Sea freight hits raw material transport cost for Japanese steel mills

June 6, 2008

June 6th (Steel Guru) – JMB reported that international spot market price of large bulk carrier keeps increasing. Iron ore freight is USD 102 per tonne from Brazil to Japan, which is more than iron ore price.

According to Japanese sources, the freight is twice of a year earlier level and 37% higher than average in fiscal 2007 ended March 2008. The market is lifted by strong demand for iron ore and aggressive buy by mineral majors.

It said that with the high market, Japanese steel makers’ freight cost could increase by more than JPY 120 billion including higher energy cost for fiscal 2008 from fiscal 2007.

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