Baltic index slips on weaker capezise demand

Aug 18 (Reuters) - The Baltic Exchange's main sea freight index, which monitors rates for ships carrying dry bulk commodities, fell on Monday as demand for capesize vessels weakened.

* The main index .BADI, which tracks rates for capesize, panamax and supramax shipping vessels, dropped 22 points, or 1.1%, to 2,022 points, reaching its lowest point since August 12.

* The capesize index .BACI fell 83 points, or 2.5%, to 3,212 points, its lowest level since August 7.

* Average daily earnings for capesize vessels .BATCA, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $685 to $26,638.

* Iron ore futures erased earlier gains to trade lower, weighed by rising inventory and looming demand concerns sparked by talks of production control in top consumer China. IRONORE/

* Steelmakers in key Chinese steel production hub Tangshan were rumoured to have received oral instructions to cut output from August 31 to September 3 to improve air quality in Beijing. However, Reuters could not verify the authenticity of the production restriction.

* The panamax index .BPNI added 8 points, or 0.5%, to 1,630.

* Average daily earnings for panamax vessels .BPWT, which usually carry 60,000-70,000 tons of coal or grain, was up $72 to $14,673.

* Among smaller vessels, the supramax index .BSIS gained 8 points, or 0.6%, to 1,361.