Tuesday, 14 Feb 2012
Reuters reported that Japan Mitsubishi Corp cleared the last hurdle on Monday to take control of iron ore, port and rail projects in Western Australia which are slated to cost USD 10 billion and which it hopes to fund with Chinese partners.
A spokesman said shareholders in Murchison Metals approved the sale of the company 50% stakes in the Jack Hills iron ore mine and its affiliated Oakajee port and rail project to its partner, Mitsubishi for AUD 325 million.
The deal is due to close on February 20. The long delayed port project is key to opening up a new iron ore province in Western Australia outside the control of dominant iron ore producers, Rio Tinto and BHP Billiton.
The AUD 5.9 billion Oakajee port and rail project and the USD 3.7 billion Jack Hills iron ore expansion project have been held back due to cost blowouts which Murchison could not afford and the failure to line up companies to use the infrastructure.
Murchison biggest shareholder, South Korean steel maker POSCO last year said it was considering buying stakes in Jack Hills and the Oakajee project.
Other potential partners in the infrastructure are Sinosteel which is developing the Midwest iron ore project and Angang Steel Co which is backing Gindalbie Metals' Karara iron ore project.
Last week, Western Australian Premier Mr Colin Barnett said Mitsubishi was due to meet with potential Chinese partners in Beijing later this month to discuss participating in the two projects.
Mr Barnett said "There is a major meeting in Beijing, in the next few weeks, involving Australian companies, the Chinese state owned enterprises, Mitsubishi, some financial institutions from China and that will be the critical meeting and hopefully bringing China formally into the project and moving forward."
(Sourced from Reuters)
Showing posts with label Chinese. Show all posts
Showing posts with label Chinese. Show all posts
Tuesday, February 14, 2012
Saturday, October 29, 2011
Iron ore price slump nearing floor on China restock - UBS
Saturday, 29 Oct 2011
Bloomberg quoted UBS AG said iron ore prices down 30% this month are nearing a floor as Chinese buyers replenish stocks and shipments from India dwindle.
UBS analysts led by Sydney based Mr Tom Price said the price may rebound as much as USD 30 per tonne to near USD 150 a ton in coming weeks. The benchmark Asian price has dropped 16% this week heading for its biggest such decline on record.
UBS said “The scale & speed of this week’s correction has little to do with trade fundamentals. The reported collapse in trade liquidity instead suggests a buyer strike with consumers deferring purchases until prices stabilize.”
According to The Steel Index iron ore for delivery to the port of Tianjin in China a benchmark for Asia fell 5.7% to USD 120.20 per tonne recently. That’s the lowest since July 19 2010.
(Sourced from Bloomberg)
Bloomberg quoted UBS AG said iron ore prices down 30% this month are nearing a floor as Chinese buyers replenish stocks and shipments from India dwindle.
UBS analysts led by Sydney based Mr Tom Price said the price may rebound as much as USD 30 per tonne to near USD 150 a ton in coming weeks. The benchmark Asian price has dropped 16% this week heading for its biggest such decline on record.
UBS said “The scale & speed of this week’s correction has little to do with trade fundamentals. The reported collapse in trade liquidity instead suggests a buyer strike with consumers deferring purchases until prices stabilize.”
According to The Steel Index iron ore for delivery to the port of Tianjin in China a benchmark for Asia fell 5.7% to USD 120.20 per tonne recently. That’s the lowest since July 19 2010.
(Sourced from Bloomberg)
Thursday, October 13, 2011
Indonesia's coal rush - JOSEPH KIRSCHKE
Thu, 13 October 11
Last winter, the Chinese government mobilized thousands of soldiers and reservists of the People’s Liberation Army to the port of Qinhuangdao, the shipping point for more than half the country’s coal, in northeast China. Their collective mission: to help load and supply imported coal to avert massive power outages.
Amid a summer heat wave, China, which relies on half the world’s coal supply for 70 percent of its energy, is again in bad shape — even as it simultaneously mines coal and imports it at record levels. The Railway Ministry has deployed trains nationwide as 20 regions have instituted rations to cope with a power deficit far above that of Japan’s after the March tsunami.
All this is a plus for Indonesia, Southeast Asia’s biggest economy, which already exports more coal to China than any other nation. But Beijing’s increasing focus on innovation, economic sustainability and the environment means that thermal coal, or steam coal, will allow coal companies in Indonesia even more profits as China heaves further into the 21st century. Thermal coal is used for power generation, and Indonesia has more of it than any country in the world.
China is now the world’s leading consumer of coal — bringing in some 200 million tons of it at last year — since importing began four years ago, despite having the third-biggest reserves on the planet. But China’s domestic coal market faces serious hardships; each one drives up import demands, all contribute to a long-term drop in production.
Payloads from distant Inner Mongolia and Xinjiang, for example, face ramshackle highways: a 100-kilometer, two-week-long traffic jam filled with coal trucks just outside Beijing last year was nothing if not a reminder. Record mining fatalities — some 80 percent of the world’s total with 3,000 deaths annually — are also prompting authorities to shutter mines by the thousands. At the same time, according to Beijing’s China Coal Research Institute, four-fifths of all Chinese coal fails to meet national industrial standards.
But for a country building a new power plant weekly, with the world’s largest carbon footprint, the environment and energy efficiency are a priority. This is underscored in Beijing’s 12th Five-Year Guideline, a policy mandate dating back to foundation of the People’s Republic in 1949. In it, the Communist Party of China now emphasizes economic and environmental sustainability, including further use of thermal coal — both high-grade and low in sulfur.
This is excellent news for Indonesia. China, in fact, is predicted to more than double thermal coal imports to 200 million tons by 2015, up from 90 million tons this year, as 39 percent of the world’s increase will come from Indonesia. By 2030, global coal production is projected to reach seven billion tons — 5.2 billion of it being steam coal. Thermal coal, thus, is set to outstrip the value of all other Indonesian export commodities — well above other types of coal, minerals and natural gas.
Straddling the “Ring of Fire,” Indonesia is to geothermal power what the Persian Gulf is to oil — with 40 percent of the world’s thermal coal. This is an energy source used by 70 other countries and is considered highly sustainable. Indeed, thermal coal is already considered one of the most prized commodities on the planet.
China’s trend isn’t entirely new. In recognizing its value in reducing acid rain and greenhouse gases while increasing the efficiency of its coal-fired power plants, China has greatly surpassed the United States in its “clean coal” capacities. Developments include the 2008 establishment of a $73 million thermal coal research facility by the Chinese Academy of Sciences and British Petroleum. And Beijing has acquired 41 patents on thermal coal technology in the last 30 years.
Not only the European Union, Washington, too, has partnered with Beijing. It has done so in particular via China’s Thermal Power Research Institute, a leading research organization that has licensed technology to a US clean coal energy initiative. Previously scrapped due to high costs, the project was revived with $1 billion from the Obama administration in 2009.
This demand equals a win-win for Indonesia’s thermal coal companies — and, by extension, Indonesia, thanks to its low-cost work force and shipping industry. In May, President Susilo Bambang Yudhoyono officially announced a $468 billion economic master plan for 2011 to 2025 that some have called “ambitious.”
His wish may have already been granted.
About Joseph Kirschke
Joseph Kirschke is a Jakarta/Beijing-based Communications Consultant and Political Analyst who works with international investors, media and energy and trade companies.
If you believe an article violates your rights or the rights of others, please contact us.
(sourced coalspot)
Last winter, the Chinese government mobilized thousands of soldiers and reservists of the People’s Liberation Army to the port of Qinhuangdao, the shipping point for more than half the country’s coal, in northeast China. Their collective mission: to help load and supply imported coal to avert massive power outages.
Amid a summer heat wave, China, which relies on half the world’s coal supply for 70 percent of its energy, is again in bad shape — even as it simultaneously mines coal and imports it at record levels. The Railway Ministry has deployed trains nationwide as 20 regions have instituted rations to cope with a power deficit far above that of Japan’s after the March tsunami.
All this is a plus for Indonesia, Southeast Asia’s biggest economy, which already exports more coal to China than any other nation. But Beijing’s increasing focus on innovation, economic sustainability and the environment means that thermal coal, or steam coal, will allow coal companies in Indonesia even more profits as China heaves further into the 21st century. Thermal coal is used for power generation, and Indonesia has more of it than any country in the world.
China is now the world’s leading consumer of coal — bringing in some 200 million tons of it at last year — since importing began four years ago, despite having the third-biggest reserves on the planet. But China’s domestic coal market faces serious hardships; each one drives up import demands, all contribute to a long-term drop in production.
Payloads from distant Inner Mongolia and Xinjiang, for example, face ramshackle highways: a 100-kilometer, two-week-long traffic jam filled with coal trucks just outside Beijing last year was nothing if not a reminder. Record mining fatalities — some 80 percent of the world’s total with 3,000 deaths annually — are also prompting authorities to shutter mines by the thousands. At the same time, according to Beijing’s China Coal Research Institute, four-fifths of all Chinese coal fails to meet national industrial standards.
But for a country building a new power plant weekly, with the world’s largest carbon footprint, the environment and energy efficiency are a priority. This is underscored in Beijing’s 12th Five-Year Guideline, a policy mandate dating back to foundation of the People’s Republic in 1949. In it, the Communist Party of China now emphasizes economic and environmental sustainability, including further use of thermal coal — both high-grade and low in sulfur.
This is excellent news for Indonesia. China, in fact, is predicted to more than double thermal coal imports to 200 million tons by 2015, up from 90 million tons this year, as 39 percent of the world’s increase will come from Indonesia. By 2030, global coal production is projected to reach seven billion tons — 5.2 billion of it being steam coal. Thermal coal, thus, is set to outstrip the value of all other Indonesian export commodities — well above other types of coal, minerals and natural gas.
Straddling the “Ring of Fire,” Indonesia is to geothermal power what the Persian Gulf is to oil — with 40 percent of the world’s thermal coal. This is an energy source used by 70 other countries and is considered highly sustainable. Indeed, thermal coal is already considered one of the most prized commodities on the planet.
China’s trend isn’t entirely new. In recognizing its value in reducing acid rain and greenhouse gases while increasing the efficiency of its coal-fired power plants, China has greatly surpassed the United States in its “clean coal” capacities. Developments include the 2008 establishment of a $73 million thermal coal research facility by the Chinese Academy of Sciences and British Petroleum. And Beijing has acquired 41 patents on thermal coal technology in the last 30 years.
Not only the European Union, Washington, too, has partnered with Beijing. It has done so in particular via China’s Thermal Power Research Institute, a leading research organization that has licensed technology to a US clean coal energy initiative. Previously scrapped due to high costs, the project was revived with $1 billion from the Obama administration in 2009.
This demand equals a win-win for Indonesia’s thermal coal companies — and, by extension, Indonesia, thanks to its low-cost work force and shipping industry. In May, President Susilo Bambang Yudhoyono officially announced a $468 billion economic master plan for 2011 to 2025 that some have called “ambitious.”
His wish may have already been granted.
About Joseph Kirschke
Joseph Kirschke is a Jakarta/Beijing-based Communications Consultant and Political Analyst who works with international investors, media and energy and trade companies.
If you believe an article violates your rights or the rights of others, please contact us.
(sourced coalspot)
Monday, October 10, 2011
Zambia miners end strikes after big pay rise
Mon Oct 10, 2011
* Union says workers' pay doubled
* Government intervenes to end strike
LUSAKA Oct 10 (Reuters) - Zambians striking over poor pay at Chinese mines went back to work on Monday after winning a nearly 100 percent pay rise, just over two weeks after a new president took office on the promise of improving mining conditions.
"All the workers today went back to work. The lowest paid worker will now get a basic pay of 2 million kwacha per month, which is almost double what they used to get," Mine Workers Union of Zambia acting president Charles Mukuka said.
About 2,000 workers at NFC Africa Mining, majority-owned by China Nonferrous Metals Mining Corporation, went on a strike last week demanding higher wages.
Another 500 workers at the Chinese-owned Sino Metals copper processing plant also went on strike demanding higher pay, prompting the government to intervene.
"The managements agreed on the new pay after a meeting which was also attended by officials from the ministry of labour," Mukuka said.
Long-time opposition leader Michael Sata won election in the southern African country on Sept. 20 on a populist platform that included criticism of foreign investors and promises to improve the lives of workers.
In his first official meeting as president, Sata saw Chinese ambassador Zhou Yuxiao in an effort to dispel fears his sometimes fierce anti-Chinese rhetoric while in opposition would translate into a shift in investment policy.
He also made clear that Chinese companies, which have ploughed more than $2 billion into developing the mining sector, would not get preferential treatment. (sourced Reuters)
* Union says workers' pay doubled
* Government intervenes to end strike
LUSAKA Oct 10 (Reuters) - Zambians striking over poor pay at Chinese mines went back to work on Monday after winning a nearly 100 percent pay rise, just over two weeks after a new president took office on the promise of improving mining conditions.
"All the workers today went back to work. The lowest paid worker will now get a basic pay of 2 million kwacha per month, which is almost double what they used to get," Mine Workers Union of Zambia acting president Charles Mukuka said.
About 2,000 workers at NFC Africa Mining, majority-owned by China Nonferrous Metals Mining Corporation, went on a strike last week demanding higher wages.
Another 500 workers at the Chinese-owned Sino Metals copper processing plant also went on strike demanding higher pay, prompting the government to intervene.
"The managements agreed on the new pay after a meeting which was also attended by officials from the ministry of labour," Mukuka said.
Long-time opposition leader Michael Sata won election in the southern African country on Sept. 20 on a populist platform that included criticism of foreign investors and promises to improve the lives of workers.
In his first official meeting as president, Sata saw Chinese ambassador Zhou Yuxiao in an effort to dispel fears his sometimes fierce anti-Chinese rhetoric while in opposition would translate into a shift in investment policy.
He also made clear that Chinese companies, which have ploughed more than $2 billion into developing the mining sector, would not get preferential treatment. (sourced Reuters)
Sunday, October 9, 2011
Chinese demand to keep iron ore prices above USD 150 - Wood Mackenzie
Sunday, 09 Oct 2011
Commodity Online recently reported that the iron ore price in the international market is likely to remain above USD 150 per tonne till 2020 as the demand from the world’s largest consumer, China, remains firm. The decline in India exports is also providing strength to international iron ore prices.
Research consultant, Wood Mackenzie said in July that Chinese construction spending won’t slow down until 2020 which will keep spot prices of iron ore above USD 150 per tonne through 2015, Mining.com reported.
According to Rio Tinto, Vales and BHP Billiton, who controls more than 70% of the world Iron ore production, the demand for the commodity from China is expected to reach 1 billion by 2015 which is 60% more than 2010.
(sourced from commodityonline)
Commodity Online recently reported that the iron ore price in the international market is likely to remain above USD 150 per tonne till 2020 as the demand from the world’s largest consumer, China, remains firm. The decline in India exports is also providing strength to international iron ore prices.
Research consultant, Wood Mackenzie said in July that Chinese construction spending won’t slow down until 2020 which will keep spot prices of iron ore above USD 150 per tonne through 2015, Mining.com reported.
According to Rio Tinto, Vales and BHP Billiton, who controls more than 70% of the world Iron ore production, the demand for the commodity from China is expected to reach 1 billion by 2015 which is 60% more than 2010.
(sourced from commodityonline)
Saturday, October 8, 2011
Brazil's Vale says not worried about iron ore prices
Sat Oct 8, 2011
MANJUNG, Malaysia Oct 8 (Reuters) - Brazilian iron ore giant Vale SA said on Saturday it was not concerned about iron ore prices despite a recent drop in the price of copper.
"We will look at the market and see how it behaves 2-3 months," Vale executive director Jose Martins told reporters at the groundbreaking ceremony of the company's $1.3 billion iron ore distribution centre in Malaysia's northern Perak state.
"We are not concerned about the behaviour of the price because we follow the market. Whatever the market says we follow. We are not pricemakers, we are price followers."
Copper capped its biggest weekly gain in more than six months with a 2 percent burst on Friday as encouraging U.S. job data helped the metal recover after falling to a 14-month low early this week.
Martins said any decision to change Vale's settlement currency from the US dollar to Chinese yuan would depend on how convertible the yuan is, with any decision to make it more convertible "very welcomed".
(sourced Reuters)
MANJUNG, Malaysia Oct 8 (Reuters) - Brazilian iron ore giant Vale SA said on Saturday it was not concerned about iron ore prices despite a recent drop in the price of copper.
"We will look at the market and see how it behaves 2-3 months," Vale executive director Jose Martins told reporters at the groundbreaking ceremony of the company's $1.3 billion iron ore distribution centre in Malaysia's northern Perak state.
"We are not concerned about the behaviour of the price because we follow the market. Whatever the market says we follow. We are not pricemakers, we are price followers."
Copper capped its biggest weekly gain in more than six months with a 2 percent burst on Friday as encouraging U.S. job data helped the metal recover after falling to a 14-month low early this week.
Martins said any decision to change Vale's settlement currency from the US dollar to Chinese yuan would depend on how convertible the yuan is, with any decision to make it more convertible "very welcomed".
(sourced Reuters)
Tuesday, September 6, 2011
China COSCO not in formal talks with Vale over mega bulk ship sale-official
Tue Sep 6, 2011
SINGAPORE, Sept 6 (Reuters) - China's COSCO Group, the country's top shipping conglomerate, was not holding talks with Vale over the sale of the Brazilian miner's mega dry bulk carriers, a COSCO official told Reuters on Tuesday.
"I never heard about this. I don't think the COSCO head office has had any official talks with Vale in the form of meetings or teleconference as far as I know," said the COSCO official, who wished not to be named because he is not authorized to speak to the media on the subject.
A Vale official told Reuters on Monday the mining giant was in talks with Chinese and other shipowners to sell or lease its planned fleet of giant bulk carriers.
COSCO Chairman Wei Jiafu told Reuters last November that it was not interested when initially approached by Vale to be a partner in the project.
SINGAPORE, Sept 6 (Reuters) - China's COSCO Group, the country's top shipping conglomerate, was not holding talks with Vale over the sale of the Brazilian miner's mega dry bulk carriers, a COSCO official told Reuters on Tuesday.
"I never heard about this. I don't think the COSCO head office has had any official talks with Vale in the form of meetings or teleconference as far as I know," said the COSCO official, who wished not to be named because he is not authorized to speak to the media on the subject.
A Vale official told Reuters on Monday the mining giant was in talks with Chinese and other shipowners to sell or lease its planned fleet of giant bulk carriers.
COSCO Chairman Wei Jiafu told Reuters last November that it was not interested when initially approached by Vale to be a partner in the project.
Tuesday, August 23, 2011
ZIMASCO to imports coal from Botswana
Tuesday, 23 Aug 2011
It is reported that Chinese controlled ferrochrome producer Zimasco is importing coking coal for its smeltering operations from Botswana where the commodity is generally cheaper and always available.
According to Mr Reason Mandimika mining executive of Zimasco, that importing coal was necessitated by bottlenecks in the local supply chain and at times the costing by local suppliers.
Zimasco expects to increase its annual ferrochrome production to 600 000 tonnes once it completes refurbishment and construction of a new furnace in Kwekwe. This follows the government's renewal of a ban on export of raw chrome ore in March this year.
Mr Mandimika said that "We have been importing coking coal for our furnaces from Botswana primarily because of two reasons; it's cheaper and always available.” He added that the coal from Sengwa was not up to the quality required for smelting chrome.
Hwange Colliery and Sengwa Coals are the two main suppliers on the local market but suffer operational hitches, among them recapitalisation and ageing equipment, particularly in the last decade where hyperinflation wreaked havoc on business.
(sourced AllAfrica)
It is reported that Chinese controlled ferrochrome producer Zimasco is importing coking coal for its smeltering operations from Botswana where the commodity is generally cheaper and always available.
According to Mr Reason Mandimika mining executive of Zimasco, that importing coal was necessitated by bottlenecks in the local supply chain and at times the costing by local suppliers.
Zimasco expects to increase its annual ferrochrome production to 600 000 tonnes once it completes refurbishment and construction of a new furnace in Kwekwe. This follows the government's renewal of a ban on export of raw chrome ore in March this year.
Mr Mandimika said that "We have been importing coking coal for our furnaces from Botswana primarily because of two reasons; it's cheaper and always available.” He added that the coal from Sengwa was not up to the quality required for smelting chrome.
Hwange Colliery and Sengwa Coals are the two main suppliers on the local market but suffer operational hitches, among them recapitalisation and ageing equipment, particularly in the last decade where hyperinflation wreaked havoc on business.
(sourced AllAfrica)
European shares extend gains; miners jump
Tue Aug 23, 2011
LONDON (Reuters) - European equities gained further on Tuesday, with miners rising on the back of stronger metal prices following China's factory sector data, while investors bet that the Federal Reserve might signal fresh measures to support the economy later this week.
The STOXX Europe 600 basic resources index, up 2.6 percent, was the best performer. At 0711 GMT, the FTSEurofirst 300 index of top European shares was up 1.5 percent at 930.85 points after rising 0.8 percent on Monday.
"Any data that just hints that the world is not ending is going to be well received by the market. We had better-than-anticipated Chinese factory data overnight and some of the corporate results this morning were also good," said Ian Richards, European equity strategist at RBS.
"You have also got a potential catalyst coming through on Friday and the Jackson Hole meeting is going to be in focus for the markets all this week."
Investors waited for the Fed Chairman Ben Bernanke's key speech at an annual central bank conference in Jackson Hole to see if he would provide hints for further measures to revive the struggling economy.
(sourced Thomson Reuters)
LONDON (Reuters) - European equities gained further on Tuesday, with miners rising on the back of stronger metal prices following China's factory sector data, while investors bet that the Federal Reserve might signal fresh measures to support the economy later this week.
The STOXX Europe 600 basic resources index, up 2.6 percent, was the best performer. At 0711 GMT, the FTSEurofirst 300 index of top European shares was up 1.5 percent at 930.85 points after rising 0.8 percent on Monday.
"Any data that just hints that the world is not ending is going to be well received by the market. We had better-than-anticipated Chinese factory data overnight and some of the corporate results this morning were also good," said Ian Richards, European equity strategist at RBS.
"You have also got a potential catalyst coming through on Friday and the Jackson Hole meeting is going to be in focus for the markets all this week."
Investors waited for the Fed Chairman Ben Bernanke's key speech at an annual central bank conference in Jackson Hole to see if he would provide hints for further measures to revive the struggling economy.
(sourced Thomson Reuters)
Saturday, August 20, 2011
China Shipowners Association fears Vale control of freight market
August20, 2011
Zhang Shouguo, executive vice chairman of the China Shipowners Association (CSA), has stated in an interview with Bloomberg that Brazilian mining giant Vale is seeking to control the freight market just as it controls the iron ore market.
Vale is currently building up a fleet of 19 400,000-dwt vessels for iron ore transportation, while it will rent a further 16 vessels for the same purpose. Mr. Zhang said that Vale should leave responsibility for freight to the shipping companies. He also said that with its new fleet Vale would completely control iron ore shipments between China and Brazil. (sourced steelorbis)
Zhang Shouguo, executive vice chairman of the China Shipowners Association (CSA), has stated in an interview with Bloomberg that Brazilian mining giant Vale is seeking to control the freight market just as it controls the iron ore market.
Vale is currently building up a fleet of 19 400,000-dwt vessels for iron ore transportation, while it will rent a further 16 vessels for the same purpose. Mr. Zhang said that Vale should leave responsibility for freight to the shipping companies. He also said that with its new fleet Vale would completely control iron ore shipments between China and Brazil. (sourced steelorbis)
Friday, August 12, 2011
Zimbabwe considers dumping US Dollar for Chinese Yuan
August11, 2011
Zimbabwe is considering adopting the Chinese Yuan or the South African rand in the wake of the United State’s debt problems. The southern African country adopted the use of multiple currencies in 2009 after its dollar was rendered unusable by hyperinflation. However, the US dollar has been the biggest circulating currency in the country followed by the rand.
Following the downgrading of the debt of the US last week by the Standard & Poor (S&P) rating agency, Zimbabwean officials have been calling for a rethink on the use of the dollar.
S&P dropped the US’s rating to AA+ from the top rating, AAA, based on a lack of confidence that Congress and President Barack Obama will resolve their stalemate on how to address America’s worsening debt situation. Zimbabwean officials say this will have an effect on the US dollar which will in turn negatively impact the country’s economy. Killer Zivhu, president of the Zimbabwe Cross Border Association, said if the Yaun was adopted it will come as a big relief to members of his association who buy most of their merchandise from China. “We would rather officially adopt the Yuan or South African rand. The dollar is exposing us to unfair business practices,” Zivhu said.
Last September, Vice President Joice Mujuru said Zimbabwe should consider adopting the Chinese Yuan, in line with the country’s policy of using multiple currencies to tackle hyperinflation. Mujuru said adopting the Yuan would be a "natural progression and offshoot of the Look East policy,”
China has already called for a new global reserve currency to avert a catastrophe caused by any single country. China is the U.S. government’s largest single creditor, with over $1 trillion locked in treasury bonds as well as more than a trillion in other dollar-denominated assets.
But Tony Hawkins, a professor of economics at the graduate School of Management at the University of Zimbabwe said “there is no obvious alternative to the US dollar.” “There is no such thing as a stable currency in the markets,” Hawkins said. “At present the Euro, British Pound and Chinese Yuan are also shaky.
“Unfortunately for Zimbabwe we are caught up in the financial mess and we have to live with it”.
(sourced TheAfricaReport)
Following the downgrading of the debt of the US last week by the Standard & Poor (S&P) rating agency, Zimbabwean officials have been calling for a rethink on the use of the dollar.
S&P dropped the US’s rating to AA+ from the top rating, AAA, based on a lack of confidence that Congress and President Barack Obama will resolve their stalemate on how to address America’s worsening debt situation. Zimbabwean officials say this will have an effect on the US dollar which will in turn negatively impact the country’s economy. Killer Zivhu, president of the Zimbabwe Cross Border Association, said if the Yaun was adopted it will come as a big relief to members of his association who buy most of their merchandise from China. “We would rather officially adopt the Yuan or South African rand. The dollar is exposing us to unfair business practices,” Zivhu said.
Last September, Vice President Joice Mujuru said Zimbabwe should consider adopting the Chinese Yuan, in line with the country’s policy of using multiple currencies to tackle hyperinflation. Mujuru said adopting the Yuan would be a "natural progression and offshoot of the Look East policy,”
China has already called for a new global reserve currency to avert a catastrophe caused by any single country. China is the U.S. government’s largest single creditor, with over $1 trillion locked in treasury bonds as well as more than a trillion in other dollar-denominated assets.
But Tony Hawkins, a professor of economics at the graduate School of Management at the University of Zimbabwe said “there is no obvious alternative to the US dollar.” “There is no such thing as a stable currency in the markets,” Hawkins said. “At present the Euro, British Pound and Chinese Yuan are also shaky.
“Unfortunately for Zimbabwe we are caught up in the financial mess and we have to live with it”.
(sourced TheAfricaReport)
Saturday, August 6, 2011
Japan steelmakers' price talks with Korea hit stalemate
Tokyo (Reuters) - Japanese steelmakers' talks with South Korean customers on August-October exports have reached stalemate as a slowdown in the global economy and low-priced exports from China weigh on the market and the yen's strength makes price cuts difficult for Japanese exporters.
Japanese steelmakers are aiming for a price of $750 a tonne for hot-rolled coil for shipments during the three months, but South Korean customers insist on a level closer to $600, citing recent Chinese prices sold to South Korea of $600, two industry sources familiar with the matter said.
That level is similar to a year ago when the region's export market collapsed after China boosted exports ahead of tax changes aimed at curbing exports.
Asia's steel market shows no signs of a turnaround, the sources said, with makers in Japan, China and South Korea boosting exports despite signs of a slowdown in demand growth.
Japanese steelmakers' exports in the first six months of this year totalled 21.54 million tonnes, down only 2.3 percent from the same period a year ago when exports hit a record.
Japanese steelmakers were the world's biggest exporters last year, with Nippon Steel Corp , JFE Steel deriving half their revenues from exports.
Taiwan's China Steel Corp said on Friday the company has started to consider whether to bring anti-dumping suits against Chinese, South Korean and Japanese products, saying low-priced imports are disrupting the market.
Imports of Chinese thick-plate that contain boron particularly show steep import gains, the company told Reuters.
(sourced Reuters)
Japanese steelmakers are aiming for a price of $750 a tonne for hot-rolled coil for shipments during the three months, but South Korean customers insist on a level closer to $600, citing recent Chinese prices sold to South Korea of $600, two industry sources familiar with the matter said.
That level is similar to a year ago when the region's export market collapsed after China boosted exports ahead of tax changes aimed at curbing exports.
Asia's steel market shows no signs of a turnaround, the sources said, with makers in Japan, China and South Korea boosting exports despite signs of a slowdown in demand growth.
Japanese steelmakers' exports in the first six months of this year totalled 21.54 million tonnes, down only 2.3 percent from the same period a year ago when exports hit a record.
Japanese steelmakers were the world's biggest exporters last year, with Nippon Steel Corp , JFE Steel deriving half their revenues from exports.
Taiwan's China Steel Corp said on Friday the company has started to consider whether to bring anti-dumping suits against Chinese, South Korean and Japanese products, saying low-priced imports are disrupting the market.
Imports of Chinese thick-plate that contain boron particularly show steep import gains, the company told Reuters.
(sourced Reuters)
Monday, February 14, 2011
Chinese power use growth in January seen up MoM
Monday, 14 Feb 2011
Reuters reported that Power consumption in areas served by State Grid Corp of China may have increased by an average of 9.4% in January from a year earlier up from a nationwide 5.4% rise in December.
Electricity consumption in areas covered by the Northwest Grid, one of SGCC's five regional units rose 14.01%YoY to 30.9 billion kilowatt hours last month.
The report said citing data from the Northwest Grid that the increase was the fastest among the five region and 4.64 percentage points higher than the average for SGCC as a whole.
Power use comparisons in January and February are often distorted by the Lunar New Year holiday which can fall in January or February. In 2010 and 2011 the holiday took place in February.
(sourced from Reuters)
Reuters reported that Power consumption in areas served by State Grid Corp of China may have increased by an average of 9.4% in January from a year earlier up from a nationwide 5.4% rise in December.
Electricity consumption in areas covered by the Northwest Grid, one of SGCC's five regional units rose 14.01%YoY to 30.9 billion kilowatt hours last month.
The report said citing data from the Northwest Grid that the increase was the fastest among the five region and 4.64 percentage points higher than the average for SGCC as a whole.
Power use comparisons in January and February are often distorted by the Lunar New Year holiday which can fall in January or February. In 2010 and 2011 the holiday took place in February.
(sourced from Reuters)
Thursday, February 3, 2011
Iron in the blood, Rinehart tops rich list Erik Jensen
.
February 4, 2011
It is almost 20 years since the mining magnate Lang Hancock died. Today his daughter, Gina Rinehart, is officially Australia's richest person and the first woman to hold the position.
While James Packer has diminished his father's fortune, she has far eclipsed hers.
The list of the top-20 richest Australians
While James Packer has diminished his father's fortune, she has far eclipsed hers.
The list of the top-20 richest Australians
The Chinese helped, with their appetite for iron ore. The collapse of James Packer's fortune - though still worth $4.4 billion, and ranked third behind Andrew ''Twiggy'' Forrest - did not hurt either.
But nothing can detract from the fact Mrs Rinehart more than trebled her worth in a year. The US magazine Forbes estimates her fortune at $US9 billion. As much as Silvio Berlusconi's, who ranked a louche 74 on last year's list of world billionaires.
But nothing can detract from the fact Mrs Rinehart more than trebled her worth in a year. The US magazine Forbes estimates her fortune at $US9 billion. As much as Silvio Berlusconi's, who ranked a louche 74 on last year's list of world billionaires.
The University of Sydney economics student - once divorced, once widowed - made almost $700 million in revenue from the first year of her joint venture with Rio Tinto in the Pilbara. In the 2008-09 financial year, Hancock Prospecting made a record $225 million profit - equal, almost, to her father's entire fortune when he died, even after adjustments for inflation.
Recently she has made headlines for her raids on media companies - including on Fairfax Media, publisher of the Herald. More quiet has been the offensive she has lately begun on her father's legacy.
Recently she has made headlines for her raids on media companies - including on Fairfax Media, publisher of the Herald. More quiet has been the offensive she has lately begun on her father's legacy.
Most of his iron ore holdings were lost or sold before she took over, her company says. Royalties from his deal with Rio Tinto went on debts and the deposit now making so much money was then a ''few drill holes'' - the man, when he died, was bankrupt, the company says.
''When Mrs Rinehart became chairman it was very difficult to do the investment and work required with substantial debts and liabilities to pay and even the office building mortgaged,'' Hancock Prospecting said in a recent statement. ''There was no 'inherited money' to fund Hope Downs [deposit]; significant moneys had to be borrowed to do so.''
The dispute bubbled over into a open letter late last year, directed at the journalist Tim Treadgold's suggestion she was riding the ''same flatbed truck'' her father drove.
''Silly attacks on people to divert attention from the real world issues,'' she wrote, ''won't help Australia.''
The net worth of Australia's richest 40 people rose by 40 per cent in the past year, to a combined wealth of $68.4 billion.(sourced:www.smh.com.au)
''When Mrs Rinehart became chairman it was very difficult to do the investment and work required with substantial debts and liabilities to pay and even the office building mortgaged,'' Hancock Prospecting said in a recent statement. ''There was no 'inherited money' to fund Hope Downs [deposit]; significant moneys had to be borrowed to do so.''
The dispute bubbled over into a open letter late last year, directed at the journalist Tim Treadgold's suggestion she was riding the ''same flatbed truck'' her father drove.
''Silly attacks on people to divert attention from the real world issues,'' she wrote, ''won't help Australia.''
The net worth of Australia's richest 40 people rose by 40 per cent in the past year, to a combined wealth of $68.4 billion.(sourced:www.smh.com.au)
Thursday, January 27, 2011
Former Baffinland CEO fighting for minority shareholders
Thursday, 27 Jan 2011
The Canadian Press reported that the former CEO of Baffinland Iron Mines will continue to fight for the minority shareholders of his former company after a joint venture led by ArcelorMittal announced it has won control of the firm.
Mr Gord McCreary had been working on rival offer for Baffinland involving an unidentified Chinese bidder before ArcelorMittal and its private equity partner announced that they now control about 60% of the company's shares.
Mr McCreary said “It's all about maximizing value for minority shareholders, so I've got several irons in the fire and keep charging ahead.”
However, Mr McCreary declined to be specific about what possibilities he might be pursuing.
He said "I'm still fully engaged working 20 hour days on this.”
(Sourced from The Canadian Press)
Tuesday, January 25, 2011
MBIO Index 25 January 2011; $183.48/tonne; Index drops for first time in 13 days to $183.48
MBIO Index 25 January 2011
$183.48/tonne MBIO Index 24/1/11 $184.43/tonne % Change -0.5%/tonne $ Change -$0.95/tonne The MBIO Index today calculated to $183.48/tonne cfr Qingdao on a 62% Fe basis. This is a fall of $0.95/tonne on yesterday as the index falls for the first time since 6th January. It is also the largest drop in a month. Yesterday, despite the climb in the index, the number of transactions fell as mills stayed out of the market giving some indication that prices may drop shortly. This trend has continued today with few deals taking place. Assessments for 63.5% Indian material remained flat again today, at $188-191/tonne. With the holiday fast approaching, we may start to see the number of transactions continue to fall with traders unwilling to remain in the market as liquidity starts to dry up. Mills seem to have finished the majority of their buying as well. If this is the case we can expect to see the spot price start to edge down in the short term. Read More at http://www.mbironoreindex.com/ Sourced:Metal Bulletin Ltd.
$183.48/tonne MBIO Index 24/1/11 $184.43/tonne % Change -0.5%/tonne $ Change -$0.95/tonne The MBIO Index today calculated to $183.48/tonne cfr Qingdao on a 62% Fe basis. This is a fall of $0.95/tonne on yesterday as the index falls for the first time since 6th January. It is also the largest drop in a month. Yesterday, despite the climb in the index, the number of transactions fell as mills stayed out of the market giving some indication that prices may drop shortly. This trend has continued today with few deals taking place. Assessments for 63.5% Indian material remained flat again today, at $188-191/tonne. With the holiday fast approaching, we may start to see the number of transactions continue to fall with traders unwilling to remain in the market as liquidity starts to dry up. Mills seem to have finished the majority of their buying as well. If this is the case we can expect to see the spot price start to edge down in the short term. Read More at http://www.mbironoreindex.com/ Sourced:Metal Bulletin Ltd.
MBIO Index 24 January 2011; $184.43/tonne; Index pushes up again hitting $184.43
24 January 2011
MBIO Index 24 January 2011
$184.43/tonne MBIO Index 21/1/11
$183.40/tonne % Change +0.6%/tonne $ Change +$1.03/tonne
The MBIO Index today calculated to $184.43/tonne cfr Qingdao on a 62% Fe basis. This is a rise of $1.03/tonne over the weekend after a small rise on Friday. The number of transactions seen today has dropped from the end of last week when we saw a significant increase in tonnage from Australia. Despite this, the few deals that have gone through today have represented the increase. Assessments for 63.5% Indian material remained flat today at $188-191/tonne. In India, the Orissa state government banned operations at 23 iron ore mines claiming they were operating illegally. As the largest iron ore exporting state in India, this small ban in Orissa should not affect supply considering there are several hundred mines in Orissa. Should the state be successful in forcing a wider limit on exports as announced last week, a larger affect on prices is likely to be seen. Read More at http://www.mbironoreindex.com Sourced:Metal Bulletin Ltd.
MBIO Index 24 January 2011
$184.43/tonne MBIO Index 21/1/11
$183.40/tonne % Change +0.6%/tonne $ Change +$1.03/tonne
The MBIO Index today calculated to $184.43/tonne cfr Qingdao on a 62% Fe basis. This is a rise of $1.03/tonne over the weekend after a small rise on Friday. The number of transactions seen today has dropped from the end of last week when we saw a significant increase in tonnage from Australia. Despite this, the few deals that have gone through today have represented the increase. Assessments for 63.5% Indian material remained flat today at $188-191/tonne. In India, the Orissa state government banned operations at 23 iron ore mines claiming they were operating illegally. As the largest iron ore exporting state in India, this small ban in Orissa should not affect supply considering there are several hundred mines in Orissa. Should the state be successful in forcing a wider limit on exports as announced last week, a larger affect on prices is likely to be seen. Read More at http://www.mbironoreindex.com Sourced:Metal Bulletin Ltd.
SMX partners with Metal Bulletin for Iron Ore Futures Metal Bulletin Iron Ore Index (MBIOI)
SMX partners with Metal Bulletin for Iron Ore Futures Metal Bulletin Iron Ore Index (MBIOI) underlying SMX’s inaugural index-based derivative; the Exchange to trade the world’s first Iron Ore Futures Contract*Singapore, 29 September, 2010 – Singapore Mercantile Exchange (“SMX”), the first pan-Asian multi-product commodity and currency derivatives exchange, today announced that it plans to list the world’s first Iron Ore Futures basis the Metal Bulletin Iron Ore Index. Metal Bulletin is the leading independent premium information and pricing provider for the metals industries.The Metal Bulletin Iron Ore Index (MBIOI) utilises daily price data from a broad spectrum of industry participants and through leading independent Chinese steel consultancy and data provider Shanghai Steelhome’s widespread contact base of steel producers and iron ore traders across China. MBIOI’s tie-up makes it the world’s only index to-date with access to such data from a major Chinese partner. The MBIOI is a tonnage weighted calculation of actual physical transactions, normalised to 62% Fe, CFR Qingdao and is published daily at midday London time.
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