Tuesday, 13 Mar 2012
China Knowledge quoted according to the latest statistics released by the General Administration of Customs said China, the world largest iron ore importer and steel maker saw its iron ore import surged 33.6%YoY to 64.98 million tonnes in February this year.
The iron ore imports last month reflected a 9.5% increase from the previous month. In the first two months of this year, the country iron imports rose 5.7%YoY to 124.26 million tonnes.
The average import price of iron ore dropped 12.9%YoY to USD 136.4 per tonne in two-month period.
According to figures from the China Iron and Steel Association the 80 large and medium sized steel enterprises in China suffered a loss of CNY 2.32 billion in January this year whereas they made profit of CNY 7.91 billion in the same month of last year.
Sourced - China Knowledge
Showing posts with label China. Show all posts
Showing posts with label China. Show all posts
Tuesday, March 13, 2012
Wednesday, February 29, 2012
China coal consumption continues to rise
Wednesday, 29 Feb 2012
According to the China Electricity Council, China coal demand will reach 4.3 billion tons by 2015 an increase of 970 million tons compared to the year 2010 and an annual increase of 5.2%.
An expert told the paper that as the cost of coal supply and labor increases and the coal resource tax rises, China may see higher coal prices and shortage in supply during the 12th Five-Year Plan period.
The paper cited an official with the Ministry of Industry and Information Technology that resource shortages may affect the nation economic development.
In 2011, China consumed 3.7 billion tons of coal with domestic coal output of 3.52 billion tons and imports of 170 million tons. The amount was almost half of the world's total coal consumption.
(Sourced from Shanghai Securities News)
According to the China Electricity Council, China coal demand will reach 4.3 billion tons by 2015 an increase of 970 million tons compared to the year 2010 and an annual increase of 5.2%.
An expert told the paper that as the cost of coal supply and labor increases and the coal resource tax rises, China may see higher coal prices and shortage in supply during the 12th Five-Year Plan period.
The paper cited an official with the Ministry of Industry and Information Technology that resource shortages may affect the nation economic development.
In 2011, China consumed 3.7 billion tons of coal with domestic coal output of 3.52 billion tons and imports of 170 million tons. The amount was almost half of the world's total coal consumption.
(Sourced from Shanghai Securities News)
China 2011 raw coal output up by 9pct YoY - Report
Wednesday, 29 Feb 2012
People Daily citing figures from a national coal conference reported that China produced 3.52 billion tonnes of raw coal in 2011 up by 8.7%YoY.
The newspaper reported that the conference also called for controls on coal consumption and measures to force industries to upgrade and improve energy efficiency.
The National Bureau of Statistics which publishes China commodities output and other data does not regularly disclose raw coal production figures.
The statistics bureau has said Energy consumption totalled 3.48 billion tonnes of standard coal last year up by 7%YoY.
According to the bureau of the total, coal consumption increased 9.7% YoY. It did not give an outright volume.
(Sourced from People Daily)
People Daily citing figures from a national coal conference reported that China produced 3.52 billion tonnes of raw coal in 2011 up by 8.7%YoY.
The newspaper reported that the conference also called for controls on coal consumption and measures to force industries to upgrade and improve energy efficiency.
The National Bureau of Statistics which publishes China commodities output and other data does not regularly disclose raw coal production figures.
The statistics bureau has said Energy consumption totalled 3.48 billion tonnes of standard coal last year up by 7%YoY.
According to the bureau of the total, coal consumption increased 9.7% YoY. It did not give an outright volume.
(Sourced from People Daily)
Tuesday, February 28, 2012
Coal occupies 31pct of total export of Mongolia
Tuesday, 28 Feb 2012
According to Mongol Bank statistics, foreign trade turnover of Mongolia has reached USD 735.2 million in the end of January and it has grown by 32 percent in comparison of January, 2011.
Total export balance of trade has grown by 15.2 percent in comparison of January, 2011 and import balance of trade has grown by 42.1 percent. Import growth has influenced to foreign trade deficit that has been accounted USD 254.6 million.
Coal export has occupied 31.2% of total export and Mongolia has exported 21 million tons of coal to China. Also copper enrichment export has occupied 27.8%, iron ore 15.7% and crude oil 8.1% of total export.
Main export goods’ border prices have been increased by 11.8% and import goods’ prices have been increased by 49.1%. Export and import prices’ increases have influenced to foreign trade total goods circulation growth.
(sourced Mad-mongolia.com)
According to Mongol Bank statistics, foreign trade turnover of Mongolia has reached USD 735.2 million in the end of January and it has grown by 32 percent in comparison of January, 2011.
Total export balance of trade has grown by 15.2 percent in comparison of January, 2011 and import balance of trade has grown by 42.1 percent. Import growth has influenced to foreign trade deficit that has been accounted USD 254.6 million.
Coal export has occupied 31.2% of total export and Mongolia has exported 21 million tons of coal to China. Also copper enrichment export has occupied 27.8%, iron ore 15.7% and crude oil 8.1% of total export.
Main export goods’ border prices have been increased by 11.8% and import goods’ prices have been increased by 49.1%. Export and import prices’ increases have influenced to foreign trade total goods circulation growth.
(sourced Mad-mongolia.com)
Friday, February 24, 2012
Vale looks to Australia for iron ore
Friday, 24 Feb 2012
The Australian Financial Review reported that Brazil's Vale, the world's largest iron ore miner, is looking for investments in Australia to cut down on shipping costs to Asia.
The Brazilian ambassador to Australia, Mr Rubem Antonio Correa Barbosa told the newspaper that “Vale is trying to diminish this handicap by investing more in Australia and eventually being able to sell iron ore from Australia straight to China.”
But Vale's chief executive, Mr Murilo Ferreira, wouldn't specify where the company was looking. He said that “It is our duty to analyse all of the opportunities through junior companies.”
(sourced Businessspectator.com.au)
The Australian Financial Review reported that Brazil's Vale, the world's largest iron ore miner, is looking for investments in Australia to cut down on shipping costs to Asia.
The Brazilian ambassador to Australia, Mr Rubem Antonio Correa Barbosa told the newspaper that “Vale is trying to diminish this handicap by investing more in Australia and eventually being able to sell iron ore from Australia straight to China.”
But Vale's chief executive, Mr Murilo Ferreira, wouldn't specify where the company was looking. He said that “It is our duty to analyse all of the opportunities through junior companies.”
(sourced Businessspectator.com.au)
Wednesday, February 22, 2012
China coal imports fall 8pc
SHANGHAI: China January coal imports fell 8 percent from the previous month to 19.65 million tonnes, a second straight month of decline as lower domestic prices and cooling demand hit orders, an industry website said on Tuesday, citing customs data.
With the steel industry plagued by slumping orders, imports of coking coal, a key steel making ingredient, tumbled 30 percent in January from a month ago to just 3.45 million tonnes the lowest since August when shipments were at 3.28 million, according to trade portal China Energy Net (www.china5e.com).
On an annual basis, January's coal imports were still up 3.9 percent, the report said.
After soaring to a record high of 22.14 million tonnes in November, China's coal imports have steadily fallen as a government imposed price ceiling of 800 yuan ($130) a tonne for spot coal prices in late November caused domestic prices to fall precipitously.
Coupled with weaker demand on the back of a cooling economy, domestic spot coal prices have fallen for 13 consecutive weeks and shed 70 yuan since November to 777 yuan a tonne.
With Chinese utilities and traders having piled up on stocks in the fourth quarter, the swift drop in local prices have made imports unattractive.
Traders said business has been slow and are looking for signs of a rebound in the second quarter, when utilities are expected to restock after winter sucks up inventories and industrial activity picks up.
"A lot of the shipments were deals done in early November. The market is very quiet now and bids that are streaming in for March and April are really low," said a Shanghai-based trader.
Bids for Australian coal with a heating value of 5,500 kcal/kg NAR were currently hovering at around $104 a tonne (CFR), down from around $110 a week ago.
"Offers have been falling by around $3-$5 on a weekly basis and will probably stay that way until the Chinese return and who knows when that will be," said a Singapore-based trader.
China Energy Net said total bituminous coal imports in January were 6.49 million tonnes, down 20 percent from a month ago, while volumes for anthracite and lignite were at 2.51 million and 3.28 million, respectively.
The customs agency will publish the final trade data later on Tuesday at 1430 local time (0630 GMT).
(sourced: Reuters & Brecorder.com)
With the steel industry plagued by slumping orders, imports of coking coal, a key steel making ingredient, tumbled 30 percent in January from a month ago to just 3.45 million tonnes the lowest since August when shipments were at 3.28 million, according to trade portal China Energy Net (www.china5e.com).
On an annual basis, January's coal imports were still up 3.9 percent, the report said.
After soaring to a record high of 22.14 million tonnes in November, China's coal imports have steadily fallen as a government imposed price ceiling of 800 yuan ($130) a tonne for spot coal prices in late November caused domestic prices to fall precipitously.
Coupled with weaker demand on the back of a cooling economy, domestic spot coal prices have fallen for 13 consecutive weeks and shed 70 yuan since November to 777 yuan a tonne.
With Chinese utilities and traders having piled up on stocks in the fourth quarter, the swift drop in local prices have made imports unattractive.
Traders said business has been slow and are looking for signs of a rebound in the second quarter, when utilities are expected to restock after winter sucks up inventories and industrial activity picks up.
"A lot of the shipments were deals done in early November. The market is very quiet now and bids that are streaming in for March and April are really low," said a Shanghai-based trader.
Bids for Australian coal with a heating value of 5,500 kcal/kg NAR were currently hovering at around $104 a tonne (CFR), down from around $110 a week ago.
"Offers have been falling by around $3-$5 on a weekly basis and will probably stay that way until the Chinese return and who knows when that will be," said a Singapore-based trader.
China Energy Net said total bituminous coal imports in January were 6.49 million tonnes, down 20 percent from a month ago, while volumes for anthracite and lignite were at 2.51 million and 3.28 million, respectively.
The customs agency will publish the final trade data later on Tuesday at 1430 local time (0630 GMT).
(sourced: Reuters & Brecorder.com)
Sunday, February 19, 2012
Global coking coal market comes face to face with oversupply - Mr McCloskey
Sunday, 19 Feb 2012
The global coking coal market is currently oversupplied and prices are poised for further declines. Despite this, a variety of new projects and expansions will continue to swell global supply for the foreseeable future, although the largest new tonnages will not make their appearance until the next decade. Australia and China remain the keys to supply and demand respectively.
Mr Gerard McCloskey of McCloskey Group said that “There is an oversupply. If Australia comes back to the sort of levels it was doing in the first half of 2010, another 30 million tonnes will come onto a very balanced market.”
He said that prices will fall, but will remain at pretty decent levels that are likely to be well above producer costs.
Mr McCloskey said that “Whatever happens to prices in next quarter, you’ll have seen the longest period with coking coal above USD 200 eight quarters.”
He added “During that time, price volatility has been extraordinary, with prices hitting as much as USD 330 in the second quarter of 2011, before falling back to USD 235 in the current quarter.”
Mr McCloskey predicted that “There will be a correction of prices down towards USD 200. It’s a great price. Until two years ago we had not had prices above USD 200 except for one brief period in 2008.”
Mr McCloskey said that additional supply meanwhile is coming from Australia, which is just getting back to normality following last year’s extensive flooding in Queensland, the country’s major coal producing region. Australian producers are in the process of adding another 30 million tonnes to a hard coking coal market that is probably only about 140 million tones.
(sourced Futuresmag.com)
The global coking coal market is currently oversupplied and prices are poised for further declines. Despite this, a variety of new projects and expansions will continue to swell global supply for the foreseeable future, although the largest new tonnages will not make their appearance until the next decade. Australia and China remain the keys to supply and demand respectively.
Mr Gerard McCloskey of McCloskey Group said that “There is an oversupply. If Australia comes back to the sort of levels it was doing in the first half of 2010, another 30 million tonnes will come onto a very balanced market.”
He said that prices will fall, but will remain at pretty decent levels that are likely to be well above producer costs.
Mr McCloskey said that “Whatever happens to prices in next quarter, you’ll have seen the longest period with coking coal above USD 200 eight quarters.”
He added “During that time, price volatility has been extraordinary, with prices hitting as much as USD 330 in the second quarter of 2011, before falling back to USD 235 in the current quarter.”
Mr McCloskey predicted that “There will be a correction of prices down towards USD 200. It’s a great price. Until two years ago we had not had prices above USD 200 except for one brief period in 2008.”
Mr McCloskey said that additional supply meanwhile is coming from Australia, which is just getting back to normality following last year’s extensive flooding in Queensland, the country’s major coal producing region. Australian producers are in the process of adding another 30 million tonnes to a hard coking coal market that is probably only about 140 million tones.
(sourced Futuresmag.com)
Saturday, February 18, 2012
FMG expects iron price to stay at USD 140 per tonne
Saturday, 18 Feb 2012
Fortescue Metals Group expects iron ore prices will remain around USD 140 per tonne in the short-to-medium term as Chinese demand remains strong but little new supply comes onto the market.
Fortescue reported that it had achieved an average realised sales price of USD 139 per tonne during the six months to December 31, down from USD 149 per tonne in financial 2010/11.
Mr Nev Power CEO of FMG told reporters that "Our core market in China remains strong and the iron ore index price has remained around USD 140 per tonne.”
He said that "Long term, China's growth is forecast to be stable around the nine per cent mark and we don't see significant new supply to come into the market in the short term, and, therefore, expect the price to remain in that range."
Head of marketing Mr David Liu said China's steel market should stabilize after a recent lull.
(Sourced from AAP)
Fortescue Metals Group expects iron ore prices will remain around USD 140 per tonne in the short-to-medium term as Chinese demand remains strong but little new supply comes onto the market.
Fortescue reported that it had achieved an average realised sales price of USD 139 per tonne during the six months to December 31, down from USD 149 per tonne in financial 2010/11.
Mr Nev Power CEO of FMG told reporters that "Our core market in China remains strong and the iron ore index price has remained around USD 140 per tonne.”
He said that "Long term, China's growth is forecast to be stable around the nine per cent mark and we don't see significant new supply to come into the market in the short term, and, therefore, expect the price to remain in that range."
Head of marketing Mr David Liu said China's steel market should stabilize after a recent lull.
(Sourced from AAP)
Friday, February 17, 2012
Oracle announces USD 610 million investments in Thar Block VI
Friday, 17 Feb 2012
Oracle Coalfields Plc, the operators of Block VI of the Thar coal project have announced their plans to invest up to USD 610 million for a coal mine of 5 million tonnes per annum capacity.
Mr Shahrukh Khan CEO Oracle Coalfields said that “The institutional investors abroad have no reservations in investing in Pakistan and they are willing to expose in the resource sector particularly in a project that is expected to yield a return of 20.5%. Besides, the international lenders are also interested in the project.”
Mr Khan informed about the details of the feasibility of coal mining and power generation project at Block VI and continuing significant progress in the development of its 1.4 billion tonnes flagship coal resource project in Thar, Sindh.
He said that the results of the comprehensive technical feasibility study undertaken last year confirmed the technical and economic viability of the project. This represents a significant step towards providing the nation, Sindh and local communities in Thar with a new sustainable source of energy for decades to come by bringing into production its first large scale open pit coal mine.
Oracle has also signed MoU with Karachi Electricity Supply Company to develop initially 300 MW mine mouth power plant with the plan to develop up to 11 MW at the Block VI site. Initial coal production is expected in 2014 with mine development to be started by the end of the current year.
The feasibility study results concentrated on an initial mining area with Block VI of approximately 20 square kilometers and reported in accordance with the international recognized 2004 Australian JORC Code, a mineral resource of 529 million of wet tonnes.
Mr Khan said that within this overall mining area, a Phase 1 zone was determined with coal reserves of 113 MWT. With further potential increase in reserves in Phase 2 of the mining area, the life of mine could be extended by a further 30 years or more.
Mr Younas Dhaga Sindh Coal and Energy Secretary said that infrastructure development is underway on a fast pace and the provincial government had approved various schemes and allocated funds.
Mr Dhaga also informed about the Engro’s project and said that they have completed their bankable feasibility and are waiting some infrastructure updating. The Sindh government has decided to award Block IV of the Thar coal project to Chinese state owned Three Gorges.
(sourced www.thenews.com.pk)
Oracle Coalfields Plc, the operators of Block VI of the Thar coal project have announced their plans to invest up to USD 610 million for a coal mine of 5 million tonnes per annum capacity.
Mr Shahrukh Khan CEO Oracle Coalfields said that “The institutional investors abroad have no reservations in investing in Pakistan and they are willing to expose in the resource sector particularly in a project that is expected to yield a return of 20.5%. Besides, the international lenders are also interested in the project.”
Mr Khan informed about the details of the feasibility of coal mining and power generation project at Block VI and continuing significant progress in the development of its 1.4 billion tonnes flagship coal resource project in Thar, Sindh.
He said that the results of the comprehensive technical feasibility study undertaken last year confirmed the technical and economic viability of the project. This represents a significant step towards providing the nation, Sindh and local communities in Thar with a new sustainable source of energy for decades to come by bringing into production its first large scale open pit coal mine.
Oracle has also signed MoU with Karachi Electricity Supply Company to develop initially 300 MW mine mouth power plant with the plan to develop up to 11 MW at the Block VI site. Initial coal production is expected in 2014 with mine development to be started by the end of the current year.
The feasibility study results concentrated on an initial mining area with Block VI of approximately 20 square kilometers and reported in accordance with the international recognized 2004 Australian JORC Code, a mineral resource of 529 million of wet tonnes.
Mr Khan said that within this overall mining area, a Phase 1 zone was determined with coal reserves of 113 MWT. With further potential increase in reserves in Phase 2 of the mining area, the life of mine could be extended by a further 30 years or more.
Mr Younas Dhaga Sindh Coal and Energy Secretary said that infrastructure development is underway on a fast pace and the provincial government had approved various schemes and allocated funds.
Mr Dhaga also informed about the Engro’s project and said that they have completed their bankable feasibility and are waiting some infrastructure updating. The Sindh government has decided to award Block IV of the Thar coal project to Chinese state owned Three Gorges.
(sourced www.thenews.com.pk)
Thursday, February 16, 2012
Talks on mega-carrier access open in Brazil
Thursday, 16 February 2012
China and Brazil are negotiating access to Chinese ports for the fleet of giant vessels owned by the miner Vale SA. The talks come as a result of China's tightened regulations on large carriers and signal that the issue has intensified at the political level. During a meeting in the Brazilian capital, Brasilia, the country's Vice-President Michel Temer discussed the issue of access for Vale's Valemax vessels - the world's biggest dry-bulk carriers - with China's Vice-Premier Wang Qishan, according to Marco Aurelio Garcia, foreign policy adviser to Brazilian President Dilma Rousseff.
"It will be dealt with at a political level," Garcia was quoted as saying, according to a report by Bloomberg.
On Jan 31, the Chinese Ministry of Transport tightened port regulations, a move that has effectively prevented Vale's mega-vessels from docking at ports in the country.The ministry said its decision to bar giant ships was taken because of "maritime safety issues". Vale's Valemax vessels are designed to carry 400,000 metric tons of iron ore and are "too large for Chinese ports to accommodate", said Sun Guangqin, director of the Port and Shipping Institute at Dalian Maritime University.
"To tighten the regulations on giant vessels is necessary for the safe operation of ports and shipping routes," Sun said in a recent interview. Analysts said the trade in iron ore between the two emerging economies is also a factor. In 2009, China replaced the United States as Brazil's largest trading partner. The total trade volume between the two countries jumped 16 percent to $77.1 billion last year. Iron ore, one of the South American country's main export commodities, plays an important role in Sino-Brazilian trade.
China, the largest consumer of iron ore, imported 686 million tons of the material in 2011, an increase of 10.9 percent from the previous year, according to data from Chinese General Administration of Customs.
Miners such as Vale might attain monopolies on the transportation of iron ore by setting up their own fleets, Zhang Shouguo, executive vice-president of the China Shipowners' Association, said.
"It (the monopoly) will hurt China's shipping industry as well as the steel industry," said Zhang.
Vale has invested $2.3 billion in 19 of the 400,000-ton giant bulk carriers and will control another 16 under long-term contracts, according to the company.Scheduled for delivery by the end of 2013, the vessels will reduce freight costs from Brazil to China by between 20 and 25 percent and will significantly reduce carbon emissions compared with other vessels, Vale said.
The miner currently operates five Valemax vessels, but none has reached a Chinese port since being put into service in May.In the meantime, Vale managed to unload its 388,000-ton Berge Everest at Dalian port on Dec 28, prompting protests from domestic shipping companies and the China Shipowners' Association.
Source: China Daily
China and Brazil are negotiating access to Chinese ports for the fleet of giant vessels owned by the miner Vale SA. The talks come as a result of China's tightened regulations on large carriers and signal that the issue has intensified at the political level. During a meeting in the Brazilian capital, Brasilia, the country's Vice-President Michel Temer discussed the issue of access for Vale's Valemax vessels - the world's biggest dry-bulk carriers - with China's Vice-Premier Wang Qishan, according to Marco Aurelio Garcia, foreign policy adviser to Brazilian President Dilma Rousseff.
"It will be dealt with at a political level," Garcia was quoted as saying, according to a report by Bloomberg.
On Jan 31, the Chinese Ministry of Transport tightened port regulations, a move that has effectively prevented Vale's mega-vessels from docking at ports in the country.The ministry said its decision to bar giant ships was taken because of "maritime safety issues". Vale's Valemax vessels are designed to carry 400,000 metric tons of iron ore and are "too large for Chinese ports to accommodate", said Sun Guangqin, director of the Port and Shipping Institute at Dalian Maritime University.
"To tighten the regulations on giant vessels is necessary for the safe operation of ports and shipping routes," Sun said in a recent interview. Analysts said the trade in iron ore between the two emerging economies is also a factor. In 2009, China replaced the United States as Brazil's largest trading partner. The total trade volume between the two countries jumped 16 percent to $77.1 billion last year. Iron ore, one of the South American country's main export commodities, plays an important role in Sino-Brazilian trade.
China, the largest consumer of iron ore, imported 686 million tons of the material in 2011, an increase of 10.9 percent from the previous year, according to data from Chinese General Administration of Customs.
Miners such as Vale might attain monopolies on the transportation of iron ore by setting up their own fleets, Zhang Shouguo, executive vice-president of the China Shipowners' Association, said.
"It (the monopoly) will hurt China's shipping industry as well as the steel industry," said Zhang.
Vale has invested $2.3 billion in 19 of the 400,000-ton giant bulk carriers and will control another 16 under long-term contracts, according to the company.Scheduled for delivery by the end of 2013, the vessels will reduce freight costs from Brazil to China by between 20 and 25 percent and will significantly reduce carbon emissions compared with other vessels, Vale said.
The miner currently operates five Valemax vessels, but none has reached a Chinese port since being put into service in May.In the meantime, Vale managed to unload its 388,000-ton Berge Everest at Dalian port on Dec 28, prompting protests from domestic shipping companies and the China Shipowners' Association.
Source: China Daily
Tuesday, February 14, 2012
India will burn more coal than China in 20 years
Tuesday, 14 Feb 2012
BL reported that India is set to overtake China in global coal demand over the next two decades partially offsetting the sluggish offtake by its neighbor. However, both nations are poised to be among the top three economies by 2030 driving global fossil fuel consumption primarily driven by power sector demand.
According to BP's Energy Outlook for 2030 released recently, China's energy demand growth is projected to decelerate to three per cent annually over the forecast period against 6.6 per cent annually during the 1990-2010 period. This is due to a slowing GDP growth and rapid improvement in energy intensity. India, on the other hand, does not follow China's path and there is no surge in energy demand as further industrialization takes place.
The report said demand growth will slow to 4.5% annually for the forecast period against 5.5%. This dip in demand is attributed to improved energy efficiency, partly offsetting the needs of industrialization and infrastructure expansion.
The report said that India remains on a lower path of energy intensity and by 2030 it will consume only about half the energy that China consumes today, at a similar income per capita level as in China.
Currently, India accounts for a third of growth in global coal demand and is projected to increase its share of consumption to 14% from the present 8% by 2030. China, which accounts for two third of the growth in global coal demand will see a relatively slower increase to 53% from the present 48% due to a slowing GDP growth and rapid improvement in its energy intensity.
The report further said that Both China and India face challenges in growing domestic production fast enough to keep up with demand. Their growing import requirements drive further expansion and integration of global coal trade. Coal remains the main commercial fuel for the world's top two most populated nations. However, coal's share in the total fuel mix for India is projected to drop to 50% from 53% mainly due to domestic resource constraints.
(Sourced from BL)
BL reported that India is set to overtake China in global coal demand over the next two decades partially offsetting the sluggish offtake by its neighbor. However, both nations are poised to be among the top three economies by 2030 driving global fossil fuel consumption primarily driven by power sector demand.
According to BP's Energy Outlook for 2030 released recently, China's energy demand growth is projected to decelerate to three per cent annually over the forecast period against 6.6 per cent annually during the 1990-2010 period. This is due to a slowing GDP growth and rapid improvement in energy intensity. India, on the other hand, does not follow China's path and there is no surge in energy demand as further industrialization takes place.
The report said demand growth will slow to 4.5% annually for the forecast period against 5.5%. This dip in demand is attributed to improved energy efficiency, partly offsetting the needs of industrialization and infrastructure expansion.
The report said that India remains on a lower path of energy intensity and by 2030 it will consume only about half the energy that China consumes today, at a similar income per capita level as in China.
Currently, India accounts for a third of growth in global coal demand and is projected to increase its share of consumption to 14% from the present 8% by 2030. China, which accounts for two third of the growth in global coal demand will see a relatively slower increase to 53% from the present 48% due to a slowing GDP growth and rapid improvement in its energy intensity.
The report further said that Both China and India face challenges in growing domestic production fast enough to keep up with demand. Their growing import requirements drive further expansion and integration of global coal trade. Coal remains the main commercial fuel for the world's top two most populated nations. However, coal's share in the total fuel mix for India is projected to drop to 50% from 53% mainly due to domestic resource constraints.
(Sourced from BL)
Monday, February 13, 2012
Prosperity Minerals buys stake in Malaysian iron ore mines
Monday, 13 Feb 2012
Chinese miner, Prosperity Minerals announced a USD 25 million investment in Malaysian iron ore mines.
After the completion of the transaction, the company will hold an effective 3.5% interest in a iron ore operation.
All Wealthy owns a 70% interest in exclusive mining rights in the two Malaysian iron ore mines. It also owns a processing plant in Malaysia adjacent to the mines, which are currently under trial production with a future target production capacity of three million tonnes per annum.
Upon completion of the acquisition, Prosperity will secure the right, but not the obligation, to buy 9.5 million tonnes of iron ore over a 10 year period at a discount to the prevailing market price.
Prosperity Minerals is an iron ore operator serving the People’s Republic of China, as well as having real estate interests and investments in two cement plants.
(Sourced from mining.com)
Chinese miner, Prosperity Minerals announced a USD 25 million investment in Malaysian iron ore mines.
After the completion of the transaction, the company will hold an effective 3.5% interest in a iron ore operation.
All Wealthy owns a 70% interest in exclusive mining rights in the two Malaysian iron ore mines. It also owns a processing plant in Malaysia adjacent to the mines, which are currently under trial production with a future target production capacity of three million tonnes per annum.
Upon completion of the acquisition, Prosperity will secure the right, but not the obligation, to buy 9.5 million tonnes of iron ore over a 10 year period at a discount to the prevailing market price.
Prosperity Minerals is an iron ore operator serving the People’s Republic of China, as well as having real estate interests and investments in two cement plants.
(Sourced from mining.com)
Sunday, February 12, 2012
China iron ore imports in Jan down by 14pct
Sunday, 12 Feb 2012
China Knowledge reported that China, the world's largest iron ore importer and steel maker, saw its iron ore import fell 13.9% YoY to 59.32 million tonnes in January last year.
According to latest statistics released by the General Administration of Customs, the iron ore import last month reflected a 7.4% decline from the previous month. The average import price of iron ore dropped 10.9% YoY to USD 136.5 per tonne in January.
(Sourced from China Knowledge)
China Knowledge reported that China, the world's largest iron ore importer and steel maker, saw its iron ore import fell 13.9% YoY to 59.32 million tonnes in January last year.
According to latest statistics released by the General Administration of Customs, the iron ore import last month reflected a 7.4% decline from the previous month. The average import price of iron ore dropped 10.9% YoY to USD 136.5 per tonne in January.
(Sourced from China Knowledge)
Wednesday, February 8, 2012
Australian iron ore exports
Wednesday, 08 Feb 2012
Australia trade data shows that December saw a strong rebound in Australian iron ore exports, up 18% to an all time high of 46.2 million tonne (wet basis). This, in turn, ensured an annual total of almost 460 million tonne in 2011, up 9% on the corresponding 2010 level.
China accounted for 70% of the total exports, followed by Japan at 17% and South Korea at 10%. Most of the annual rise was due to increased shipments to China, with an increase of 34 million tonne year on year to a new record of 321 million tonne.
(sourced www.ssyonline.com)
Australia trade data shows that December saw a strong rebound in Australian iron ore exports, up 18% to an all time high of 46.2 million tonne (wet basis). This, in turn, ensured an annual total of almost 460 million tonne in 2011, up 9% on the corresponding 2010 level.
China accounted for 70% of the total exports, followed by Japan at 17% and South Korea at 10%. Most of the annual rise was due to increased shipments to China, with an increase of 34 million tonne year on year to a new record of 321 million tonne.
(sourced www.ssyonline.com)
Saturday, January 28, 2012
China overtakes Japan as world top coal importer
Sat, 28 Jan 2012
Reuters quoted customs data from both countries showed that China overtook Japan as the world top coal importer in 2011 and partly driven by robust Chinese demand.
Data from the country showed that China, also the world biggest coal producer and consumer imported 182.4 million tonnes of the fuel in 2011 up by 10.8%YoY.
Japan customs-cleared imports fell 5.1% to 175.2 million tonnes last year and hurt by slack demand for coking coal as steelmakers curbed production.
(sourced from Reuters)
Reuters quoted customs data from both countries showed that China overtook Japan as the world top coal importer in 2011 and partly driven by robust Chinese demand.
Data from the country showed that China, also the world biggest coal producer and consumer imported 182.4 million tonnes of the fuel in 2011 up by 10.8%YoY.
Japan customs-cleared imports fell 5.1% to 175.2 million tonnes last year and hurt by slack demand for coking coal as steelmakers curbed production.
(sourced from Reuters)
Dollar fall boosts Euro coal prompt prices
Saturday, 28 Jan 2012
Reuters reported that US dollar fell to its lowest for almost two months on Thursday, giving a sharp boost to coal prices which have sagged this month due to weak fundamentals globally.
Two March loading South African cargoes traded early in the day at USD 108.50 and USD 108.75, up over USD 3.00 from Wednesday, bought by banks and traders, sold by a large, international trading house.
Coal swaps rallied on Thursday, bolstered by European utilities hedging dark spreads (the profit margin from using coal to generate power) and oil's rise, despite the lack of physical buying and high stockpile levels.
End users in Europe and Asia remained noticeable for the absence from the market.
Traders said that whether China resumes large scale spot buying after the New Year holidays is absolutely critical for coal price direction, regardless of the gyrations of the swaps market.
China overtook Japan as the world's largest coal importer last year after a surge in imports in the last quarter to a total of 182.4 million tonnes, nearly 11 percent up from the previous year, much of it bought on a spot basis.
One European trader said that "The dollar got hammered overnight and that's pulled commodities up including coal, but the swaps, particularly the Calendar years, have risen even more.”
(Sourced from Thomson Reuters)
Reuters reported that US dollar fell to its lowest for almost two months on Thursday, giving a sharp boost to coal prices which have sagged this month due to weak fundamentals globally.
Two March loading South African cargoes traded early in the day at USD 108.50 and USD 108.75, up over USD 3.00 from Wednesday, bought by banks and traders, sold by a large, international trading house.
Coal swaps rallied on Thursday, bolstered by European utilities hedging dark spreads (the profit margin from using coal to generate power) and oil's rise, despite the lack of physical buying and high stockpile levels.
End users in Europe and Asia remained noticeable for the absence from the market.
Traders said that whether China resumes large scale spot buying after the New Year holidays is absolutely critical for coal price direction, regardless of the gyrations of the swaps market.
China overtook Japan as the world's largest coal importer last year after a surge in imports in the last quarter to a total of 182.4 million tonnes, nearly 11 percent up from the previous year, much of it bought on a spot basis.
One European trader said that "The dollar got hammered overnight and that's pulled commodities up including coal, but the swaps, particularly the Calendar years, have risen even more.”
(Sourced from Thomson Reuters)
Wednesday, January 25, 2012
Assocham seeks 10% import duty on steel products
Wed, Jan25, 2012
New Delhi: Industry body Assocham has called for raising the import duty on steel products from 5 per cent to a minimum of 10 per cent so that local manufacturers have a level playing field vis-a-vis imports from China and the Commonwealth of Independent States (CIS) countries.
The challenging global environment has resulted in fierce competition and increased pressure on performance and price reduction.
“The oversupply in international markets is forcing China and the Commonwealth of Independent States (CIS) to dump their steel products like hot-rolled coils... and other coated products into growing markets like India,” said the Assocham Secretary General, Mr D.S. Rawat.
As a result, the Indian steel industry has reduced its production and is running at lower capacity utilisation, he said.
China and CIS countries possess huge coking coal and iron ore resources, which give them cost-competitiveness, whereas India depends on imports for its requirement.
In the past one year, coking coal prices have increased by more than 100 per cent, putting an additional burden on steel manufacturers. Nearly 50 per cent of the steel manufacturing cost is on account of coking coal and 20 per cent on account of iron ore.
“Most importing nations protect their domestic producers by imposition of a marginally higher import duty while encouraging exports by offering various incentives,” Mr Rawat said.
Raising import duty to a minimum of 10 per cent will encourage the growth of the domestic steel industry and ensure that the India growth story is kept intact, he said in a pre-Budget memorandum to the ministries of finance and steel.
In the next two years, steel-making capacity is set to expand by 15-20 million tonnes to meet the growing demand for high-end consumer products like cars, fridges and washing machines.
Keywords: Assocham, steel products, import duty, China, CIS countries, imports, exports
(sourced Business Line)
New Delhi: Industry body Assocham has called for raising the import duty on steel products from 5 per cent to a minimum of 10 per cent so that local manufacturers have a level playing field vis-a-vis imports from China and the Commonwealth of Independent States (CIS) countries.
The challenging global environment has resulted in fierce competition and increased pressure on performance and price reduction.
“The oversupply in international markets is forcing China and the Commonwealth of Independent States (CIS) to dump their steel products like hot-rolled coils... and other coated products into growing markets like India,” said the Assocham Secretary General, Mr D.S. Rawat.
As a result, the Indian steel industry has reduced its production and is running at lower capacity utilisation, he said.
China and CIS countries possess huge coking coal and iron ore resources, which give them cost-competitiveness, whereas India depends on imports for its requirement.
In the past one year, coking coal prices have increased by more than 100 per cent, putting an additional burden on steel manufacturers. Nearly 50 per cent of the steel manufacturing cost is on account of coking coal and 20 per cent on account of iron ore.
“Most importing nations protect their domestic producers by imposition of a marginally higher import duty while encouraging exports by offering various incentives,” Mr Rawat said.
Raising import duty to a minimum of 10 per cent will encourage the growth of the domestic steel industry and ensure that the India growth story is kept intact, he said in a pre-Budget memorandum to the ministries of finance and steel.
In the next two years, steel-making capacity is set to expand by 15-20 million tonnes to meet the growing demand for high-end consumer products like cars, fridges and washing machines.
Keywords: Assocham, steel products, import duty, China, CIS countries, imports, exports
(sourced Business Line)
Iron ore steady with a chance of slipping as China out
Wednesday, 25 Jan 2012
Reuters reported that iron ore steadied with trading activity nearly halted as top market China remained shut recently for the Lunar New Year holiday blunting any impact from miner Vale decision to lift a force majeure on Brazilian shipments.
Vale, the world No 1 iron ore producer said it has resumed mining and export operations after rains eased in southeastern Brazil. Vale earlier this month declared force majeure on iron ore shipments from Brazil a legal clause that allows a company to break contractual obligations because of heavy rains that cut its output by around 2 million tonnes.
Mr Dhruv Goel managing director at iron ore trading firm SteelMint in India eastern Orissa state said there are hardly any deals in the spot market with the Chinese away for the holiday and chances are prices may slip marginally.
But Mr Goel said Chinese demand for lower grade Indian iron ore has improved recently and he expects it to continue after the holiday. He said that "Chinese buyers are interested in buying low grade from India, as cargoes from Australia and Brazil are generally high grade."
India biggest iron ore miner, NMDC Ltd has resumed operations in the central state of Chhattisgarh which accounts for two-thirds of its annual ouput of 25 million tonnes after protests disrupted railway movements for 10 days.
Local protests had forced NMDC to halt production and exports of iron ore from the mines. The protest was called off after the federal government agreed to improve the overall rail network in the Bastar region a predominently tribal area that has roughly a fifth of India iron ore deposits.
Reflecting a slump in Chinese buying, the Baltic Exchange main sea freight index which tracks rates to ship dry commodities fell to its lowest in more than three years on Monday.
(Sourced from Reuters)
Reuters reported that iron ore steadied with trading activity nearly halted as top market China remained shut recently for the Lunar New Year holiday blunting any impact from miner Vale decision to lift a force majeure on Brazilian shipments.
Vale, the world No 1 iron ore producer said it has resumed mining and export operations after rains eased in southeastern Brazil. Vale earlier this month declared force majeure on iron ore shipments from Brazil a legal clause that allows a company to break contractual obligations because of heavy rains that cut its output by around 2 million tonnes.
Mr Dhruv Goel managing director at iron ore trading firm SteelMint in India eastern Orissa state said there are hardly any deals in the spot market with the Chinese away for the holiday and chances are prices may slip marginally.
But Mr Goel said Chinese demand for lower grade Indian iron ore has improved recently and he expects it to continue after the holiday. He said that "Chinese buyers are interested in buying low grade from India, as cargoes from Australia and Brazil are generally high grade."
India biggest iron ore miner, NMDC Ltd has resumed operations in the central state of Chhattisgarh which accounts for two-thirds of its annual ouput of 25 million tonnes after protests disrupted railway movements for 10 days.
Local protests had forced NMDC to halt production and exports of iron ore from the mines. The protest was called off after the federal government agreed to improve the overall rail network in the Bastar region a predominently tribal area that has roughly a fifth of India iron ore deposits.
Reflecting a slump in Chinese buying, the Baltic Exchange main sea freight index which tracks rates to ship dry commodities fell to its lowest in more than three years on Monday.
(Sourced from Reuters)
Tuesday, January 24, 2012
Iron Ore-Steady with a chance of slipping as China out
Tue Jan 24, 2012
* Vale lifts force majeure on Brazilian shipments
* India's NMDC resumes supply from major mines
* Global steel output growth slows in 2011
SINGAPORE, Jan 24 (Reuters) - Iron ore steadied with trading activity nearly halted as top market China remained shut on Tuesday for the Lunar New Year holiday, blunting any impact from miner Vale's decision to lift a force majeure on Brazilian shipments.
Vale, the world's No. 1 iron ore producer, said on Monday it has resumed mining and export operations after rains eased in southeastern Brazil.
Vale earlier this month declared force majeure on iron ore shipments from Brazil, a legal clause that allows a company to break contractual obligations, because of heavy rains that cut its output by around 2 million tonnes.
Iron ore with 62 percent iron content .IO62-CNI=SI was unchanged at $139.80 a tonne on Monday, according to Steel Index.
There are hardly any deals in the spot market with the Chinese away for the holiday and chances are prices may slip marginally, said Dhruv Goel, managing director at iron ore trading firm SteelMint in India's eastern Orissa state.
But Goel said Chinese demand for lower grade Indian iron ore has improved recently and he expects it to continue after the holiday.
"Chinese buyers are interested in buying low grade from India, as cargoes from Australia and Brazil are generally high grade," he said.
India's biggest iron ore miner, NMDC Ltd, has resumed operations in the central state of Chhattisgarh, which accounts for two-thirds of its annual ouput of 25 million tonnes, after protests disrupted railway movements for 10 days.
Local protests had forced NMDC to halt production and exports of iron ore from the mines. The protest was called off after the federal government agreed to improve the overall rail network in the Bastar region, a predominently tribal area that has roughly a fifth of India's iron ore deposits.
Reflecting a slump in Chinese buying, the Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell to its lowest in more than three years on Monday.
Expected slower growth in China's steel production this year could similarly curb its demand for raw material iron ore.
China's crude steel output rose 8.9 percent to around 683 million tonnes in 2011, versus a 9.3 percent clip in 2010. A Reuters poll in mid-December showed the country's steel output may reach 728 million tonnes this year, 6.5 percent higher than 2011.
Globally, steel production rose 6.8 percent to 1.527 billion tonnes in 2011, less than half the 15 percent increase in 2010, data from the World Steel Association showed on Monday.
(sourced Reuters)
* Vale lifts force majeure on Brazilian shipments
* India's NMDC resumes supply from major mines
* Global steel output growth slows in 2011
SINGAPORE, Jan 24 (Reuters) - Iron ore steadied with trading activity nearly halted as top market China remained shut on Tuesday for the Lunar New Year holiday, blunting any impact from miner Vale's decision to lift a force majeure on Brazilian shipments.
Vale, the world's No. 1 iron ore producer, said on Monday it has resumed mining and export operations after rains eased in southeastern Brazil.
Vale earlier this month declared force majeure on iron ore shipments from Brazil, a legal clause that allows a company to break contractual obligations, because of heavy rains that cut its output by around 2 million tonnes.
Iron ore with 62 percent iron content .IO62-CNI=SI was unchanged at $139.80 a tonne on Monday, according to Steel Index.
There are hardly any deals in the spot market with the Chinese away for the holiday and chances are prices may slip marginally, said Dhruv Goel, managing director at iron ore trading firm SteelMint in India's eastern Orissa state.
But Goel said Chinese demand for lower grade Indian iron ore has improved recently and he expects it to continue after the holiday.
"Chinese buyers are interested in buying low grade from India, as cargoes from Australia and Brazil are generally high grade," he said.
India's biggest iron ore miner, NMDC Ltd, has resumed operations in the central state of Chhattisgarh, which accounts for two-thirds of its annual ouput of 25 million tonnes, after protests disrupted railway movements for 10 days.
Local protests had forced NMDC to halt production and exports of iron ore from the mines. The protest was called off after the federal government agreed to improve the overall rail network in the Bastar region, a predominently tribal area that has roughly a fifth of India's iron ore deposits.
Reflecting a slump in Chinese buying, the Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell to its lowest in more than three years on Monday.
Expected slower growth in China's steel production this year could similarly curb its demand for raw material iron ore.
China's crude steel output rose 8.9 percent to around 683 million tonnes in 2011, versus a 9.3 percent clip in 2010. A Reuters poll in mid-December showed the country's steel output may reach 728 million tonnes this year, 6.5 percent higher than 2011.
Globally, steel production rose 6.8 percent to 1.527 billion tonnes in 2011, less than half the 15 percent increase in 2010, data from the World Steel Association showed on Monday.
(sourced Reuters)
Saturday, January 21, 2012
China fails to divert iron ore buys from Australia, Brazil
Sat Jan 21, 2012
BEIJING Jan 21 (Reuters) - China diversified its spot iron ore buying away from India in 2011, largely in favour of South Africa, but failed to reduce its dependence on term purchases from top suppliers Australia and Brazil, customs data showed on Saturday.Chinese planners have said for several years that iron ore supplies from India and elsewhere could help break the dominance of the world's top three iron ore miners, BHP Billiton and Rio Tinto of Australia and Brazil's Vale.But in 2011, China imported 64 percent of its iron ore from those two countries, unchanged from the year before. Meanwhile, iron ore purchases from India dropped by 24 percent, amid complaints about declining quality.Purchases from South Africa rose 22 percent, helping to offset some of the missing Indian tonnage. India still remains No. 3, supplying twice what China gets from South Africa.
Overall iron ore purchases rose by 10.94 percent, as the Chinese steel industry continued to expand output in the face of slowing domestic economic growth.China's diversification strategy has led it to seek iron ore from as far afield as Mauritania and Myanmar. That represents a "massive change" in the market, according to remarks on Monday by Wang Xiaoqi, vice-chairman of the China Iron and Steel Association, which represents China's largest mills.
This year, the top suppliers could become even more important to China if softer prices no longer allow marginal producers to cover their higher production costs. "As long as Chinese demand for iron ore is high, we're going to see more countries selling iron ore into China. But 2012 could be very different because we're expecting a slowdown in iron ore consumption growth," said Henry Liu, head of commodity research at Mirae Asset Securities in Hong Kong."In that case, these marginal producers will reduce their exports to China and the dominant players will get more market share."A total of 64 countries supplied iron ore to China in 2011, up from 44 in 2010.
The increase in non-traditional sources reflects tight supplies, strong demand and high prices, rather than an explicit strategy to ease dependence on Australia and Brazil, analysts said.Shipments from many of the debutants -- including Albania, Armenia, the United Kingdom, Cambodia and Denmark -- remained a negligible fraction of China's total import volume over the year.
Imports from the second tier of suppliers -- consisting of South Africa, Russia, Canada, Iran, Ukraine and Indonesia -- reached a total of 104.85 million tonnes, accounting for 15 percent of the total, up from 12 percent in 2010.Iron ore prices are seen averaging $150 per tonne in 2012, a mid-December Reuters poll showed, versus $168 in 2011.
(sourced Reuters)
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