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Capesize dry bulk market continues downward spiral, drops 9.2% on Monday

Capesize dry bulk market continues downward spiral, drops 9.2% on Monday
The capesize dry bulk market has continued its downward spiral losing another 9.2% on Monday.

The average spot capesize rate fell by $1,024 to $10,085 per day, and are now little more than half the average daily TC-rate in early August. The Baltic Capesize Index was down 156 points at 1,403 points.

The Baltic Dry Index (BDI) has now slid back under the 1,000 point level, having hit a year high of 1,222 points on 5 August. On Monday the BDI lost a further 26 points to close at 968 points.

The continued fall of the dry bulk market comes at time of turmoil in global markets as whole over concerns over the slowing Chinese economy.

In report last Friday Bimco analyst Peter Sand warned over slowing Chinese steel production with world crude steel production down 2.1% for the first seven months of the year of at 945.8m tonnes. China accounts for 50% of world steel production.

“China is heading for its first annual decline in crude steel production since 1981. This is painful for dry bulk shipowners and operators, as iron ore imports into China is the key market driver,” he commented.

China is expected to import 960m tonnes of iron ore in 2015, out 1.42bn tonnes of seabourne iron ore exports globally this year.