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-to-important-when-it-is-going-up 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? Think again…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1iei6aM Tyler Durden