Freight Up Against China’s Steel Enterprises To Stop Buying Iron Ore From Overseas – Shipping
The face of rising pressure sea freight, iron and steel enterprises in China chose to take the initiative.
Stop orders check speculative transactions “Chinese steel enterprises, and some China traders believe that the cost of China imports are too high, so I decided to temporarily stop orders.” Yesterday, an industry, the suspension of several months of overseas Chinese enterprises procurement China of iron ore, mainly to consider in the price .
Shanghai Shipping Exchange, Ministry of Information said that in the Pacific and Atlantic regions, as some speculative long-term control of their rental home rental market, and rapidly pushed capsize market charter market. To check the speculation, China trading, Chinese steel producers suddenly stop from Australia and Brazil to China iron ore pallets charter business.
Sudden departure as buyers last week, a drop of iron ore shipping market trends. According to statistics, last week, Brazil, Australia to China, sea freight, respectively 14.89% and 31.53% plunge; closely associated with FFA China trading capsize 4 voyage time charter routes, and the average rent for the 180,200 U.S. dollars, plunged 22.97%; the Baltic Sea capsize freight index (BCI) plummeted 22.90 percent.
“This is just an ordinary business behavior, it does not involve breach of contract and other issues.” The source said. The so-called “iron ore pallets charter” that spot iron and steel enterprises China imported iron ore from overseas when required Lease With pallet transport capacity of the vessel. “Such transactions are generally paid in cash and no long-term contracts.”
Huge amount of ore reserves increased voice Contact Information Director of Beijing steel
Xu Xiangchun said that if the sea freight modest rebound after sharp fall, will help ease the cost of iron and steel enterprises in China’s pressure.
Far, Chinese steel companies will not disclose the resumption of “iron ore pallets charter business.” In the industry believe that this shows that the Chinese enterprises are still waiting for the whereabouts of the international sea freight.
According to China Iron and Steel Industry Association’s latest statistics show that from January to April this year, China’s domestic iron ore market oversupply situation.
According to industry estimates, currently, the domestic port inventory of about 80 million tons of iron ore, a conservative estimate the domestic steel industry consumes enough for 3 months.
The same time, Xu Xiangchun also said that for now, sea freight rates down is a temporary phenomenon, although the rebound is not expected to fall soon after the return to high, but to judge long-term trends, sea freight rates may continue to remain high.
Downward effect on freight Iron ore talks
Yesterday, and industry sources said the freight charges of iron ore spot prices drop adjustments will enable the Chinese enterprises Iron ore price Negotiations to win some chips. Chinese iron ore China importers and foreign suppliers on the 2008 contract price negotiations may reduce the outsourcing iron ore, lead to falling demand. Northeast Securities analyst Zhang
According to Jin said that the China import of iron ore CIF price of the Framework of freight from the offshore structure, in which freight accounts for about half the price of China imported ore. The future trend of sea freight will also be a decision of ore an China important factor in price movements.
In fact, as of now, the price of China imported iron ore has dropped into the channel. Meanwhile, in mid-May, Development and Reform Commission, Ministry of Commerce, General Administration of Customs jointly issued the five ministries, “the Port in order”, part of the port began to increase fees ore stockpiles, Steel Association also issued a notice to lower the port deposit, requiring iron ore deposit on its own to clean up the port, saying the circumstances are serious hoarding reselling business, will suspend or cancel the eligibility of China imported iron ore.
A market analysis, macro-control measures in China imported iron ore market has not only changed the mentality of buyers and sellers, but also indicates that countries are beginning to interfere in the Australian iron ore price negotiations, Australia finally abandoned mine ocean freight compensation, 65% increase starting prices likely.
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