Monday, January 05, 2009
Monday, 05 January 2009
DryShips Inc. gained 17 percent and Genco Shipping & Trading Ltd. 15 percent as rates to charter Capesize-class ships rose and China completed plans to support its steel and auto industries. DryShips rose $1.83 to $12.49 in Nasdaq Stock Market composite trading. Genco climbed $2.21 to $17.01 in New York Stock Exchange composite trading. China, the world’s biggest steelmaker, announced in November a 4 trillion-yuan ($590 billion) stimulus package running through 2010. The country has finished plans to assist the steel and auto industries and added subsidies to help farmers buy household appliances, Premier Wen Jiabao said on state radio today.
“With steel prices seeing moderate support in China, we have seen spot Capesize activity continue at the relatively brisk pace seen in mid-December,” Omar Nokta, an analyst at Dahlman Rose & Co. in New York, said in a note.
The rate to charter a Capesize on the spot market rose to $8,997 per day on the Baltic Exchange, a 1.2 percent increase from Dec. 24, the last day the London-based bourse was open. Capesize rates fell 94 percent in 2008 as global economic growth contracted and trade financing was hurt by tight credit markets.
Steel production in Tangshan, in China’s Hebei province, has risen to more than 70 percent of capacity as companies resumed output after prices stabilized, the Tangshan Evening News reported Dec. 26, without citing anyone.
About 39 of 57 iron and steel factories in Hebei, China’s biggest steel-producing province, are operating, up from 25 in August, the newspaper said. Local financial institutions have sped up loan approvals, it said.
Eagle Bulk Shipping Inc. rose 53 cents, or 7.8 percent, to $7.35. Excel Maritime Carriers Ltd. gained 90 cents, or 13 percent, to $7.94. Diana Shipping Inc. increased $1.16, or 9.1 percent, to $13.92.
As adapted from Bloomberg