CLF a large US/Canada iron ore producer is withdra
Post# of 8059
Posted On: 02/09/2015 11:24:29 AM
CLF a large US/Canada iron ore producer is withdrawing from the China seaborne trade to concentrate on the USA market where prices and contracts are more stable.
And to avoid ship costs to China (except for I presume Cliff's Australian operations).
If only there were steel making plants in the Western USA and Mexico to reduce ship costs. Cape ship costs had dropped to ca 5/ton last i looked but Panamax are 3 times that or more-they expected 16/ton for the Ilia- so if companies could find local markets they could save on ship costs and like Cliffs avoid some of the volatility and unpredictability of the China seaborne iron market.
Doesnt make a lot of sense for China to ship steel products to LA -but no significant western USA steel making plants that I've been able to find- there are aluminum plants. And no significant northwestern Mex steel plants either apparently.
http://finance.yahoo.com/news/key-takeaways-c...47180.html
And to avoid ship costs to China (except for I presume Cliff's Australian operations).
If only there were steel making plants in the Western USA and Mexico to reduce ship costs. Cape ship costs had dropped to ca 5/ton last i looked but Panamax are 3 times that or more-they expected 16/ton for the Ilia- so if companies could find local markets they could save on ship costs and like Cliffs avoid some of the volatility and unpredictability of the China seaborne iron market.
Doesnt make a lot of sense for China to ship steel products to LA -but no significant western USA steel making plants that I've been able to find- there are aluminum plants. And no significant northwestern Mex steel plants either apparently.
http://finance.yahoo.com/news/key-takeaways-c...47180.html
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