Mitsui OSK falls as Baltic Index dips
Mitsui OSK Lines Ltd, Japan's largest operator of iron-ore ships, dropped in Tokyo trading along with domestic rivals, as rates for carrying commodities had their biggest slump on record.
The shipping line declined as much as 4.8 per cent to 901 yen and traded at 909 yen as at 9.17 am in Tokyo. Nippon Yusen KK, Japan's biggest shipping line by sales, dropped as much as 3.8 per cent and Kawasaki Kisen Kaisha Ltd, the third-largest, slid as much as 4.8 per cent.
The Baltic Dry Index, a measure of commodity- shipping rates, dropped 10 per cent on Sept 26, as Chinese steelmakers stopped buying iron-ore from Brazil's Cia Vale do Rio Doce as part of a pricing standoff. The index has tumbled 80 per cent since a peak in June. 'There's no strength left to even muster a rebound,' said Yoshihisa Miyamoto, an analyst in Tokyo at Okasan Securities Co. 'This week, shipping lines are set for a punch that will put to rest anyone left that wants to buy.'
Chinese steelmakers, the world's biggest iron-ore consumers, will not buy from Vale in the 'short term', the China Iron and Steel Association said on Sept 26. Vale wants to raise prices for Asian mills to match what European clients are paying. The association said that that is 'unreasonable' because of slowing steel demand from carmakers and builders.
The shipping line declined as much as 4.8 per cent to 901 yen and traded at 909 yen as at 9.17 am in Tokyo. Nippon Yusen KK, Japan's biggest shipping line by sales, dropped as much as 3.8 per cent and Kawasaki Kisen Kaisha Ltd, the third-largest, slid as much as 4.8 per cent.
The Baltic Dry Index, a measure of commodity- shipping rates, dropped 10 per cent on Sept 26, as Chinese steelmakers stopped buying iron-ore from Brazil's Cia Vale do Rio Doce as part of a pricing standoff. The index has tumbled 80 per cent since a peak in June. 'There's no strength left to even muster a rebound,' said Yoshihisa Miyamoto, an analyst in Tokyo at Okasan Securities Co. 'This week, shipping lines are set for a punch that will put to rest anyone left that wants to buy.'
Chinese steelmakers, the world's biggest iron-ore consumers, will not buy from Vale in the 'short term', the China Iron and Steel Association said on Sept 26. Vale wants to raise prices for Asian mills to match what European clients are paying. The association said that that is 'unreasonable' because of slowing steel demand from carmakers and builders.