The Baltic Exchange is dropping handysizes from its key dry bulk market index the BDI.
Happy New Year to all. The Baltic Dry Index (BDI) closed at 1,262 points on Wednesday, up 32 points, seeming to extend the course of dry bulk recovery in 2018. New Year optimism some may say, but the high dry bulk index finds its backing on the robust capesize rates.
It was a roaring month with freight rates hitting higher notes and saw the Baltic Dry Index (BDI) reaching a new high. By Wednesday, the BDI climbed to 1,536 points, up 30 or 1.99% day-on-day, inching toward the peak of 1,588 recorded in the late October.
Dry bulk shipowners are not helping their own cause by a failure to scrap vessels, which will lead to an “extremely volatile” market recovery warns Precious Shipping.
The Baltic Dry Index (BDI) achieved a three-year high at 1,588 last Tuesday, thanks to the rally seen among the industrial commodities. In particularly, the prices of base metals have rallied, while iron ore prices are showing a mixed movement but still hovered above the $60 per mt level.
Dry bulk shipping is all the rage. Consider that Scorpio Bulkers (SALT), a bellwether of the sector, has seen its share price strengthen with the seemingly improved dry bulk market.
The Baltic Dry Index (BDI) has reached a 34-months high at 1,355 on Monday before suffering slight drops during the week. The three year high was met early on last Friday, 8 September 2017, at 1,332 points, driven by the seasonal high period of coal and iron ore trade from increased construction activities in China.
After taking various big plunges into the deep, there is no other way for capesize market to go but up. Improved paper market sentiment on paper seems to provide the perfect ingredients for rebound but if there is a need for more cargoes on the physical scene for things to get more rosy.
The dry bulk market had a great run from the fall of the last year until March this year when the BDI reached 1,338 points on 29 March. While freight rates still have been hovering at just above break-even levels, the improvement of the market has been impressive in relative terms; freight rates have quadrupled in the last year, admittedly from abysmally low levels.