UNITED STATES March 20 2017 3:18 PM

LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities climbed further to 1196 points on Friday led by higher cape and supramax index.

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 further by 24 points to 1196 points on Friday. 

It is now at its highest since early December and is quickly approaching its 2016 peak of 1,231 points. 

Driving the BDI’s ascent is an increased demand for raw materials in China as the country stockpiles with the peak building season quickly approaching. Higher demand for iron ore is boosting the capesize component of the BDI index.