Last Updated : 29 June 2012 at 17:15 IST
Source :Commodity Online
SINGAPORE (Commodity Online): The recent gains in Baltic Exchange’s main sea freight index and China’s increased infrastructure spending raises hopes for a sustainable rebound in commodities in Asian region.
On Thursday, Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry commodities rose to 994 points and rising further to 998 points on Friday. It gauges the cost of shipping commodities such as iron ore ,cement, grain, coal and fertilizers some of which are much in demand in Asian markets.
China news agnecy,Xinhua reported that new yuan-denominated loans will hit 1 trillion yuan (159 bn US dollars) in June, as the nation steps up stimulus measures to spur demand. The new loans in June will be close to 1 trillion yuan driven by speedier approvals for infrastructure projects, expanding construction of low-income housing and export rebound last month.
Meanwhile, Reuters reported that rates for large dry-bulk carriers on key Asian freight routes are expected to edge up next week due to a revival of trading activity from China, but ample vessel supplies will limit gains.
Benchmark capesize fixture rates from Australia to China rose to a two-week high of $6.746 a tonne on Wednesday from $6.492 last week, supported by renewed freight demand. The market has rebounded about 4 percent since hitting a 16-month low of $6.492 on June 19.
Rates for the Brazil-China route edged up to a three-week high of $17.518 a tonne from $17.279 last week. The market remained within striking distance of a 16-month low of $17.168, reached on June 18.
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