The Market on Rebound Mode

The Baltic Dry Index (BDI) settled at around 3,352 points on December 8^th, 2021 vis-à-vis 2,715 points a couple of weeks before. That level compared to the 4,050-4,060 points of October 27^th, 2021 and to a previous trading level of around 5,380 points on October 13, 2021. The above levels also compared to the trading neighborhood of 4,962 points at the end of September 2021.

Concerning the period before, the Baltic Dry Index traded at around 3,650 points in middle of August 2021 versus 3,281 points on August 4^th, 3,058 points on July 21^st, 3,179 pts on July 5^th, 2021, and 2,420 pts during May 2021.

Our previous blog, two weeks ago, ended as follows:

”… All in all, the current trading level of BDI might not post a too big downside risk at the moment with the Index sustaining in the next months and quarters a trading level that will be higher, or notably higher, than the average ones of years 2020 and 2019. …”

We continue to hold this view as we believe that the Covid pandemic will not easily stop unfolding new chapters of concerns and disruptions at all levels, both economic and social, affecting businesses and markets alike. In such an environment, the BDI will continue sustaining higher trading levels versus the ones seen in previous years.

Now that the new Omicron variant has been weighing on the markets and has emerged as the major determinant factor of the coming weeks or even months, we tend to view our approach as even more consistent with what actually happens in the markets.

With this development in place, and many more to come one could say, we would still add that one of the key characteristics of the coming weeks and months will be that of the high volatility for BDI as more ups and downs are expected to be seen in the dry bulk market.

BALTIC DRY INDEX as of December 8^th, 2021: