South Africa’s main export terminals will close to mineral exports from midnight, when a nationwide 21-day lockdown to try to contain the coronavirus begins, disrupting copper and cobalt supplies from the Democratic Republic of Congo and Zambia.
Miners in the African copperbelt, which accounts for more than a tenth of global production, typically transport copper overland to South Africa’s ports, where it is exported mainly to China, the world’s biggest consumer of the metal.
The novel coronavirus that has killed more than 21,000 people globally has roiled markets and disrupted supply chains as governments impose restrictions on movement to curb its spread.
Communications from port authorities showed South Africa’s bulk terminals – ports processing imports and exports of mineral commodities – would shut for the duration of the lockdown.
“All bulk terminals (mineral mining commodities) will be closed,” a note from national port operator Transnet Port Terminals said, according to a shipping agent who asked not to be identified.
Contacted by Reuters, Transnet Port Terminals did not confirm that mineral commodities would not be exported.
The most immediate impact is likely to be on dry bulk freight rates, which are already languishing under the pressure of diminished demand, while amply-supplied copper markets can absorb the disruption unless it gets significantly extended, analysts said.
The note said the multi-purpose terminals of East London, Saldanha, Port Elizabeth and Maydon Wharf would be closed, as well as all automotive terminals. The manganese export terminal of Port Elizabeth would also shut.
“Transnet has taken a decision to scale down all of its transportation services and operations for non-essential cargo during the period of the state of lockdown,” the managers of Richards Bay terminals said in a letter to clients seen by Reuters.
Only agricultural bulk products such as grains, soya bean meal, fertiliser and wood chips, deemed essential during the lockdown, would still be handled, the note said.
The port closures also affect chrome and cobalt exporters, industry sources said.
South Africa has three-quarters of the world’s chrome resources and exported 4 million tonnes of chrome ore in 2018, mainly to China, mines ministry data shows.
“They will not be taking in cargo or outloading cargo as the terminal will not have staff,” another note, shared by an industry source, said, with reference to the bulk terminal at Durban port, South Africa’s main gateway for copper exports.
South Africa exported copper worth $209 million in 2018, according to United Nations COMTRADE data, while China imported 25,000 tonnes of Zambian copper.
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