(Bloomberg) — Golden Ocean Group Ltd., a commodity shipper that's lost 63 percent of its market value this year, led a decline in European shipping stocks as turmoil in financial markets spread to the broader economy.

Golden Ocean fell 2.75 kroner, or 18 percent, to close at 12.50 kroner in Oslo, its biggest ever drop. D/S Norden A/S, Denmark's largest coal, ore and grains carrier, declined 46.75 kroner, or 20 percent, to 193 kroner in Copenhagen, taking its decline this year to 66 percent.

Financial turmoil prompted Goldman Sachs Group Inc. to say last week that the U.S. economy faces a "significantly deeper" recession than previously forecast.

Asia will expand at a 6.1 percent pace next year, down from a previous estimate of 6.9 percent, UBS AG said today. HSBC Holdings Plc cut its forecast for European growth next year to 0.4 percent from 0.9 percent.

Shipping is "one of the industries that's hurt the most" by slower economic growth, Tore Fugelsnes, an Oslo-based analyst at Nordea Equity Research who has a "buy" rating on Golden Ocean, said by phone.

The amount of cargo to be transported may also decline because of reduced steel output in China, the world's largest producer of the alloy.

Some steelmakers will cut output by 20 percent this month as demand cools, the China Securities Journal reported today.

Chinese demand for Brazilian iron ore, the main raw material in steel, is the largest source of demand for commodity carriers because of the distance ships must travel to deliver the cargo.

The Bloomberg Dry Ships Index of 12 commodity shipping lines fell 15 percent to 2,060 points, for an annual drop of 61 percent.

European oil-tanker stocks also dropped. Frontline Ltd., the world's largest operator of very large crude carriers, or VLCCs, closed down 11 percent at 237 kroner in Oslo. The five-member Bloomberg Tanker Index fell 11 percent to 464.92 points.

D/S Torm A/S, a Danish shipper of gasoline, jet fuel and other refined oils, lost 22 percent to close at 98 kroner in Copenhagen, a record slump.