Dry Bulk Weekly – May 3, 2010
Baltic dry index rose 11.3% last week on the back of 21.6% Capesize Index gain. Panamax, Supramax and Handysize Index recorded minor gains.
Capsize rate rose 20% in a single day. Two things could have played a role here: securing a contract ahead of Labor day holidays in China and/or limited capesize vessel availability due to port congestion.
The rumors say that some of Chinese steel mills have secured iron ore contract with mayor iron ore miners with a price discount in comparison to Japanese and South Korean mills. This could provide some price upside for dry bulk rates.
Chart 1. Baltic Dry Indexes Relative Performance
Source: Bloomberg
Chart 2. Baltic Dry Index
Source: Bloomberg
Chart 3. Baltic Dry Index Components
Source: Bloomberg