South Africa's strike threatens to hinder inland transportation of chromium ore and ferrochrome, as well as port shipping efficiency

According to Hainan West Asia Group’s understanding. South African authorities organized a nationwide strike to demand an end to power cuts. In recent years, South Africa's power crisis has been constant. Continuous power shortages and power outages affect local chrome ore and ferrochrome production. The strike threatens to hinder the efficiency of inland transportation of chrome ore and ferrochrome and port shipments.

Seven economists were surveyed from January 9 to 12 on the possibility of a recession. The results show that with the increasing power crisis in South Africa, the probability of the country falling into economic recession in 2023 is 45%. South Africa's gross domestic product (GDP) is unlikely to grow more than 0.3% quarter-on-quarter (QoQ) by 2023, and its year-on-year growth rate will slow from 2.3% in 2022 to 1.2% in 2023. In addition, the Reserve Bank of South Africa may extend its most aggressive monetary tightening policy in at least 20 years, raising its key interest rate from 7% to 7.5% by the end of the first quarter of 2023, and gradually reducing borrowing costs from the fourth quarter.

According to relevant data. In February, the arrival rate and receipt and delivery services of the Asia-South Africa route ranked first, 54.77% and 70.34% respectively, up 22.79% and 33.84% respectively from January. The current unrest continues to unfold, and the impact on the route at the end of March is not clear. But a number of bulk traders say there have been serious problems with local cargo shipments in South Africa since the start of the strike. At present, most of the South African imports sold by traders are port stocks, and the future of port rail transportation is still "uncertain" due to the riots destroying some transportation hubs and even railway tracks.

 

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