This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Baltic, Genco Expect Chinese Steel Uptick

NEW YORK ( TheStreet) -- Shares of Baltic Trading (BALT - Get Report) 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 - Get Report) 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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GNK $0.00 0.00%
EGLE $9.82 0.00%
BALT $1.52 0.66%
DRYS $0.73 -1.94%
AAPL $130.28 -1.14%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs