Depressed iron ore demand hits freight index

The Baltic Dry Index (BDI) of the London-based Baltic Exchange, which tracks worldwide shipping prices for various dry bulk cargoes including commodities such as iron ore, coal and grain, has fallen for the 28th consecutive day to its lowest level in 14 months as a result of reduced demand for iron ore and consequently diminishing cargo activity.
 
Freight rates for the largest classes of ships continue to drop, international media reports have said, adding that the BDI dropped to the level of 2,127 on July 6, compared to 4,209 on May 26.
 
The depressed iron ore demand from China due to rocketing prices is seen as the core reason for the development.