Baltic Dry Plunges 8%, Near Most In 6 Years As Iron Ore At Chinese Ports Hits All Time High

Tyler Durden's picture


It would appear record inventories of Iron ore and plunging prices due to China's shadow-banking unwind have started to weigh on the all-too-important-when-it-is-going-up-but-let's-blame-supply-when-dropping Baltic Dry Index. With the worst start to a year in over a decade, the recent recovery in prices provided faint hope that the worst of the global trade collapse was over... however, today's 8% plunge - on par with the biggest drops in the last 6 years - suggests things are far from self-sustaining. Still think we are insulated from the arcane China shadow-banking system, which suddenly everyone is an expert of suddenly? Think again.



Why? Perhaps the following chart showing Chinese iron ore steel stockpiles at the country's 34 major ports will provide the answer:

Charts: Bloomberg

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Wed, 03/12/2014 - 16:43 | 4540256 superflex
superflex's picture

Container ships?  We dont need no stinking container ships.

Amazon has drones.

Wed, 03/12/2014 - 16:44 | 4540289 Winston Churchill
Winston Churchill's picture

We download apps for that.

Wed, 03/12/2014 - 20:31 | 4541106 max2205
max2205's picture

The Ore chart looks like a chart of nflx...


Baltic needs a capitulation then you can retire on it

Wed, 03/12/2014 - 21:26 | 4541271 old naughty
old naughty's picture

RR has drone ships --- so everything from mine to port to port under wrap --- no need human, no need BDI.

Wed, 03/12/2014 - 16:40 | 4540273 Rainman
Rainman's picture

I got a hunch the weather had something to do with this.

Wed, 03/12/2014 - 16:43 | 4540283 cossack55
cossack55's picture

Tell the Libyans to sink more ships.

Wed, 03/12/2014 - 16:45 | 4540291 Yen Cross
Yen Cross's picture


   I thought the 'Baltic Dry Index' was an "lagging indicator"? 

  Still waiting for all those lagging PPI.CPI#'s to catch up from DECEMBER>>> Also GDP prints< excess inventory> drawdowns..

   Hollywood, "Stompy Feet" TOTUS, will be reporting from the 19th hole shortly...

Wed, 03/12/2014 - 17:27 | 4540447 DaddyO
DaddyO's picture

The BDI is one of my favs for gauging the overall consumption market.

Lagging is so 20th century, don't you think?


Wed, 03/12/2014 - 16:45 | 4540293 Stoploss
Stoploss's picture

Is that what it looks like right before the patient dies?

Wed, 03/12/2014 - 16:57 | 4540297 Colonel Klink
Colonel Klink's picture

FUCK YOU FED, your lies and tricks aren't working.  People are broke or not shopping on purpose.  EMBO!

Wed, 03/12/2014 - 16:59 | 4540345 Headbanger
Headbanger's picture

Vie gehts Herrr Oberst!   It's the people who are not working.  Nicht gut.

And now the people of the world will be ordered to kill each other only for the political sake of their leaders.

Perhaps this time we will all just say "fuck it, lets ride"

Wed, 03/12/2014 - 17:03 | 4540355 Colonel Klink
Colonel Klink's picture

I prefer the people say "let's roll" against the financial terrorists which truly are the Federal Reserve and complicit politicians.

As for shopping, I spend as little as possible as my peaceful protest against the system.  No new cars, nothing of substantial value, secondhand shopping, etc.   I do as little shopping with the major corporations as possible.  Doing everything I can to choke the system.

Wed, 03/12/2014 - 17:08 | 4540386 Headbanger
Headbanger's picture

OK..  Rolling is good.   And yes, end the fucking Fed which is killing the people. 

We may be on the brink of a major breakthrough for humanity when the people of the world just say no to all this stupid political and bankster shit that's been ruling us for centuries.


Wed, 03/12/2014 - 17:21 | 4540426 Colonel Klink
Colonel Klink's picture

At some point people break the cycle of enslavement, back into freedom.  Problem is most of us here are just ahead of the curve.

Wed, 03/12/2014 - 18:56 | 4540749 Rafferty
Rafferty's picture

Sad but true.  Still, I sense a change in the air and I commend and thank you Colonel for your practical actions.

Wed, 03/12/2014 - 19:49 | 4540962 logicalman
logicalman's picture

Likewise - No debt, No car, no cellphone, no TV.

You have to vote with your wallet, it's the only vote that really counts.


Wed, 03/12/2014 - 22:10 | 4541411 Ban KKiller
Ban KKiller's picture

On board. Happier too when I think I am sticking it to the man. 

Less debt means more least to me.

Wed, 03/12/2014 - 16:46 | 4540298 anonnn
anonnn's picture


OT Malaysian 370 spotted by rig worker?  

BTW, excellent site for maritime perspectives


Wed, 03/12/2014 - 17:23 | 4540437 DirkDiggler11
DirkDiggler11's picture

+100 anonnn

Great link, thanks for sharing.

Wed, 03/12/2014 - 17:32 | 4540461 DaddyO
DaddyO's picture

Very detailed description with much credible bearing and direction info.

This is the kinda info that investigators can use to triangulate flight paths, altitudes and such.


Wed, 03/12/2014 - 17:38 | 4540482 Z_End
Z_End's picture

Great link! Thanks for posting.

Wed, 03/12/2014 - 18:16 | 4540596 DaddyO
DaddyO's picture

Based on news stories on several channels it would appear that the guy on the rig is spot on.

According to the Chinese satellite images and the lat and long, I'd say the plane was indeed on fire in the sky before going down.


Wed, 03/12/2014 - 16:50 | 4540315 Iam Yue2
Iam Yue2's picture

When you see the fuckwits on Twatter (sic) all suddenly start to talk about what Dr Copper is telling us, you know it is time to go outside and get some fresh air.

Nobody, and that includes the Chinese, know what is actually happening, and what is going to happen in China. That's why it is scary.

Wed, 03/12/2014 - 16:58 | 4540317 earleflorida
earleflorida's picture

all those, soon-to-become-poor...ancillary em's 

~too rich too soon... to smart to late, to old to soon, and I never got a chance to hold it... hurts the most~

Wed, 03/12/2014 - 16:52 | 4540319 Rising Sun
Rising Sun's picture

Pretty cool.


Not as good as the move in January - From 2250 down to 1050.


That snow storm in Arkanas really screwed global shipping.


A punch in the head to the asshole who came up with the weather and the economy - near heard a bigger pile of repetitve shit in my life - it's right up there with the moon made of green cheese.

Wed, 03/12/2014 - 19:53 | 4540978 Bonapartist
Bonapartist's picture

How does anyone know what the moon is made of- no one has ever set foot on it.

Wed, 03/12/2014 - 16:53 | 4540320 ronron
ronron's picture

buy the ship.

Wed, 03/12/2014 - 16:57 | 4540335 Cupid Stunt
Cupid Stunt's picture

 Ghost Cities ............. Ghost Bulk Carriers..............Channel Stuffing..............

Wed, 03/12/2014 - 17:07 | 4540382 Yen Cross
Yen Cross's picture


 @ Cupid Stunt

  Great post... I wonder when 'Somali Pirates' will be used to "Juice the export numbers"...

Wed, 03/12/2014 - 17:04 | 4540366 dcohen
dcohen's picture

There is only one way for the market for all eternity, a diagonal straight line up.

Wed, 03/12/2014 - 18:23 | 4540626 pashley1411
pashley1411's picture

This is all dependent on whether the government keeps its nerve and lets the (incredibly-centralized-Chinese) ,0001% go under.  

Methinx not.    Ready for a spring back.

Thu, 03/13/2014 - 08:34 | 4542330 thestarl
thestarl's picture

Right on the government there is the .0001%

Wed, 03/12/2014 - 20:49 | 4541163 NIETSNEREM
NIETSNEREM's picture

Bush's fault.

Wed, 03/12/2014 - 21:16 | 4541247 Offthebeach
Offthebeach's picture

For a long time not producing in the Soviet/Mao system was a terrorist act. Not consuming that which wasn't made, not so much.

Now we have a don't care if you don't produce because we either import or are automating. As for consumption, fedgove local and state will consume your share, even your grandchildrens share.
They don't need your velocity money, or taxes even. They can print credit and destroy value faster then you can save.

Right now they have all the cards.

Wed, 03/12/2014 - 22:14 | 4541428 Ban KKiller
Ban KKiller's picture

Does JP Morgan own the commodity warehouses there?

China has an edge in the race to the bottom...pollution gives them that extra flair when it all goes south.

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