Fri Mar 18, 2011 12:13pm GMT
LONDON, March 18 (Reuters) - Brazil's Vale (VALE5.SA: Quote), the world's top iron ore miner, will not switch to monthly iron ore contract pricing and will stick to quarterly pricing, Vale's global marketing director Pedro Gutemberg said.
"Vale is selling all contracted volumes on quarterly pricing. It is very happy with the quarterly prices and has no intention to switch to monthly prices at this time," Gutemberg told Reuters.
"We believe the three-month period is good enough to avoid major gaps with actual market prices and, on the other hand, smooth volatility of the monthly period."
When the annual benchmark system collapsed in 2010, the top three iron ore miners, Vale, Rio Tinto and BHP Billiton, started to use various pricing mechanisms, based on quarterly indexed-prices.
Top global miner BHP Billiton (BLT.L: Quote) (BHP.AX: Quote) is already selling some iron ore on monthly basis and would like its contract prices to move even closer to the daily market price, a spokesman for the company said.
To price its contracted iron ore, Brazil's Vale uses a quarterly system in which prices are decided by a three-month average of the Platts North China 62 percent FE CFR index IODBZ00-PLT beginning four months before the relevant quarter. (Editing by William Hardy,Reuters)
Showing posts with label Friday Feb18 2011. Show all posts
Showing posts with label Friday Feb18 2011. Show all posts
Friday, March 18, 2011
Saturday, February 19, 2011
BHPB H1 metallurgical coal production update
Friday, 18 Feb 2011
BHP Billiton underlying EBIT was USD 1,453 million, an increase of USD 681 million or 88% from the corresponding period. The significant improvement in EBIT margin was largely attributable to higher realized prices.
Hard coking coal, weak coking coal and thermal coal prices increased by 50%, 57% and 43% respectively.
In total, higher prices increased Underlying EBIT by USD 1,147 million, after allowing for the royalty related increase in price linked costs.
Hard coking coal, weak coking coal and thermal coal prices increased by 50%, 57% and 43% respectively.
In total, higher prices increased Underlying EBIT by USD 1,147 million, after allowing for the royalty related increase in price linked costs.
Queensland Coal (Australia) production was significantly affected by the persistent rain and flooding that impacted the Bowen Basin in the December 2010 half year. The effect on Queensland Coal sales was minimized by the healthy level of inventory that was held across our supply chain at the commencement of the December 2010 half year. However, weather related disruption and higher labour and contractor rates contributed to an increase in costs for the period. Furthermore, the combined impact of a weaker US dollar and inflation reduced Underlying EBIT by USD 291 million.
BHP Billiton continues to assess the impact of the extreme weather events and confirms that force majeure has been declared for the majority of our Bowen Basin products, including Goonyella Riverside, Peak Downs, Norwich Park, Gregory Crinum, South Walker, Blackwater and Saraji.
The decision to double pumping capacity following severe wet weather in the March 2008 quarter has minimized in-pit water accumulation, although heavy rainfall that persisted for much of the December 2010 half year has significantly restricted overburden removal. When combined with disruptions to external infrastructure, we expect an ongoing impact on production, sales and unit costs for the remainder of the 2011 financial year.
The decision to double pumping capacity following severe wet weather in the March 2008 quarter has minimized in-pit water accumulation, although heavy rainfall that persisted for much of the December 2010 half year has significantly restricted overburden removal. When combined with disruptions to external infrastructure, we expect an ongoing impact on production, sales and unit costs for the remainder of the 2011 financial year.
China port iron ore stocks fall to 79.97 mln Tons this week
Fri, Feb18, 2011
BEIJING Feb 18 (Reuters) - Stockpiles of imported iron ore at major Chinese ports fell 160,000 tonnes this week to 79.97 million tonnes, the first weekly decline since Dec. 17, industry consultancy Mysteel said on Friday.
Brazilian ores stood at 21.65 million tonnes, up fractionally from last week, while ore from India rose 190,000 tonnes to 13.23 million tonnes.
Ore originating in Australia fell 280,000 tonnes to end the week at 29.16 million tonnes, Mysteel said.
Chinese iron ore imports rose 18.8 percent month on month in January to reach 68.97 million tonnes, the highest since September 2009.
(Reporting by David Stanway; Editing by Chris Lewis, sourced:Thomson Reuters)
Tags: Asian iron ore, China iron ore stockpiles at ports
BEIJING Feb 18 (Reuters) - Stockpiles of imported iron ore at major Chinese ports fell 160,000 tonnes this week to 79.97 million tonnes, the first weekly decline since Dec. 17, industry consultancy Mysteel said on Friday.
Brazilian ores stood at 21.65 million tonnes, up fractionally from last week, while ore from India rose 190,000 tonnes to 13.23 million tonnes.
Ore originating in Australia fell 280,000 tonnes to end the week at 29.16 million tonnes, Mysteel said.
Chinese iron ore imports rose 18.8 percent month on month in January to reach 68.97 million tonnes, the highest since September 2009.
(Reporting by David Stanway; Editing by Chris Lewis, sourced:Thomson Reuters)
Tags: Asian iron ore, China iron ore stockpiles at ports
Iron Ore-Rally stalls as China buying slows; India state seeks ban
Fri Feb 18, 2011 8:44am GMT* Steel mills and traders cautious
* Indian 63.5 pct ore quoted below $200/tonne
* Iron ore swaps fall for second session
* Another Indian state seeks export ban
(Adds Chhattisgarh seeking ban, comment, updates rebar prices)
By Ruby Lian and Manolo Serapio Jr.
SHANGHAI/SINGAPORE, Feb 18 (Reuters) - Spot iron ore prices eased on Friday, as top buyer China stepped back after a recent surge in raw material costs and steel prices recoiled on slow end-user demand.
Iron ore prices have risen around 13 percent this year, adding to gains of more than 40 percent in 2010, but a decline in price offers from sellers and sharp falls in forward swaps suggest prices may have hit a tentative peak under $200 a tonne.
"Offers have fallen below $200 per tonne by the end of this week after steel mills and traders held back from buying more," said an iron ore trader in China's eastern Shandong province.
"A few steel mills have changed their minds and refused to sign deals after verbally agreeing to buy material from traders earlier."
Offers for Indian ore with 63.5 percent iron content dropped to $196-198 per tonne, including freight, on Friday, from as high as above $200 earlier this week, trading sources said.
Chinese steel prices had risen alongside iron ore, backed by anticipation of a pickup in demand when construction activity resumes. But purchases from end users have remained slow, triggering a correction in prices.
The most active rebar contract for October delivery on the Shanghai Futures Exchange closed at a three-week low of 4,985 yuan a tonne on Friday, down 3.5 percent for the week. The contract touched a series of record highs last week.
Rising iron ore inventories at major ports have also weighed on spot prices. China's iron ore imports reached a record of 68.97 million tonnes in January.
OUTLOOK NOT BEARISH
Supply squeeze from India and firm demand from China had spurred the rally in iron ore prices, forcing steelmakers to pass on higher cost to customers.
Another Indian state, Chhattisgarh, is looking at banning iron ore exports, joining top producing state Orissa in considering halting shipments to meet domestic demand.
"There's probably a lot of investors looking for reasons to sell right now, but this news is going to hold that profit-taking for the time being," said Mark Pervan, senior commodity analyst at ANZ Bank in Melbourne.
Iron ore price indexes, which global miners use in setting quarterly supply contracts with mills, stayed near record highs, but forward swaps fell sharply for a second straight session on Thursday. The Steel Index's 62 percent iron ore benchmark .IO62-CNI=SI was steady at $191.90 a tonne, including freight, a record level reached in the previous session. Platts' 62 percent iron ore index IODBZ00-PLT eased 50 cents to $192.50, and Metal Bulletin's 62 percent index .IO62-CNO=MB rose $1.01 to $191.70.
Prices of Singapore Exchange-cleared forward swaps slumped for all 24 months covered by the contracts, with the March-to-August contracts showing the biggest losses, reflecting growing concerns on spot prices in coming months. The March contract slid $6.38 to $175 per tonne and April fell $5.25 to $163.50.
However, some analysts still expect China's iron ore appetite to bounce back with the country looking to produce a record of 660 million tonnes of crude steel this year. "We estimate iron ore spot prices to go higher, propping up contract prices for the second quarter," Le Yukun, an analyst with BOC International Securities said in a research note.
Le also estimated that average import prices would rise 15 percent this year and 5 percent in 2012. The China Iron & Steel Association said steel prices are expected to rise in the near term as raw material will remain costly and steel demand, both at home and abroad, will pick up gradually.
(Reporting by Manolo Serapio Jr.; Editing by Manash Goswami,sourced:Thomson Reuters)
Tags:iron ore top buyer, offers, rebar contract, Shanghai Futures Exchange,steelmakers,ANZ Bank,market analyst, BOC International
WTO issues ruling on China export restraints
Friday,Feb18,2011
* US, EU, Mexico filed case against China in 2009
* Ruling could set precedent for China rare earth curbs
* Decision expected to be made public by early summer (Updates throughout)
WASHINGTON, Feb 18 (Reuters) - The World Trade Organization on Friday issued a confidential preliminary ruling in a landmark case against China's export restrictions on raw materials used to manufacture steel, aluminum and chemical products.
The United States, European Union and Mexico launched the case in 2009, complaining that Chinese export restrictions on minerals such as bauxite and magnesium discriminated against foreign manufacturers and gave an unfair advantage to domestic producers.
Beijing has argued it needed to restrict exports of the raw materials for environmental reasons.
"Under WTO rules, this interim report is confidential and we cannot comment on its contents at this time," said Nefeterius McPherson, a spokeswoman for the U.S. Trade Representative's Office.
"The report will be made public when it is circulated to WTO members. We currently expect the final report to be circulated sometime in late spring or early summer of 2011," McPherson said.
The United States, EU and Mexico argue that China's export curbs violated both general WTO rules and specific commitments that Beijing made when it joined the world trade body in 2001.
The case does not cover China's export restrictions on rare earth minerals used in smart phones, electric car motors and high-tech industrial equipment which have also raised concern in the United States, EU and Japan.
McPherson said there was still a possibility of the United States filing a WTO challenge on that front.
"We have been and remain very concerned about China's systemic use of export restraints," she said.
A former WTO appellate body judge said the ruling will be precedent-setting.
"If the United States prevails in this dispute it would be a very significant ruling related to increasingly widespread phenomenon of export restrictions in world trade," said James Bacchus, now at Greenberg Traurig in Washington.
If China wins, then "other kinds of export restrictions imposed by China and other countries may be protected by environmental defenses as well," Bacchus said.
China argues that it must restrict the production and export of the raw materials in the WTO dispute and rare earths to protect the environment and conserve its own resources.
(Reporting by Doug Palmer; Editing by Vicki Allen,sourced:Thomson Reuters)
* US, EU, Mexico filed case against China in 2009
* Ruling could set precedent for China rare earth curbs
* Decision expected to be made public by early summer (Updates throughout)
WASHINGTON, Feb 18 (Reuters) - The World Trade Organization on Friday issued a confidential preliminary ruling in a landmark case against China's export restrictions on raw materials used to manufacture steel, aluminum and chemical products.
The United States, European Union and Mexico launched the case in 2009, complaining that Chinese export restrictions on minerals such as bauxite and magnesium discriminated against foreign manufacturers and gave an unfair advantage to domestic producers.
Beijing has argued it needed to restrict exports of the raw materials for environmental reasons.
"Under WTO rules, this interim report is confidential and we cannot comment on its contents at this time," said Nefeterius McPherson, a spokeswoman for the U.S. Trade Representative's Office.
"The report will be made public when it is circulated to WTO members. We currently expect the final report to be circulated sometime in late spring or early summer of 2011," McPherson said.
The United States, EU and Mexico argue that China's export curbs violated both general WTO rules and specific commitments that Beijing made when it joined the world trade body in 2001.
The case does not cover China's export restrictions on rare earth minerals used in smart phones, electric car motors and high-tech industrial equipment which have also raised concern in the United States, EU and Japan.
McPherson said there was still a possibility of the United States filing a WTO challenge on that front.
"We have been and remain very concerned about China's systemic use of export restraints," she said.
A former WTO appellate body judge said the ruling will be precedent-setting.
"If the United States prevails in this dispute it would be a very significant ruling related to increasingly widespread phenomenon of export restrictions in world trade," said James Bacchus, now at Greenberg Traurig in Washington.
If China wins, then "other kinds of export restrictions imposed by China and other countries may be protected by environmental defenses as well," Bacchus said.
China argues that it must restrict the production and export of the raw materials in the WTO dispute and rare earths to protect the environment and conserve its own resources.
(Reporting by Doug Palmer; Editing by Vicki Allen,sourced:Thomson Reuters)
Friday, February 18, 2011
Budget update - Steel industry wants infrastructure status higher import duty and export tax of iron ore
Friday, 18 Feb 2011
The domestic steel industry, which raised prices in wake of some stimulus measures being withdrawn after the last budget, has warned of another price hike if stimulus is completely withdrawn in Budget 2011-12. An industry official said that “We will have no option but to pass on the burden to the consumers if excise duty concessions are withdrawn.”
1. Infrastructure status to the steel industry
The steel industry has also reiterated its long standing demand of being accorded infrastructure status. Steel firms have asked the finance ministry to grant infrastructure status to the steel industry. Such a move by the finance ministry would ensure long term funds and tax holidays for the steel industry.
A SAIL spokesperson told Business Line that “SAIL has submitted its demands and expectations from Budget 2011-12 to the finance ministry. The crux of it is that we want steel to be given infrastructure status. This would help in securing long term funds for the expansions taking place in the domestic steel industry.”
2. Hike import duty on HR coils
For the growth of industry, steel makers along with Associated Chambers of Commerce and Industry has called on the finance ministry to raise import duty on HR coils to 10% from the current 5%. ASSOCHAM in a statement said that “Pro active policy measures adopted by government of India can help extend HR coil capacity by an additional 8 million tonnes during 2011-12, making India surplus for HR coils by more than 6 million tones.”
3. Export tax on iron ore
Steelmakers have also asked the Finance Ministry to increase the export duty on iron ore. A Jindal Steel and Power Ltd spokesperson said that “Recent hikes in steel prices have been mainly driven by the increasing commodity prices. To contain this, the Government should consider increasing the export duty on iron ore.”
The government had last year raised export duty on iron ore lumps to 15%. The industry expects at least a 5% increase on the export of iron ore lumps, but it wants duty to be increased on iron ore fines as well.
An industry official that “It is time we start conserving iron ore fines as technology is coming up which will also make domestic steelmakers to use iron ore fines increasingly.”
(Sourced from BL)
Tags:Budget update, Indian steel industry, infrastructure status, higher import duty, export tax of iron ore, steelmakers, raw material, Indian government
The domestic steel industry, which raised prices in wake of some stimulus measures being withdrawn after the last budget, has warned of another price hike if stimulus is completely withdrawn in Budget 2011-12. An industry official said that “We will have no option but to pass on the burden to the consumers if excise duty concessions are withdrawn.”
1. Infrastructure status to the steel industry
The steel industry has also reiterated its long standing demand of being accorded infrastructure status. Steel firms have asked the finance ministry to grant infrastructure status to the steel industry. Such a move by the finance ministry would ensure long term funds and tax holidays for the steel industry.
A SAIL spokesperson told Business Line that “SAIL has submitted its demands and expectations from Budget 2011-12 to the finance ministry. The crux of it is that we want steel to be given infrastructure status. This would help in securing long term funds for the expansions taking place in the domestic steel industry.”
2. Hike import duty on HR coils
For the growth of industry, steel makers along with Associated Chambers of Commerce and Industry has called on the finance ministry to raise import duty on HR coils to 10% from the current 5%. ASSOCHAM in a statement said that “Pro active policy measures adopted by government of India can help extend HR coil capacity by an additional 8 million tonnes during 2011-12, making India surplus for HR coils by more than 6 million tones.”
3. Export tax on iron ore
Steelmakers have also asked the Finance Ministry to increase the export duty on iron ore. A Jindal Steel and Power Ltd spokesperson said that “Recent hikes in steel prices have been mainly driven by the increasing commodity prices. To contain this, the Government should consider increasing the export duty on iron ore.”
The government had last year raised export duty on iron ore lumps to 15%. The industry expects at least a 5% increase on the export of iron ore lumps, but it wants duty to be increased on iron ore fines as well.
An industry official that “It is time we start conserving iron ore fines as technology is coming up which will also make domestic steelmakers to use iron ore fines increasingly.”
(Sourced from BL)
Tags:Budget update, Indian steel industry, infrastructure status, higher import duty, export tax of iron ore, steelmakers, raw material, Indian government
Indonesia approves more permits to ease coal, metals ship delays
Fri Feb 18, 2011 9:43am GMT
* Govt approves export permits for another 29 firms
* Backlog on coal shipments remains
* Some traders borrowing permits to ship coal (Adds trader quotes, details)
By Fitri Wulandari
JAKARTA, Feb 18 (Reuters) - Indonesia has approved permits for 29 more firms to resume coal and metals exports, paving the way for traders and producers to begin clearing a backlog of shipments at the country's ports, a trade ministry official said on Friday.
Up to 3.5 million tonnes of coal shipments, destined to fuel power stations in China and India, have been delayed in recent weeks because of changes to coal and mining laws that required cargoes to undergo extra surveys in a bid to stem tax evasion.
With the latest set of approvals, a total of 81 firms are now allowed to resume exports, after 52 companies were given approval earlier this month, said Junaedi, head of the mining exports unit at the ministry.
Indonesia's trade ministry ordered surveyors in January to temporarily halt issuing surveyor reports to coal and mineral traders in the process of reapplying for trading permits under the new coal and mining law.
"The energy ministry notified us that they have issued trading permits for (an additional) 29 mining firms," said Junaedi, who like many Indonesians only has one name.
As part of obtaining export permits, Indonesia has required exports of mining products including coal and tin to be checked by surveyors, as the country seeks to keep illegal mining in check and boost revenue from the sector.
Surveyor reports, required for shipping coal and metals, show the origin of the cargoes and are used to calculate royalties.
Despite the 81 permits that have been issued, a backlog of cargoes still remains, with some shippers still waiting for export permits from the energy ministry, traders and shipping sources said.
Some desperate traders have also borrowed export permits from other shippers who have already obtained them.
"Some traders have submitted requests for the permit two months ago and they haven't got it," a port source said.
"So instead of waiting for the permit to be issued, they just ship the coal under the name of another shipper that already has the permit," the source said.
But traders could not give details how many vessels are still being held up in ports around Indonesia, the world's top thermal coal exporter that is expected to produce 340 million tonnes of coal this year.
Previously, the Indonesian Coal Mining Association said around 60 to 70 vessels or 3.5 million tonnes of coal were backed up in Indonesian ports.
"There is a backlog and vessel waiting times are up to about 20 days, which is pretty high for Indonesia," a trade source in Singapore said.
"From what I hear, there are a couple of ways to get around it...you can just borrow a miner's license and pay him," the source said. (Additional reporting by Yayat Supriatna in JAKARTA, and Rebekah Kebede in PERTH; Editing by Neil Chatterjee, sourced:reuters)
Tags:Indonesia approves exports permits,coal traders,firms,backlog, coal shipment, ship coal,coal and mining laws,cargoes surveys, stem tax,energy ministry,Indonesian Coal Mining Association
* Govt approves export permits for another 29 firms
* Backlog on coal shipments remains
* Some traders borrowing permits to ship coal (Adds trader quotes, details)
By Fitri Wulandari
JAKARTA, Feb 18 (Reuters) - Indonesia has approved permits for 29 more firms to resume coal and metals exports, paving the way for traders and producers to begin clearing a backlog of shipments at the country's ports, a trade ministry official said on Friday.
Up to 3.5 million tonnes of coal shipments, destined to fuel power stations in China and India, have been delayed in recent weeks because of changes to coal and mining laws that required cargoes to undergo extra surveys in a bid to stem tax evasion.
With the latest set of approvals, a total of 81 firms are now allowed to resume exports, after 52 companies were given approval earlier this month, said Junaedi, head of the mining exports unit at the ministry.
Indonesia's trade ministry ordered surveyors in January to temporarily halt issuing surveyor reports to coal and mineral traders in the process of reapplying for trading permits under the new coal and mining law.
"The energy ministry notified us that they have issued trading permits for (an additional) 29 mining firms," said Junaedi, who like many Indonesians only has one name.
As part of obtaining export permits, Indonesia has required exports of mining products including coal and tin to be checked by surveyors, as the country seeks to keep illegal mining in check and boost revenue from the sector.
Surveyor reports, required for shipping coal and metals, show the origin of the cargoes and are used to calculate royalties.
Despite the 81 permits that have been issued, a backlog of cargoes still remains, with some shippers still waiting for export permits from the energy ministry, traders and shipping sources said.
Some desperate traders have also borrowed export permits from other shippers who have already obtained them.
"Some traders have submitted requests for the permit two months ago and they haven't got it," a port source said.
"So instead of waiting for the permit to be issued, they just ship the coal under the name of another shipper that already has the permit," the source said.
But traders could not give details how many vessels are still being held up in ports around Indonesia, the world's top thermal coal exporter that is expected to produce 340 million tonnes of coal this year.
Previously, the Indonesian Coal Mining Association said around 60 to 70 vessels or 3.5 million tonnes of coal were backed up in Indonesian ports.
"There is a backlog and vessel waiting times are up to about 20 days, which is pretty high for Indonesia," a trade source in Singapore said.
"From what I hear, there are a couple of ways to get around it...you can just borrow a miner's license and pay him," the source said. (Additional reporting by Yayat Supriatna in JAKARTA, and Rebekah Kebede in PERTH; Editing by Neil Chatterjee, sourced:reuters)
Tags:Indonesia approves exports permits,coal traders,firms,backlog, coal shipment, ship coal,coal and mining laws,cargoes surveys, stem tax,energy ministry,Indonesian Coal Mining Association
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