Steel Industry Demand News

Traffic to the end of March at French port Marseilles Fos saw major rises in container, dry bulk and cruise passenger volumes, but total cargo throughput fell 6% to 18.8 million metric tons, down by 1.2MT on the first quarter last year – due to declining oil trades in a changing market. General cargo improved 1% to 4.3MT, led by 2.8MT in container tonnage. In unit terms, box traffic rose 9% to 287,929 teu, with monthly throughput hitting a landmark 100,000 teu in both February and March.

Despite increases in general cargo and liquid bulks, January-September throughput at leading French cargo port Marseilles-Fos slipped to 72.03 million tonnes – down 2.7% on the first nine months last year - due to lower oil and dry bulk volumes. General cargo rose 6% to 13.05MT, led by an 8.4% increase in container tonnage to 7.55MT on the back of Far East imports. Ro-ro traffic contributed 3.3MT (+5.6%) while conventional trades were down 0.9% on 2.2MT. In unit terms, box traffic grew 4.8% to 744,000 teu. Petro-chemicals demand saw liquid bulks throughput improve 10.8% on 2.56MT but reduced steel industry demand prompted a 15.7% fall in dry bulks to 10.35MT. The oil sector experienced contrasting fortunes to finish 2.3% down at 46.07MT.

First-half east-west volumes through Fos container terminal rose by 7% compared with the first six months last year, helping total box throughput at the Port of Marseilles to a 3.5% increase on 488,000 teu. Container tonnage improved by 6.6% to almost five million tonnes, leaving general cargo 5.7% better at 8.7MT. The balance was split between ro-ro (2.1MT/+7.5%) and conventional trades (1.6MT/+0.8%). The overall cargo total of 47.8MT for January-June was down 2.4% on last year due to lower oil and dry bulk volumes. Contrasting demand saw oil traffic slip 2% to 30.2MT. Crude oil imports for local refineries rose 17% to 16.4MT but pipeline deliveries to Swiss and German refineries fell 15% to 5MT. Refined products/LPG ended 25% worse on 6.7MT whereas LNG gained 3% to 2.1MT.

Shipbrokers Simpson, Spence and Young's Atlantic Capesize Index rose 532 points in the week ending Monday to 4,400. SS&Y officials reported that the index is now nearly 1,500 points higher than it was in the same period in 1998. It is also just 19 points off pre-Asian crisis levels in October 1997. The surge in rates was due mainly to the grounding of the 274,326 dwt ore carrier Weser Ore at Tubarao, Brazil, on Oct. 4, which led to spot replacement tonnage seeing knee-jerk rate rises, SS&Y officials reported. Conditions this week were seen by SS&Y as likely to remain firm but that it was only sustainable if Japanese steel industry demand remains strong.