News ID: 77848 |
Publish Date: 08:53 - 25 December 2017

Dry bulk's Recovery is Crystal Clear

THE Baltic Dry Index, a measure of shipping health, has closed 2017 at a much higher level than this time last year. the BDI ended the year at 1,366 points versus 928 points on December 22, 2016.

Dry bulk
According to MANA, driven by China's demand for raw materials such as iron ore and coal, the dry bulk market had a lot to smile about, particularly for those involved in the capesize sector.
Against the odds, China's steel production grew 5.7% to 765m tonnes between January and November, according to latest data from the World Steel Association. 
And the world's second-largest economy has also been importing soybeans in increased quantities.
According to Banchero Costa, China’s consumption of soybeans is expected to grow by 7.4% to 91.3m tonnes in the 2017/18 season.
Should the demand pull continue, the dry bulk market should expect higher earnings in 2018provided fleet growth is kept at bay.
Capesize earnings topped the charts, with an average of $15,129 per day in 2017. Earnings reached an almost four-year high of $30,475 per day on December 12 and closed Friday at $19,341. That compares with $25,859 a week ago and $8,605 a year ago. 
Panamaxes averaged the year earning $9,766 per day. The segment closed Friday at $11,183 per day, versus $13,421 a week ago and $6,935 a year ago, according to the Baltic Exchange.
Supramaxes, meanwhile, were not far behind, averaging the year at $9,345 per day. The vessel class closed Friday at $10,478 per day, compared with $10,817 on December 15 and $8,896 exactly a year earlier.
Handysizes scored an average of $7,636 per day through 2017, and closed out the year at $9,104 per day. That compares with $9,276 a week ago and $8,565 a year ago. 
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