The China coastal bulk composite freight index in the third quarter of 2015 trended downward to refresh the all-time lowest record set at the end of the first quarter of this year, according to a report released by Shanghai International Shipping Institute on Monday.
The coastal dry bulk transportation enterprises climate index also deteriorated, reflecting an overall poor performance and squeezed profit margins, showed the 2015 Q3 Review and Q4 Outlook on China Costal Dry Bulk Freight Market.
By Sept. 25, China Costal Bulk Freight Index (CCBFI) published by Shanghai Shipping Exchange closed at 812.02, a drop of 6.15 percent from the end of the second quarter and 10.36 percent from a year earlier, under fewer coal and iron ore transports.
It is estimated the China costal (bulk) composite freight index will continue with the downward trend during the final quarter of this year, amid the ongoing contraction in the manufacturing industry and the significant decrease in real estate investment, as well as a sluggish foreign trade.
Coal demand is expected to weaken during this warmer winter affected by El Nino. As such, the costal coal freight volume and price are expected to maintain a moderate slide, although the possibility of coal suppliers providing price-off promotions to lift the market also exists.
Iron ore freight volume is expected to shrink marginally with the freight rates fluctuating within a narrow range at low levels during the fourth quarter.
Currently, steelmakers' inventories balloon due to lackluster demand at home and abroad. And banks are likely to recover loans from small and midsize mills in advance as year-end approaches, staggering the latter on iron ore purchase.
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