b'12American Journal ofTransportation ajot.comChina, COVID and iron-ore prices CASTALOOP USA expands Virus-related shutdowns have negatively impacted steel demandcargo handling operations and future uncertainty is depressing ore prices, for now. with new Lemont, IL terminalBy Peter Buxbaum, AJOT CASTALOOP USA, Inc.,ourfacilities,insupportofa asubsidiaryofLOGISTECstrongglobalsupplychain. IronorespotpriceschairmanoftheChinaIronterritory.And,asarecentStevedoringInc.,announcedsaid Philip OBrien, President fordeliveryinChinahaveand Steel Association (CISA),report from the Internationalthe opening of a new terminalof CASTALOOP USA, Inc.fallendramaticallyovertheopinedthatsteeldemandinMonetaryFundputit,AoperationlocatedinLemontTheLemontterminal lastyear.InJuly2021,theChinawouldremainstablesharper-than-expected(IL).CASTALOOPUSA,islocatedtoservemarkets price stood at $224 per ton;during 2022. But his reviewslowdown in Chinas growthInc. will provide bulk, break- inthegreaterChicagoarea bymid-July2022,thepriceof the industry after the endwould negatively impact thebulk, and project cargo heavywith barge-to-truck services, waswaveringaroundtheofthefirstquarterofthisiron ore price.liftcustomerswithseamlessandeasilyaccessedthrough $110mark.Intheinterim,year,reportedontheCISAInshort,thelingeringmarineandcargohandlingtheinterstatehighway itsbeenarockyride,withwebsite, indicated that domesticeffects of COVID-19 lockdownsservices on the Illinois River atnetwork.Offeringover13 thecommodityachievingasteelproductioninChinaandthethreatofmoretomile marker 300, connecting toacres of outdoor storage and 2022 high in March of arounddecreased by 10.5% year overcome would have a negativetheMississippiRiverSystem65,000 square feet of indoor $160 per ton before going onyear,andthatdownstreamimpactonthetrajectoryofand its tributaries. warehousing,suitablefor a roller coaster ride in June.steelconsumptionisstillChinas economic growth andBy expanding our networksteel,non-ferrousmetals, It started off at $145 per tonrecovering.on steel and iron ore demand.of terminal operations at theforestproducts,super and tried to close in on $150,A recent report from S&PCurrent ore prices reflect theheart of the USA, we envisionsacksandpalletizedgoods, before plummeting to levelsGlobalshowedthatsomefact that traders are less thantoprovideanewalternativecustomerswillbenefitfrom not seen in seven months.Chinese steel mills, especiallyoptimistic. for the Midwest River systemCASTALOOPcommodity-Pricevolatilitysignalsthe private ones, have startedBesides the zero-COVIDcustomerstoreachnewmarketsspecific cargo handling expertise. the perception of uncertaintyto voluntarily cut steel outputfactor,anotherreasonforwhilemaintainingthetrustedTheterminalisacentral onthepartoftraders.Itsas weak steel demand dragged(PRICEScontinued oncargocaretheyhavegrowndirect link to global markets impossibletoassignasingletheirmarginsintonegativepage 15) accustomed to receive throughoutthrough the river system.cause for these price swings, but Chinaseconomy,particularly itszero-COVIDpolicyandPORT OF MORGAN CITYits implications, is playing a large role.Of course, developments inChinaarenotalone responsibleforiron-orepriceA SMALL PORT PROVIDING BIG OPPORTUNITIES! chaosthe war in Ukraine, for one, has been disrupting metalsOUR LOCATION ON THE LOUISIANA GULF COASTAT THECONFLUENCE OF THE marketsglobally.Ferrexpo,ATCHAFALAYA RIVERAND THEGULF INTRACOASTALWATERWAYOFFERS ANaSwiss-basedtradingandALTERNATE ROUTE TO THE MISSISSIPPI AND RED RIVERS. mining company and the third-largestexporterofiron-oreWE ARE UNIQUELY SITUATED TO SHIP AND RECEIVE CARGO THROUGHOUT THE pellets, declared force majeureUNITED STATES, CANADA, MEXICO, CENTRAL AMERICA, AND THE CARIBBEAN. onsomecontractsearlier thisyearthankstoUkraines snarled logistics networks. But thosedevelopmentswould have tended to constrain supply andpushpricesup. Andyet, the opposite situation currently prevails.Chinabuysoverone-billiontonsperyearof ironore70%ofthetotal globalseabornetradeand producesoverone-billion metric tons of crude steel per year53%oftheworlds total.Thatswhydemand forironoreinChinawill inevitably loom large on the global landscape.Thezero-COVIDpolicy distinguishesChinafrom much of the rest of the world, where economies have largely been opened up, even on the faceofnewvirusvariants andoutbreaks.Notsoin China, where the government recently shut Shanghai down forovertwomonths.Some800 YOUNGS ROAD, MORGAN CITY, LAMULTIMODAL TERMINAL FACILITY . GIWW WHL MILE MARKER 95 manufacturingfacilitiesinREADY TO HANDLE BULK, BREAK-BULK, PROJECT AND CONTAINER CARGOES Shanghaiwereshuttered20,000 sq. ft. warehouse .25 acres yard storage.20 berth depth fortenweeksormore,and ChinasdomesticdemandPLANNED EXPANSION ON EAST AND WEST SIDES OF DOCKWILL INCREASE LAY DOWNfor steel, and for the iron oreAREA TO 39 ACRES AND PROVIDE 1900 FEET WATERFRONT ACCESS thatgoesintoproducingit, have suffered as a result. Its 20deep by 400 wide congressionally authorized channel from Morgan City south to the Gulf of Mexico also been reported that someAccess to 4-lane Hwy Commercial airport within 15 minutes of port facilityRail spurs on site manufacturingworkersand truck drivers have been slow to return to work, hamperingCONTACT US TO LEARN ABOUT YOUR OPPORTUNITIES! the effort to open the Chinese economy.Administrative offices:7327 Highway 182, Morgan City, LA.Mailing Address:P. O. Box 1460 . Morgan City, LA 70381 c HInas teelP roductIon Terminal Facility :800 Youngs Road, Morgan City, LA d own Phone: 985-384-0850 . Fax: 985-385-1931. www.portofmc.com .https://www.facebook.com/portofmc/InFebruary,He Wenbo,'