- Strong iron ore demand from China lifts Capesize index
- Panamax index increases for nine consecutive sessions
Mysteel Global: The Baltic Exchange’s dry bulk sea freight index (BDI), a crucial gauge of global dry cargo market conditions, increased to its highest level in three weeks on 28 April, mainly bolstered by rising rates for large vessels, sources observed.
The composite index, which tracks rates for Capesize, Panamax, and Supramax vessels, advanced by 30 points or 2.18% d-o-d to 1,403 points on Monday, marking its highest level since 7 April.
In particular, the index for Capesize vessels, which typically transport 150,000-tonne (t) cargoes such as iron ore and coal, jumped by 91 points or 2.3% d-o-d to 1,980 points on 28 April, with average daily earnings for such vessels growing by $753 to $16,420.
The strong increase partly reflected resilient demand for iron ore from China, the world’s largest iron ore importer, as local steelmakers are still active in ramping up production.
For example, the daily average hot metal output produced by the 247 Chinese integrated mills under Mysteel’s tracking touched a 1.5-year high over the week of 18-24 April.
On 28 April, the Panamax index, which monitors rates for vessels carrying 60,000-70,000 t of coal or grains, rose for nine straight sessions to 1,395 points, though the latest d-o-d rise was small at 3 points. By the same day, the average daily earnings for Panamax vessels also climbed up by $27 to $12,555.
Tracking rates for smaller vessels with a carrying capacity of 48,000-60,000 t, the Supramax index, however, eased 2 points d-o-d to 975 points on 28 April.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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