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.

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).