The Baltic Dry Index, a measure of shipping costs for commodities, posted a fourth consecutive decline on Friday as vessel queues eased, boosting the number of ships available for hire.
The index tracking transport costs on international trade routes fell 43 points, or 0.6 per cent, to 7,147 points, according to the Baltic Exchange in London. That's a 5 per cent weekly decline. All vessel classes retreated and rates for panamaxes to haul grains fell to the lowest since Feb 8.
'A lot of improvements are on the east coast of Australia, at the coal ports,' Chris Tomlinson, a London-based analyst at Thurlestone Shipping Ltd, said on Friday. 'There's still scope for optimism from China and iron ore' demand. China may need 'every ton' of the material it can get from abroad, he said.
There were 27 ships waiting to load 2.4 million tons of coal last week at Newcastle, Australia, the world's biggest export harbour for the fuel, Newcastle Port Corp said on Aug 19. That's two less than the week before. The port is a benchmark for coal supplies to Asia where economic growth in countries including China has boosted demand for the fuel.
The world's most populous nation produced 38 per cent of the world's crude steel in July. China needs 37 million tons of the material and 370 million tons of cement over three years to rebuild towns, roads and factories damaged by the country's most powerful earthquake in 50 years that struck on May 12.
That may help re-ignite demand for raw materials after the Beijing Olympics ends on Aug 24. China ordered production cuts or closure of some plants and steel mills to reduce air pollution and ease power shortages during the Games, reducing the need for materials such as iron ore and coal.
The index tracking transport costs on international trade routes fell 43 points, or 0.6 per cent, to 7,147 points, according to the Baltic Exchange in London. That's a 5 per cent weekly decline. All vessel classes retreated and rates for panamaxes to haul grains fell to the lowest since Feb 8.
'A lot of improvements are on the east coast of Australia, at the coal ports,' Chris Tomlinson, a London-based analyst at Thurlestone Shipping Ltd, said on Friday. 'There's still scope for optimism from China and iron ore' demand. China may need 'every ton' of the material it can get from abroad, he said.
There were 27 ships waiting to load 2.4 million tons of coal last week at Newcastle, Australia, the world's biggest export harbour for the fuel, Newcastle Port Corp said on Aug 19. That's two less than the week before. The port is a benchmark for coal supplies to Asia where economic growth in countries including China has boosted demand for the fuel.
The world's most populous nation produced 38 per cent of the world's crude steel in July. China needs 37 million tons of the material and 370 million tons of cement over three years to rebuild towns, roads and factories damaged by the country's most powerful earthquake in 50 years that struck on May 12.
That may help re-ignite demand for raw materials after the Beijing Olympics ends on Aug 24. China ordered production cuts or closure of some plants and steel mills to reduce air pollution and ease power shortages during the Games, reducing the need for materials such as iron ore and coal.