Saturday, 11 Feb 2012
Impacted by weak steel market, Chinese steel mills are not positive about raw material market, saying they can’t see support to higher import prices and moreover there could be a possible decline later on.
Contrary to bullish sentiment among Chinese miners, mills are stabilizing Chinese mined ore purchase prices.
Currently, in Tangshan and Qian’an, most mills dealt 65% fines at CNY 1,270 per tonne while miners quoted at CNY 940 per tonne to CNY 950 per tonne on wet basis, 17% excluded.
In Qianxi and Zunhua, mills bought 65% fines at CNY 1,250 per tonne, verus miners’ quotation of CNY 920 per tonne on wet basis, 17% excluded.
In Handan and Xingtai, mills’ purchase price for for fines vary from CNY 1,300 per tonne to CNY 1,350 yuan.
(sourced Steelguru.com)
Showing posts with label Chinese steel mills. Show all posts
Showing posts with label Chinese steel mills. Show all posts
Saturday, February 11, 2012
Wednesday, January 11, 2012
Iron Ore-Spot at 7-week top, Australian miners suspend loading
Wed Jan 11, 2012
* Rio, Fortescue suspend loading ops ahead of cyclone
* China iron ore demand seen rising after Lunar holiday
SINGAPORE, Jan 11 (Reuters) - Spot iron ore prices rose to seven-week highs, spurred by Chinese steel mills building inventories ahead of the Lunar New Year break later this month and expectations prices may climb further after the holiday.News of supply disruption from top iron ore exporter Australia, where miners Rio Tinto and Fortescue Metals Group have suspended loading operations ahead of a cyclone bearing down on the west coast, should also support prices.
Iron ore with 62 percent iron content gained 1.6 percent to $142.30 a tonne on Tuesday, cost and freight delivered to China, its highest since Nov. 23, according to Steel Index .IO62-CNI=SI.
The Australian supply disruption may cause a "near-term tightness in supply", said Rory MacDonald, iron ore broker at Freight Investor Services. But given a lacklustre steel market in China, the world's biggest iron ore buyer, MacDonald saw limited impact on the supply-demand balance from the closure of some of the world's largest iron ore ports in Australia."Whether we see prices gain significantly because of this is another thing altogether, but I don't think it's necessarily going to drive us into another upward cycle that we wouldn't be entering into anyway post-Chinese New Year holiday.
"If it's fairly minimal, then they'll be back on track in 48 hours or so, but if it repeats then obviously we're talking about a different scenario, but we'll have to wait and see," he said.
Traders are relatively upbeat about China's iron ore demand after the week-long holiday that starts Jan. 23, with construction activity seen picking up and on expectations the government will loosen monetary policy to boost the economy. The construction sector accounts for around half of steel demand in China. Iron ore touched a 2011 peak of $191.90 a tonne in mid-February in a rally following last year's Chinese New Year.
"Even as Chinese mills wind down buying activity ahead of Chinese New Year, traders are increasingly taking positions with a view that demand will increase following the New Year holidays in February, and on an expectation that more Chinese policy loosening will be delivered in the next quarter or two,"
Commonwealth Bank of Australia said in a note.
Several cargoes of Australian iron ore fines were sold on Tuesday at levels slightly higher than previous deals, surpassing expectations of many participants, Steel Index said. Rio Tinto sold 61.4-percent grade Pilbara fines at around $141.50 a tonne, while BHP Billiton sold 61-grade MAC fines also at $141.50, traders said. BHP also sold 62.7-grade Newman iron ore fines at $145.50 a tonne, traders said.
Shanghai rebar futures and iron ore indexes at 0744 GMT
Contract Change Pct Change
SHANGHAI REBAR* 4224 9.00 0.21
PLATTS 62 PCT INDEX 143.5 0.50 0.34
THE STEEL INDEX 62 PCT INDEX 142.3 2.30 1.64
METAL BULLETIN INDEX 141.42 0.71 0.50
*In yuan/tonne
#Index in dollars/tonne, show close for the previous trading day.
(sourced Reuters)
* Rio, Fortescue suspend loading ops ahead of cyclone
* China iron ore demand seen rising after Lunar holiday
SINGAPORE, Jan 11 (Reuters) - Spot iron ore prices rose to seven-week highs, spurred by Chinese steel mills building inventories ahead of the Lunar New Year break later this month and expectations prices may climb further after the holiday.News of supply disruption from top iron ore exporter Australia, where miners Rio Tinto and Fortescue Metals Group have suspended loading operations ahead of a cyclone bearing down on the west coast, should also support prices.
Iron ore with 62 percent iron content gained 1.6 percent to $142.30 a tonne on Tuesday, cost and freight delivered to China, its highest since Nov. 23, according to Steel Index .IO62-CNI=SI.
The Australian supply disruption may cause a "near-term tightness in supply", said Rory MacDonald, iron ore broker at Freight Investor Services. But given a lacklustre steel market in China, the world's biggest iron ore buyer, MacDonald saw limited impact on the supply-demand balance from the closure of some of the world's largest iron ore ports in Australia."Whether we see prices gain significantly because of this is another thing altogether, but I don't think it's necessarily going to drive us into another upward cycle that we wouldn't be entering into anyway post-Chinese New Year holiday.
"If it's fairly minimal, then they'll be back on track in 48 hours or so, but if it repeats then obviously we're talking about a different scenario, but we'll have to wait and see," he said.
Traders are relatively upbeat about China's iron ore demand after the week-long holiday that starts Jan. 23, with construction activity seen picking up and on expectations the government will loosen monetary policy to boost the economy. The construction sector accounts for around half of steel demand in China. Iron ore touched a 2011 peak of $191.90 a tonne in mid-February in a rally following last year's Chinese New Year.
"Even as Chinese mills wind down buying activity ahead of Chinese New Year, traders are increasingly taking positions with a view that demand will increase following the New Year holidays in February, and on an expectation that more Chinese policy loosening will be delivered in the next quarter or two,"
Commonwealth Bank of Australia said in a note.
Several cargoes of Australian iron ore fines were sold on Tuesday at levels slightly higher than previous deals, surpassing expectations of many participants, Steel Index said. Rio Tinto sold 61.4-percent grade Pilbara fines at around $141.50 a tonne, while BHP Billiton sold 61-grade MAC fines also at $141.50, traders said. BHP also sold 62.7-grade Newman iron ore fines at $145.50 a tonne, traders said.
Shanghai rebar futures and iron ore indexes at 0744 GMT
Contract Change Pct Change
SHANGHAI REBAR* 4224 9.00 0.21
PLATTS 62 PCT INDEX 143.5 0.50 0.34
THE STEEL INDEX 62 PCT INDEX 142.3 2.30 1.64
METAL BULLETIN INDEX 141.42 0.71 0.50
*In yuan/tonne
#Index in dollars/tonne, show close for the previous trading day.
(sourced Reuters)
Iron ore shipping costs plunge 47pct amid China slowdown risks
Wednesday, 11 Jan 2012
Bloomberg reported that the cost of hauling iron ore and coal fell to a four-month low, extending this year decline to 47% amid concerns a Chinese economic slowdown will curb steel production, the biggest driver of global shipping demand.
According to the London based Baltic Exchange rates to hire a capesize ship, the largest in the fleet of dry-bulk vessels dropped 6.1% to USD 14,535 a day. That’s less than half the 2011 high of USD 32,889 reached on December 12.
Ms Natasha Boyden an analyst at New York-based Cantor Fitzgerald LP said “Concerns about a Chinese economic slowdown mean that there are real risks to weaker Chinese steel production growth in 2012 which the capesize sector is highly leveraged to.”
According to the exchange which publishes rates for more than 50 maritime routes the Baltic Dry Index a measure of charter costs for four classes of vessels declined 2.9% to 1,308 points. That the lowest level since August 15. The gauge has fallen 25% in 2012, as earnings for the other vessel types also declined while at a lower pace than capesizes.
Cantor Fitzgerald said a surge in new vessels being delivered from shipyards in January will entrench hire costs for the fleet of 1,335 capesize ships at current lows. Rainy weather in Australia and Brazil, the largest exporters of iron ore, also cut shipments amid falling demand ahead of the Chinese New Year shutdown later this month.
According to the most recent data from the World Steel Association China steel production has declined for six straight months falling to 49.8 million tonnes in November.
(Sourced from Bloomberg)
Bloomberg reported that the cost of hauling iron ore and coal fell to a four-month low, extending this year decline to 47% amid concerns a Chinese economic slowdown will curb steel production, the biggest driver of global shipping demand.
According to the London based Baltic Exchange rates to hire a capesize ship, the largest in the fleet of dry-bulk vessels dropped 6.1% to USD 14,535 a day. That’s less than half the 2011 high of USD 32,889 reached on December 12.
Ms Natasha Boyden an analyst at New York-based Cantor Fitzgerald LP said “Concerns about a Chinese economic slowdown mean that there are real risks to weaker Chinese steel production growth in 2012 which the capesize sector is highly leveraged to.”
According to the exchange which publishes rates for more than 50 maritime routes the Baltic Dry Index a measure of charter costs for four classes of vessels declined 2.9% to 1,308 points. That the lowest level since August 15. The gauge has fallen 25% in 2012, as earnings for the other vessel types also declined while at a lower pace than capesizes.
Cantor Fitzgerald said a surge in new vessels being delivered from shipyards in January will entrench hire costs for the fleet of 1,335 capesize ships at current lows. Rainy weather in Australia and Brazil, the largest exporters of iron ore, also cut shipments amid falling demand ahead of the Chinese New Year shutdown later this month.
According to the most recent data from the World Steel Association China steel production has declined for six straight months falling to 49.8 million tonnes in November.
(Sourced from Bloomberg)
Thursday, January 5, 2012
Iron Ore-China market still slow as traders stay away
Thursday, 05 January 2012
Spot iron ore prices in China were mostly unchanged on the first trading day of 2012, with buyers and sellers unable to find a reason to rush back from a two-day new year break.
The offer price of 61.5 percent Pilbara fines, including cost and freight, stood in the $136-139 per tonne range on Wednesday, unchanged from the last trading day of 2011, industry consultancy Umetal said. Analysts said there was little to entice buyers back into the market, with steel demand low and ore inventories generally sufficient to keep mills running.
"What concerns me a little bit is that Chinese mills seem to have restocked over the last three to four weeks without really pushing the price up at all," said Graeme Train, commodity analyst with Macquarie Securities in Shanghai.
Activity normally slows ahead of China's lunar new year, and many traders have expressed hope that the market will improve when the week-long holiday ends on Jan. 30, but the lull could last longer than that, said Train. "It seems everyone is waiting for some signal that things are going to get meaningfully better but the government has been very slow to send a very positive signal," he said.
"There is really no catalyst, and we are probably looking at two very quiet months at least."
Analysts played down the impact of India's decision to raise export tariffs in order to guarantee supplies to domestic users, saying the influence of the world's third-biggest iron ore producer had already been on the wane.
India announced this week that it would increase iron ore export tariffs from 20 percent to 30 percent in an effort to guarantee supplies for domestic users.
"I can't see demand strong enough in 2012 to make global supply and demand tight enough to bring Indian marginal producers back into the market, so I can't see it supporting higher prices," said Sebastian Lewis, head of data and analytics with Steel Business Briefing in Shanghai.
"More likely it will accelerate the trend in declining Indian exports and Australia and other miners will be the beneficiaries," he said. Umetal said Indian 63.5/63 percent iron ore was being offered at $143-146 per tonne on Wednesday, also unchanged.
It added in a research note that the decline in Indian iron ore export volumes had already been offset by growing shipments from South Africa, Iran, Canada and Russia.
While India remains China's third-biggest supplier after Australia and Brazil, its market share has been in decline. In the first 11 months of 2011, India's total shipments of 63.3 million tonnes represented 11 percent of the total, down from 15.6 percent in 2010.
Deliveries from South Africa, Iran, Canada and Russia reached nearly 73 million tonnes over the 11 months, up 33 percent compared with the same period of the previous year.
The most traded steel rebar contract on the Shanghai Futures Exchange ended Wednesday at 4,159 yuan ($660) per tonne, down 51 yuan per tonne or 1.21 percent from the previous session.
Source: Reuters
Spot iron ore prices in China were mostly unchanged on the first trading day of 2012, with buyers and sellers unable to find a reason to rush back from a two-day new year break.
The offer price of 61.5 percent Pilbara fines, including cost and freight, stood in the $136-139 per tonne range on Wednesday, unchanged from the last trading day of 2011, industry consultancy Umetal said. Analysts said there was little to entice buyers back into the market, with steel demand low and ore inventories generally sufficient to keep mills running.
"What concerns me a little bit is that Chinese mills seem to have restocked over the last three to four weeks without really pushing the price up at all," said Graeme Train, commodity analyst with Macquarie Securities in Shanghai.
Activity normally slows ahead of China's lunar new year, and many traders have expressed hope that the market will improve when the week-long holiday ends on Jan. 30, but the lull could last longer than that, said Train. "It seems everyone is waiting for some signal that things are going to get meaningfully better but the government has been very slow to send a very positive signal," he said.
"There is really no catalyst, and we are probably looking at two very quiet months at least."
Analysts played down the impact of India's decision to raise export tariffs in order to guarantee supplies to domestic users, saying the influence of the world's third-biggest iron ore producer had already been on the wane.
India announced this week that it would increase iron ore export tariffs from 20 percent to 30 percent in an effort to guarantee supplies for domestic users.
"I can't see demand strong enough in 2012 to make global supply and demand tight enough to bring Indian marginal producers back into the market, so I can't see it supporting higher prices," said Sebastian Lewis, head of data and analytics with Steel Business Briefing in Shanghai.
"More likely it will accelerate the trend in declining Indian exports and Australia and other miners will be the beneficiaries," he said. Umetal said Indian 63.5/63 percent iron ore was being offered at $143-146 per tonne on Wednesday, also unchanged.
It added in a research note that the decline in Indian iron ore export volumes had already been offset by growing shipments from South Africa, Iran, Canada and Russia.
While India remains China's third-biggest supplier after Australia and Brazil, its market share has been in decline. In the first 11 months of 2011, India's total shipments of 63.3 million tonnes represented 11 percent of the total, down from 15.6 percent in 2010.
Deliveries from South Africa, Iran, Canada and Russia reached nearly 73 million tonnes over the 11 months, up 33 percent compared with the same period of the previous year.
The most traded steel rebar contract on the Shanghai Futures Exchange ended Wednesday at 4,159 yuan ($660) per tonne, down 51 yuan per tonne or 1.21 percent from the previous session.
Source: Reuters
Tuesday, December 20, 2011
Iron ore may remain below USD 140 as Chinese mills limit purchases
Tuesday, 20 Dec 2011
Bloomberg quoted Mysteel.com said iron ore prices may remain below USD 140 per ton as Chinese steel mills, the world biggest consumers limit purchases on profitability concerns.
Mr Chen Zhenxing a Shanghai-based analyst at the research firm “Iron ore above USD 140 may force steelmakers to incur losses at current steel prices. Prices may trade between USD 133 and USD 140 before the week-long Lunar New Year holiday which starts Jan 23.
He said that “Mills and traders are short of capital around the year end and that will also curb their buying activities.”
He added that “Steelmakers are trying to keep their raw-material inventories thin because the prices are increasingly volatile. They’d rather order only one or two ships from miners for the holiday and buy the rest from the spot market at ports.”
Ore prices have rebounded 13% from a year low on October 28. Prices have averaged 15% higher than last year USD 147 a ton. Steel prices have declined 11% from this year high in January.
(Sourced from Bloomberg)
Bloomberg quoted Mysteel.com said iron ore prices may remain below USD 140 per ton as Chinese steel mills, the world biggest consumers limit purchases on profitability concerns.
Mr Chen Zhenxing a Shanghai-based analyst at the research firm “Iron ore above USD 140 may force steelmakers to incur losses at current steel prices. Prices may trade between USD 133 and USD 140 before the week-long Lunar New Year holiday which starts Jan 23.
He said that “Mills and traders are short of capital around the year end and that will also curb their buying activities.”
He added that “Steelmakers are trying to keep their raw-material inventories thin because the prices are increasingly volatile. They’d rather order only one or two ships from miners for the holiday and buy the rest from the spot market at ports.”
Ore prices have rebounded 13% from a year low on October 28. Prices have averaged 15% higher than last year USD 147 a ton. Steel prices have declined 11% from this year high in January.
(Sourced from Bloomberg)
Tuesday, December 13, 2011
Iron ore spot prices seen edging up
Tuesday, 13 Dec 2011
Reuters reported that spot iron ore prices are expected to tick higher this week as Chinese steel mills replenish inventories ahead of the Lunar New Year in late January, although subdued steel prices could limit any buying interest.
An iron ore physical trader in Singapore said that "We expect the Chinese mills to come in and buy to restock as we approach the Chinese New Year. If the mills want to go on holidays they're going to have to do all their buying in December.”
Chinese steel mills normally heavily restock on iron ore ahead of the Lunar New Year, pushing spot prices higher.
But traders said they don't expect the Chinese to be as aggressive in replenishing inventories this time given sluggish steel demand.
(Sourced from Reuters)
Reuters reported that spot iron ore prices are expected to tick higher this week as Chinese steel mills replenish inventories ahead of the Lunar New Year in late January, although subdued steel prices could limit any buying interest.
An iron ore physical trader in Singapore said that "We expect the Chinese mills to come in and buy to restock as we approach the Chinese New Year. If the mills want to go on holidays they're going to have to do all their buying in December.”
Chinese steel mills normally heavily restock on iron ore ahead of the Lunar New Year, pushing spot prices higher.
But traders said they don't expect the Chinese to be as aggressive in replenishing inventories this time given sluggish steel demand.
(Sourced from Reuters)
Thursday, November 17, 2011
Iron Ore-Spot at near 1-mth top as gains extend to Day 12
Thursday, 17 November 2011
Iron ore rose to its highest in nearly a month as spot prices gained for a 12th day in a row, with firmer steel prices in top consumer China encouraging more buying of the raw material and helping it recover from last month's slu
Iron ore with 62 percent iron content climbed nearly 6 percent to $146.30 a tonne on Tuesday, the highest since Oct. 19, according to the Steel Index .IO62-CNI=SI.
It has now gained 25 percent in the past 12 trading days, after sliding nearly 31 percent in October when Chinese mills cut purchases of iron ore as lower steel prices reflected weaker demand.
Steel prices in China's spot market rose last week, with rebar rising 0.7 percent to average 4,364 yuan ($688) a tonne and hot-rolled coil increasing 0.2 percent to 4,230 yuan, based on estimates by Bank of America-Merrill Lynch.
Profit margins at Chinese steel mills have similarly improved, with the industry average margin for rebar rising to 162 yuan a tonne from 135 yuan the previous week and 61 yuan in late October, according to the BoA-Merrill Lynch data.
"As long as steel mills' margins are positive, it makes economic sense for them to continue to produce and if they're eating into their iron ore inventories that means they need to keep buying ore, even if it's only hand to mouth," said an iron ore physical trader in Singapore.
"Based on current steel prices and with margins staying positive, we believe iron ore can go beyond $150."
Offer prices in China rose further on Wednesday, with cargoes from No. 1 producer Australia up $2-$3 a tonne, according to Chinese consultancy Umetal.
Australian Newman iron ore fines increased $3 to $148-$150 a tonne and Pilbara fines were also quoted $3 higher at $144-$147, Umetal said. The prices include freight cost.
BHP Billiton sold Newman fines at $149.20 a tonne at a tender on Tuesday, while Rio Tinto sold Pilbara fines at $144.50, also at a tender, traders said.
Limited availability of spot cargoes has also been supporting the current run-up in iron ore prices, with Indian exports restrained by logistical problems and higher production costs.
The cost of producing higher grade iron ore in India, the world's No. 3 iron ore exporter, stands at around $120 a tonne, free on board basis, more than double the cost in Australia and Brazil, the two biggest producers.
"But traders and mills have been very keen to buy for some time, and the sharply improved levels achieved on cargoes offered is a reflection of that pent-up demand," said Oscar Tarneberg, senior iron ore analyst at Steel Index in Shanghai.
Steep gains in prices of iron ore forward swaps investor optimism spot rates will move higher further in the near term.
The Singapore Exchange-cleared December contract rose the most on Tuesday, up $5.37 to $143.37 a tonne. The January contract gained $3.87 to $142.87 and February climbed $4.08 to $142.25.
Source: Reuters via hellenicshippingnews
Iron ore rose to its highest in nearly a month as spot prices gained for a 12th day in a row, with firmer steel prices in top consumer China encouraging more buying of the raw material and helping it recover from last month's slu
Iron ore with 62 percent iron content climbed nearly 6 percent to $146.30 a tonne on Tuesday, the highest since Oct. 19, according to the Steel Index .IO62-CNI=SI.
It has now gained 25 percent in the past 12 trading days, after sliding nearly 31 percent in October when Chinese mills cut purchases of iron ore as lower steel prices reflected weaker demand.
Steel prices in China's spot market rose last week, with rebar rising 0.7 percent to average 4,364 yuan ($688) a tonne and hot-rolled coil increasing 0.2 percent to 4,230 yuan, based on estimates by Bank of America-Merrill Lynch.
Profit margins at Chinese steel mills have similarly improved, with the industry average margin for rebar rising to 162 yuan a tonne from 135 yuan the previous week and 61 yuan in late October, according to the BoA-Merrill Lynch data.
"As long as steel mills' margins are positive, it makes economic sense for them to continue to produce and if they're eating into their iron ore inventories that means they need to keep buying ore, even if it's only hand to mouth," said an iron ore physical trader in Singapore.
"Based on current steel prices and with margins staying positive, we believe iron ore can go beyond $150."
Offer prices in China rose further on Wednesday, with cargoes from No. 1 producer Australia up $2-$3 a tonne, according to Chinese consultancy Umetal.
Australian Newman iron ore fines increased $3 to $148-$150 a tonne and Pilbara fines were also quoted $3 higher at $144-$147, Umetal said. The prices include freight cost.
BHP Billiton sold Newman fines at $149.20 a tonne at a tender on Tuesday, while Rio Tinto sold Pilbara fines at $144.50, also at a tender, traders said.
Limited availability of spot cargoes has also been supporting the current run-up in iron ore prices, with Indian exports restrained by logistical problems and higher production costs.
The cost of producing higher grade iron ore in India, the world's No. 3 iron ore exporter, stands at around $120 a tonne, free on board basis, more than double the cost in Australia and Brazil, the two biggest producers.
"But traders and mills have been very keen to buy for some time, and the sharply improved levels achieved on cargoes offered is a reflection of that pent-up demand," said Oscar Tarneberg, senior iron ore analyst at Steel Index in Shanghai.
Steep gains in prices of iron ore forward swaps investor optimism spot rates will move higher further in the near term.
The Singapore Exchange-cleared December contract rose the most on Tuesday, up $5.37 to $143.37 a tonne. The January contract gained $3.87 to $142.87 and February climbed $4.08 to $142.25.
Source: Reuters via hellenicshippingnews
Friday, November 4, 2011
Macquarie predicts rebound in iron ore prices
Friday, 04 Nov 2011
Iron ore prices have plunged in the last two months from USD 180 per tonne to around USD 118 per tonne. Macquarie Commodities Research puts this down to aggressive destocking by Chinese steel mills and sees upside ahead.
Macquarie predicts easy USD 20 to USD 30 rebound in iron ore prices
Macquarie said that current price levels are not reflective of real demand weakness or substantial oversupply.
Instead, the firm has been watching iron ore inventory at 50 smaller steel mills which during previous price slow downs, from January to March and May to July, fell to 28 days of use. In contrast, inventory at mills’ yards and in port and transit has slumped to just 21 days towards the end of October.
According to Macquarie, the pace of destocking is unsustainable and a Chinese swing from destocking to just moderate restocking could add 80 million tonne per annum to global demand.
Macquarie said that “In turn, the firm expects the first USD 20 to USD 30 per tonne of a recovery should be easy. We therefore expect iron ore to be trading above USD 140 per tonne by the end of 2011.”
(sourced Theajmonline.com.au)
Iron ore prices have plunged in the last two months from USD 180 per tonne to around USD 118 per tonne. Macquarie Commodities Research puts this down to aggressive destocking by Chinese steel mills and sees upside ahead.
Macquarie predicts easy USD 20 to USD 30 rebound in iron ore prices
Macquarie said that current price levels are not reflective of real demand weakness or substantial oversupply.
Instead, the firm has been watching iron ore inventory at 50 smaller steel mills which during previous price slow downs, from January to March and May to July, fell to 28 days of use. In contrast, inventory at mills’ yards and in port and transit has slumped to just 21 days towards the end of October.
According to Macquarie, the pace of destocking is unsustainable and a Chinese swing from destocking to just moderate restocking could add 80 million tonne per annum to global demand.
Macquarie said that “In turn, the firm expects the first USD 20 to USD 30 per tonne of a recovery should be easy. We therefore expect iron ore to be trading above USD 140 per tonne by the end of 2011.”
(sourced Theajmonline.com.au)
Heilongjiang coke prices edge down
Friday, 04 Nov 2011
Coke market edges down in northeast China's Heilongjiang province.
The ex-works price of II grade metallurgical coke drops by CNY 30 per tonne to CNY 1,850 per tonne in Qitaihe, in Hegang and Shangyashan, the II grade metallurgical coke price is priced at CNY CNY 1,850 per tonne and CNY 1,840 per tonne down CNY 30 per tonne.
Industry sources report that Chinese steel mills increase efforts to press down purchase price for raw materials and cut back purchase. Coking enterprises have no other choice but to accept it. Currently, several steel mills continue to suspend purchasing the steel-making ingredient.
sourced SteelHome.cn
Coke market edges down in northeast China's Heilongjiang province.
The ex-works price of II grade metallurgical coke drops by CNY 30 per tonne to CNY 1,850 per tonne in Qitaihe, in Hegang and Shangyashan, the II grade metallurgical coke price is priced at CNY CNY 1,850 per tonne and CNY 1,840 per tonne down CNY 30 per tonne.
Industry sources report that Chinese steel mills increase efforts to press down purchase price for raw materials and cut back purchase. Coking enterprises have no other choice but to accept it. Currently, several steel mills continue to suspend purchasing the steel-making ingredient.
sourced SteelHome.cn
Wednesday, November 2, 2011
Japan Q3 hot coil steel exports up 3.6 pct but outlook dim
Wed Nov 2, 2011
TOKYO Nov 2 (Reuters) - Japanese exports of hot-rolled steel coil rose 3.6 percent in July-September from a year earlier, weathering a 38 percent plunge in sales to South Korea as Southeast Asian demand picked up, but a deterioration in Asia's steel market and floods in Thailand may hurt exports in the fourth quarter.
Exports of hot coil -- rolled from slabs and processed further into finished products by manufacturers -- increased to 2.14 million tonnes in the third quarter, helped by a recovery in manufacturing output in Thailand and other ASEAN nations as supply chains recovered from the disruption of Japan's March earthquake.
The export outlook is deteriorating fast, however, on the back of the stronger yen, as well as ebbing demand in China and falling prices as economic uncertainties increase.
Recent steep slides in iron ore IODBZ00-PLT and coal prices, the key steel-making ingredients, mean steel prices are likely to fall further in the January-March period. Iron ore prices were at $119 a tonne on Wednesday, down 34 percent since early September.
"Japanese steelmakers need to secure $700 or above a tonne for exports of hot coil," said Atsushi Yamaguchi, senior analyst at UBS. "They need to be selective in exports and that is already pressuring their output."
Yamaguchi expects the cost of key raw materials to fall $60-80 per tonne by the January-March period from April-June of this year, when costs peaked.
Chinese mills' offer prices for hot coil in late October had fallen below $650, from around $680 in early October, one trader said.
Japan's exports of hot coil to South Korea plunged to 472,000 tonnes in July-September, down 38 percent from a year earlier, Japan Iron and Steel Federation data showed on Wednesday. South Korean mills have boosted capacity by 15 million tonnes over the past few years.
Hot coil exports to Thailand increased 11.5 percent to 439,500 tonnes during the three months.
Japan's steel industry body expects the floods in Thailand, an Asian hub of car production, will curtail Japan's crude steel output by as much as 1 million tonnes for the rest of the financial year to next March.
(sourced Reuters)
TOKYO Nov 2 (Reuters) - Japanese exports of hot-rolled steel coil rose 3.6 percent in July-September from a year earlier, weathering a 38 percent plunge in sales to South Korea as Southeast Asian demand picked up, but a deterioration in Asia's steel market and floods in Thailand may hurt exports in the fourth quarter.
Exports of hot coil -- rolled from slabs and processed further into finished products by manufacturers -- increased to 2.14 million tonnes in the third quarter, helped by a recovery in manufacturing output in Thailand and other ASEAN nations as supply chains recovered from the disruption of Japan's March earthquake.
The export outlook is deteriorating fast, however, on the back of the stronger yen, as well as ebbing demand in China and falling prices as economic uncertainties increase.
Recent steep slides in iron ore IODBZ00-PLT and coal prices, the key steel-making ingredients, mean steel prices are likely to fall further in the January-March period. Iron ore prices were at $119 a tonne on Wednesday, down 34 percent since early September.
"Japanese steelmakers need to secure $700 or above a tonne for exports of hot coil," said Atsushi Yamaguchi, senior analyst at UBS. "They need to be selective in exports and that is already pressuring their output."
Yamaguchi expects the cost of key raw materials to fall $60-80 per tonne by the January-March period from April-June of this year, when costs peaked.
Chinese mills' offer prices for hot coil in late October had fallen below $650, from around $680 in early October, one trader said.
Japan's exports of hot coil to South Korea plunged to 472,000 tonnes in July-September, down 38 percent from a year earlier, Japan Iron and Steel Federation data showed on Wednesday. South Korean mills have boosted capacity by 15 million tonnes over the past few years.
Hot coil exports to Thailand increased 11.5 percent to 439,500 tonnes during the three months.
Japan's steel industry body expects the floods in Thailand, an Asian hub of car production, will curtail Japan's crude steel output by as much as 1 million tonnes for the rest of the financial year to next March.
(sourced Reuters)
Thursday, October 27, 2011
Iron Ore-Spot stretches losses as cargoes flood market
Thu Oct 27, 2011
* Iron ore falls more than 3 pct to lowest since July 2010
* Operating at full capacity, miners continue shipments
* Iron ore price offers drop another $5-$8/tonne
By Manolo Serapio Jr
SINGAPORE, Oct 27 (Reuters) - Iron ore price offers fell further on Thursday as slow Chinese demand and hefty spot supplies extended the losing streak of the steelmaking raw material whose value has fallen 30 percent since September.
Sellers of Australian, Brazilian and Indian ore to top importer China cut prices by $5-$8 a tonne from Wednesday, said Chinese consultancy Umetal, as miners, many of whom continue to produce at full capacity, tried to clear shipments that have piled up.
"Miners are flooding the market with cargoes and that's putting a lot of pressure on the spot market and rates are coming off," said a Singapore-based iron ore trader.
Despite the sharp fall, spot iron ore prices are still more than double miners' production cost of around $50 a tonne, for the big producers in Australia and Brazil, traders said.
Top iron ore producer Vale said on Wednesday it expected prices to remain high "for a long period of time", driven by solid demand from emerging economies.
Second-ranked Rio Tinto this week blamed Vale for the steep drop in iron ore prices, saying its bigger rival was diverting Europe-bound shipments to China. But Rio said it was producing at record rates.
Iron ore with 62-percent iron content fell 3.3 percent to $127.40 a tonne on Wednesday, its weakest since July 23, 2010, according to the Steel Index .IO62-CNI=SI.
Iron ore has shed nearly 11 percent so far this week, on track for its steepest weekly decline ever.
Australian 61.5-percent grade Pilbara iron ore fines were quoted at $121-$123 a tonne, including freight, on Thursday, down $7 from Wednesday, said Umetal.
Offers for Indian 63.5/63-grade fines fell $8 to $136-$138 a tonne.
"Bids are too low. I think the mills are not in a hurry to buy so they bid very low, hoping they can catch a bargain," said an iron ore trader in Shanghai, adding he saw a bid for the Indian 63.5/63 grade at as low as $126.
"Mills expect the market to dip a bit further so they want to try their luck to get some cheap deals," he said.
China's appetite for iron ore has weakened sharply because of slowing demand for steel in the country, dented by uncertainty in the global economy and Beijing's monetary tightening campaign.
Prices of iron ore forward swaps cleared by the Singapore Exchange <0#SGXIOS:> fell sharply on Wednesday, reflecting investor expectations spot rates could lose more ground.
The November contract lost the most, dropping $8.67 to $116.83 a tonne, followed by December which fell $7.33 to $116.17.
(sourced Reuters)
* Iron ore falls more than 3 pct to lowest since July 2010
* Operating at full capacity, miners continue shipments
* Iron ore price offers drop another $5-$8/tonne
By Manolo Serapio Jr
SINGAPORE, Oct 27 (Reuters) - Iron ore price offers fell further on Thursday as slow Chinese demand and hefty spot supplies extended the losing streak of the steelmaking raw material whose value has fallen 30 percent since September.
Sellers of Australian, Brazilian and Indian ore to top importer China cut prices by $5-$8 a tonne from Wednesday, said Chinese consultancy Umetal, as miners, many of whom continue to produce at full capacity, tried to clear shipments that have piled up.
"Miners are flooding the market with cargoes and that's putting a lot of pressure on the spot market and rates are coming off," said a Singapore-based iron ore trader.
Despite the sharp fall, spot iron ore prices are still more than double miners' production cost of around $50 a tonne, for the big producers in Australia and Brazil, traders said.
Top iron ore producer Vale said on Wednesday it expected prices to remain high "for a long period of time", driven by solid demand from emerging economies.
Second-ranked Rio Tinto this week blamed Vale for the steep drop in iron ore prices, saying its bigger rival was diverting Europe-bound shipments to China. But Rio said it was producing at record rates.
Iron ore with 62-percent iron content fell 3.3 percent to $127.40 a tonne on Wednesday, its weakest since July 23, 2010, according to the Steel Index .IO62-CNI=SI.
Iron ore has shed nearly 11 percent so far this week, on track for its steepest weekly decline ever.
Australian 61.5-percent grade Pilbara iron ore fines were quoted at $121-$123 a tonne, including freight, on Thursday, down $7 from Wednesday, said Umetal.
Offers for Indian 63.5/63-grade fines fell $8 to $136-$138 a tonne.
"Bids are too low. I think the mills are not in a hurry to buy so they bid very low, hoping they can catch a bargain," said an iron ore trader in Shanghai, adding he saw a bid for the Indian 63.5/63 grade at as low as $126.
"Mills expect the market to dip a bit further so they want to try their luck to get some cheap deals," he said.
China's appetite for iron ore has weakened sharply because of slowing demand for steel in the country, dented by uncertainty in the global economy and Beijing's monetary tightening campaign.
Prices of iron ore forward swaps cleared by the Singapore Exchange <0#SGXIOS:> fell sharply on Wednesday, reflecting investor expectations spot rates could lose more ground.
The November contract lost the most, dropping $8.67 to $116.83 a tonne, followed by December which fell $7.33 to $116.17.
(sourced Reuters)
Wednesday, October 26, 2011
Atlas Iron’s iron shipments in Q3 unchanged on quarterly basis
Wed, 26 October 2011
Australian iron ore miner Atlas Iron Limited has announced that in the third quarter ended on September 30, 2011, it mined and shipped 1.46 million wet metric tons (wmt) of direct shipping ore (DSO), unchanged compared to the previous quarter.
Atlas had $373 million cash in hand as of September 30, 2011, slightly up from $365 million at the end of the previous quarter.
According to the Atlas statement, "As noted by other iron ore producers and in media coverage, the iron ore market has softened during October 2011 due to reduced Chinese steel demand and uncertainty on Europe's financial position."
Atlas is on target to export 1.5 million wmt in the December quarter.
Tags: iron ore , Australia , Atlas , raw mat , Oceania , mining , production
[source steel orbis]
Australian iron ore miner Atlas Iron Limited has announced that in the third quarter ended on September 30, 2011, it mined and shipped 1.46 million wet metric tons (wmt) of direct shipping ore (DSO), unchanged compared to the previous quarter.
Atlas had $373 million cash in hand as of September 30, 2011, slightly up from $365 million at the end of the previous quarter.
According to the Atlas statement, "As noted by other iron ore producers and in media coverage, the iron ore market has softened during October 2011 due to reduced Chinese steel demand and uncertainty on Europe's financial position."
Atlas is on target to export 1.5 million wmt in the December quarter.
Tags: iron ore , Australia , Atlas , raw mat , Oceania , mining , production
[source steel orbis]
Thursday, October 20, 2011
China taking advantage of new iron ore price option - Report
Thursday, 20 Oct 2011
Dow Jones quoted officials with three large Chinese steel mills said several Chinese steel makers have taken advantage of a new iron ore pricing option from global iron ore miners including Brazilian Vale SA and BHP Billiton Ltd amid falling spot iron ore prices and depressed steel prices in China.
These steelmakers have chosen to base quarterly iron ore prices on average prices for the current quarter rather than the preceding quarter, a calculation method that lets them benefit faster from falling prices.
Steelmakers will have to buy iron ore from Vale at around USD 175 per tonne in the fourth quarter according to previous contracts while the spot market prices in the recent week would suggest a price of about USD 160 per tonne.
An official with one of China top steelmakers by output on condition of anonymity said "From the fourth quarter this year, we will purchase iron ore from Vale and BHP on quarterly contracts which are based on the average spot market prices in that quarter instead of prices in the preceding quarter."
He said that purchases from Rio Tinto PLC will still be based on monthly contracts.
He added that "Actually, you have the right to chose contracts based on the average spot prices in the current quarter, previous quarter or even the next quarter. The options have been there for a long time but different steelmakers had chosen differently until now."
The downside is that costs for steelmakers will rise immediately too if prices continue to increase in the current quarter.
The miners are providing the new pricing option to ensure the steel makers don't delay their purchases and potentially hurt mining revenue.
(Sourced from Dow Jones)
Dow Jones quoted officials with three large Chinese steel mills said several Chinese steel makers have taken advantage of a new iron ore pricing option from global iron ore miners including Brazilian Vale SA and BHP Billiton Ltd amid falling spot iron ore prices and depressed steel prices in China.
These steelmakers have chosen to base quarterly iron ore prices on average prices for the current quarter rather than the preceding quarter, a calculation method that lets them benefit faster from falling prices.
Steelmakers will have to buy iron ore from Vale at around USD 175 per tonne in the fourth quarter according to previous contracts while the spot market prices in the recent week would suggest a price of about USD 160 per tonne.
An official with one of China top steelmakers by output on condition of anonymity said "From the fourth quarter this year, we will purchase iron ore from Vale and BHP on quarterly contracts which are based on the average spot market prices in that quarter instead of prices in the preceding quarter."
He said that purchases from Rio Tinto PLC will still be based on monthly contracts.
He added that "Actually, you have the right to chose contracts based on the average spot prices in the current quarter, previous quarter or even the next quarter. The options have been there for a long time but different steelmakers had chosen differently until now."
The downside is that costs for steelmakers will rise immediately too if prices continue to increase in the current quarter.
The miners are providing the new pricing option to ensure the steel makers don't delay their purchases and potentially hurt mining revenue.
(Sourced from Dow Jones)
Iron ore prices could slide to USD 140 per tonne
Thursday, 20 Oct 2011
It is reported that prices of iron ore, the main ingredient for making steel, could slide to as low as USD 140 per tonne in the coming months.
In September, spot iron ore prices grew above USD 181 per tonne but on Monday fell deeply to USD 157.25.
Analysts and mines experts said developments in China over its monetary policy have been affecting demand for iron ore, noting the commodity weakening prices could extend into the early part of this quarter.
Recently reports circulated that Brazil Vale was selling iron ore for fourth quarter contracts cheaply to the Chinese an indication that iron ore miners were giving in to Chinese pressure.
Reports said iron ore miners were selling to Chinese steel mills at USD 175 a tonne. But the Chinese were not buying because the fourth quarter contract rate was based on June to August average spot prices. Iron ore is currently less than USD 160 a tonne average. But miners said prices will likely recover coming into the New Year as Chinese steel consumption is expected to grow 7.5% this year.
(sourced from Gantdaily)
It is reported that prices of iron ore, the main ingredient for making steel, could slide to as low as USD 140 per tonne in the coming months.
In September, spot iron ore prices grew above USD 181 per tonne but on Monday fell deeply to USD 157.25.
Analysts and mines experts said developments in China over its monetary policy have been affecting demand for iron ore, noting the commodity weakening prices could extend into the early part of this quarter.
Recently reports circulated that Brazil Vale was selling iron ore for fourth quarter contracts cheaply to the Chinese an indication that iron ore miners were giving in to Chinese pressure.
Reports said iron ore miners were selling to Chinese steel mills at USD 175 a tonne. But the Chinese were not buying because the fourth quarter contract rate was based on June to August average spot prices. Iron ore is currently less than USD 160 a tonne average. But miners said prices will likely recover coming into the New Year as Chinese steel consumption is expected to grow 7.5% this year.
(sourced from Gantdaily)
Tuesday, October 18, 2011
Vale open to different iron ore pricing-CEO
Tue Oct 18, 2011
* Spot price fall likely to bring price model scrutiny
* Vale not planning to abandon current pricing formula
BRASILIA, Oct 18 (Reuters) - Brazilian miner Vale is open to discussing different iron ore pricing systems with its clients, the company's chief executive said on Tuesday, as a tumble in the price of ore has led to pressure from steel mills for more flexibility.
Vale has told Chinese steelmakers it will give them options to buy the raw material cheaper, sources told Reuters last week, as spot prices for iron ore have dropped below the quarterly contract system created last year.
"Vale has a pricing formula, but if someone wants to buy under different terms we are open to discussion," Vale CEO Murilo Ferreira said, adding however that the company had no plans to abandon its current quarterly pricing model.
The willingness to negotiate suggests a changing dynamic between steel mills and miners, which now find themselves facing weaker demand due to stagnant growth in the United States and a sharp economic downturn in Europe.
But Ferreira said that demand in China, which posted slower economic growth of 9.1 percent in the past quarter, remains firm.
A market source on Monday told Reuters that Vale could eliminate a clause in its quarterly contracts such that steel makers could buy ore slightly cheaper.
Ore with 62 percent iron content fell to $150.30 a tonne on Tuesday, down $3.10 from the previous day, amid worries about slowing growth in China and the global economy.
Mining companies in 2010 created a quarterly system for iron ore that replaced the aging benchmark system, one based on annual talks between miners and steel mills.
The quarterly iron contracts are based on the average of spot prices over a three-month period ending a month before the start of each quarter.
(sourced Reuters)
* Spot price fall likely to bring price model scrutiny
* Vale not planning to abandon current pricing formula
BRASILIA, Oct 18 (Reuters) - Brazilian miner Vale is open to discussing different iron ore pricing systems with its clients, the company's chief executive said on Tuesday, as a tumble in the price of ore has led to pressure from steel mills for more flexibility.
Vale has told Chinese steelmakers it will give them options to buy the raw material cheaper, sources told Reuters last week, as spot prices for iron ore have dropped below the quarterly contract system created last year.
"Vale has a pricing formula, but if someone wants to buy under different terms we are open to discussion," Vale CEO Murilo Ferreira said, adding however that the company had no plans to abandon its current quarterly pricing model.
The willingness to negotiate suggests a changing dynamic between steel mills and miners, which now find themselves facing weaker demand due to stagnant growth in the United States and a sharp economic downturn in Europe.
But Ferreira said that demand in China, which posted slower economic growth of 9.1 percent in the past quarter, remains firm.
A market source on Monday told Reuters that Vale could eliminate a clause in its quarterly contracts such that steel makers could buy ore slightly cheaper.
Ore with 62 percent iron content fell to $150.30 a tonne on Tuesday, down $3.10 from the previous day, amid worries about slowing growth in China and the global economy.
Mining companies in 2010 created a quarterly system for iron ore that replaced the aging benchmark system, one based on annual talks between miners and steel mills.
The quarterly iron contracts are based on the average of spot prices over a three-month period ending a month before the start of each quarter.
(sourced Reuters)
Iron ore prices dip as SHFE rebar futures contract at lowest level
Tuesday, 18 Oct 2011
Reuters reported that spot iron ore prices may extend losses this week after sliding to their lowest in more than 11 months as key steel prices in top consumer China which fell to a contract low on Monday continue to restrain buying interest.
Supply of iron ore in the spot market has risen sharply with cargoes meant for long term, or three-month, contracts being sold at spot rates because Chinese mills were not keen on buying the material at contract rates that are far higher than spot.
Under supply contracts for the fourth quarter, miners are charging more than USD 175 a tonne for iron ore based on a pricing system that averages spot prices over a previous three-month period. But spot rates have fallen sharply over the past week to under USD 160 a tonne on Friday as weaker steel demand in China cut appetite for iron ore, the key raw material in making steel.
A Shanghai based iron ore trader said "It's difficult to say where the bottom is for prices. At this moment, it seems that USD 150 probably won't be the bottom for 62 (grade ore)."
The trader said "We haven't seen any change in sentiment. If the miners will continue to put all these spot cargoes in the market I believe the price will be pushed further down."
According to the Steel Index iron ore with 62% iron content fell 1.7% to USD 157.50 a tonne on Friday .IO62-CNI=SI and down 1.7% to USD 157.25 based on Platts IODBZ00-PLT. Both are the lowest levels since early November last year.
Both indexes lost more than 7% last week, their biggest weekly drop since early July 2010. Those losses could stretch this week, with steel futures in China down for a third straight session on Monday.
(Sourced from Reuters)
Reuters reported that spot iron ore prices may extend losses this week after sliding to their lowest in more than 11 months as key steel prices in top consumer China which fell to a contract low on Monday continue to restrain buying interest.
Supply of iron ore in the spot market has risen sharply with cargoes meant for long term, or three-month, contracts being sold at spot rates because Chinese mills were not keen on buying the material at contract rates that are far higher than spot.
Under supply contracts for the fourth quarter, miners are charging more than USD 175 a tonne for iron ore based on a pricing system that averages spot prices over a previous three-month period. But spot rates have fallen sharply over the past week to under USD 160 a tonne on Friday as weaker steel demand in China cut appetite for iron ore, the key raw material in making steel.
A Shanghai based iron ore trader said "It's difficult to say where the bottom is for prices. At this moment, it seems that USD 150 probably won't be the bottom for 62 (grade ore)."
The trader said "We haven't seen any change in sentiment. If the miners will continue to put all these spot cargoes in the market I believe the price will be pushed further down."
According to the Steel Index iron ore with 62% iron content fell 1.7% to USD 157.50 a tonne on Friday .IO62-CNI=SI and down 1.7% to USD 157.25 based on Platts IODBZ00-PLT. Both are the lowest levels since early November last year.
Both indexes lost more than 7% last week, their biggest weekly drop since early July 2010. Those losses could stretch this week, with steel futures in China down for a third straight session on Monday.
(Sourced from Reuters)
Saturday, October 15, 2011
Chinese mills offered better Q4 iron ore pricing options
Saturday, 15 Oct 2011
Reuters reported that a number of Chinese steel mills have been given the option to buy iron ore for the fourth quarter based on October to December spot rates instead of a common industry practice to buy on prices based on previous months.
Three mill sources briefed on the change told Reuters that miners, such as Vale SA have offered Chinese mills' the option to pay for fourth quarter supplies based on more current rates following the recent tumble in ore prices.
A source with one of China mid sized steel mills said "We received a letter from Vale asking us for our opinion of changing fourth quarter pricing to be based on October-December spot rates."
The spokeswoman at Vale was not immediately available for comment.
Reuters reported on Thursday that Chinese mills were seeking to postpone shipments or renegotiate fourth-quarter iron ore contracts.
Currently, prices for quarterly contracts are generally based on the average index prices over a three-month period ending a month before the start of each quarter. That means that prices for the fourth quarter would normally have been based on average spot prices from June to August when prices were higher than now.
(sourced from Reuters)
Reuters reported that a number of Chinese steel mills have been given the option to buy iron ore for the fourth quarter based on October to December spot rates instead of a common industry practice to buy on prices based on previous months.
Three mill sources briefed on the change told Reuters that miners, such as Vale SA have offered Chinese mills' the option to pay for fourth quarter supplies based on more current rates following the recent tumble in ore prices.
A source with one of China mid sized steel mills said "We received a letter from Vale asking us for our opinion of changing fourth quarter pricing to be based on October-December spot rates."
The spokeswoman at Vale was not immediately available for comment.
Reuters reported on Thursday that Chinese mills were seeking to postpone shipments or renegotiate fourth-quarter iron ore contracts.
Currently, prices for quarterly contracts are generally based on the average index prices over a three-month period ending a month before the start of each quarter. That means that prices for the fourth quarter would normally have been based on average spot prices from June to August when prices were higher than now.
(sourced from Reuters)
Iron ore spot at 11 month low and Shanghai rebar falls for 5th week
Saturday, 15 Oct 2011
Reuters spot iron ore prices fell to fresh 11 month lows on Friday on thin appetite from top buyer China where steel futures dropped for a second day on Friday on route for a fifth weekly decline.
Iron ore prices have lost around $10 a tonne so far this week as lower steel prices and tighter credit in China as well as the uncertainty facing the global economy convinced Chinese mills there was no immediate need to restock on the steel-making raw material.
An iron ore trader in Shanghai said "I can sum up the market in one word, terrible. We're still holding on to some cargo because prices have gone down a lot since after the Chinese holiday and they continue to fall. But you can easily get cargo these days."
Traders have said the steep drop in iron ore spot prices has prompted Chinese steel mills to seek either a postponement of shipments or a renegotiation of fourth quarter contracts. But BHP Billiton the world No. 3 iron ore miner said it has not had any shipment to China cancelled or renegotiated in the last few weeks.
Index-linked iron ore prices, based on spot deals in China and used by global miners in determining contract rates, fell to their lowest since November 2010 on Thursday.
An iron ore derivatives trader in Singapore said "The physical market is still under pressure and that's not going to be bullish for the swap market. Unless people see a ray of light at the end of the tunnel, we are not going to see a significant up move on swaps."
Key to the slower demand for iron ore is the sustained decline in steel prices in China, the world biggest consumer and producer. The most-traded January rebar contract on the Shanghai Futures Exchange slipped 0.6% to CNY 4,293 a tonne by the midday break. That contract hit a record low of CNY 4,255 on Wednesday.
Rebar which lost more than 11% in September is down by 1% this week its fifth straight week of decline excluding October 3 to 7 when China was shut for a public holiday.
(Sourced from Reuters)
Reuters spot iron ore prices fell to fresh 11 month lows on Friday on thin appetite from top buyer China where steel futures dropped for a second day on Friday on route for a fifth weekly decline.
Iron ore prices have lost around $10 a tonne so far this week as lower steel prices and tighter credit in China as well as the uncertainty facing the global economy convinced Chinese mills there was no immediate need to restock on the steel-making raw material.
An iron ore trader in Shanghai said "I can sum up the market in one word, terrible. We're still holding on to some cargo because prices have gone down a lot since after the Chinese holiday and they continue to fall. But you can easily get cargo these days."
Traders have said the steep drop in iron ore spot prices has prompted Chinese steel mills to seek either a postponement of shipments or a renegotiation of fourth quarter contracts. But BHP Billiton the world No. 3 iron ore miner said it has not had any shipment to China cancelled or renegotiated in the last few weeks.
Index-linked iron ore prices, based on spot deals in China and used by global miners in determining contract rates, fell to their lowest since November 2010 on Thursday.
An iron ore derivatives trader in Singapore said "The physical market is still under pressure and that's not going to be bullish for the swap market. Unless people see a ray of light at the end of the tunnel, we are not going to see a significant up move on swaps."
Key to the slower demand for iron ore is the sustained decline in steel prices in China, the world biggest consumer and producer. The most-traded January rebar contract on the Shanghai Futures Exchange slipped 0.6% to CNY 4,293 a tonne by the midday break. That contract hit a record low of CNY 4,255 on Wednesday.
Rebar which lost more than 11% in September is down by 1% this week its fifth straight week of decline excluding October 3 to 7 when China was shut for a public holiday.
(Sourced from Reuters)
Saturday, October 8, 2011
Chinese see softening in iron ore and steel prices on opening
Saturday, 08 Oct 2011
It is reported that the Chinese steel mills that have been holding up the Australian economy are under pressure with steel prices falling and iron ore prices expected to follow.
Mr Yin Jimei an analyst at Iron & Steel Information Website in Tangshan said the steel and iron ore markets are bracing for volatility on a declining trend.
Mr Xu Xiangchun at Mysteel in Shanghai said market anxieties over the global economy have coincided with softening domestic demand including a decline in railway construction due to a series of scandals in the Ministry of Railways.
He said that "Capacity utilisation is on a downward trend because demand and prices are falling and prices for raw materials are high.”
Mr Xu Lejiang Baosteel chairman said last week that steel was the least profitable sector in Chinese manufacturing, with margins less than 3%. He said that ''Steel mills are restructuring and it is possible that we'll see steel mill bankruptcies in the near future. Iron ore prices are likely to fall.''
Dragonomics a Beijing consultancy said real estate data was now a better guide to activity than construction data. It said ''Some questions arise from the apparent disparity between the reported volume of floor space under construction which is up by 30% this year and property sales, which are up only 13%. The sharp rise in new construction is likely a mirage.''
Investors are hoping that a social housing program will offset a slowdown in the private sector real estate market.
(sourced from smh)
It is reported that the Chinese steel mills that have been holding up the Australian economy are under pressure with steel prices falling and iron ore prices expected to follow.
Mr Yin Jimei an analyst at Iron & Steel Information Website in Tangshan said the steel and iron ore markets are bracing for volatility on a declining trend.
Mr Xu Xiangchun at Mysteel in Shanghai said market anxieties over the global economy have coincided with softening domestic demand including a decline in railway construction due to a series of scandals in the Ministry of Railways.
He said that "Capacity utilisation is on a downward trend because demand and prices are falling and prices for raw materials are high.”
Mr Xu Lejiang Baosteel chairman said last week that steel was the least profitable sector in Chinese manufacturing, with margins less than 3%. He said that ''Steel mills are restructuring and it is possible that we'll see steel mill bankruptcies in the near future. Iron ore prices are likely to fall.''
Dragonomics a Beijing consultancy said real estate data was now a better guide to activity than construction data. It said ''Some questions arise from the apparent disparity between the reported volume of floor space under construction which is up by 30% this year and property sales, which are up only 13%. The sharp rise in new construction is likely a mirage.''
Investors are hoping that a social housing program will offset a slowdown in the private sector real estate market.
(sourced from smh)
Friday, September 30, 2011
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)
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)
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