These are interesting times we live in.
Look at the Baltic Dry Index. This is a benchmark for freight costs for dry bulk commodities such as iron ore, coal and iron and is meticulous collected in the Baltic Exchange in London. On Wednesday this index jumped with almost 15%. Is this a sign of recovery in the raw materials trade?
Shipping brokers are telling that the demand is slowly recovering as Chinese steelmakers buy iron ore again after running down their inventories. The index fell from an all-time high in 2008 of 11.793 points to a December 22-year low of 663 points. It recovered 100% since then.
Two things are important: this is a price-index – nothing to do with volume – and China.
If the Chinese don’t swing, nothing swings.
Even if Obama tells us ‘buy America’, what is there to buy? There is nothing left…. And what is left is too expensive, anyway.
Look at the Baltic Dry Index. This is a benchmark for freight costs for dry bulk commodities such as iron ore, coal and iron and is meticulous collected in the Baltic Exchange in London. On Wednesday this index jumped with almost 15%. Is this a sign of recovery in the raw materials trade?
Shipping brokers are telling that the demand is slowly recovering as Chinese steelmakers buy iron ore again after running down their inventories. The index fell from an all-time high in 2008 of 11.793 points to a December 22-year low of 663 points. It recovered 100% since then.
Two things are important: this is a price-index – nothing to do with volume – and China.
If the Chinese don’t swing, nothing swings.
Even if Obama tells us ‘buy America’, what is there to buy? There is nothing left…. And what is left is too expensive, anyway.
Look to the renko chart of iShares FTSE/Xinhua China 25 (ticker: FXI). It’s moving…
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