Baltic Dry Index At 1709, Down 4.5%

As I wrote in Dry Bulk  Weekly it appears that Chinese removal of steel export tax rebates is a complete game changer for the industry. The slowdown in Chinese iron ore imports is easing port congestion which tied approximately 20% of the world fleet a few weeks ago. The port congestion has since then eased by a third. New-building deliveries were also strong in the first half of the year. All this has change the dry bulk demand/supply balance really fast. It’s hard to imagine a recovery in rates with this kind of fundamentals setup.

Chart 1. Baltic Dry Index

Source: Bloomberg

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This entry was posted on Wednesday, July 14th, 2010 at 7:14 am and is filed under China, Commodities, Markets. 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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