Baltic dry index fell 7.2% last week; The hardest hit, again, were Capesizes with 13.3% loss; Supramaxes and Handysizes lost 4.9% and 5.2%; Panamaxes gained 2.2% .
It looks the baltic dry index is bottoming. The action was in the capesize sector, so Chinese iron ore demand is the game as a consequence of reduced steel margins . Panamax rates are at premium versus Capesizes, so we will probably see balancing by Capsize rates rising.
Chart 1. Baltic Dry Indexes Relative Performance
Source: Bloomberg
Chart 2. Baltic Dry Index
Source: Bloomberg
Chart 3. Baltic Dry Index Components
Source: Bloomberg
