Soaring steel's price settled downstream industry joyful
The price of Iron ore is up 65%, together with the ocean freight, will lead to the increasing of the price of steel. This will influence the steel-related fields of products, such as architecture, automotive, ship, appliances. Professionals say, enclosure of the refrigerator and washing machine, compressor of the air conditioner and refrigerator are using plenty of steels. This price increase of raw materials will cause the price increase of appliances. As we know 60%-70%of the car is make up from steel. Automotive is also being impacted because of the price of steel. But the cost will not be the barrier of the profit growth due to the great needs of consumer demand.
Where the dry bulk cargo freight spreads, imperceptibly but has predestination early
Iron ore is one kind of dry bulk cargo which occupies the most quantity and grows rapidest of ocean shipping, it infulences greatly on freight. Professional members point out that rising of iron ore price will stumilate freight of dry bulk cargo to rise rapidly in short-term, but it's not optimistic in long-term, with estimation of turbulence phase in the last half year.
Stell and iron ore suppliers will continue the 10 years iron ore supply contract, stimulates BDI index which reflects dry bulk cargo freight to increase about 285 on 30th, Jan, dry bulk cargo freight bouncing strongly, now is around 7319. But in the long-term, the inclination is not optimistic: import price of iron ore increase too much, freight keeps increasing,transport supply accelerating, all of these may lead to decrease of import quantity of iron ore. Global insufficient expectation of U.S.A sub debt, the influencemnet on global import and export trade from U.S.A economy recession is ambiguous, moreover, Chinese expexted demand increases on iron ore is only the fuse of international sensationalization on dry bulk cargo freight .
From:www.jctrans.com