(Bloomberg) — STX Pan Ocean Co., South Korea's largest bulk-shipping line, said second-quarter profit rose 46 percent as China's demand for coal and iron ore boosted rates.

Net income climbed to $172.7 million, or 8.4 cents a share, from $118.3 million, or 6.9 cents, a year earlier, the Seoul- based company said in a Singapore stock exchange filing, citing international accounting standards. Sales more than doubled to $2.7 billion from $1.28 billion.

STX Pan Ocean follows Nippon Yusen K.K. and Pacific Basin Shipping Ltd. in posting higher earnings as China's surging imports of commodities spur shipping demand.

The Baltic Dry Index, a measure of commodity shipping costs, was an average 63 percent higher in the three months ended June than a year earlier.

"The brisk bulk market boosted earnings at STX Pan Ocean," said Ryu Je Hyun, an analyst at Mirae Asset Securities Co. "The Baltic Dry Index has declined recently due to the Beijing Olympics and a seasonal slowdown.

But I still expect STX Pan Ocean to have solid earnings in the second-half helped by contracts it signed at good rates." He has a "buy" rating on the shipping line.

The Baltic Dry Index dropped 4.3 percent on Aug. 8, its 21st straight losing day. The index has fallen 39 percent from its May 20 high because China has shut steel mills and other factories near Beijing to curb pollution during this month's Olympics.

Separately, STX Pan Ocean announced a reverse stock split plan for its Korean shares that will merge ten into one to "decrease excessive liquidity" and "stabilize" its Korea Exchange traded stock, the shipping line said in a separate filing. The consolidation will be put to a shareholder vote planned for Oct. 31, it said.

STX Pan Ocean's operating profit, or sales minus the cost of goods sold and administrative expenses, climbed 43 percent to $176.2 million from $123 million a year earlier, it said.

Under Korean accounting standards, STX Pan Ocean's second- quarter profit rose to 169.9 billion won ($164 million) from 104.2 billion won a year earlier. Sales more than doubled to 2.37 trillion won from 1.13 trillion won, the shipping line said. The disparity reflects differences in accounting rules.

The company rose 2.5 percent to 1,885 won in Seoul at the close of trading on Monday.

The stock has dropped 37 percent this year. Its Singapore-traded shares dropped 3.4 percent to S$2.30.