Industrial Minerals


Baltic Dry Index firms on falling coal prices

05 July 2012


Shipping rates up on coal market activity but rise limited by vessel overcapacity

Shippers are expecting higher coal trading activity after prices slumped in response to tepid demand, which helped pull shipping rates up this week.

 

But there was still a lot of uncertainty in dry bulk rates, with lingering vessel overcapacity outpacing shipping demand.  

 

The Baltic Dry Index (BDI) was 1103 on 4 July compared with 988 on 27 June.  Capesize, Panamax, Supramax, and Handymax indices were 1369, 1051, 1284, and 716 respectively.

 

Supporting the BDI was oversupply in the coal market, leading to falling prices which could prompt more consumption.

 

Europe was leading import demand, shipping in more coal for power generation due to slumping carbon emission permit prices.  

 

Since burning coal emits...