Recent Pop in Baltic Dry Index Will Fade as Chinese Steel Prices See Pressure (DRYS) (PRGN)
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Price: $1.80 -1.1%
Rating Summary:
3 Buy, 6 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
3 Buy, 6 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
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DryShips, Inc. (Nasdaq: DRYS), Paragon Shipping (NYSE: PRGN), and peers are lower on the session following sanguine comments out of Dahlman Rose on the Baltic Dry Index and shipping segment.
The firm noted how spot rates in Atlantic Basin MR product carriers are pulling back on lighter volumes. Dahlman commented, "TCE earnings on the Cont/USAC route are down to $7,300/day from $8,300/day. These rates, however, continue to be non-reflective of true earnings power, as Scorpio (NYSE: STNG) deployed its recently-delivered newbuilding MR for $16,200/day for four months."
For LNG, rates appear to be steady.
The Baltic Dry Index had an upday for the first time since July 9th today, gaining 3 points on the session. Dahlman notes how the Baltic Exchange has Capesize rates improving from $2,644/day to $2,719/day. However, given pressure to Chinese steel prices, a near-term boost in rates isn't expected.
DryShips is down 1.9 percent on the session while Paragon is off 3.1 percent.
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The firm noted how spot rates in Atlantic Basin MR product carriers are pulling back on lighter volumes. Dahlman commented, "TCE earnings on the Cont/USAC route are down to $7,300/day from $8,300/day. These rates, however, continue to be non-reflective of true earnings power, as Scorpio (NYSE: STNG) deployed its recently-delivered newbuilding MR for $16,200/day for four months."
For LNG, rates appear to be steady.
The Baltic Dry Index had an upday for the first time since July 9th today, gaining 3 points on the session. Dahlman notes how the Baltic Exchange has Capesize rates improving from $2,644/day to $2,719/day. However, given pressure to Chinese steel prices, a near-term boost in rates isn't expected.
DryShips is down 1.9 percent on the session while Paragon is off 3.1 percent.
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