The Baltic Exchange’s dry bulk sea freight index (.BADI) edged lower on Wednesday as the capesize rates slid, although gains in the panamax vessel segment limited losses in the main index.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, was down 4 points, or about 0.2%, to 1,871.

The capesize index (.BACI) lost 38 points, or about 1.7%, to 2,209.

Average daily earnings for capesizes (.BATCA), which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron ore used in construction, were down $309 to $18,322.

“Capesize Atlantic performance was disappointing with limited fresh requirements popping up while a healthier Australian export trade towards China resisted a drop in rates in the Pacific,” said ship broker Intermodal in a weekly report.

Steel production is expected to fall 2.3% this year to 1.797 billion tonnes, a downgrade from a previous forecast partly due to an expected 4% drop in demand in top consumer China, the World Steel Association said.

The panamax index (.BPNI) rose for the third consecutive day, up 28 points, or about 1.3%, to 2,164.

Average daily earnings for panamaxes (.BPWT), which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose $255 to $19,475.

The supramax index (.BSIS) was unchanged at 1,678.

Source: Reuters