Dry Bulk Weekly – 16 April, 2010
Baltic dry index rose 3.3% last week. All index components ended in positive territory. Supramax Index outperformed the Baltic Dry Index while Capesize, Panamax and Handysize Index underperformed.
In the last weekly I wrote on new-building deliveries which reached all-time record in firs quarter. In the second hand market we had 157 dry bulk vessels changing hands in March, the second highest number in a month ever.
Chinese iron ore importers are trying to avoid Australian and Brazilian iron ore imports and substituting them with Indian. This is puting pressure on Capsize rates because Indian iron ore is mostly shipped by supramax vessels (port infrastructure limitations).
China port iron ore and thermal coal stockpiles are on the decline for a couple weeks now, China steel price is rising, so I suppose demand for iron ore, coal and dry bulk transport will be steady. The questions are on the supply side as new-building deliveries and easing port congestion could put pressure on shipping 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