Baltic Dry Index rises after three weeks of decline

THE Baltic Exchange's main sea freight index - the Baltic Dry - which tracks rates to ship dry commodities, rose for the first time in over three weeks on Monday as a pick up in cargo activity bolstered sentiment, reported Reuters.

The index rose 1.11 per cent, or 24 points, to 2,179 points in the first gain since October 28, after having drops in 17 consecutive sessions, a fall of more than 20 per cent. The index peaked at 4,200 points in May.

Brokers attribute the increase to higher iron ore shipments from Australia and Brazil, stronger coal demand from China and the need for bigger ships to move cargo it after India cut back exports to enforce a ban against illegal mining.

"With fewer Indian exports, Chinese steel mills will have to look for volumes from Brazil and Australia, boosting capesizes as Indian exports usually favour supramaxes," Arctic Securities said.
(Source:www.schednet.com)