The Baltic Dry Index, a measure of commodity-shipping costs, extended its longest slump in five years on speculation Chinese steel mills are cutting imports of iron ore.
The index dropped for a 26th day, falling 3 per cent to 2,280 points, data from the Baltic Exchange here showed. The last time the gauge had a longer unbroken run of losses was the 27 trading sessions to Aug 3, 2005, during which it fell 33 per cent. Since starting its current slide, the measure has fallen 46 per cent, according to exchange prices.
Chinese steel mills may be cutting iron ore purchases after imports of the steelmaking ingredient rose to an implied record in June, said Steve Rodley, co-managing director of M2M Management Ltd, a shipping hedge fund manager that trades freight derivatives and operates vessels.
'They can afford to take their foot off the gas a bit,' Mr Rodley said by phone last week. 'They might be producing a little bit less and using their stockpiles' of iron ore, he said, adding he believes their underlying demand remains 'strong'.
Chinese ports handled 340 million metric tons of iron ore between January and June 25, the Ministry of Transportation said on its website, citing China Communications News.
Chinese ports handled 340 million tonnes of iron ore between January and June25. Imports in the first five months by China were 262.2 million tonnes, according to customs data, indicating June shipments may be a record 78 million tonnes.
Imports in the first five months by China, the biggest iron ore buyer, were 262.2 million tons, according to customs data, indicating June shipments may be a record 78 million tons. Figures from customs and the transportation ministry have differed previously.
Iron ore creates the single-biggest source of demand for dry-bulk shipping, according to Clarkson Research Services Ltd, a unit of the world's largest shipbroker.
Prices for the steelmaking ingredient switched to quarterly contracts rather than annual ones this year.
Charter rates declined for all routes and all ship types published by the exchange. Panamax vessels, the biggest to navigate the Panama Canal, fell 6.8 per cent to US$19,719 a day.
Larger capesizes, which have to sail around South America or South Africa instead, lost 1.4 per cent to US$23,469.
Profit at Chinese steel mills, accounting for the largest slice of demand for iron ore, 'is zero now, we think' Andreas Vergottis, research director at Tufton Oceanic Ltd, which manages the world's largest shipping hedge fund, said on June 30.
In the second half of 2008, the Baltic Dry Index fell by a record 94 per cent as steel mills globally cut output because of the global recession. --
The index dropped for a 26th day, falling 3 per cent to 2,280 points, data from the Baltic Exchange here showed. The last time the gauge had a longer unbroken run of losses was the 27 trading sessions to Aug 3, 2005, during which it fell 33 per cent. Since starting its current slide, the measure has fallen 46 per cent, according to exchange prices.
Chinese steel mills may be cutting iron ore purchases after imports of the steelmaking ingredient rose to an implied record in June, said Steve Rodley, co-managing director of M2M Management Ltd, a shipping hedge fund manager that trades freight derivatives and operates vessels.
'They can afford to take their foot off the gas a bit,' Mr Rodley said by phone last week. 'They might be producing a little bit less and using their stockpiles' of iron ore, he said, adding he believes their underlying demand remains 'strong'.
Chinese ports handled 340 million metric tons of iron ore between January and June 25, the Ministry of Transportation said on its website, citing China Communications News.
Chinese ports handled 340 million tonnes of iron ore between January and June25. Imports in the first five months by China were 262.2 million tonnes, according to customs data, indicating June shipments may be a record 78 million tonnes.
Imports in the first five months by China, the biggest iron ore buyer, were 262.2 million tons, according to customs data, indicating June shipments may be a record 78 million tons. Figures from customs and the transportation ministry have differed previously.
Iron ore creates the single-biggest source of demand for dry-bulk shipping, according to Clarkson Research Services Ltd, a unit of the world's largest shipbroker.
Prices for the steelmaking ingredient switched to quarterly contracts rather than annual ones this year.
Charter rates declined for all routes and all ship types published by the exchange. Panamax vessels, the biggest to navigate the Panama Canal, fell 6.8 per cent to US$19,719 a day.
Larger capesizes, which have to sail around South America or South Africa instead, lost 1.4 per cent to US$23,469.
Profit at Chinese steel mills, accounting for the largest slice of demand for iron ore, 'is zero now, we think' Andreas Vergottis, research director at Tufton Oceanic Ltd, which manages the world's largest shipping hedge fund, said on June 30.
In the second half of 2008, the Baltic Dry Index fell by a record 94 per cent as steel mills globally cut output because of the global recession. --