Baltic Dry Index reached 1200 points


Last week Baltic Dry Index gained 47 points, or 3.92%, reaching 1200 points. On Friday, the index decreased for the third consecutive session, after reaching its four-month high at 1266 points on Monday, reports UkrAgroConsult.

The drop in Capesize index was conditioned by the reduction in demand for large-tonnage shipments of dry cargoes. However, brokers remained optimistic about steel transportation to China, due to the efforts of Chinese authorities to reduce foundry capacity and lower production for environmental reasons. The decline was also observed in the Panamax market. On the contrary, Supramax index hold the bullish trend due to intensified grain supplies and an increased demand for soybean. Brokers expect that the weakness of BDI is temporary and they hope that Baltic Freight Index will be able to break the record of this year at 1338 points, which was set in March.



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