Road transport costs for steel rise in China due to new regulation

03 October 2016

China newly-promulgated Road Traffic Management Regulations regarding overloaded and oversized trucks and unsafe vehicles took effect on September 21 and will significantly push up transportation costs on Chinese roads. Accordingly, it is thought that long distance transportation for coal, steel, corn and other commodities will likely increase by 25 percent or more.

So far freight charges for Hebei based steelmaker Anfeng Iron & Steels steel products transported to Tianjin have increased from RMB 70/mt ($10.49/mt) to RMB 110/mt ($16.49/mt), while freight charges for their products to Beijing have risen from RMB 80/mt ($11.99/mt) to RMB 125/mt ($18.74/mt).

Finished steel prices in China are expected to rise due to increase in road transportation costs.

Source – Steel Orbis