WEEK IN REVIEW: Fraught freight, slow-motion September

Increased costs and bottlenecks in shipments were a factor in international metal markets this week, as they still wait for that burst of activity normally seen in the run up to the fourth quarter.

The bankruptcy of South Korea’s Hanjin Shipping, one of the world’s largest shipping companies, has left a reported $14bn worth of cargo stranded at ports around the world including Busan. Some traders said this week they were uncertain when their consignments of metal would arrive – this includes shipments by third party vessels.

The scramble for alternatives has boosted freight prices elsewhere after most shipping companies have been running below capacity. Freight rates from China are have gone up to $1,200/container, traders reported, compared with $800/container in late July. Typically rates would start at around $1,000/container at the start of a month, before falling towards the month-end.

The impact of shipping bottlenecks, increased freight costs and underlying export offers from China is muted in many western markets where consumers are still living off stocks built up in the summer. But they have been dictating a price rise the larger volume minor metal markets reliant on Chinese supply, such as antimony, magnesium and manganese.

Chinese authorities have been busy this summer plugging gaps in border controls that …
Read More
Source: Metal Pages