UNITED KINGDOM August 18 2016 3:37 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities down to 685 points on Wednesday driven by higher cape, panamax and supramax rates.
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, advanced further by 06 points to 681 points on Tuesday.
Trading activity in dry bulk transportation market increased last week. Dry bulk shipping index Baltic Dry gained 2.6% and reached 653 points, which was the maximum level since beginning of August.
Increase in trading activity almost in all sectors of dry bulk market supported the index. The sector of large-tonnage Capesize-type vessels was the main driver of dry bulk market.
According to brokers, in the sector of ore and coal trading some recovery of activity was noted in the Pacific Ocean basin.
Market operators hope for some increase in ore purchases, as production of rolled steel in China is expected to go up until the end of autumn. This will probably provoke some growth of raw materials transportation cost.
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