I've been keeping an eye on the "Beady Eye" lately. (BDI)
The Baltic Dry index has made the strongest move up that I've seen in several weeks.
The latest headline from Bloomberg: .Ship Rates Extend Surge as Brazil-China Ore Cargoes Seen Gaining
Iron-ore shipping rates extended a nine-day surge amid speculation that bookings are climbing for vessels to deliver Brazilian cargoes to China
, the world’s largest importer of the commodity used in steel. Rates for Capesizes carrying about 160,000 metric tons jumped 13 percent to $9,360 a day, according to the Baltic Exchange in London today. They rallied 59 percent in the preceding eight trading days, according to the shipping bourse publishing freight prices on more than 50 maritime trade routes.
Chinese iron-ore inventories at ports and mills are the lowest in 2 1/2 years at 20 days of demand, London-based JPMorgan Cazenove analyst Dominic O’Kane said June 13. Miners, traders and steel mills booked more than two Capesizes a day for Brazil-to-China since then, more than double the pace about three weeks ago, Dominic Meredith Hardy, an analyst at Galbraith’s Ltd., a London-based shipbroker, said by e-mail today.
"We’ve seen a fairly strong pick up," he said, adding the charters from Brazil
fixtures are lengthening demand as measured by multiplying cargo volumes by distances.
And the chart: