UNITED KINGDOM October 06 2016 10:38 AM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities bounced back on Wednesday, after seven consecutive sessions of losses, amid some increased optimism for shipping demand when Chinese businesses open from their week-long holiday next Monday.
The Baltic Dry Index, which provides an assessment of the price of moving the major raw materials – such as coal, iron ore and grain – by sea by taking in 23 shipping routes measured on a time charter basis, gained by 09 points to 869 points on Wednesday.
Chinese markets are closed this week, and that could have impacted shipping demand into China last week ahead of the holiday, while decreased demand likely also persisted into this week.
But, the slowdown will likely result in an uptick in activity next week as users of commodities play catch-up, continuing their seasonal stockpiling ahead of winter.