China as the world's largest importer of iron ore, always concerned about the ups and downs of the price of iron ore. Then the same as the cost of iron ore freight we know about it?
2002 iron ore freight, have long-term $ 10 / t. But the shipping industry business cycle, beginning in 2003, iron ore freight rises and falls as possible. After seven years of the 21st century, China imported iron ore increased by 366%, iron ore shipped to China from Australia and Brazil must go through a long sea journey. With the surge in China's iron ore trade, iron ore shipping costs are also rising year by year. Afghanistan copper mining
Australia in iron ore negotiations, the agreement reached in June 2008 and strongly urged the CIF sales of iron ore, the seller is responsible for the transportation of iron ore. June 4, 2008, the average sea freight from, Tubarao Hong Kong, Denmark mining equipment, Brazil and Western Australia, Port to Port Shanghai Baoshan iron ore reached $ 108.746 / ton and 50.523 U.S. dollars / ton, a record high.
The ups and downs ups and downs of the iron ore freight rates, and close to the three major mining companies in the world, this was especially evident in recent years on the international shipping market. In the second half, the spot iron ore demand will be increased significantly. Foreign miners and Chinese steel companies to sign a spot contract, generally the CIF settlement, the rise in freight for mining companies to bring in huge profits. Rio and BHP had a large number of charter in the market, thereby pushing up iron ore freight. bauxite beneficiation plant
So the major steel mills have their own fleet or signed long-term affreightment agreements with shipping companies in order to lock the iron ore freight costs, no longer controlled by others.