NEW YORK (TheStreet) -- Shares of Baltic Trading (BALT) were rising on Wednesday after the dry bulk shipper reported a narrower-than-expected loss and as the overall industry begins to see a rebound in Chinese steel production.
Shares of the New York-based company were at $5.52, up 9 cents, or 1.7% on Wednesday as Baltic reported on Tuesday a third-quarter net loss of $195,000, or 1 cent a share, on revenue of $10.9 million. Analyst estimates as polled by Thomson Reuters expected a loss of 2 cents a share.
"Early indications of decreasing steel inventories over the last week could result in higher steel prices and a possible rebound of steel production in the short run," Baltic Chairman Peter Georgiopoulos said on a conference call Wednesday.
Genco Shipping & Trading (GNK) also reported earnings Tuesday and beat expectations on the top and bottom line. But a positive third quarter didn't prevent shares of the company from sliding on Wednesday.Genco was falling on Wednesday to $8.75, down 22 cents, or 2.5%, after it showed a profit of 4 cents a share on $93.5 million in revenue. Analysts expected Genco to break even on $92.8 million in revenue. "Our opportunistic time charter approach enabled Genco to capitalize on a rising freight rate environment during the third quarter," said Robert Gerald Buchanan, president of Genco, in a statement. "We continue to employ a majority of our vessels on contracts that preserve the ability to take advantage of future rate increases." With the prospect of a rebound in Chinese steel production , Genco and Baltic could be singing. The Baltic Dry Index, which measures commodity shipping costs, has dropped in the past few days because of a decrease in capesize rates as Chinese steel stockpiles increased in the eight weeks leading up to the beginning of October. The increase, however, eventually outpaced domestic demand, forcing Chinese steel producers to cut production and slowing the need for iron ore. But now it looks like a reduction in production has eliminated surplus stockpiles, meaning China could soon be firing up steel production again.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV