London: All eyes will be on the Baltic Exchange today to see if the Dry Index posts a record high for the year today.
Strong Chinese demand for iron ore and coal, growing port congestion in China and Australia and tight ship availability have helped drive a rally in recent days.
The index, which gauges the cost of shipping resources including iron ore, cement, grain, coal and fertilizer, rose 3.97 percent or 157 points to 4,111 points on Friday and was at its highest since June 3 when it hit a 2009 peak in an twelfth straight session of gains.
While iron ore has been the primary driver of the index's growth, coal is expected to kick in during the coming weeks as China and east Asia faces up to an unseasonably early winter with most of northern China reporting temperatures in minus territory for much of the last week. Free heating in China's northern regions started yesterday.
Local governments at all levels should make practical efforts to cope with cold weather and heavy snows, according to China's Ministry of Housing and Urban-Rural Development.
The ministry issued a notification yesterday, asking local governments to ensure supplies of water, gas, and thermal heating in urban areas, and ensure coal supply for heat enterprises. [16/11/09]
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