BRIEFING.COM - Wednesday 21 July, 2010 @ 14:42 ET
Color on strength in dry bulk index
Baltic Dry Index (BDI), which is a measure of global trade, has nowposted gains for its fourth day in a row after declining for 34 consecutive sessions, its longest losing streak in 15 years.
The BDI is an assessment in price of all the major raw materials transported by sea. Since the index measures end demand for commodities aboard bulk carriers, including cement, coal, iron ore, steel and grain, it is used as a barometer of economic demand.
Today, the Baltic Index rose 1.1% to 1,781 as the Panamax Subindex, which rose 2.3% to 2,207, continued to lead the way. The BDI is still 57.7% off of the recent high of 4,209 hit on May 26. The other three subindices were mixed today: Supramax +1.3% to 1,692, Handysize +1.3% to 957 and Capesize -0.3% to 1,752.
The sharp decline this summer came largely because China reduced its demand for iron ore imports, which are shipped on Capesize vessels. The Capesize Subindex led the BDI lower. However, recent commodities demand, including demand from China, has given the index a boost. Recent strength could also be attributed to China COSCO, the largest dry-bulk operator in the world, saying that it's expecting to return to profitability for the first half of the year (co will report 1H10 results on Aug. 26). Dry-bulk shipping stocks hit new 52-week lows earlier this month, but have outperformed the broader market since then.
on 23 july, Bloomberg
Neptune Orient Lines Ltd., owner of Asia’s largest container shipping line, signed a $1.2 billion order for as many as 12 container vessels as a rebounding global economy revives world trade. (Bloomberg)
Singapore Stock
Singapore’s Straits Times Index climbed 1 percent to 2,955.67. (Bloomberg)
Cosco Corp. Singapore Ltd. (COS SP),a China-based shipbuilder that also operates bulk carriers, surged 6.6 percent to S$1.61. The company said it won a $500 million contract build a deepwater drillship. (Bloomberg)
No comments:
Post a Comment