Baltic Dry still pancaked

Via Reuters:

* The Baltic index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities, rose 7 points, or 1.7%, to 418.

* The main index slid to its lowest level since March 2016 in the previous session.

* Demand has already been hit strongly in China, which accounts for almost 40% of total dry seaborne imports, Charles Chasty, research analyst at Affinity Shipping, told the Reuters Global Markets Forum.

* “We expect the coronavirus, should it last for a while longer, to have a more deteriorating impact on the dry bulk market, owing to China’s dominant position within the market.”

* The capesize index gained 1 point but still stood at negative 253. The index broke a streak of 42 consecutive sessions of falls.

* “The sharp drop-off (in capesize segment) can best be attributed to the coronavirus and the new dynamics of IMO 2020, as well as it being a seasonally low period,” Chasty said.

I still can’t find a reason to bid up iron ore!

David Llewellyn-Smith
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