What Does BDI Index Mean?

First we need to know that this index was issued by the Baltic Exchange.

The Baltic Exchange is the world's first and oldest shipping market.

Born in the Baltic coffee house in Virginia in 1744, it is now a world-famous shipping exchange in London, and 656 of the 46 countries in the world are members of the Baltic Exchange.

In order to meet the needs of customers, the Baltic maritime Exchange began issuing the daily freight index BFI, which was shipped by several traditional dry bulk carriers in 1985.

It can be seen that the index is the world's authoritative index to measure the international maritime situation and the leading index to reflect the international trade situation.

If the index rises significantly, it shows that the economies of various countries are in good condition and international trade is hot.

In recent years, China's rapid economic development has also led to the recovery of the global economy. The global demand for raw materials has greatly increased, resulting in the rapid prosperity of shipping.

In 2003, the BDI index was less than 3000 points, and by 2004, the index had doubled to over 6000. Therefore, the trade between China and other countries and the demand for raw materials in the world are the main reasons for the rise in the price of international shipping.

While the index is rising, we can also see that the rise in the price of shipping is consistent with the curve of the price rise of several major raw materials in the commodity market.

Therefore, as a strategic investor in many futures markets, the concern for the index is self-evident.

While many commodity prices are still high this year, BDI has plummeted, indicating that global market demand for raw materials is weakening and economic growth will also fall.

Of course, China's macro-control policy since last year is an important reason for the slowdown in China's demand and the decline in the BDI value.

The slowdown in global economic growth is another factor in the collapse of the index.

Therefore, the overall market price of raw materials in the commodity market is expected to come down soon.