Baosteel forecasts hard time for sector

Baoshan Iron and Steel Co forecasts a challenging second half for the domestic industry, squeezed by lower product prices and higher production costs, in contrast to its blistering interim results Slowing domestic demand and a sharp fall in exports - following the removal of export tax rebates - will put pressure on domestic prices, Ma Guoqiang, the company's general manager, told an online briefing yesterday with investors.
"Profit in the second half for the domestic steel industry will slide from the first half," Ma warned.
Higher iron ore prices in the second half of this year will challenge Baosteel, which relies on imported ore for its needs, China Securities analyst Wang Zhe said.

Could the BDI be used as aleading economic indicator?????

There's plenty of talk about how this is a signal of collapsing global demand, and a confirmation that we are indeed headed for a double dip. Well it could be saying that. Or it might not be. But before you jump to any conclusions, you should at least know what the BDI is really measuring.  Here's part of what our Vincent Fernando wrote (then an occasional contributor):

But essentially one problem with using the BDI for economic forecasting is that the BDI could feasibly  go up in an environment where commodities demand was shrinking, if the supply of ships was shrinking even faster. These would be negative economic factors. This is because the BDI's value is not solely driven from the demand side.

The Baltic Dry Index Has Exploded Higher And The Silence From The Bears Is Deafening

Earlier this year when the Baltic Dry Index (BDI), a measure of shipping rates for dry bulk commodities, was plummeting, many were to quick to point out that this 'signaled' an end to the global recovery, even though the Baltic Dry Index is lousy, if not completely useless, as a leading indicator for the global economy.

Yet now the index has rebounded extremely hard over the span of just two weeks... and the silence from the bears who earlier touted the BDI as 'evidence' is deafening:

Sustained recovery in Baltic Dry Index?

Aug. 30--The Baltic Dry Index (BDI), which tracks global shipping prices of various dry bulk cargoes, has shot up sharply in the last 42 days. The index has gone up by 60% to 2,712 points as on 27 August from its 12-month low of 1,700 seen on 15 July. This increase can be mainly attributed to higher iron ore imports to China, the world's largest iron ore consumer. Iron ore is one of the major dry bulk commodities transported through sea.The BDI, which is normally considered a good economic indicator, had touched a record high of 11,793 points on 20 May 2008 before falling dramatically during the global financial crisis. A rise in the index is said to indicate that global economy is picking up.

Actually, There Were Bright Spots In Friday's GDP Report

The Bureau of Economic Analysis, which last month had estimated that U.S. real GDP had grown at a 2.4% annual rate during the second quarter, today revised that estimate down to a 1.6% annual rate. But the revision isn't quite as discouraging as it might sound.

Oil hovers near $75 as global stocks rally

Oil prices hovered near $75 a barrel Monday in Asia, buoyed by rallying global stock markets and improving investor sentiment.

Benchmark crude for October delivery was down 38 cents at $74.79 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.81 to settle at $75.17 on Friday.

Federal Reserve Chairman Ben Bernanke said Friday the central bank was ready to step in if the U.S. economy showed further signs of weakening. Bernanke's comments sparked a stock market rally, with the Dow Jones industrial average jumping 1.7 percent Friday.

2d-quarter GDP slows while imports surge.

WASHINGTON - The nation's economy grew at a much slower pace this spring than previously estimated, mostly due to the largest surge in imports in 26 years and a slowdown in companies' restocking of goods.

The nation's gross domestic product - the broadest measure of the economy's output - grew at a 1.6 percent annual rate in the April-to-June period, the Commerce Department said Friday. That's down from an initial estimate of 2.4 percent last month - though it's not as bad as expected - and much slower than the first quarter's 3.7 percent pace.

WEEK34 - Dry Cargo Market “Highlights” – 20-August-2010 until 27-August-2010

This was a mixed feeling week. A breather you may say. The large Capes and Panamaxes suffered minor losses, and the smaller two Supramaxes and Handymaxes made minor gains. Overall the general index fell and the overall sentiment is that the overwhelming increased was too rapid and had to correct somehow. Still there are many ships chasing lesser/fewer cargoes and this imbalance of the market is self‐implicated and will sooner become far worse than better. Have owners been shooting at their own feet? Definitely YES!

The shipping markets seem to have regained a great share of the heavy losses encountered during the first two months of this summer period and before August says “kalo xeimona” ‐ a Greek traditional wish for a pleasant winter ‐ to us, we will be in a positive situation where we recovered a great percentage share of the heavy losses in both the indices and actual daily freight hire. The shipping markets were greatly assisted, by the added momentum that were offered in the past 2 weeks by the Capes and the Supramaxes. However the underlying global market fundamentals still pose a great degree of an uncertainty level although overall the picture looks much better than 2 months ago.

China's Wen Urges New Phase In Trade With Japan

Chinese Prime Minister Wen Jiabao says China and Japan should face the global financial crisis together and create a new era in trade between two of the world's largest economies. Wen made the remarks in a meeting in Beijing on August 29 with Japanese Foreign Minister Katsuya Okada. Wen said China and Japan have common interests in pushing forward  regional cooperation, advancing the reform of the global economy and opposing trade protectionism.

Fortescue announces 44% increase in iron ore shipments

Pushes ahead with expansion plans for its mining and export activities

FORTESCUE Metals announced a 44% year-on-year increase in iron ore shipments for the 12 months ending in June, as it pushes ahead with expansion plans for its mining and export activities, writes Liz McCarthy.

The Australian mining company — which uses the tagline ‘The new force in iron ore’ — saw the volume of ore shipped in the full year 2009-2010 reach a record 40.1m tonnes, up from 27.8m tonnes in the 12 months to June 2009.

Crude oil: Weak global outlook, a major worry

The price of crude oil price in the global markets moved up marginally after hitting a 75-day low on Wednesday. This appears to be more of a technical bounce-back while changes, if any, in fundamentals are on the negative side. Given the scenario of oversupply, it is sentiment and liquidity that will continue to drive crude oil prices globally.

The uptick in oil prices came on the back of US inventory data, which was substantially higher than overall expectations. The country added 4.1 million barrels of crude oil to its already high reserves for the week ended August 20 as demand fell woefully short of supply.

Euro climbs on dollar ahead of Bernanke speech

The euro is up against the dollar as markets await a speech by the head of the U.S. Federal Reserve for any signs the central bank will take measures to bolster the U.S. economy The euro, used by 16 nations, bought $1.2724 early Friday, up from $1.2703 overnight in New York.

Fed Chairman Ben Bernanke is to give an address later Friday and markets are hoping for indicators on policy after a run of weak economic data. Also due is the latest estimate of U.S. economic growth, expected to be revised down.

In other currencies, the British pound slipped to $1.5517, down from the $1.5526 late Friday.

The dollar climbed to 84.74 Japanese yen, up from 84.38 yen late Thursday and the 15-year low of 83.61 yen it hit Tuesday.

Source: Associated Press

Snapshot of economy about to get a lot bleaker

The government is about to confirm what many people have felt for some time: The economy barely has a pulse.The Commerce Department on Friday will revise its estimate for economic growth in the April-to-June period and Wall Street economists forecast it will be cut almost in half, to a 1.4 percent annual rate from 2.4 percent.

Baltic index falls, trend seen weaker for now

* Capesize activity slows - * Growing ship supply weighing on market -

LONDON, Aug 26 (Reuters) - The Baltic Exchange's main sea freight index .BADI, which tracks rates to ship dry commodities, fell on Thursday for a second day due to slower activity, growing vessel supply and a weaker outlook.

The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, fell 2.52 percent, or 70 points, to 2,703 points. Prior to falling on Wednesday it had risen for 14 straight sessions.

ICBC, BOC set to see slower growth after strong Q2

Top Chinese lenders ICBC and Bank of China signaled a peaking of earnings growth after strong second-quarter profits, as they slow their lending and focus on asset quality. Chinese banks have benefited over the past year from a jump in interest income and improving margins after the government backed them in a 2009 lending boom to stimulate the economy.
But many fear they may soon have to pay the piper as China tightens liquidity to cool a racing economy, and as regulators require them to prepare for an increase in bad loans if the real estate market starts to decline.

China calls for further coal industry consolidation

China called for further mergers and consolidation in its massive coal industry to eliminate outdated capacity and improve efficiency, its cabinet, the State Council, said on its website on Thursday Beijing will support both state-owned and privately-owned coal companies to conduct mergers and acquisitions, not only within the coal industry, but also in the power, metallurgy and chemical industries mainly through equity transactions and shareholding, as discussed at a State Council meeting this week.

Nouriel Roubini: Double-Dip Odds Now Greater Than 40%, GDP To Be 'Pathetically Lousy'

If you're looking for signs that the U.S. economy is on the mend, you may want to steer clear of Nouriel Roubini's Twitter page.

The famed economist set off waves yesterday when he tweeted: "Q3 GDP growth very likely to be below 1 percent; and likely to be closer to 0% than to a pathetically lousy 1 percent. So double dip risk is now > 40 percent."

Roubini, who is the chairman of Roubini Global Economics and a professor at NYU's Stern School of Business, called into CNBC this morning to explain his statement.

Baltic index rises again, pace of gains slows

* Overall trend still seen fragile

* Smaller ships supported by grains activity

By Jonathan Saul

LONDON, Aug 24 (Reuters) - The Baltic Exchange's main sea freight index .BADI, which tracks rates to ship dry commodities, rose to its highest in over two months on Tuesday helped by cargo enquiry although the pace of gains was slower.

The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, rose 0.7 percent, or 20 points, to 2,861 points in a 14th session of gains and was at its highest since June 16. It has risen over 40 percent since it began moving higher on Aug. 5.

Shipping industry optimistic despite weak economic indicators

The shipping industry has shrugged off concerns about a possible severe downturn in cargo export volumes from the mainland following last month's decline in manufacturing output, reported the South China Morning Post. Peter Sand, a shipping analyst with the Baltic and International Maritime Council, which has about 1,000 international shipowners as members, said: "Volumes will remain at current levels throughout the third quarter, or they may be up a bit. But we have seen very strong volumes already in the second quarter and I foresee this to be the absolute peak in the peak season."
His views were echoed by Stephen Ng Siu-kow, a director of corporate planning at Orient Overseas Container Line, who said that despite the softening of the mainland's purchasing managers' index and other indices last month, "we have not seen any impact yet" on the number of containers aboard its ships on the mainland.

Through a Joint Venture, Rio Tinto Strives to Repair Its Relations With China

SHANGHAI — Not long ago, China and the British-Australian mining giant Rio Tinto seemed to be locked in battle. 

First, Rio rebuffed a proposed $19.5 billion investment deal with the Aluminum Corporation of China, or Chinalco, one of the biggest state-run companies. Then, China arrested and convicted four Rio employees, including an Australian citizen, of taking bribes and stealing commercial secrets from Chinese steel makers.

Rio and other iron ore producers then introduced a quarterly iron ore pricing method that the Chinese authorities did not like.

But last month, Rio signed a deal to develop with Chinalco a huge iron ore project in the West African country of Guinea. And this last week, on a visit to Shanghai, Thomas Albanese, Rio’s chief executive, posed for photographs with Chinese officials and declared China not just a customer but a partner.

Commodity Trends: Indices fall except Baltic Dry

Commodity Online Last week US jobless claims data increased concerns that US may be tipping back to into recession and The Reuters/Jefferies CRB Index of 19 raw materials dropped to the lowest level since July 29, while the dollar advanced. This resulted in weakness in gold, base metals and energy complex.

The Baltic Dry Index, a measure of commodity shipping costs, had its biggest two-week gain in 14 months as Chinese iron ore buying extended a surge in charter rates for vessels that carry the steelmaking raw material.

Asia overtakes Europe as leading destination for South African coal

Increased demand from China fuels growth 

SOUTH Africa’s Richards Bay Coal Terminal is exporting more coal to Asia than to Europe for the first time as economic growth in China stokes demand, reports Bloomberg.

Producers increased shipments to Asia by 45% in the first seven months of the year and cut those to Europe by 41%, according to two of India’s three biggest coking-coal consumers.

“Europe didn’t really need the coal this year because of high stocks and low burn at UK and European power stations,” Julie Sharp, head of coal trading at Essen, Germany-based RWE AG, the nation’s second-largest utility, said.

“It took a little while for Asian buyers to respond.”

Asian appetite is soaring just as European demand falls amid a clampdown on greenhouse gases and concern government spending cuts and tax increases will hamper economic recovery in the UK.

Two different tales in key sectors

Shipping income rises in H1 with good prospects; tourism hurting from Greece’s tarnished image

Greek shipowners have continued to order new vessels despite the economic downturn, awaiting better days in global trade but experts warn against the risk of overcapacity, which could weigh on the freight rate down the line.By Stelios Bouras - Kathimerini English Edition

With Greece in the midst of a severe recession, two of the country's most crucial sectors, shipping and tourism, are telling two different stories.

Data from Bank of Greece (BoG) released yesterday showed that the global environment had a different impact on the two industries in the first half of the year, creating opposing outlooks for the remainder of 2010.

Greek shipowners, who possess about 20 percent of the world's fleet, raised 7.7 billion euros in income between January and June, up from 6.7 billion in the first half of 2009. The figure stood at 9.4 billion midway through 2008.

«We have covered half of the ground lost last year,» Yiannis Cotzias, the CEO of shipbroker Cotzias, told Kathimerini English Edition. Solid demand from China is helping support freight rates, while improved investor sentiment has increased risk appetite in a sector that is starting to see more finance available for operations. «Credit has started to flow. There is heavy scrutiny but the banks are offering credit, in conditions similiar to those seen in the 1970s and 80s,» Cotzias said.

WEEK33 - Dry Cargo Market “Highlights” – 13-August-2010 until 20-August-2010

Another positive week in all size segments with all 5 Baltic Indices to be “green” once more. It was the Capes that threw the party last week, this week we can say it may well be the Supramaxes that have that extra bit of flare. In general the Capes showed since end of last week a small slack, with a minor fall of 18 points in total but overall the week ended well for all 4 subindices that performed positively for all 5 working days of week 33. The BDI seems to be running a mini rally of 13 consecutive positive days (Since 4th August 2010).

Chinese Bulk Demand to Drive Advance in Baltic Dry Index, Cosco Forecasts

The Baltic Dry Index, the main measure of shipping costs for commodities, will extend a 46 percent rally over the past month driven by Chinese demand for iron ore and grains, China Ocean Shipping (Group) Co. said.

“The rebound may be bumpy, but in the final quarter the index should be much higher,” said Kong Fanhua, a Beijing-based senior researcher at the owner of the world’s largest operator of dry-bulk ships. Kong, who declined to give a forecast in figures, correctly called a rebound in the index last September.

The Baltic Dry’s rally has come even as signs mount that the global recovery may be sputtering, including economic growth data from Japan yesterday that missed analysts’ estimates. The index may surge to more than 4,000 points by the end of the year, a gain of at least 61 percent, according to Hanjin Shipping Co., South Korea’s largest shipping company.

STRATFOR: Here's Why China's Economy Is Far Worse Than It Seems

Research firm Stratfor has released a short video outlining their view on the Chinese economy. They basically explain how Chinese GDP growth has been achieved with very low profit margins using low cost manufacturing as a competitive advantage. Thus while there has been massive GDP growth, much of this could be simply products flowing through the economy, rather than substantial profit generation, etc.

Thing is, while a good refresher of one of China's major problems, and a valid criticism of much of China'd GDP growth, their view is a bit dated, yet highlights an important caveat for any international observer -- be careful not to view China through prism of the last decade.

When Will China Become No. 1? Predicting GDP Growth

In case you haven’t heard, according to figures released earlier this week, China has surpassed Japan as the world’s second economic power, its GDP now second only to that of the United States. The news wasn’t shocking: economists had expected this to happen for a while now. But it still served as a wake up call to the fact that emerging economies are growing at a much faster rate than those of developed countries.

Granted, the United States is still the clear world clear leader in terms of GDP (note that we are talking about GDP, not GDP per capita), but for how much longer?

Baltic index rises, fleet growth weighs on market

The Baltic Exchange's main sea freight index .BADI, which tracks rates to ship dry commodities, rose on Wednesday although slower activity and growing fleet supply were weighing on market sentiment.The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, rose 1.71 percent, or 43 points, to 2,558 points in a 10th session of gains. "After the very rapid rises last week in the capesize sector we are seeing some sideways movement with very little movement in rates,"

Global wheat supply forecast cut

Global wheat supply forecast cut

The USDA cut the forecast for global
production in 2010-11 by 2.3%

The US Department of Agriculture (USDA) has sharply cut its outlook for world wheat production after revising down its crop forecast for Russia. Global production would be 15.3m tonnes lower at 645.7m tonnes, it said.The production outlook for Russia, which has seen its crops devastated by drought and extreme heat, was lowered by 15% to 45m tonnes. Neighbouring Kazakhstan also had its forecast cut. But world wheat stocks still remain above crisis levels seen in 2007-08.The USDA said stocks would fall from just under 194m tonnes to 174.8m tonnes.

Philippine GDP growth to hit 5%-7%

The Philippine economy is forecast to grow 5 percent this year and 7 percent in the next five years, a level that is expected to slash the country's high poverty level. Socioeconomic Planing Secretary Cayetano Paderanga said Wednesday that the country's economic managers will pursue an " inclusive growth framework."
"At these growth rates and given the right policies, economic gains will translate into higher per capita income and effectively reduce poverty," Paderanga told reporters.
The Philippines has once of the highest poverty rate in the region, with about a third of its nearly 100 million population living on less than two U.S. dollars a day.
Paderanga said that "high and sustained growth" will create jobs and reduce poverty. This is why it's important to encourage investments in the country.
"The government will provide an enabling environment for private sector investment and entrepreneurship through a stable macroeconomic environment," he said,.
He added that sound and consistent public policies, increased investment in infrastructure and effective anti-corruption measures will help in raising investor confidence in the Philippines.

Source: Xinhua

Iron ore exports to hit 1.7bn by 2015

Australian and Brazilian port capacity to rapidly expand to cater for boost in mining production IRON ore seaborne exports are forecast to double over the next five years to 1.7 bn tonnes, with dominant miners BHP Billiton, Rio Tinto and Vale delivering most of the new capacity.

Based on fresh analysis from DnB NOR Markets, Australia will retain its position as the world’s largest iron ore exporter, rising from 381m tonnes in 2009 to 779m tonnes in 2015. Brazil exports were forecast to grow a little slower in the next two years, from 295m tonnes in 2010 to 324m by 2012, but then jump sharply to 560m tonnes by 2015.

Supramax built in 2003 fetches $29m-$30m

STX Pan Ocean was the talk of the secondhand market after it achieved “an impressively firm” $29m-$30m for an eight-year-old supramax this week.

The South Korean shipping company was reported to have sold the 2003-built, 52,191 dwt New Orion to Indian buyers, for a price that was in line with the Baltic Exchange’s assessment for vessels three or four years younger.

“Whilst this is down on sales reported in May and June it is better than recent market expectations,” HSBC Shipping reported.

Rival Clarksons said the “impressively firm” price was down to a prompt charter-free delivery in October.

Another firm price was paid by Vietnamese buyers for Tsurimi Kisen’s 2002-built, 18,721 dwt Mining Star, a dedicated coal carrier, which was sold for $14.2m.

Other than these modern sales, the majority of deals concluded in the secondhand market were for tonnage built in the 1980s and 1990s at low prices.

Source: http://www.lloydslist.com/ll/sector/dry-cargo/article342852.ece  --- by Liz McCarthy

Indian iron ore loses out in china

India’s iron ore exports to China fell sharply in July. Reasons: China’s ban on low-grade iron ore imports and Karnataka’s move to ban exports from its ports.

The Federation of Indian Mineral Industries (Fimi) said exports to China fell around 30 per cent in July and predicted a further fall if corrective measures were not taken.

In April, China banned import of low-grade iron ore. Since India’s annual ore exports of around 115 million tonnes are largely (effectively 90 per cent) to China, the ban has hampered mining. Barring committed quantities for which contracts were signed at least two to four weeks in advance, no major deals have happened since April.

Baltic index rises, cargo enquiry improves

LONDON, Aug 17 (Reuters) - The Baltic Exchange's main sea freight index .BADI, which tracks rates to ship dry commodities, rose on Tuesday as firmer enquiry on iron ore cargoes to China boosted sentiment on the larger capesize vessels.The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, rose 1.09 percent, or 27 points, to 2,515 points in an ninth session of gains.

Brokers said freight activity had been driven by Chinese iron ore imports from Australia and Brazil on capesizes after Karnataka, India's second-largest ore producing state, banned exports from 10 of its ports in the past month.

Chinese owners seek to join Baltic Exchange

The China Shipowners’ Association has applied for membership to the Baltic Exchange for the first time.

The move comes as the country’s owners and operators engage further with the London-focused shipping indices provider and the Baltic seeks to maintain its influence.
“It reflects the more outward-looking approach of China in the context of shipping and it reflects the good standing of the Baltic in China,” said Baltic Exchange chief executive Jeremy Penn.

China's economy as No. 2: How it's playing in Japan

Some Japanese hope the news that China's economy has bumped Japan's as the world's second largest will serve as a wake-up call. Most Japanese knew this day was inevitable.

China finally overtook Japan and became the world’s second-biggest economy, according to data released this week in Tokyo, which showed minimal GDP growth in the land of the rising sun, while its huge neighbor continued its blistering rise.

While some observers say the change in the economic world order is “purely symbolic,” others say it should act as a wake-up call to both countries – Japan to get its economic house in order, China to become more politically responsible.

Japan's GDP Growth Slows as Consumption, Exports Slacken

TOKYO—Japan's economic growth slowed sharply in the second quarter, coming in well short of expectations as stagnant consumption and flagging exports weighed on an economy already hobbled by deflation and a soaring yen.

The data add to widespread concerns that Japan's fragile economic recovery may be running out of steam as growth in key export markets also slows. The weak numbers also come just as China looks set to overtake its east Asian neighbor as the world's second largest economy.

But it also comes as Japan faces pressure to tame its massive public debt, making new government stimulus efforts unlikely for now.

Baltic Trading: Cheap Vessels Pay the Dividend

By Tiernan Ray

This afternoon I had a chat with John Wobensmith, the chief financial officer of Genco Shipping (GNK), and also president and CFO of Baltic TradingBALT), which came public back in March. He is, in fact, the sole employee of Baltic, which was created last year by Genco as a way for investors to bet on the Baltic Dry Index, widely considered the leading barometer of how the shipping business is doing.

The premise: While most drybulk shipping firms contract their ships for months or years into the future, Baltic charges customers the spot market price based on the weekly average of the Baltic Index. That aligns its revenue directly with what the Index is doing.

Baltic’s fleet is managed by Genco, so Baltic is a kind of a virtual company, formed to acquire ships cheap and to pay out dividends.

China Economy Surpasses Japan, Capping Three-Decade Rise

China surpassed Japan as the world’s second-largest economy last quarter, capping the nation’s three- decade rise from Communist isolation to emerging superpower.

Japan’s nominal gross domestic product for the second quarter totaled $1.288 trillion, less than China’s $1.337 trillion, the Japanese Cabinet Office said today. Japan remained bigger in the first half of 2010, the government agency said.

China Government Think Tank Sees 2nd-Half GDP Growth Slowing - Report

BEIJING (Dow Jones)--China's gross domestic product growth is likely to fall to about 9.2% in the third quarter and to 8%-8.5% in the fourth quarter, but the government isn't likely to change its economic policies in the third quarter, a director at a government think tank said in a question-and-answer article in the overseas edition of the People's Daily on Monday.

Many uncertainties clouding Chinese steel market

Chinese steel market sentiment is heavily impacted by the European debt crisis, governmental real estate policy and rising output. Looking forward to the future steel market, there are many uncertainties now: 1. How would the Chinese government handle with the economic growth rate decrease?
Some analysts consider the government will enlarge its investment on the construction of infrastructure, key projects and residential housing in the future if the domestic economy growth rate keeps falling. Therewith, Chinese steel market will bottom out as a result.

The world isn't flat. But the market is.

What do pancakes, tapeworms, old soda and the stock market have in common? They're all flat. With seven months of 2010 in the can, stocks are trading right about where they began the year. The Dow closed at 10,428.05 on December 31, 2009. It opened on Monday at 10,424.17.
Of course, this long journey back to where we started has hardly been boring. Stocks have been on a wild roller coaster ride. They surged on economic recovery hopes in the first quarter -- only to plunge in the second quarter thanks to renewed fears of a global double-dip recession.
Now investors are digesting the latest results from big corporations and analyzing their guidance for the remainder of the year. So we must ask, in the immortal words of Axl Rose, "Where do we go? Where do we go now? Where do we go?"

WEEK32 - Dry Cargo Market “Highlights” – 06-August-2010 until 13-August-2010

What a week we had… 15th of August week has always been by tradition a calm week that all Shipping professionals at least in Greece usually slack –off and relax momentarily from our straining daily schedules… however how can you relax in full when the Baltic Dry indices are practically going crazy…??? The BCI is gone hot and Capes have rightly gone wild with China the usual culprit asking for more iron/ore to replenish their nearly used‐up stock‐piles… and the freights are going up… by nearly 45% passing also some of this momentum on the smaller sized vessel segments, a scenario so familiar that we wonder why we don’t rename the Baltic Cape Index (BCI) to the Baltic Chinese Index (BCI)… as it is China’s wishes and China’s appetite that purely dictates the wellbeing or mal‐days of the Cape Index.

Iron ore traffic at major Indian ports falls in April-July

Major ports in the country witnessed a drastic fall in their iron ore cargo during the first four months of the current financial year. The drop was mainly on account of sluggish demand from China, a major market for Indian iron ore and ongoing investigation into illegal mining and exports in major producing states.

Karnataka, which has been in the eye of the storm over illegal export of iron ore from its ports, banned iron ore exports with effect from July 26. The state has also stopped issuing mineral transport permits for export purposes.

Baltic Dry Index - Journal of the apocalypse

"The world economy is rebounding after a crisis, and with it restored, world trade - about such phrases can be read in June when the World Trade Organization (WTO), summed up the first quarter of 2010. For example, exports of Japan for the first quarter grew by 33%, China - 29%, USA - 20%. Imports during January-March in China grew by 65% year on year in India - 55%, in Brazil - at 36% in the U.S. - 22%.

WTO forecast for 2010 optimistic: world trade to grow by 9,5%. At the same time, exports of developed economies will grow by 7,5%, while exports of developing countries (including CIS) - 11%. "This means that the trade is light at the end of the tunnel. This is certainly a good prognosis and good news for the world economy", - said WTO Director General Pascal Lamy.

GoM to discuss illegal mining, iron ore export ban

NEW DELHI: A Group of Ministers (GoM) will discuss on Thursday issues pertaining to illegal mining, a ban on iron ore exports, the new mining legislation and setting aside a share in the profits of mining companies for the development of tribal areas.

Officials of the Ministry of Mines said Minister B.K. Handique was pushing for the Ministry's proposal to make mining companies in tribal areas shell out a part of their equity, and other operators a part of their profits for those affected.

Steelmakers restock as iron ore buys rise

Iron ore imports by China, the largest buyer of the steelmaking ingredient, rose for the first time in four months in July, indicating steelmakers are restocking after depleting inventories.

Imports gained 8.5 percent to 51.2 million metric tons in July, from 47.2 million tons in June, according to data provided by the General Administration of Customs today. Imports fell 12 percent from 58.1 million tons a year earlier.

Chinese steel prices have risen for three straight weeks after falling 17 percent from an 18-month high on April 15, indicating demand for the metal is picking up. The Chinese government is closing old steel plants to curb pollution and has clamped down on the property market to prevent speculation.

Chinese finished steel product exports decline in July MoM

According to the data from the Chinese customs authorities, in July Chinese finished steel exports declined in volume while the volume of iron ore imports increased, both as compared to the month of June.
In July China finished steel exports totaled 4.55 million tonnes, 1.07 million tonnes less than in June but up 151.38%YoY. In the January to July period, the country total finished steel exports reached 28.13 million tonnes up by 152.1%YoY.

Eurozone Q2 Economic Growth Tops Expectations

(RTTNews) - Eurozone economic growth topped economists' expectations in the second quarter, showing the biggest expansion in more than three years.

Propelled by robust German growth, the 16-nation bloc grew at a faster pace of 1% sequentially in the second quarter, following a 0.2% rise in the first quarter, preliminary data published by Eurostat showed on Friday. Economists had expected only 0.7% rise.

Baltic index rises, China ore enquiry drives gains

LONDON, Aug 12 (Reuters) By Jonathan Saul - The Baltic Exchange's main sea freight index .BADI, which tracks rates to ship dry commodities rose on Thursday with Chinese iron ore enquiry driving gains especially on the larger capesize vessels.

The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, rose 2.48 percent, or 59 points, to 2,437 points in a sixth session of gains. "Average capesize rates are just below $30,000/day, with iron ore activity continuing to drive the market. Other vessel classes have benefited from a firmer capesize environment as well, with panamax rates up over 10 percent on the week," Omar Nokta, head of research at Dahlman Rose & Co, said in a report.

"We expect the dry bulk market to remain firmer through September as steel prices and spot iron ore prices continue to rise in China." Brokers said a Russian grain export ban could potentially boost freight rate activity with buyers having to source supplies from other origins including the United States.

Slowdown but no meltdown for China's economy in July

Growth in Chinese investment and factory output slowed further last month as the government brought credit growth back to normal after a record lending spree in 2009 to counter the global financial crisis. The figures, along with weaker retail sales, add to the picture of softening domestic demand painted on Tuesday by a sharp drop in import growth.
"Industrial output continued to ease, indicating a moderation of economic activities. But a sharp slowdown in economic growth can be ruled out, because resilient household consumption will help compensate for a drop in investment," said Zhu Baoliang, a researcher with the State Information Center, a government think tank in Beijing.