Dry Bulk Weekly – February 21, 2011

February 21st, 2011 by Belisarius

(For The Week Ending February 18, 2011)

Baltic dry index rose 10.4% last week; Capesize Index was down 2.2%; Panamax Index rose 23.7%; Supramax Index increased 11.9%; Handysize Index rose 3.2%.

Shipping rates are rising after the lunar new year as Chinese buyers returned to the markets

Stockpiles of iron ore unchanged at record high, iron ore price rising. Steel inventories are going vertical and moving towards record highs. Thermal coal stockpiles ticked upwards.

I would expect further gains in rates because of low level from which the after holiday recovery started. Overall stockpile data paints kind of worrying picture of Chinese economy.

Longer term – I expect that rates will be on average bellow break-even (2.200 on BDI) for next couple of years on oversupply of vessels.

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This entry was posted on Monday, February 21st, 2011 at 4:50 am and is filed under China, Commodities, Dry Bulk Weekly, Shipping. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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