Ocean freight transport - collapse of Baltic Dry Index

For those in the steel industry watching the cost of ocean freight transport, you may wish to note that the cost of transporting iron ore, coal and steel has collapsed in recent months. The Baltic Dry Index (BDI) today stands at 847, which is 92% down on a year ago [yes, that's 8% of the BDI's value in November 2007].

Our main website now reports the value of this index daily. Please visit here: Baltic Dry Index.

blogger@steelonthenet.com

2009 iron ore price settlement

What a difference a few weeks make!

Two reports published by the Financial Times last week suggest that 2009 world iron ore prices will fall - or at best see a minimal rise in 2009.

Thus on Thursday, the FT discussed the high probability that iron ore miners would see the first price cut in seven years [see http://www.ft.com/cms/s/0/88fc2368-a6af-11dd-95be-000077b07658.html?nclick_check=1 ].

On Friday, the paper discussed how a fall in Chinese steel demand would cause iron ore prices to buckle [see http://www.ft.com/cms/s/0/ca829344-a6eb-11dd-95be-000077b07658.html ].

The general indication seems presently to be that iron ore prices will settle in 2009 somewhere between a 10 per cent cut, and a 10 per cent rise (at most). Watch this space!

blogger@steelonthenet.com