Baltic Dry index hits record low as China demand wanes

Plunges to 471 points

The Baltic Dry index, which measure the global cost of shipping commodities, reached an all-time low, plunging to 471 points by mid-morning.

A persisting glut of ships coupled with speculation about weakening Chinese steel output has been blamed for the drop, as these are likely to translate into declining imports of iron ore. The index has dropped by 2.7% on 17 December, following a 4.7% fall the previous day, and is currently trading at 471 points. This represents the lowest Baltic Exchange data since the index was launched in January 1985, with rates for three of the four ship types tracked by the exchange retreating. A canary in the coalmine: Commodities sound warning on global growth According to Bloomberg, China...