China Shipping Container Lines Co. said it’s hard to predict if rates will keep rising because fees reflect demand.
By staff reporter Zhou Lingling
(Caijing.com.cn) Signs of a recovery in demand have prompted some global shipping firms, including China Shipping Container Lines Co. (SSE: 601866; HKSE: 02866), to raise rates on selected routes effective July 1.
CSCL’s investor relations office told Caijing that the carrier raised rates on China-Europe and China-Mediterranean routes by US$175 per twenty-foot equivalent unit to about US$400, with a further US$50 hike from July 15 in the pipeline. CSCL also raised rates on routes to Australia, Africa and the west coast of South America, the official said.
Meanwhile, container lines participating in the North Asia/New Zealand Discussion Agreement – an alliance formed as ‘a voluntary discussion forum’ – said rates on services linking China and South Korea with New Zealand will rise US$250 per TEU from July 15.
The Canada Westbound Transpacific Stabilization Agreement also said its members raised rates for dry containers by US$160 per TEU, effective July 1.
Neither organization disclosed the new rates.
Several container shipping lines had to abandon planned rate hikes in April amid a sluggish market.
According to the Shanghai Shipping Exchange, China’s export container shipping index closed at 769.05 points on July 3, up 0.8 percent week-on-week, ending several weeks of declines.
The exchange said in a report that traffic on routes to Europe grew significantly in the run-up to the traditional July-August peak season as domestic manufacturers accelerated production and shipments. But the exchange also said that current rates don’t cover shipping firms’ operating costs on services to Europe.
Li Pan, an analyst at Bank of China International, said in a recent report that shipping firms are expected to raise rates to offset rising costs during the peak season and into the third quarter.
With oil prices inching higher, shipping lines’ fuel surcharges are also rising.
An official from CSCL said the company will raise fuel surcharges on services to Europe and the Mediterranean by US$75 per TEU this month. The Asia-West Coast South America Freight Conference also said it will raise its bunker surcharge to US$522 from US$450, beginning July 15.
CSCL said it’s hard to predict if rates will keep rising because fees reflect demand. The global downturn has driven down container shipping traffic and rates.
CSCL’s net profit fell 96 percent last year to 131 million yuan, and it reported a net loss of 1.2 billion yuan in the first quarter of this year.
In Hong Kong on July 7, China Shipping Container was up 0.49 percent at HK$2.05, while in Shanghai its A shares were up 1.11 percent at 4.54 yuan.
China Shipping Container Lines Co. said it’s hard to predict if rates will keep rising because fees reflect demand.
By staff reporter Zhou Lingling
(Caijing.com.cn) Signs of a recovery in demand have prompted some global shipping firms, including China Shipping Container Lines Co. (SSE: 601866; HKSE: 02866), to raise rates on selected routes effective July 1.
CSCL’s investor relations office told Caijing that the carrier raised rates on China-Europe and China-Mediterranean routes by US$175 per twenty-foot equivalent unit to about US$400, with a further US$50 hike from July 15 in the pipeline. CSCL also raised rates on routes to Australia, Africa and the west coast of South America, the official said.
Meanwhile, container lines participating in the North Asia/New Zealand Discussion Agreement – an alliance formed as ‘a voluntary discussion forum’ – said rates on services linking China and South Korea with New Zealand will rise US$250 per TEU from July 15.
The Canada Westbound Transpacific Stabilization Agreement also said its members raised rates for dry containers by US$160 per TEU, effective July 1.
Neither organization disclosed the new rates.
Several container shipping lines had to abandon planned rate hikes in April amid a sluggish market.
According to the Shanghai Shipping Exchange, China’s export container shipping index closed at 769.05 points on July 3, up 0.8 percent week-on-week, ending several weeks of declines.
The exchange said in a report that traffic on routes to Europe grew significantly in the run-up to the traditional July-August peak season as domestic manufacturers accelerated production and shipments. But the exchange also said that current rates don’t cover shipping firms’ operating costs on services to Europe.
Li Pan, an analyst at Bank of China International, said in a recent report that shipping firms are expected to raise rates to offset rising costs during the peak season and into the third quarter.
With oil prices inching higher, shipping lines’ fuel surcharges are also rising.
An official from CSCL said the company will raise fuel surcharges on services to Europe and the Mediterranean by US$75 per TEU this month. The Asia-West Coast South America Freight Conference also said it will raise its bunker surcharge to US$522 from US$450, beginning July 15.
CSCL said it’s hard to predict if rates will keep rising because fees reflect demand. The global downturn has driven down container shipping traffic and rates.
CSCL’s net profit fell 96 percent last year to 131 million yuan, and it reported a net loss of 1.2 billion yuan in the first quarter of this year.
In Hong Kong on July 7, China Shipping Container was up 0.49 percent at HK$2.05, while in Shanghai its A shares were up 1.11 percent at 4.54 yuan.
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In January Turkish chrome ore exports were 70,490 Tonnes, over 37% lower than the same month of last year Steel Business Briefing learns from Istanbul Mineral & Metals Exporters Association (IMMIB) data.
January exports were substantially higher than December’s 17,435 Tonnes, but still 60% lower than last year’s monthly average.
Turkey’s largest chrome ore exporter, Etikrom, tells SBB that the January export figures are a positive sign, even if they show a decline y-on-y, after the volumes in the last three months of 2008. “Turkish chrome ore exports have started to move up, and we are expecting to see more increases until May or June,” the company says.
Etikrom’s price for February as $275/tonne, and for March $300/Tonnes for 42 % grade lumpy material cfr Chinese main ports, SBB is told.
It is also reported that China imported large amounts of chrome ore (62,069 Ton) before the Chinese New Year, and also that Russia and US imported small amounts last month.
Source: Steel Business Briefing
http://www.steelbb.com
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price,
turkey
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It is reported that Orissa Mining Corporation has reduced the price of Indian chrome ore for domestic sale to a large extent. The new price is applied to shipments in January to March 2009 quarter.
As per report, a typical high grade chrome ore produced in India has contained Cr2O3 48% to 49.99% and its price has been reduced to INR 4,976 per tonne, corresponding to approximately USD 96 per tonne, which has fallen to nearly half of the price for October to December 2008 quarter.
At all events, the higher prices of USD 700 to USD 800 per tonne had once prevailed in the international market, mainly in China. However, owing to the cutback of ferrochrome to be produced from chrome ore as implemented from October of 2008, the world demand for chrome ore has decreased to a large extent and, in order to cope with this aspect, price of Indian chrome ore for domestic sale has been urged to revise.
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chrome ore,
China,
prices
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China is likely to launch steel products futures trading this March on the Shanghai Futures Exchange, with linear steel and threaded steel to be the first futures varieties, according to an insider.
The introduction of steels futures will help enterprises prevent price risks through hedging and is helpful to restructuring of the domestic steel industry.
Also, it will help change China’s passive status in international iron ore negotiations. China may gradually gain some pricing power on the international steel market.
The source also said futures products of major building materials such as linear steel and threaded steel surely would come out earlier than rice futures.
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China,
linear steel,
futures products
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CHINA’S gross domestic product (GDP) reached 30.0670 trillion yuan (US$4.4216 trillion) in 2008, up 9 percent year on year, said the National Bureau of Statistics (NBS) today.
The growth was the slowest since 2001, when an annual rate of 8.3 percent was recorded, and the first time below a double-digit level since 2003.
The overall national economy maintained the good developing momentum of fast growth, stable prices, optimized structures and improved welfare, said Ma Jiantang, director of the NBS, at a press conference.
The annual growth rate for the fourth quarter dipped to 6.8 percent from 9.0 percent in the third quarter and 9.9 percent for the first three quarters, according to Ma.
“The international financial crisis is deepening and spreading, while its negative impact on domestic economy is continuing,” said Ma.
Despite the fourth-quarter slowdown, Ma said the 9-percent pace was “still a high figure”.
China’s performance was better than the average growth of 3.7 percent for the world economy last year, 1.4 percent for developed countries and 6.6 percent for developing and emerging economies, he said, citing estimates of the International Monetary Fund.
“With a 9-percent rate, China actually contributed to more than20 percent of the global economic growth in 2008,” said Ma.
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Yuan,
slowdown,
GDP
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