China began drawing down its iron ore stockpiles to reduce realized prices on the raw material. This is only temporary as the stockpiles are not large, but the effect on dry bulk rates was large. The BDI shed 20% during this temporary crack in demand.
The company reported revenues and net income nearly doubling as spot rates increased and a significant capital gain was recorded on the sale of a ship. The earnings of $4.13 beat the consensus estimate of $4.05.
The Baltic Dry Index rates exploded upward past the 2007 highs on soaring spot rates.
Since DRYS is revenues are so closely tied to the Baltic Dry Index, the recent recovery in rates has pushed the stock price up accordingly.
Dryships announced that they had acquired 30.7% of Ocean Rig ASA and were attempting to buy the company.
China steel makers hold off on chartering ships. Some cite as a possible slow down in the demand for steel while others speculate china is trying to downplay the industry boom in an attempt to control rising shipping costs.
Edit Metric
