Iron ore exports via Australia’s Port Hedland down 16 percent in Feb from Jan

Fri, 25March 2011 17:42:44 (GMT+2)

In February this year, iron ore shipments from Australia's Port Hedland decreased 1.45 percent year on year and were down 16.19 percent month on month, totaling 12.85 million metric tons, according to Port Hedland Port Authority.

According to the released information, iron ore shipments made from Port Hedland to China amounted to 9.03 million metric tons in February, increasing by 3.54 percent year on year and down 9.37 percent as compared to January. In February, iron ore exports to China accounted for 70.3 percent of total iron ore exports from Port Hedland, compared to 67 percent in February 2010.

South Korea was the second largest export destination for iron ore shipments from Port Hedland in February, with shipments totaling 1.53 million metric tons - up 10.52 percent year on year and down by 5.67 percent over January. Japan imported 1.47 million metric tons of iron ore from Port Hedland in February, decreasing by 24 percent year on year and down 48 percent month on month.

Port Hedland handles production from mines owned by BHP Billiton, Fortescue Metals Group and Atlas Iron in the iron ore-rich Pilbara region of Western Australia. (steelorbis)

Japan’s domestic steel product orders up slightly in January over December

Friday, 11 March 2011 12:03:52 (GMT+2)

According to the data released by the Japan Iron and Steel Association, steel product orders, including specialty steels, booked by domestic steel consuming sectors in Japan in January this year amounted to 8.06 million metric tons, increasing slightly by 0.49 percent compared to December 2010 and up 8.7 percent year on year.

In January this year, ordinary steel product orders in Japan booked by the domestic construction sector decreased by five percent month on month to 587,559 metric tons - up 8.99 percent year on year, while steel product orders booked by the Japanese automotive sector, including specialty steel, reached 1.13 million metric tons, rising by 4.93 percent as compared to December last year and down 5.72 percent year on year. Japan's shipbuilding industry booked 427,559 metric tons of ordinary steel products in January, declining by 8.77 percent month on month and up 1.4 percent as compared to the same month of 2010.

The Panamax market this week firmed up - BRS

Tuesday, 08 March 2011

Underlining the unpredictability of the current market, rates for all dry bulk segments swung up again last week. Stronger exports out of South America lifted the smaller sizes, while better transatlantic demand pushed Cape rates up.

In the iron ore segment, a short-term surge in demand seems possible after India imposed new export taxes on the commodity. The Federation of Indian Mineral Industries said it expected ore exports to fall between 30-35% a year as a result. Nearly all of India’s iron ore shipments are destined for China, and it is expected there could be a rush of Chinese buying before the tax is imposed on April 1. So far, existing contracts out of India are being honoured, but with next to no fresh contracts being signed, the impact of the change is likely to be more obvious next month.

Supramax/Handy

The Supramax market continued its upward trend from the previous week, and the BSI gained 6% to reach a TC average of US$15,340 by Friday. The increase was much stronger in the Pacific basin than in the Atlantic, and the NOPAC round gained 13% to reach about US$15,500 by the end of the week. Despite better market conditions in the Pacific, owners with Supras in the Atlantic were reluctant to fix them for a trip out. The market in the Continent was strong thanks to scrap and fertilizer orders, Supras getting about US$20,000 for a trip with scrap from Cont/Baltic with redelivery east Med, and the same level was fixed for dop Continent and redelivery China via the Cape of Good Hope. The US Gulf market remained stable with Supras getting fixed at US$24,000 basis dop USG and redelivery Skaw/Passero range, whereas USG to the East was fixed in the low US$30,000s per day. The Pacific market started strong, with index type Supras getting mid teens for Pacific rounds, while India positioned ships were fixing at similar levels out of the west coast, and mid/high teens out of the east. Rates steadily picked up towards the end of the week (due to tonnage getting tight for mid March dates), while a flurry of fixing resulted in ships in the Far East getting closer to high teens for Pacific rounds. West coast India to China was fixing in the mid/ high teens, and east coast India remained at similar levels. Backhaul on Supras climbed to close to US$10,000, up from around US$7-8,000. Short period was around mid to mid/high teens, depending on specs and position, and this remained steady all week.

Panamax
The Panamax market this week firmed up in all basins, with a week-on-week increase of over US$1,000 in the Atlantic to reach US$16,000 per day, and more than US$1,500 in the Pacific, to close at US$14,800 per day, pushing the 4TC average to US$16,000 per day. These trends were against a pretty high global offering of tonnage (especially in the Atlantic), except in the Indian Ocean which was clearly under pressure due to a lack of candidates able to carry iron ore to China, or to ballast to pick up grains for China via ECSA. This route was paying around US$19,000 per day for delivery India. Period activity, linked to the firmer FFA market, increased by US$1,000 per day ie around US$18,000 per day on a TESS 74 delivery Far East for short period.

Capesize
An 8% increase in the BCI this week, with greater activity in the Atlantic pushing rates. The BCI finished on Friday at 1,427 points, while the time charter average limped above US$5,700 per day. The prospects of more activity out of Australia gave some small confidence to the market, and April and May FFA rates rose to US$14,500 and US$16,400 respectively. Monday saw another US1,000 added to the 4TC, which suggests greater confidence for the week ahead, though which the current volatility there seems to be no certainty it will last.
Reported by - Barry Rogliano Salles

If you believe an article violates your rights or the rights of others, please contact us.

Sumitomo Metals receives prize for its blast furnace evaluation technologies

Friday, 04 March 2011

On March 3, Japanese steelmaker Sumitomo Metal Industries, Ltd. (Sumitomo Metals), a member of the diversified Sumitomo Corporation, has received the 57th Okochi Memorial Foundation Production Prize for its "development of technologies that extend the campaign life of blast furnaces."

Pointing out that the inner conditions of a blast furnace used to be a "black box", Sumitomo Metals stated that it has developed simulation technologies which enable inner conditions to be quantitatively evaluated. "Thanks to operational and repair technologies based on such evaluation, the Wakayama Steel Works' No. 4 blast furnace was commended for achieving the world's longest continuous operation of 10,001 days with 27 years and four months," the company said.

The award on this occasion has resulted in Sumitomo Metals receiving the Okochi Memorial Foundation Prize for all the processes (i.e., blast furnace, steelmaking, manufacturing mill, and products) that are related to manufacturing of seamless pipes.

The Okochi Memorial Foundation Prize recognizes notable contributions in the areas of production engineering, production technology research and development, and the implementation of high-level production methods in Japan.

Tags : production , steelmaking , East Asia and Pacific

Japan-Korea partnership to buy 15 percent stake in Brazilian niobium company

Friday, 04 March 2011

A Japanese investor group consisting of JFE Steel Corporation, Nippon Steel Corporation, Sojitz Corporation and Japan Oil, Gas and Metals National Corporation and a Korean investor group consisting of major Korean steel producer POSCO and South Korea's National Pension Service have entered into an agreement with the controlling shareholders of the Brazilian niobium company Companhia Brasileira de Metalurgia e Mineração (CBMM) under which the Japan-Korea partnership will acquire a 15 percent stake in CBMM.

Niobium is a critical alloying additive in the production of high-grade steel products. As the most comprehensive supplier of niobium products in the world, CBMM is in a position to secure a continuous supply system of the metal as the need for high-grade steel products grows.

The four Japanese companies will acquire a 10 percent stake and the two Korean companies will buy a five percent stake in CBMM. The amount of the investment by the Japan consortium and the Korea consortium will be $1.3 billion and $650 million respectively, and each of the six consortium partners will indirectly hold a 2.5 percent stake in CBMM.

In addition to the acquisition of CBMM shares, JFE, Nippon Steel, POSCO and Sojitz have entered into a long-term niobium supply agreement with CBMM, assuring that the stable relationship these companies have long had with CBMM continues. (sourced:steelorbis)

Nippon Steel extends interest in Integra Coal Joint Venture in Australia

Friday, 04 March 2011

Japan's largest steelmaker Nippon Steel Corporation has announced that it has concluded a sales agreement with Toyota Tsusho concerning the purchase of 2.35 percent interests owned by Toyota Tsusho via its Australian subsidiary in the Integra Coal Joint Venture in the province of New South Wales, Australia.

Nippon Steel, already holding an interest of 3.6 percent in this JV, with this additional purchase will own an interest of 5.95 percent.

"This additional purchase of interests in this JV will add strength to Nippon Steel's capabilities and endeavors to ensure stable procurement of semi-soft coking coal for the future," reads Nippon Steel's statement.

Integra Coal Joint Venture, heretofore operated by the respective Australian subsidiaries of Vale, a global resources company, POSCO, a Korean steel company, JFE/JFE Shoji Trade, Toyota Tsusho, and Nippon Steel, produces about 3.3 million mt a year of semi-soft coking coal and steaming coal.(sourced:Thomson Reuters)

MOC: Chinese steel prices down 0.6 percent week on week

Friday, Mar04, 2011

According to the report published on March 2 by China's Ministry of Commerce (MOC), due to weak demand from downstream buyers finished steel prices dropped slightly on week-on-week basis in the past week. In the coming period, as supplies increase, finished steel product inventories will also continue to increase. Thus, the MOC foresees that finished steel product prices in China will drop slightly in the short-term future.

According to the data from the MOC, during the past week domestic finished steel prices in China dropped in the past week by an average of 0.6 percent week on week. Prices of 3 mm common carbon sheet, 10 mm common carbon medium plate and 6.5 mm high speed wire rod dropped by 1.5 percent, 1.2 percent and 1 percent respectively on week-on-week basis.

Meanwhile, data from the China Iron and Steel Association (CISA) have revealed that as of February 20 the finished steel inventories of the 77 medium-sized and large Chinese steelmakers which are members of the CISA had increased to 9.46 million mt, compared to 7.57 million mt at the end of January. In addition, the Indian government has increased the export duty on iron ore fines and lump ore to 20 percent, with the CISA calculating that this adjustment will increase the cost to Chinese steelmakers per each ton of steel by $25, and this could push Chinese finished steel prices upward and also reduce the profit margins of Chinese steelmakers

WISCO inks cooperation deal with ADI on Lac Otelnuk iron ore project

Wednesday, 16 February 2011 13:34:25

Major Chinese steelmaker Wuhan Iron and Steel Group Corp. (WISCO) has announced that on February 15 it signed a cooperation agreement with Canadian iron ore company Adriana Resources Inc. (ADI) for the development, construction and operation of the Lac Otelnuk iron ore project in Quebec, Canada. In January this year, WISCO and ADI signed a binding framework agreement according to which WISCO will hold ADI's interests in the Lac Otelnuk and December Lake iron ore properties in Northern Quebec.

ADI also has iron ore resources in Brazil and Canada. The Lac Otelnuk project has indicated iron ore reserves of 4.29 billion mt and inferred reserves of 1.97 billion mt (grading at about 29 percent Fe), according to ADI's website.

Tags: iron ore , raw mat , China , Canada , Far East , East Asia and Pacific , North America , steelmaking , mining , WISCO , Pellets , Fine ore

China to import up to 20 million mt per year of Russian coal

Monday, 14 February 2011

Russian Energy Minister Sergei Shmatko has stated that China has agreed to raise the maximum limit for the volume of coal it imports from Russia to 20 million mt per year.

Minister Shmatko said that Russia and China will soon sign the relevant agreement regarding cooperation in the coal sector.

In 2010, Russia exported more than 10 million mt of coal to China, principally through its Far Eastern ports.
(sourced:steelorbis)

Tags: coking coal , raw mat , China , Russia , CIS , East Asia and Pacific , Far East , imp/exp statistics , Coking coal

Shanxi Minmetals Industrial & Trading obtains approval for Mexican project

Tuesday, 04 January 2011 13:19:35 (GMT+2)

The development and reform commission of China's Shanxi Province has announced that local trading firm Shanxi Minmetals Industrial and Trading Co., Ltd (Shanxi Minmetals Industrial and Trading) has received approval from China's National Development and Reform Commission (NDRC) for its new iron ore project in the southern state of Jalisco in Mexico.
The project, which will involve both open-pit and underground mining, has estimated total reserves of 58.8 million mt of iron ore, with an annual iron ore output of 1.45 million mt.
Shanxi Minmetals Industrial and Trading signed the agreement to purchase the Mexican project in September 2009, and has since obtained mining rights and enviromental approvals.
Shanxi Minmetals Industrial and Trading mainly exports coke and bauxite, and also processes imported materials including manganese ore, chromium ore and iron ore and exports the processed products. Shanxi Minmetals Industrial and Trading is the third largest coke exporter and fourth largest bauxite exporter in China.
Source:steelorbis.com

China’s Inner Mongolia region produces 782 million mt of coal in 2010

Friday, 14 January 2011 14:26:40 (GMT+2)

According to the Coal Mine Security Supervision Bureau of China's Inner Mongolia Autonomous Region, in 2010 the region produced 782 million mt of coal, an increase of 181.4 million mt compared to the previous year, thus becoming the first region in China to produce more than 700 million mt of coal in a single year.
There are currently over 1,000 coal mines in China's Inner Mongolia Autonomous Region. During China's 12th five-year plan period (2010-15), the Inner Mongolia government plans to give priority to the construction of several major coal projects, including the Eerduosi, Xilinguole and Hulunbeier projects.
Source: steelorbis.com