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Baltic Dry Index Meet Cliff... Hello Cliff

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http://www.bloomberg.com/apps/news?pid=206...id=a0BMpYTufWpM

Baltic Dry Index Has Worst Week Since October as Demand Slows

By Alaric Nightingale

Aug. 7 (Bloomberg) -- The Baltic Dry Index, a measure of shipping costs for commodities, had its worst week since October as Chinese demand for shipments of coal and iron ore slowed.

The index tracking transportation costs on international trade routes today slid 135 points, or 4.6 percent, to 2,772 points, according to the Baltic Exchange. That took its weekly drop to 17 percent, the most since the end of October.

“The Chinese have backed off and it’s starting to show in the number of shipments this month,†Gavin Durrell, a Cape Town-based official at Island View Shipping SA, Africa’s biggest commodities shipping line, said by phone today. “Iron ore and coal seem to be slowing down.â€

China’s record coal and iron ore imports in the first half helped the index to advance as much as fivefold this year, reversing some of the record 92 percent collapse in 2008. Demand rose after the country’s government announced a 4 trillion yuan ($586 billion) stimulus package.

Daily rental rates for every class of ship tracked by the bourse declined today, led by a 5.6 percent slump to $20,880 for panamaxes, ships designed to navigate the Panama Canal.

Capesizes, ships most commonly used to haul about 170,000 metric tons of iron ore around South Africa’s Cape of Good Hope or Chile’s Cape Horn, lost 5.2 percent to $45,428 a day. Smaller supramaxes fell 5 percent to $19,242 a day and handysize ships lost 2 percent to $12,051 a day.

Chinese Steelmakers

Rates are declining as Chinese steelmakers delay imports while they negotiate annual iron ore prices with producers such as Rio Tinto Group, BHP Billiton Ltd. and Vale SA, Durrell said. “I don’t think they will come back until they agree,†he said.

The drop reflects a wider slide in demand for raw materials that will likely push prices for metals, commodities and energy lower, Eugen Weinberg, a senior commodity analyst at Commerzbank AG in Frankfurt, said by phone yesterday.

The Baltic Dry Index has slumped 35 percent from this year’s high on June 3. The Standard & Poor’s GSCI Index of 24 commodities has climbed 7 percent over the same period.

Derivatives betting on the Baltic Exchange’s future assessments fell for a third day, indicating the declining spot market is causing traders’ future expectations to deteriorate.

October-to-December forward freight agreements, or FFAs, for capesizes lost 4.7 percent to $36,750 a day, according to prices from Imarex ASA, a broker of the accords. That implies traders expect the market to drop 19 percent by year-end.

Panamax contracts fell 1 percent to $17,625 a day, implying a 16 percent decline.

Also in the Telegraph:

http://www.telegraph.co.uk/finance/economi...mand-slows.html

Not surprising if Faber is correct and China’s economy is only growing at 2%.

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Soon to be the Baltic "Extra Dry" Index in a marketing strategy to make the global collapse sound like a superior plan.

So basically the big pump from the Chinese stimulus has run dry. Now what?

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So basically the big pump from the Chinese stimulus has run dry. Now what?

That's what happens when you p1ss away half a trillion dollars in less than 6 months.

The Saudis are meant to have a hefty back-pocket wedge - about half a trillion $ again, IIRC.

Saw something on the BBC this morning saying London service companies, hotels, etc. are all pandering to the Saudis who visit from time to time - go shopping at Selfridges, etc. They are even teaching their staff to speak Arabic. Nice touch.

Unfortunately, I think even Saudi oil money will be a penny dropped into a wishing well the size of the Atlantic. I see no ripples here.

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Guest Parry aka GOD
That's what happens when you p1ss away half a trillion dollars in less than 6 months.

The Saudis are meant to have a hefty back-pocket wedge - about half a trillion $ again, IIRC.

Saw something on the BBC this morning saying London service companies, hotels, etc. are all pandering to the Saudis who visit from time to time - go shopping at Selfridges, etc. They are even teaching their staff to speak Arabic. Nice touch.

Unfortunately, I think even Saudi oil money will be a penny dropped into a wishing well the size of the Atlantic. I see no ripples here.

Been booking hotels in Bangkok yesterday, most offering 50% discount.

Occupancy rate now <20%.

Exports down 30%

Tourism . . . what's that?

Exports make up 60% of the total economy!

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Been booking hotels in Bangkok yesterday, most offering 50% discount.

Be careful. I've heard that just 1 night there makes a hard man humble.

Edited by AvidFan

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Guest Parry aka GOD
Be careful. I've heard that just 1 night there makes a hard man crumble.

Well I've booked two nights because of flight schedules. Hotel next to the airport. £10 a night.

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Been booking hotels in Bangkok yesterday, most offering 50% discount.

Occupancy rate now <20%.

Exports down 30%

Tourism . . . what's that?

Exports make up 60% of the total economy!

They could throw in a free lady boy?

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Guest Parry aka GOD
They could throw in a free lady boy?

They do try, my dear. . . they do try.

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They could throw in a free lady boy?

What happened was - when the TV asked "Do you want to watch Bangkok Lady Boys?" you must have pressed "yes".

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Well I've booked two nights because of flight schedules. Hotel next to the airport. £10 a night.

I'd urge you to reconsider. It may only be a song but I've heard it's based on experience.

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Guest Parry aka GOD
What happened was - when the TV asked "Do you want to watch Bangkok Lady Boys?" you must have pressed "yes".

No you need to press the Adam's Apple.

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Guest Parry aka GOD
I'd urge you to reconsider. It may only be a song but I've heard it's based on experience.

Been here nearly 8 years now. BKK's actually a pretty civilised place.

You're thinking of Pattaya. :ph34r:

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Guest Parry aka GOD
Isn't that usually concealed by a rollneck jumper?

You tell me old boy, seem to be rather knowedgable on this subject.

"Avidfan. Your 2 mins on your specialist subject of Bangkok ladyboys . . . starts . . . now!"

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Guest Parry aka GOD
You're the "Live one" here Mr. Parry, not me. I only dream.

"Aye suk yuo goowd!"

Anyway . . .back on topic . . .

Baltic Dry, I had the impression it had risen because of excess capacity being removed from the market, i.e, ships being moored up, scuttled, broken, whatever.

What caused the bounce then, just for it to fall back again?

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Well I've booked two nights because of flight schedules. Hotel next to the airport. £10 a night.

£10, you stay there long time.

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