UNITED KINGDOM May 05 2017 4:34 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities fell further to 1004 points on Thursday driven by the lower 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, fell by another 34 points to 1004 points on Thursday.
Given the rally’s steep correction and the fact that we are still technically in the spring restocking season, the BDI’s has already seen its spring apex. Later in the year, it is expected that the BDI could experience pressure as China’s infrastructure building winds down.
Another negative fact, China’s recent economic data has been weak with some key figures nearing contraction levels. However; one potential upside factor could be increased demand from the country for imports as it cracks down on its domestic industries that are heavy polluters.