Steel Activity News

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, slid to a near two-month low on Thursday, as weak demand for iron ore and lower industrial activity continued to weigh on the index.* The Baltic index, which reflects rates for capesize, panamax and supramax vessels, declined 46 points, or 2.55%, to 1,757, recording its seventh consecutive decline.* The overall index was at its lowest level since Aug. 9.* The capesize index fell 218 points…

Cargo shipments through the St. Lawrence Seaway continue to rebound on the back of strong American grain exports and iron ore and steel activity, along with an uptick of new business and trade routes. The St. Lawrence Seaway reported that total year-to-date shipments reached 22.9 million metric tons from March 25 to September 30, an increase of 18 percent over the same period in 2009. Year-to-date shipments of iron ore for 2010 is up 62 percent to 7.2 million metric tons compared to last year, while American grain shipments have increased by 36 percent to 1.3 million metric tons. In September, these numbers were boosted by a 68 percent surge in American grain shipments to 604,000 metric tons compared to the same month in 2009.

Increased Japanese steel production has driven Booming Capesize rates more than the August market raid by Belgium's Bocimar when it chartered about 35 ships, shipping sources said. Capesize spot rates have doubled over the last three months, with the market now looking for $15-16,000 for a Pacific round trip, compared with about $7,500 in August, brokers said. Atlantic rates have also soared, although partly due to the grounding of the 274,326-dwt ore carrier Weser Ore at Tubarao in Brazil last week. "The whole market has moved on the back of Japanese steel activity," said one shipping broker. "Bocimar has done very well and will be very happy with what it has achieved," the broker said.