Baltic index rises as small vessel rates rise
The Baltic Stock Exchange’s main sea freight index rose on Wednesday, breaking a five-game losing streak, as a rise in the smaller panamax and supramax ship segments more than offset a drop in capesize rates.
The Baltic Dry Index, which tracks the rates of capesize, panamax and supramax ships carrying dry bulk goods, rose 6 points, or 0.2%, to 2,801.
The capesize index lost 5 points to 3785.
Average daily earnings for capesizes, which typically carry cargoes of 150,000 tons of coal and iron ore of steel ingredients, fell from $ 37 to $ 31,392.
Chinese hot-rolled coil and rebar futures fell more than 5% on Wednesday as concerns about cuts in steel production eased and construction activity is expected to slow during the next rainy season.
“New real estate starts in China have increased by + 19.0% since the start of 2021. Any slowdown in the growth of new floor space under construction will not immediately translate into a drop in demand for housing. steel and iron ore; developers will likely accelerate property completions from now on, continuing to drive demand, ”shipping broker Intermodal said in a weekly research note dated Tuesday.
The panamax index rose 3 points, or 1%, to 2,857.
The average daily earnings of panamax, which typically carry coal or grain cargoes of around 60,000 tonnes to 70,000 tonnes, added $ 27 to $ 25,709.
The supramax index rose 20 points to 2344.
Source: Reuters (Reporting by Seher Dareen in Bengaluru; Editing by Vinay Dwivedi)