Dry Bulk Weekly – May 3, 2010

Baltic dry index rose 11.3% last week on the back of 21.6% Capesize Index gain. Panamax, Supramax and Handysize Index recorded minor gains.

Capsize rate rose 20% in a single day. Two things could have played a role here: securing a contract ahead of Labor day holidays in China and/or limited capesize vessel availability due to port congestion.

The rumors say that some of Chinese steel mills have secured iron ore contract with mayor iron ore miners with a price discount in comparison to Japanese and South Korean mills. This could provide some price upside for dry bulk rates.

Chart 1. Baltic Dry Indexes Relative Performance

Source: Bloomberg

Chart 2. Baltic Dry Index

Source: Bloomberg

Chart 3. Baltic Dry Index Components

Source: Bloomberg


This entry was posted on Monday, May 3rd, 2010 at 3:30 am and is filed under Commodities, Dry Bulk Weekly. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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