News
April 12
The second week of April 2026 has witnessed the global steel industry grappling with a “systemic spillover” of production and logistics costs. While seasonal demand provides a modest floor for prices, the primary market drivers this week have been external: geopolitical shipping disruptions and the implementation of significant new tariff regimes in Western markets.
The Freight Factor: Iron Ore’s Rising Landed Cost
A critical development during the April 8–12 period has been the sharp escalation in maritime logistics. Freight rates for major iron ore routes—particularly from Brazil to Asian hubs—have surged by more than 30% since late March. This “cost-push” from the shipping sector is significantly inflating the landed cost of raw materials, even as benchmark iron ore prices fluctuate near the $105/ton (CFR) mark. With port inventories remaining at elevated levels (exceeding 177 million tonnes), this logistical premium is creating a paradox where raw material supply is high, yet costs for the end-user continue to climb.
