An upward trend for carriers in dry bulk, such as Norden, is starting to emerge. A trend which is driven by supply, estimates Stig Frederiksen, analyst at Nordea Markets, after the Baltic Dry index has increased to 597 points in recent months, corresponding to a doubling since the index hovered at rock bottom.
"If we look at demand, we don't expect it to go up. There is still a slowdown in China. But the supply, however, has changed. We think that the dry bulk market has reached rock bottom in 2016, because we can see that supply is improving. With the scrapping of vessels that we are seeing, and an order intake at almost zero, enough capacity will be taken out of the industry that we will come close to a balance without demand having to grow," Stig Frederiksen tells Ritzau Finans.