23 August 2012 11:59 [Source: ICIS news]
Iranian material accounted for 14.5% of
“The sanctions will affect the voyage time and payment modes,” a trader in east
Only Chinese and Iranian ships can now undertake transportation of Iranian cargoes and this often results in inconsistent voyage times or delayed shipments, a Chinese trader said.
“We will not negotiate for new [Iranian] cargoes, unless we are certain of the loading dates [from the Iranian ports],” another Chinese trader said.
Cash payment will be the most important mode in the near future, as letters of credit payable in euro could no longer be easily obtained because of the sanctions, a third Chinese trader said.
The emerging trend of cash payment, however, will be a big burden for Chinese buyers.
"[Paying in cash] requires a high requirement of capital strength, which is difficult given this economic environment,” the third trader said.
It remains uncertain whether the issues with voyage time and payment modes will eventually lead to lower imports of Iranian material by
As shipment delays entail costs, buying interest for Iranian cargoes may weaken, said a south China-based trader.
“If the Iranians start to offload at attractive prices, the buying interest will return. So, imports from Iranian may still remain high,” another trader said.
Additional reporting by Rain Dong and Ong Sheau Ling
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