Baltic Dry Index represents the cost paid by a customer to have a shipping company transport raw materials across seas on the Baltic Exchange. The Baltic is owned and operated by the member buyers and sellers. This index can be used as an overall economic indicator. It measures the demand to move raw materials and precursors to production. Unlike stock and commodities market, the Baltic Dry Index is totally devoid of speculative players. If the commodity prices are firm Baltic Dry Index usually increase and vice-versa. During the year 2008 Baltic Dry index has moved above 10000 marks and even tested a high of 11793 on 20th June 2008, due to heightened economic activities. But later in the year the Baltic Dry Index fell down below 1000 mark due to economic recession and Somalia Sea pirates.
The index covers Handymax, Panamax and Capesizse dry bulk carriers carrying a rage of commodities including coal, iron ore and grain. If the Baltic Dry Index is high then one can expect higher movement of Coal, Iron and Grain. During the mid of 2008 most of the metals stocks in BSE Metal Index has tested their respective all time high values.
The under mentioned table illustrates the name of the company, its yearly high price, date of achieving the yearly high price, yearly low and date of recording the same.
The index covers Handymax, Panamax and Capesizse dry bulk carriers carrying a rage of commodities including coal, iron ore and grain. If the Baltic Dry Index is high then one can expect higher movement of Coal, Iron and Grain. During the mid of 2008 most of the metals stocks in BSE Metal Index has tested their respective all time high values.
The under mentioned table illustrates the name of the company, its yearly high price, date of achieving the yearly high price, yearly low and date of recording the same.
The Baltic Dry Index has peaked in the month of May 2008, and it has started falling towards the yearly low from October 2008. Indian metal stocks are also tested their life highs and lows in the same manner as of Baltic Dry Index. The following graph indicates the higher Baltic Index and Lower Baltic Index, which is marked with red colour.
BSE METAL INDEX AND ITS STOCKS WEIGHTAGE
Source: bseindia.com
