Cargo traffic to experience own prices growth

To date the products of the iron and coal industry make up 55% of the total volume of railroad shipments and more than 70% of export shipments. It is due to their prime cost, which also depends on the costs for transportation. So, the iron industry market is closely associated with the transport market.

In recent times the prices of iron and coal products have been decreasing, while the cost of transportation increases. Russian exporters of raw material and steel products will be able to keep their presence on the global market at the current volumes only if they decrease the prime cost. But it is impossible with an increase of prices on cargo shipment. Railroad transport will be affected by the reduction of metal goods traffic. V.Terlovoy, the manager of “Metal Courier” for metal expert consulting direction, says.