Capesizes trend lower as forward curve weakens

THE Baltic Dry Index has dropped below 1,000 points for the first time in a month.

Part of the reason for the decline is a weak capesize market, which has been pulled down by the Forward Freight Agreement market, which is reacting to a softer tone out of China where sufficient stimulus has yet to emerge.

US investment bank Jefferies noted how dry bulk rates across the board remained under pressure, with the panamax, supramax and handysizes priced below $10,000 per day.

Weaker steel markets and softer coal trades have led to the pressure, while FFAs have also slipped, said equity analyst Omar Nokta.

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