Baltic Dry Index

Shot up 2.58% today. The Baltic Capesize Index shot even higher, up 1,108 points for a 15% gain. Forbes reports this in their article "BHP/Baosteel Deal Drives Shippers Higher" The meat and potatoes of the news is that Baosteel just upped their supply from BHP from 6 to 10 million tons per year for 10 years. That's almost 70%! The price is still not agreed for the coming annual period starting April 1st, but it doesn't look like China will be getting what they want, if they are increasing imports 70%. Here's the picture going forward:

Rupinski said investors are looking ahead to the end of February, early March when there’s expected to be a lot more movement of dry bulk cargoes as the Chinese seek to replenish their steel and coal inventories,
which are at very low levels.
"A lot of cargo is being withheld right now," Rupinski said. "There are millions of tons of coal and iron ore that really haven’t been moved and that are expected to be moved in the next couple of months to get as much moved before the iron ore prices increase."

This is looking good for DRYS. Time to start thinking about taking some profits. If the Baltic Dry Index continues to rebound, they could easily go to $80. For the moment, I will sit back and wait for a deal on iron ore pricing to be announced. Then the Baltic Dry Index will really go through the roof.