Baltic Dry Index has worst week since October meltdown as Chinese demand slows
The Baltic Dry Index, which tracks shipping costs and is viewed as leading indicator for commodity prices, has had its worst week since the peak of the financial crisis last October, as Chinese demand slowed.
By Garry White, 07 Aug 2009
The index fell from 3,350 to 2,772 this week – a fall of 17.2pc - as imports of iron ore and coal slowed down. The index is now 35pc lower than its 2009 high, hit on June 3.
Earlier this week Ian Ashby, head of iron ore at miner BHP Billiton, said at the Diggers & Dealers conference in Australia that Chinese restocking of iron ore was at an end.
Mr Ashby said that supplies at the country's ports were enough to sustain a month of consumption.
However, some believe that imports have slowed down as Chinese steel mills are still locked in talks over the pricing of iron ore imports over the next 12 months.
The talks have proved fractious, with the Chinese seeking steeper cuts in pricing than the 33pc agreed with steel mills in Korea and Japan. Chinese authorities also arrested four members of Rio Tinto's iron ore team, accusing them of stealing state secrets and bribery.
Baltic Dry Index has worst week since October meltdown as Chinese demand slows - Telegraph