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Baltic Dry surge seen ending on reduced China ore demand

Dalian: The Baltic Dry Index (BDI) has surged 400 points over the past month putting it into very comfortable earnings territory for shipowners, with one Greek broker reporting capesizes have been fixed at $42,000.
Iron ore imports to China have been at consistent record monthly totals from February to April, thanks in part to the low spot ore price - its lowest in four years.
Seatrade Asia Online though warns owners to hold back on the champagne just yet. Newbuild capesize deliveries are set to enter their peak season starting now. Also, from mid-April steel production in China stuttered. Of further concern for owners is the dramatic build up of iron ore stockpiles at every major port in China - there is far too much iron ore for limited demand. Seatrade Asia Online is predicting China iron ore imports - the driver for the current and previous BDI runs - will slide from May through to the end of the year. [14/05/09]

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