Baltic Dry Index stays above 700 points on Chinese thermal Coal imports

UNITED KINGDOM August 26 2016 6:34 PM

LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities stayed above 700 points as recent coal import data from China supported the sentiment that 2016 could offer a strong finish for the BDI.

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, rose further by 02 points to 720 points on Thursday.

The Baltic Dry Index has surged this week, rallying above 700 points with a large 12-point gain on Thursday to hit 718 points, just a day earlier, the index climbed 14 points, the largest single day gain that the BDI had seen in months.

Data released on Wednesday from the General Administration of Customs showed that China imported 9.31 million mt of thermal coal in July, rising 30.7% year on year and up 23.5% from June to the highest level since December 2014.