Baltic Dry Index Falls to Multi-Week Low on Weaker Capesize Demand
Cubierto por 3 fuentesPublicado
- Baird MaritimeBaltic dry bulk index slide deepens as Capesize demand falters
- Hellenics Shipping newsBaltic Dry Index Falls to More Than 7-Week Low
- Baird MaritimeBaltic dry bulk index slides into seventh consecutive day of decline
- Hellenics Shipping newsBaltic Dry Index Extends Slide Into 7th Day
- Baird MaritimeBaltic dry bulk index hits two-month low as losing streak stretches to day eight
- Trade newsCapesize rout sees average freight rates drop 20% since Monday
The Baltic Exchange's Baltic Dry Index fell on Monday, October 12, to its lowest level in more than seven weeks, weighed down by weaker demand for Capesize vessels. The benchmark index dropped 65 points (2.23%) to 2,852 points, its lowest since August 21, while the Capesize index plunged 192 points (4.42%) to 4,148 points, its lowest level since late July. By contrast, the Panamax and Supramax indices posted slight gains: the Panamax rose eight points (0.33%) to 2,432 points and the Supramax added seven points (0.39%) to 1,821 points.
That same Monday, iron ore prices fluctuated amid expectations of restocking by Chinese steel mills following a week-long holiday and fears of rising supply. Average daily earnings for Capesize vessels fell US$1,745 to US$34,115, while Panamax earnings rose US$75 to US$21,888.
Seventh consecutive day of declines
On Tuesday, October 13, the benchmark index extended its decline for a seventh consecutive session, shedding 51 points (1.79%) to 2,801 points, its lowest level since August 20. The Capesize index fell 154 points (3.71%) to 3,994 points, also a low not seen since late July. The Panamax index held steady at 2,432 points, and the Supramax index rose 12 points (0.66%) to 1,833 points. Iron ore futures fell that day on ample global supply, high inventories at Chinese ports, and lower freight costs.
Two-month low
On Wednesday, October 14, the benchmark index reached its lowest level in more than two months, posting an eighth consecutive session of losses with a drop of 134 points (4.78%) to 2,667 points, its lowest value since July 29. The Capesize index sank 364 points (9.11%) to 3,630 points, a low not seen since late June, with daily earnings falling US$3,302 to US$29,417. The Panamax index lost 23 points (0.95%) to 2,409 points, with earnings down US$206 to US$21,680, while the Supramax index rose 12 points (0.65%) to 1,845 points. Iron ore futures in Dalian fell on increased blast furnace maintenance in China and higher port inventories in Australia and Brazil.
The slump accelerates
By Thursday, October 15, the decline in Capesize spot rates had intensified, with a drop of just over 8% in a single session, bringing the cumulative pullback in the rate basket to 20% since Monday.
