Dry Bulk Weekly – May 17, 2010
Another strong week for dry freight. Baltic dry index rose 8.9% last week, again on the back of 10.5% Capesize Index gain. Panamax, Supramax and Handysize Index also recorded gains, but underperformed the broader index suggesting that iron ore is the game.
On the positive side we have China steel inventory coming off, decreased China coal inventory and softer iron ore prices, on the other side we have port congestion falling and a world of debt problems. Looks freight market is ahead of itself.
Chart 1. Baltic Dry Indexes Relative Performance
Source: Bloomberg
Chart 2. Baltic Dry Index
Source: Bloomberg
Chart 3. Baltic Dry Index Components
Source: Bloomberg