Increasing costs for long-term storage at the Chinese port of Tiajnin have added to the financial burdens facing alloy smelters and trading houses this year.
In late December 2020, Tianjin Port Group passed a proposal to raise the ceiling level on storage charges for non-ferrous cargoes held at the largest port in northern China.
From January 1, 2021, it announced, non-ferrous cargoes stored for longer than 120 days would be charged a daily storage rate of 0.60 yuan ($0.09) per tonne. The rate was kept at 0.20 yuan per tonne for cargoes stored for 61-90 days, and 0.40 yuan per tonne for cargoes stored for 90-120 days, while the 60-day free storage period was also unchanged.
Adding the fourth price threshold would increase the liquidity of cargoes stored at the port and make better use of the storage space, the group said.
Market participants immediately realized that this new charge would impose on them significant costs once their goods were stored for more than 120 days.
"It can be a big...