DryShips Inc (fka DRYS)

[Net-Man]

Something to consider - The following link points to an article that discusses commodity prices and specifically iron ore projections through 2030. The gist of the article is that iron ore production will continue to increase by 2.5% per year for the next 15 years. While crystal balls are always interesting to consult, I believe the numbers do reflect a demand model that will be in large part driven by world population growth. More people simply need more stuff. http://www.hellenicshippingnews.com/is-there-some-good-news-at-last-for-bhp-billiton-plc-and-rio-tinto-plc/

The article's thesis is important to dry bulk carriers including DRYS because it points out a continuing growth pattern for all market participants. Without any scrapping taking place (highly unlikely), it will take until 2018 to reach an equilibrium between supply and demand in the Cape and Panamax dry bulk markets. It will be a 2017 story if scrapping continues at its current pace or should it accelerate any at all, 2016 could prove to be the rebound year for rates.

My analysis leads me to believe rates will continue a general up trend throughout 2016 and could rapidly accelerate through 2017 and 2018.