News Column

BDI Continues Dropping, Iron Ore Price Hits 21-month Low

June 16, 2014

SHANGHAI, June 16, SinoCast -- The Baltic Dry Index (BDI) dropped by over 3% per day for three consecutive days to a 12-month low of 906 points on June 13 after rising to 1,004 points on June 10. By then, the fall had become the sharpest this year.

Poor performance of the BDI is proved to have a tie with China's investigation on loan frauds via commodity financing. Bulk commodities involved performed not well, too. Copper price fell and iron ore price had hit a 21-month low, approaching to the lowest since 2009.

If the investigation spread to iron ore stockpiles, traders will meet financing problems. This may force some traders to sell iron ores and lead to a market dumping finally.

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Source: Sinocast Metals, Mining & Chemicals Beat (China)

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