Iron-Ore Demand May Drop on Quake, Hurting Index, Shippers Say
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Demand for iron ore, the biggest dry-bulk cargo moved by sea, may weaken after Japan’s strongest earthquake on record disrupted steel output, potentially hurting a recovery in the Baltic Dry Index, shippers say.
“There will be an impact on iron-ore cargoes,” Tim Huxley, Hong Kong-based chief executive officer at Wah Kwong Shipping Holdings Ltd., said by phone. “There will be a correction downwards” in the Baltic Dry due to a reduction in demand, Huxley said, without giving a precise forecast.