China’s crude oil imports decline after high inventory stocking
Since China has a rapidly growing economy with a large population of 1.35 billion people, China’s demand for energy is rising significantly. This demand plays a major role in the crude tanker industry.
Global automakers see China as a major source of growth now and in the future and are spending heavily to develop models for local tastes.
Brazil accounts for almost 25% of global iron ore trade volume. It’s the second-largest iron ore exporting country. It’s also home to Vale, one of the largest mining companies.
Used by companies like BHP Billiton, Fortescue Metals Group, and Atlas Iron, the Hedland Port is one of the major exporting ports of iron ore in the world, representing about one-fifth of the global seaborne iron ore trade.
Since iron ore and metallurgical coal are primarily used to manufacture steel, China’s crude steel production is a key indicator that dry bulk shipping investors should watch.
The Baltic Dry Index measures the cost of major raw materials that are transported by sea in the global economy. Indicating a strict demand-and-supply price situation, the lower the cost to move goods by ship, the lower the amount of goods to ship.
With China being the largest importer of iron ore and the second largest importer for the coking coal used to make steel, a key material used to construct buildings in China, China’s real estate activity positively correlates with shipping demand.
With China being the largest importer of iron ore and the second for coking coal used to make steel, a key material used to construct buildings in China, China’s real estate activity positively correlates with shipping demand.
China buys around two-thirds of the world’s iron ore—iron ore supply in China outpaced demand by 52 million tons in the first half of 2014, according to the China Iron and Steel Association (or CISA).
Global crude steel production for 65 countries reporting to the World Steel Association registered an annual 3.1% rate in June to 137 million tons as China and Europe recorded output increases.
Capsize vessel prices have remained consistent at its previous month levels of $54 million—current levels have remained consistent or have recorded an increase in its dry bulk and tanker rates.
The Baltic Exchange Dry Bulk Index (BDIY) is a composite of rates for different ship sizes factoring in the average daily earnings of capsize, panama, supramax, and handysize dry bulk transport vessels.
Ten out of the 12 sub-indices reflected improvement in July readings compared to the previous month—a sub-index for new orders—a measure of both foreign and domestic demand—edged up to 53.6 in July from 52.8 in June,
DryShips Inc. (DRYS) and Navios Maritime Holdings Inc. (NM) are the two major market players in the dry bulk shipping industry—the industry has other players like Safe Bulkers Inc. (SB) and Knightsbridge Tankers Ltd. (VLCCF).
China crude imports Being a rapidly growing economy with a large population of 1.35 billion people, China’s demand for energy is rising significantly and plays a major role in the crude…
The importance of China’s PMI National Bureau of Statistics revealed that China’s official purchasing managers index came in at 51.7 for the month of July as compared to 51 in…
Followed by analysts and money managers in order to assess the revenue and earnings potential of the crude oil shipping industry, the Baltic Dirty Tanker Index is an important yardstick for the tanker industry.
Year-to-date (or YTD) deliveries in 2014 stood at 25.7 million dwt.
In trading, the Baltic Dry Index declined to 850 on June 30, 2014, from 934 at the beginning from the month.
China’s economy is showing encouraging signs as the government’s policy measures have taken shape.