Capesize decline drags down Baltic dry bulk index to 2-week low

Oct 13 (Reuters) - The Baltic Exchange's dry bulk sea freight index slipped to a two-week low on Wednesday as a decline in the larger capesize segment outweighed higher panamax and supramax vessel rates.

* The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, fell by 172 points, or 3.2%, to 5,206.

* The capesize index fell 602 points, or 6.3%, to 8,988, its lowest since Sept. 30.

* Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, fell $4,995 to $74,540.

* Iron ore demand could cool off towards year-end on slowing Chinese steel output due to emissions-related curbs, brokerage Jefferies said in a note.

* The brokerage, however, noted China and India were moving to replenish depleted coal inventories amid an energy crunch ahead of winter.

* It added that despite some volatility into year-end, caused by the recent Chinese Golden Week holidays and ongoing power outage issues in China, rates were likely to remain strong.

* Iron ore futures in top steel producer China tumbled on Wednesday, leading a selloff driven by persistent unease about debt-saddled Chinese property firms and a bearish demand outlook.

* The panamax index added 52 points, or 1.3%, to 3,958.

* Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, increased by $474 to $35,624.

* The supramax index added 41 points to an all-time high of 3,502, according to Refinitiv Eikon going back until 2017. (Reporting by Kavya Guduru in Bengaluru; Editing by Aditya Soni)

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