| |
| Baltic index under iron ore pressure |
|
| Code:MFN002490 Prpduct:Iron Ore Date: 2010-07-08 |
THE Baltic Dry Index has fallen for the 28th consecutive day on reduced demand for iron ore.
Freight rates for the largest classes of ships continue to drop.
The BDI, a barometer of shipping costs for commodities such as iron ore, coal and grain, was assessed 4 per cent lower on Tuesday from Monday at 2127, according to The Baltic Exchange.
This is down 49 per cent from 4209 on May 26, and near levels not seen since last September.
Depressed iron ore demand from Chinese steel mills has been pressuring shipping rates over the last month, with iron ore a key ingredient in steel production and the main product in dry bulk shipping.
Also, Chinese spot iron ore prices are near $US125 per tonne, a steep discount to the all-in cost of having it shipped from Australia, which is at $US155 per tonne.
"Given the price disparity, steel mills are likely to pull back on imports and focus on domestic iron ore, potentially extending the pressure seen in dry bulk (freight) rates through the remainder of the summer," said Dahlman Rose analysts in a note to investors.
The rate for Capesize ships fell below $US22,000 ($25,900) per day, while the Panamax rate was below $US18,000 per day. |
| |
|
|
|
|
|
|
|
| 08 Sep 2010 | | | Cash Ask | 3M Ask |
|---|
| Copper | 7620.00 | 7635.00 |
| Aluminium | 2120.50 | 2150.00 |
| Zinc | 2170.00 | 2197.00 |
| Lead | 2151.00 | 2179.00 |
| Nickel | 22450.00 | 22400.00 |
| Tin | 20980.00 | 21075.00 |
| Al.Alloy | 2230.00 | 2130.00 |
| NASAAC | 2081.00 | 2110.00 |
| Steel Billet | 506.00 | 527.00 |
| Cobalt | 41000.00 | 40700.00 |
| Molybdenum | 35300.00 | 36000.00 |
|
|
 |
|
|
|
|
2010-09-09 |
|
| PRODUCT |
BID
(US$/TON) |
ASK
(US$/TON) |
2B Coil-OCT |
3,300 |
3,380 |
No.1 Coil-OCT |
3,120 |
3,200 |
2B Coil-DEC |
3,300 |
3,380 |
No.1 Coil-DEC |
3,120 |
3,200 |
|
|
|
|
|
|
|
MetalFirst China Average:
US$16.025/lb
As of Sept. 3, 2010
(updated weekly)
MetalFirst Average:
US$16.00/lb
As of Sept. 3, 2010
(updated twice weekly)
|
|
|
|
