Forecast of World Market of Ferrous Metals and Metallurgical Raw Materials: Influence of Mining and Steel Markets upon Volumes and Geography of Shipments
The conference "CIS Rolling Stock Market" took place in Moscow on November 15. A representative of Metal Expert Consulting has presented a report “Forecast of World Market of Ferrous Metals and Metallurgical Raw Materials: Influence of Mining and Steel Markets upon Volumes and Geography of Shipments”.
The main conclusions of the report:
- Shipments of steel products, metallurgical raw materials and coal are vulnerable to the risks of worsening export conditions
- Prices for raw materials are important for understanding the outlooks of Russian exports where the share of raw materials and semi-finished products is growing
- To keep exports at current level or to increase them is possible only by cutting raw material production costs
- New coal and iron ore production capacities will oust Russian materials out of the markets
- Russian exporters will not be able to raise their competitiveness without investments. The market players will have to invest into new cargo cars, increasing efficiency of production and transportation.
The rent rates of the rolling stock are bottom-low today and transportation companies are lively discussing the growth which is expected in 2014. However, it is important to understand that the growth of rent rates is possible only when transportation speed increases and expenses of consignors reduce.
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