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.