, weeks after announcing it would close its London freight unit amid a worsening global seaborne market. The dry bulk sector, which transports commodities such as coal and grain, continues to suffer from too many ships available for hire and slowing demand for goods, especially from top importer China, which has led to freight rates slumping to record lows. Cargill, a leading shipping player, said on Friday Jan Dieleman had taken the helm since March 1 of its ocean transportation business…

Commodities Trader Trammo Shedding East Coast LPG assets

Commodities trader Trammo Inc is continuing to shed its liquefied petroleum gas (LPG) assets, putting its Newington, New Hampshire, propane terminal on the block and selling a Tampa, Florida, facility, the company told Reuters on Friday. The shakeup comes as the large energy and fertilizer trader is winding down its LPG trading desk following steep losses last year, sources familiar with the matter have said. The New-York based firm in November said it would seek to maximize the value of its waterborne propane terminals across the United States…

FSL Trust Inks Tanker Contracts

FSL Trust Management Pte. Ltd., as trustee-manager of First Ship Lease Trust announced new time charter agreements for FSL Shanghai, FSL Hamburg and FSL Singapore. The Trust has reached an agreement with a leading global commodities trader to charter the three vessels for a fixed period of two years with options to extend the agreements at a higher rate for FSL Hamburg and FSL Singapore for a further six months and FSL Shanghai for a further 12 months. FSL Hamburg and FSL Singapore…

Noble Group Reports $1.75 Bln Q2 Loss

Commodities trader Noble Group reported a second- quarter loss of $1.75 billion on Thursday, weeks after warning it faced its steepest quarterly loss in a year and a half and would slash jobs and sell assets to cut debt. Once Asia's largest commodities trading house, Noble is slimming down drastically to its core Asian coal trading business after a crisis-wracked two years. Last month, it announced the sale of its U.S. gas and power business and began a process to sell its oil liquids unit.

Vitol Returns for $8 Bln Loan Refinancing

Geneva-headquartered energy and commodities trader Vitol has signed an US$8bn loan refinancing of credit facilities agreed in October 2016, the company announced on Wednesday. The revolving credit facility, which is used for working capital and general corporate purposes, comprises a three-year tranche and a 364-day tranche. The three-year tranche totals over US$7bn. ABN AMRO Bank, Commerzbank, Credit Agricole CIB, HSBC Bank and ING Bank were active bookrunners on the transaction.

Glencore Sees Record Oil Trading Volumes as Margins Shrink

Glencore looks set to cement its position as the world's second-largest oil trader as it tries to offset low volatility and tight margins with record volumes this year, its global head of oil, Alex Beard, told Reuters. The London-listed commodities trader and miner will shift around 6 million barrels per day (bpd) of crude and refined product this year, up 25 percent from last year. The figure represents around 6 percent of global supply and only rival Vitol trades more oil, at some 7 million bpd.

Alan Hatton and Roger Woods (Photo: FSL Trust)

FSL Trust Buys MR Product Tanker

FSL Trust Management Pte. Ltd. (FSLTM), as the trustee-manager of First Ship Lease Trust (FSL Trust), announced that FSL Trust has entered into a memorandum of agreement to purchase a 2007, Japanese-built, 45,998-dwt MR product tanker for $21.8 million. The acquisition will be financed through existing cash reserves that totaled $41.8 million at June 30, 2015. The vessel’s delivery is expected between November 1, 2015 and January 31, 2016, bringing FSL Trust’s fleet to 24 vessels: 12 product tankers, three chemical tankers, two crude oil tankers and seven containerships.

Noble Group Founder Resigns Due to 'Amicable Differences'

Noble Group Ltd said this week's resignation of its founder Richard Elman was due to "amicable differences" with the board and a group of senior creditors who are negotiating a debt restructuring that is crucial for its survival. The clarification, in response to a query from the Singapore bourse, comes days after Goldilocks, an Abu Dhabi Financial Group equity fund - a leading shareholder of Noble - filed a lawsuit in Singapore against the firm and some of its former and current senior executives, including Elman, alleging they inflated Noble's assets.