In China, lockdown has been implemented mainly in Shanghai since March due to a COVID-19 outbreak. This has an impact on logistics of truck cargoes and operations of facilities for derivatives. Because of this, discharge operations from ships at ports have been delayed, which resulted in persistent congestion. According market players, about 500 ships have been waiting to enter the port of Shanghai since mid-April. Players are worried about a rise in freight rates when the lockdown is lifted in the days ahead.

Meanwhile, there are concerns over a decrease in demand for steel and non-ferrous metals. Demand for real estate is low and procurement of construction materials is expected to decline. With domestic demand decreasing, exports from China are on an uptrend.