[Ferro-alloys.com] As China’s commodity import decreased, the Baltic Dry Index (BDI) decreased to about 900 point in late June 2014. It had dropped by about 60% within a year, the worst record same period in history.
BDI measured the transportation cost of iron ore, cement, grain, coal, fertilizer and other resources. Dry bulk shipping reflected primary product demand of the world and it was recognized as a leading economic indicator.
It was analyzed that the sharp decline of BDI was partly caused overcapacity of seaborne shipping and partly caused by the decline of China’s commodity import. There was much iron ore inventory in domestic ports and market demand for coal was weak. The drop of BDI reflected market pessimism on China’s economy.
According to latest data of General Administration of Customs, China imported 77.38 million mt of iron ore in May 2014, down 6.01 million mt from April, and 24.01 million mt of coal, down 3.10 million mt month-on-month.
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