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 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)

Chinese iron ore imports in Dec up by 10pct YoY

Thursday, 12 Jan 2012

China Knowledge quoted according to latest statistics released by the General Administration of Customs China, the world largest iron ore importer and steel maker saw its iron ore import rise 10.3%YoY to 64.09 million tons in December last year.

The iron ore import last month reflected a 0.2% decline from November.

In the whole of 2011, the country iron ore import amounted to 690 million tonnes up by 10.9%YoY.

The average import price of iron ore surged 27.1%YoY to USD 163.8 per tonne last year.

The country exports 48.88 million tonnes of steel products in 2011 up by 14.9% YoY and saw its imports of steel products fall 5.2% to 15.58 million tonnes in the corresponding year.

(Sourced from China Knowledge)

China warns of risks of buying Iranian iron ore

Thursday, 22 Dec 2011

Reuters reported that China warned about the risks of importing Iranian iron ore, the second major commodity from the sanctions-hit Islamic Republic under scrutiny as the two also tussle over oil payment terms.

The warning from the Commerce Ministry to domestic companies, which focused on substandard quality and on delivery problems, follows crude imports spat that has seen China halve its Iranian oil shipments for January.

An iron ore analyst in Beijing who asked not to be identified due to the sensitive nature of the matter said "I would consider this very similar to the crude oil import limitation by Zhuhai Zhenrong."

The analyst said "First, the timing is perfect, just on the heels of oil import payment concerns a few days ago by Zhuhai Zhenrong. And secondly, China also used commercial risks as the main reason."

China's top refiner Sinopec, both directly and through state Chinese state trading company Zhuhai Zhenrong Corp has cut crude imports from Iran by over half in January.

The ministry said in a statement that "We have received lots of complaints from domestic companies about fraud regarding iron ore imports."

The ministry added that Iranian companies have severely damaged Chinese companies' interests by using substandard materials, refusing to deliver materials or delivering less than what was originally agreed to.

(Sourced from Reuters)

Chinese iron ore imports decline to 8 month low as demand slows

Saturday, 12 Nov 2011

China Iron ore and concentrates imports declined in October compared to September month.

The General Administration of Customs reported that China Iron ore and concentrates imports were 49.94 million tonnes in October, down 17.5% from 60.57 million tonnes in September 2011.

Month	2011	2010
September	60.6	52.6
October	49.9	45.7

In Million tonnes

source: steelhome

Chinese iron ore imports seen soaring to 1 billion tonnes

Sept30, 2011

Reuters reported that China iron ore imports may surge to 1 billion tonnes by 2015 up around 60% from last year with the world biggest steel producer able to cope with a potential recession in developed economies.

Australian miner Fortescue Metals Group Ltd which sells nearly all of its iron ore to China forecast a rise in Chinese imports to 1 billion tonnes by 2015 at an industry conference in China North Eastern city of Qingdao.

That will be more than 60% higher than China imports last year of nearly 619 million tonnes.

Mr Neville Power CEO of Fortescue said global prices are expected to remain high next year before additional capacity comes online between 2013 and 2015.

Brazil Vale the world No 1 iron ore miner said China robust demand will keep global supplies tight.

Mr Jose Carlos Martins executive director for sales and marketing of Vale said "Vale is still confident in the market fundamentals. He said that besides China, several emerging regions with large population also have strong growth potential. Emerging countries still have a significant gap in housing and infrastructure requirements, indicating strong potential for steel consumption growth in the long run."

Mr Murilo Ferreira CEO of Vale said earlier this month that the miner was not seeing any slowdown in the global iron ore market despite a crippling sovereign debt crisis in Europe and a weak US economy. But analysts say China strength may not be enough to hold up prices.

Mr Graeme Train commodity analyst at Macquarie in Shanghai said "If Europe turns around to Vale and says 'we want 20% less ore this month' then that tonnage finds its way to China so you have China sucking up all the weakness from everywhere."

He said that "The risk though is even if China is buying iron ore and the situation ex China gets really bad and not even China strength can hold the price up at where it is."

(Sourced from Reuters)

Iron ore stockpiles at China's major ports (Aug 8- Aug 12)

Mon, Aug15, 2011

Till the close of last week (August 12), the imported iron ore stockpiles at China's major ports posted at 94.74 mln tonnes, down 0.61 mln tonnes from 95.35 mln tonnes previous week; out of which Australian ore stockpiles reached 38.01 mln tonnes, down 0.27 mln tonnes; Brazilian ore inventory increased 0.88 mln tonnes to 23.21 mln tonnes; Indian ore stocks dropped 0.37 mln tonnes at 13.60 mln tonnes.

(sourced MySteel)

India ups iron ore export duty, China hardest hit

Mon Feb 28, 2011 1:27pm GMT

* Soaring global prices could rise further

* Most exports go to China

* Industry body says exports will be uncompetitive

* India aims to keep more iron ore for domestic steel

* Shares in producer Sesa Goa slide

By Siddesh Mayenkar

MUMBAI, Feb 28 (Reuters) - India will quadruple export duty on iron ore fines as it seeks to curb exports, mostly to China, in a budget move announced on Monday that hit domestic producer shares and could push spot prices to new record levels.

The world's third largest iron ore exporter wants to conserve supply for domestic steel makers, who play a vital role in building growing infrastructure.

India plans to raise the duty to 20 percent from 5 percent on fines and to 20 percent from 15 percent on lumps. [ID:nSGE71R040]. Fines are dust form ore with a lower iron content than lumps.

"This will make the exports of (Indian) iron ore uncompetitive in the global market," said R.K. Sharma, secretary general of the Federation of Indian Mineral Industries (FIMI).

Almost all of India's annual 100 million tonnes of iron ore exports head to China. Its overseas sales compete with the world's top two exporters, Australia and Brazil.

"This could tighten up the market further," said Henry Liu, regional head of commodity research at Mirae Asset Securities in Hong Kong.

"This will increase the floor price for Indian prices and if Indian prices increase then that will push prices to China higher."

Shares in Indian iron ore miner Sesa Goa (SESA.BO: Quote) extended losses on the duty imposition, hitting a 52-week low.

Steelmakers welcomed the move.

"The increase in export duty on iron ore will increase its availability in the domestic market, thereby stabilising price and helping domestic steelmakers," said Nittin Johari, chief financial officer of Bhushan Steel (BSSL.BO: Quote).

MORE PRESSURE

The move was widely expected as India tries to underpin its rapidly-growing economy with investment in infrastructure.

China said it could pinch their margins as steel prices fall.

"Steel mills can't take costlier raw materials at the moment as steel prices were heading downward recently on weak demand," said an iron ore official a mid-sized Chinese steel mill, owning annual crude steel capacity of around 5 million tonnes.

But with iron ore miners in Australia and Brazil running flat out to cash in on prices near $200 a tonne, and little spare capacity elsewhere in the world, Chinese buyers have a difficult choice -- pay the additional tax, or cut production.

Iron ore was offered at around $189-191 per tonne with freight in China on Monday with little immediate impact seen by traders from the duty hike in a market where contracts are on a quarterly basis. The record high hit earlier this month was near $200 per tonne. [IRONORE/]

Shipping freight rates could be adversely affected by any further fall in exports from India.

"Freight rates will come under more pressure on this," said a Singapore-based shipbroker. "Rates are already at two-year lows on oversupply problems and this will only add to the problem."

India's iron ore exports have already slumped on the ban of shipments by the southern state of Karnataka -- contested by exporters in the Supreme Court -- with sales down 24.8 percent in December to 9.7 million tonnes from a year ago.

Exports during the April-December period fell 17.02 percent from a year earlier to 64.4 million tonnes. India usually exports around 100 million tonnes per year. China buys over 96 million tonnes, making India its third-biggest supplier.

Two other Indian states, leading producer Orissa and Chhattisgarh, which accounts for 5 percent of India's shipments, have asked the federal government to allow them to ban exports.

The government would prefer states to focus on improved regulation of the sector and incentives for increased domestic use of the resource. That would better target illegal production instead of export bans which hurt all producers.

India's steel minister, Beni Prasad Verma called for curbs on exports of iron ore on Friday. [ID:nSGE71O075]

India hiked freight rates for iron ore exports by 50 percent to 1,500 rupees per tonne on Jan. 27 but kept it unchanged in Friday's Railway Budget. [ID:nSGE70O07P]

The increase in export duty would bring in around $1.6 billion annually to New Delhi's coffers on the basis of the volume and price of exports to China in 2010. That is a fraction of the government's total expenditure of 12.58 trillion Indian rupees (nearly $278 billion). [ID:nINBUDGET]

( $1 = 45.275 Indian Rupees)

(Additional reporting by Manolo Serapio Jr. and Randy Fabi in Singapore, Ruby Lian in Shanghai, Swati Pandey in Mumbai; Writing by Jo Winterbottom; editing by Simon Webb and William Hardy, sourced:Thomson Reuters)