Baltic index drops to lowest point in two weeks amid weak Capesize demand

The Baltic Exchange's main sea freight index fell to a two-week low on Tuesday due to lower demand for Capesize vessels.

The main index was down 58 points, or 2.9 per cent, at 1,964 points, hitting its lowest level since August 5.

The Capesize index shed 189 points, or almost six per cent, to 3,023 points, also reaching a two-week low. Average daily earnings for Capesize vessels fell by $1,566 to $25,072.

Iron ore futures prices slid, weighed by concerns about demand for the steelmaking ingredient amid output controls in the northern region of top consumer China and a weakening steel market.

Some steel mills in China's key steel production hub of Tangshan have received verbal instructions to trim production to ensure better air quality in Beijing for a military parade commemorating the end of World War Two, consultancy Mysteel said in a note.

Meanwhile, the Panamax index gained seven points, or 0.4 per cent, to 1,637. Average daily earnings for Panamax vessels increased by $64 to $14,737.

Among smaller vessels, the supramax index added eight points, or 0.6 per cent, to 1,369.

(Reporting by Sarah Qureshi in Bengaluru; Editing by Sahal Muhammed)