Bloomberg reported that China Cosco Holdings Co the world's largest operator of iron-ore and coal ships, fell the most in more than two weeks in Hong Kong trading after a measure of bulk shipping costs dropped to a two year low.

The shipping line plunged as much as 13% to HKD 6.21 and was at HKD 6.51 at 11:35 AM heading for its sixth straight losing day. The intraday decline was the most since September 11th. Pacific Basin Shipping Ltd and Singapore-listed STX Pan Ocean Co also slipped as much as 13%.

China Cosco leapt 41% in the two days ended September 22nd on optimism rates would surge as Chinese steelmakers ramped up production following the end of curbs put in place to ease pollution during the Beijing Olympics. Instead, many steel mills have remained closed because of weak demand from the building industry, leaving iron-ore stockpiles near records.

Mr Ric Leung a Hong Kong-based analyst at Everbright Securities Co said that “Hopes in the market for a fourth-quarter rebound in dry bulk rates seem to be disappearing. China's demand for steel turns out to be less than expected.''

The Baltic Dry Index fell for a sixth consecutive day yesterday. It's lost 61% this year.