Tainted Alpha

Baltic dry index fell 1.6% last week; Capesize Index fell 3.6%; Panamax Index fell also 3.6%; Supramax and Handysize Indexes gained 1.6% and 1.0% respectively.

I added 3 new charts below. Iron ore and steel inventory (5 cities only, but I think it should work as a proxy) and iron ore price. The fundamentals are unchanged, high iron ore price doesn’t warrant steel mills positive margins. Inventory of both iron ore and steel is high.

Chart 1. Baltic Dry Indexes Relative Performance

Source: Bloomberg

Chart 2. Baltic Dry Index

Source: Bloomberg

Chart 3. Baltic Dry Index Components

Source: Bloomberg

Chart 4. China Iron Ore Price Fines CFR Main China Port

Source: Bloomberg

Chart 5. Iron Ore Inventory At Chinese Ports

Source: Bloomberg

Chart 6. China Total Steel Inventory

Source: Bloomberg

Baltic Dry Index, China, Dry Bulk, Iron Ore, Steel

This entry was posted on Monday, August 30th, 2010 at 4:20 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.