Baltic index down on softer iron ore market

Tue Sep 25, 2012 9:31am EDT

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Sept 25 (Reuters) - The Baltic Exchange's main sea freight
index, which tracks rates for ships carrying dry
commodities, fell on Tuesday amid lower rates for panamax and
capesize vessels.
    The overall index, which reflects daily freight market
prices for capesize, panamax, supramax and handysize dry bulk
transport vessels, fell 1.17 percent to 763 points.
    The Baltic's capesize index fell 0.64 percent to
1,568 points, with average daily earnings down $115 to $7,504.
Capesizes primarily transport 150,000 tonne cargoes including
iron ore and coal.
    Sellers of imported iron ore cargoes to top buyer China cut
prices for a third day on Tuesday amid signs that end-user
demand for steel in China, the world's biggest consumer and
producer of the alloy, remains weak despite a recent spike in
steel prices. 
    Iron ore shipments account for around a third of seaborne
volumes on the larger capesizes, and brokers said price
developments remained a key factor for dry freight. 
    Average daily earnings for Panamaxes, which typically
transport 60,000-70,000 tonne cargos of coal or grains, fell
$153 to $3,521. The panamax index fell 4.34 percent to
441 points.
    Average daily earnings for handysize ships were down $37 at
$7,030 while those of supramax ships were down $1 at $8,857. 

 (Reporting by Shruti Chaturvedi in Bangalore, editing by
William Hardy)
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