Iron ore exports to China up at Australia's Port Hedland

Sun Mar 4, 2012

SYDNEY, March 4 (Reuters) - Iron ore shipments to China through Australia's Port Hedland rose modestly in February compared with January, according to data released by the port authority, suggesting steady demand from the world's largest steel industry after signs of a weak start to 2012.

A cloudy outlook for steel demand curbed China's appetite for iron ore recently as mills opted to run down inventories instead of booking new orders, according to commodities traders.

But in recent weeks signs have emerged that steel mills were back in the market, albeit cautiously.

Iron ore with 62 percent iron content was up 0.1 percent to $143.20 a tonne as of late last week, according to Steel Index, matching a level last seen on Feb. 8.

February shipments of iron ore to China via the port totalled 14.58 million tonnes, after falling 15 percent in January to 14.0 million from December, according to port figures.

South Korea was a distant second, importing 2.65 million tonnes in February, the data showed.

Total iron ore shipments from the port in February rose to 19.58 million tonnes versus 17.4 million tonnes in January, according to the data.

BHP Billiton is the port's biggest user, followed by Fortescue Metals Group Ltd. Both companies ship the bulk of their ore to China.

(sourced Reuters)

Iron Ore-Spot prices inch up but China demand still weak

Thursday, 23 Feb2012

Spot iron ore prices in China inched up on Wednesday but traders said the underlying poor health of the steel sector would continue to restrain demand. "The whole market is poor and prices still aren't ideal -- we won't be able to meet our sales target for this month," said the manager of an iron ore trading firm based in southern China.

Pilbara fines with 61.5 percent iron content were being quoted at $136-138 per tonne including cost and freight on Wednesday, inching up $1 from the previous day, according to consultancy Umetal. Iron ore with 62 percent iron content edged up 0.2 percent to $135.40 a tonne on Tuesday, according to reference price provider Steel Index.Slow steel demand in China, the world's biggest producer and consumer, has curbed the appetite for iron ore and sent the raw material's prices down more than 2 percent so far this year after falling nearly 19 percent in 2011.

"Demand ultimately depends on steel mills and they just can't accept our prices right now, and we can't go lower because our costs are too high," the trader said, adding that he didn't expect the market to recover until next month. China's move to cut banks' reserve requirement ratio for the first time this year helped Shanghai rebar futures end a seven-day slide on Monday and iron ore to snap a nine-day losing streak.
The price of Shanghai's most traded May rebar contract rose 23 yuan ($3.65) or 0.54 percent to end Wednesday at 4,251 yuan per tonne.Shanghai rebar futures and iron ore indexes at 0335 GMT
Source: Reuters

Iron ore price to rise in Northeast China Liaoning

Tuesday, 07 Feb 2012

In Western Liaoning, mainstream quotation for 66% fines rose to CNY 810 to CNY 830. Transaction remained thin as traders and part beneficiation plants were unwilling to sell at current price level. Cargos delivered to Lingyuan Steel remained few even after the mill raised its purchase price for 66% fines by CNY 80 to CNY 1,140 but we do not see a strong demand behind as Lingyuan’s Chinese ore inventory are relatively high at around 30 day level.

In Eastern Liaoning, mainstream quotation for 65% fines was assessed in the range CNY 790 to CNY 810 in Benxi and Fushun. Local mills said no purchase price adjustments in near term because of unclear market trend and relatively high inventories. As most beneficiation plants have yet to resume to work, supplies to mills has a sharp decline. Our contact told us Tonghua Steel now only had 2,000 tonnes per day versus the normal 8,000 tonnes per day.

(sourced steelhome.cn/en)

Iron Ore-Spot seen ticking higher, China steel eyed

Tuesday, 07 February 2012

Iron ore may extend modest gains this week as more Chinese steel producers return to the spot market to stock up, but a sluggish domestic steel market is likely to cap any gains in price.Chinese steel prices have been largely steady so far this year with activity in the domestic construction sector, a heavy steel user, yet to fully resume.

"Construction activity is still low because it's still winter in the northern part of China and we only expect steel demand to return later this month or in March," said a Shanghai-based iron ore trader.Mirae Asset Securities said it was keeping its "underweight" stance on China's steel sector this year, particularly the large state-owned steel mills."The structural driver of steel demand - urbanization - remains a valid long-term call, but it may halt in 2012 if the central government continues its crackdown on house prices," the brokerage said in a note.

China's slack steel demand meant a slow start for iron ore this year, which gained a modest 3.5 percent versus a more than 12 percent rise for copper, another key construction material.The most-traded May rebar contract on the Shanghai Futures Exchange has risen 3 percent so far this year, closing nearly flat at 4,330 yuan ($690) a tonne on Monday.Iron ore with 62 percent iron content rose 0.1 percent to $143.30 a tonne on Friday, according to the Steel Index, its highest level since Nov. 22.

"Iron ore prices could rise further this week with some more mills going back to the market and traders taking positions," said the Shanghai trader.Offer prices for Australian ore in China rose by at least a dollar on Monday, with 61.5-grade Pilbara iron ore fines quoted at $142-$144 a tonne, cost and freight, and 58-grade Yandi fines at $130-$132, said industry consultancy Umetal. Indian 63.5/63-grade fines were offered at $148-$151 a tonne, up $2 from Friday, said Umetal.

Traders are eyeing another tender by global miner BHP Billiton due to close later on Monday, particularly with prices moving higher at recent tenders.BHP last sold Yandi fines at $130.5 a tonne, C&F on Friday, up from $130 on Thursday, traders said.But a sizeable amount of iron ore at Chinese ports, which is readily available and which buyers can buy in smaller tonnages unlike fresh spot cargoes, may limit appetite for more imports, traders said.

Stockpiles of imported iron ore at major Chinese ports reached 101.49 million tonnes last week, with shipments from the three biggest exporters -- Australia, Brazil and India -- rising, Chinese consultancy Mysteel said on Friday. (sourced Reuters)

Hebei iron ore prices steady after Chinese New Year

Monday, 30 Jan 2012

Iron ore prices are steady in Northern China’s Hebei on January 29, with levels holding steady amid thin trade. Mills have resumed operation on the end of national holiday but most miners and beneficiation plants are likely to be back to work till February 06.

As sentiment turned positive on post-holiday market, part trading companies raised quotations by 10 yuan. Currently mills have yet resumed restocking and thereby leaving their purchase prices steady.

In Tangshan and Qi’an, mills set purchase prices of 66% concentrates at around CNY 1,240 to CNY 1,250 versus miners’ quotation of CNY 920, In Zunhua and Qian’xi, mills buy 66% fines at around CNY 1,220 to CNY 1,230 compared with the quotation of CNY 890 to CNY 900 from miners.

(source Steelhome.cn/en)

Iron Ore-Shanghai rebar ticks higher; output cuts weigh

Tue Nov 8, 2011

* China's Oct daily steel output at lowest since Jan
* Sixth day of gains for iron ore, but could lose steam (Updates rebar price)
By Manolo Serapio Jr

SINGAPORE, Nov 8 (Reuters) - Shanghai steel futures edged up on Tuesday, regaining ground after sliding over the past three months, but output cuts spurred by weaker steel demand in top producer and consumer China limited gains.

China's average daily crude steel output in October stood at 1.786 million tonnes, the lowest since January, data from the China Iron and Steel Association showed on Monday. That was down 5.5 percent from the 1.89 million tonnes daily average for September as mills scaled back production to cope with slower demand.

More steel mills are expected to cut production and prices towards the end of the year to curb losses, likely taking the steam out of raw material iron ore, which gained for a sixth straight day on Monday after sliding more than 30 percent last month.

The most-active May rebar contract on the Shanghai Futures Exchange closed up 0.9 percent at 4,141 yuan a tonne. Rebar lost more than 16 percent over the three months from August to October.

Iron ore with 62 percent iron content climbed 1.7 percent to $125 a tonne on Monday, according to the Steel Index .IO62-CNI=SI, the highest since Oct. 26.

Iron ore has gained 7 percent in the past six sessions, after shedding nearly 31 percent in all of October.

"There's some stability in the market across the board, but I don't think prices will go up very far," said a physical iron ore trader in Singapore, adding he sees $135 as the "upper limit" for iron ore.

Sellers upped price offers in China further on Tuesday by $1-$3 a tonne. Australian 61.5-percent grade Pilbara iron ore fines rose $2 to $127-$130 a tonne, and 63-grade Newman fines increased $3 to $130-$132, said Chinese consultancy Umetal.

Indian 63.5/63 fines rose $1 to $134-$136 a tonne, said Umetal. All prices include freight cost.

Most steel mills in China may be done with restocking ore since they don't need as much raw material given the output cuts and with credit access still tight, said an iron ore trader in the port city of Rizhao in China's eastern Shandong province.

"It's almost winter and demand for steel products is really bad during winter," he said.

Most construction activities in China either slow or stop during winter and this will restrain demand for steel, already slowed by tighter credit as Beijing makes fighting inflation its top priority.

Still, most iron ore traders are holding off cargoes, waiting for better prices to unload material some of which were purchased before the market's freefall in October.

"Some traders who got stuck at higher levels and are holding high inventories are holding back some cargoes hoping that the market will go up further," said the Singapore-based trader.

"But the problem is prices can easily fall back again. When steel futures drop, all this optimism will certainly disappear."

(sourced Reuters)

Iron Ore-Spot eyeing biggest weekly fall since July 2010

Sat, Oct 21, 2011

* Iron ore drops to lowest in a year, more falls seen
* Sellers cut offer prices further, swaps down
* Key Shanghai steel futures suffer biggest weekly slide

By Manolo Serapio Jr

SINGAPORE, Oct 21 (Reuters) - Spot iron prices slid to their lowest in a year and are set to post their biggest weekly decline in 15 months as demand from top importer China remained thin, fuelling expectations prices could drop further.

Weaker demand for steel in China, the world's biggest consumer and producer, dragged down steel prices and slashed appetite for iron ore, the key steelmaking raw material.

But iron ore prices have fallen so steeply and so fast in the past two weeks, surprising many market players, that most Chinese mills have opted to stay out and wait until prices stabilise.

"We are not able to sell one tonne of iron ore now and I don't expect the market will see any big improvement at least before early 2012," said an iron ore trader in Shanghai.

Iron ore with 62 percent iron content fell 1.4 percent to $145 a tonne on Thursday, according to Platts IODBZ00-PLT, a level not seen since early October 2010.

Iron ore has lost 8.1 percent so far this week, its seventh straight week of losses and its sharpest drop since July 2010 when it fell 8.8 percent.

Traders said prices are likely to drop further but most were unsure how low they would go.

"We are not seeing a floor so far, we are just seeing a huge hole, like a black hole," said an iron ore trader in Singapore.

Hopes that Chinese demand will stay strong despite the troubles in the Western world had helped keep iron ore prices strong for the most part of the year.

But a sustained fall in Chinese steel prices dashed those hopes as worries grew that China's economy may also be slowing down.

China's economy expanded 9.1 percent in the third quarter, its weakest pace since early 2009 amid weaker export markets and tighter monetary policy.

OFFERS, SWAPS FALL

The sentiment in the iron ore market is so bearish and tense that some big miners have asked the few steel mills they have been selling to not to disclose prices, traders said.

"They are telling the mills not to reveal the prices because they are scared. The more prices are revealed, the more prices will go down," said the Singapore trader.

Sellers have cut prices further on Friday, with Indian 63.5/63 grade iron ore fines quoted at $153-$156 a tonne, including freight, said Chinese consultancy Umetal. That was down $2 from Thursday and $13-$14 cheaper than last week.

Australian 61.5-grade Pilbara fines were offered at $141-$143 a tonne, down $2 from Thursday and $17 lower from the previous week.

Reflecting the bearish mood, prices of forward swaps resumed their decline on Thursday after rising in the previous session.

The Singapore Exchange-cleared November contract fell $4.12 to $124.50 a tonne, a steep discount to spot. The December contract slipped $4.62 to $122.25 and January dropped $4.19 to $121.31.

Given stagnant sales of steel products, a number of steel mills in China will have to cut production soon, said the Shanghai trader.

In the spot market, prices of steel products in China have dropped by up to 50 yuan a tonne per day in recent times, traders said.

The most-traded January rebar contract on the Shanghai Futures Exchange rose 0.9 percent to close at 3,957 yuan a tonne, snapping a six-day losing streak. But for the week, rebar shed 8.3 percent, the biggest weekly drop for the January contract.

(source Reuters)

Demand for low grade ore from China has helped Goa mines

Thursday, 06 Oct 2011

PTI reported that iron ore exporters from Goa today claimed that the demand for low grade of ore in China has helped to prolong the life of mining industry in the state.

Mr Shivanand Salgaoncar President, Goa Mineral Ore Exporters Association said "The ore which was stacked as rejection at the mining site was exported during last few years after China boom.”

He said that "The high grade ore in the earth is left untapped. This will increase the lifespan of the industry. Thanks to China boom, traditional mine owners prospered. Lot of dumps that were lying idle were exported to the neighboring country."

Responding to a question on possible life span of ore mines in the state, Mr Salgaoncar said it was not possible to say for sure as to when would ore reserves in Goa exhaust. He said that "Each mining firm will be able to tell you what the lifespan of their lease is. I have been hearing since 30 years that the lifespan is not more than 30 years. But ore still exists."

Mr Salgaoncar whose association has 34 major exporters as its members, said that there cannot be any particular cap prescribed for extraction of ore. He added that "It is for individual lease holder to decide how much he can extract and for how much permission he has received."

(Sourced from PTI)

Iron Ore-Spot prices up; global miners seen keeping Q4 prices steady

Thu Sep 1, 2011

* Global miners likely to keep prices steady for Q4
* Spot iron ore prices up $1
* Mills show growing buying interest
* Concerns over U.S. and Europe economy may weigh
By Ruby Lian and David Stanway

SHANGHAI, Sept 1 (Reuters) - Spot iron ore prices gained more ground on Thursday ahead of an anticipated rise in demand during the upcoming peak season, while indexes suggest global miners like Rio Tinto and Vale will keep prices almost steady in the fourth quarter.

Steel mills in China, the world's largest steel producer and consumer, expect seasonal steel demand to pick up in September and October, with spot prices gaining $1 on Thursday.

"They seem now to be restocking, there is interest and buying, and the industry is on the up again," said a Hong Kong-based commodities broker.

Australian 62 percent Newman fines rose $1 to $183-$185 a tonne, including freight, and Indian 63.5/63 fines climbed to $187-$190, from $187-189, according to Chinese consultancy Umetal

China's biggest listed steelmaker Baoshan Iron & Steel , also known as Baosteel, expected iron ore prices to remain at relatively high levels in the fourth quarter and next year, but said it also anticipated significant growth in net profits next year as demand strengthens.

Rio Tinto also said on Wednesday that the world will need at least 100 million tonnes of additional iron ore supply each year over the next eight years. It said its Simandou iron ore joint venture with China's Chinalco in Guinea was on track to make its first shipment by mid-2015.

However, steel mills and traders remain cautious about buying, amid worries about the U.S. and European economies.

"There are still concerns about double-dip recessions in Europe and the United States," said the broker.

"Right now there is buying sentiment in China, but with recent changes (in banks' required reserve ratio base) it may lead to cash restrictions and may limit iron ore buying."

The most active January rebar futures on the Shanghai Futures Exchange closed the morning session 0.08 percent lower at 4,827 yuan ($757) per tonne on Thursday. It hit a one-week high at 4,842 yuan per tonne earlier.

Q4 PRICING ALMOST FLAT

Global miners will likely keep iron ore contract prices mostly steady in the fourth quarter, with spot prices stabilising on firm Chinese demand and tight supplies, Reuters calculations showed.

Based on Platts index prices IODBZ00-PLT for June to August, which top iron ore miners such as Vale and Rio Tinto use to set fourth-quarter contract prices, the 62-percent grade averaged $175.63 a tonne, cost and freight, down marginally from $176.96 in March-May, on which third-quarter pricing was based.

Platts competes with the other two major global indexes the Steel Index .IO62-CNI=SI and Metal Bulletin Iron Ore Index .IO62-CNO=MB.

Prices for quarterly contracts are largely based on the average index prices over a three-month period ending a month before the start of each quarter.

Vale, the world's largest iron ore miner, would set 66-percent-Fe Carajas fines prices at $200.16 per dry metric tonne, delivered to Qingdao, one of China's major ports, for the December quarter, given that its customers have agreed not to adjust prices if quarterly changes are below 5 percent, Platts' said in its daily note.

"Those that do not have such a clause in contracts will see prices fall for the second straight quarter in Q4," Platts said.

Rio Tinto, the world's second-biggest iron ore miner, could lower prices by 1.2 percent for the October-December period, with iron ore fines likely to fall to $2.6896 per dry metric tonne unit FOB, from $2.7234 for the September quarter, also marking the second straight quarterly decline, the Platts' report said.

Metal Bulletin index rose 21 cents to $179.49 a tonne on Wednesday, and the Steel Index also gained $1 to $179.9 a tonne, the highest level since May 6. ($1 = 6.378 yuan)

Costs the key for Europe steel outlook-Fitch

Thu Mar 31, 2011 3:45pm GMT

* Non-integrated steel makers face higher raw material costs
* Auto, engineering demand healthy, construction weaker
* Fitch sees European steel demand up 5-6 pct in 2011

PARIS, March 31 (Reuters) - The performance of European steel makers this year will be shaped by their ability to pass on higher raw material costs and by contrasting growth in the industries they supply, a Fitch analyst said on Thursday.

"Possibly the biggest issue for steel producers this year is their ability to pass through costs," Peter Archbold, European head of basic materials at Fitch Ratings, told reporters.

The price of most mining commodities was expected to be higher on average this year because of supply tensions, with coking coal expected to be the most bullish following floods in Queensland, Australia, that have cut output, he said.

"There is going to be some margin pressure for non-integrated companies," he said, stressing that steel demand was not as strong as in 2006-08 when producers were in a better position to pass on rising raw material costs.

However, conditions for steel makers would also depend on demand from different industries, he said, noting that while Thyssenkrupp (TKAG.F: Quote) did not have integrated mining activities it was benefiting from brisk demand from the German car industry, one of Thyseenkrupp's main outlets.

Fitch expected steel demand from the automotive sector in Europe to rise by 5-6 percent this year, in line with its outlook for overall growth in European steel demand.

Demand growth would be faster in mechanical engineering, a key sector in Germany, at 7-8 percent but much weaker in construction at 1-2 percent, he said.

Fitch sees 2011 global steel demand rising by 6-10 percent.

The European steel sector as a whole was expected to continue this year its "progressive recovery", which has seen output climb back up to 80 percent of 2007 levels, lagging the global market which has already reached pre-crisis levels, driven by Chinese production, Archbold said.

The pushing through of production costs should support steel prices in Europe, he added.
(Reporting by Gus Trompiz, sourced :Reuters)