Pakistan rejects foreign pressure on Iran gas pipeline project

Monday, 05 Mar 2012

Ms Hina Rabbani Khar foreign minister of Pakistan rejecting any foreign pressure against Iran and Pakistan gas pipeline project said that it was in Pakistan's national interest to acquire energy from wherever it was available.

Mr Khar said that "We cannot afford to be selective. No decision in this regard would be taken against the national interests. The country was facing a real energy crisis and stressed the need to address its energy needs at the earliest. The relations with the United States, NATO and ISAF would be promoted on the basis of mutual self respect and in line with the policy devised by Pakistan's parliament.”

She said that the parliamentary committee on foreign policy would finalize the recommendations by the second week of this month. We want to add the element of credibility with the United States.

Ms Khar said that the refusal was till the time when a clear cut policy viz a viz the United States was finalized. Pakistan wanted to maintain friendly relations with all its neighbors including India and added that there was enthusiasm from both the sides to improve ties.

She said that the governments of the two neighboring countries had been working together to build a level of trust for the mutual benefit of two nations. Pakistan supported an Afghan led and Afghan owned solution to the problem.

Source - Business Recorder

India never halts buying Iran oil - Mr Reddy

Sunday, 04 Mar 2012

Tehran Times cited Mr S Jaipal Reddy oil minister of India as saying that government is not facing any external pressure on buying crude oil from Iran and will abide by UN sanctions only not those imposed by any bloc of nations.

Mr Reddy said that rejecting US and European sanctions against Iran we respect UN sanctions but will not honor any other sanction. We have cordial relations with Iran and we continue to import oil from them.

US have imposed sanctions that deny access to the US financial system to any foreign bank that conducts business with the central bank of Iran. Besides, European Union has agreed to ban oil imports from Iran starting July 1st 2012 as part of measures to ratchet up the pressure on the Persian Gulf nation's nuclear program.

Mr Reddy rejected US President Mr Barack Obama's statement that demand in China and India was responsible for spiraling international oil prices and said that India's per capita consumption at 442 kilogram of oil equivalent was much lower than world average of 1,715 kilogram. Geo political reasons are to be blamed for spike in global oil prices.

He said that India is currently world's fourth largest consumer of energy accounting for 4.4% of world's annual energy consumption. USA, China and Russian federation are the top 3 energy consumers. Almost 40% of the primary energy consumption is by USA and China.

Mr Reddy said that the energy sector has witnessed major volatility in crude oil prices, scarcity of services and economic meltdown globally in the past few years. Global demand for energy is oscillating in tandem with the economic condition of the world. Economics in the energy sector is also being affected by the dynamics in global political scenario and economic sanctions regime leaving an adverse impact on the demand supply situation.

India is one of the fastest growing economies in the world. Currently, the domestic energy supplies are limited and the import dependence is as high as 80% for crude oil and 25% in case of natural gas. The situation may not change much in the 12th Plan period as the demand for oil and gas is increasing. The share of oil and gas in Indian energy basket is about 40%.

He said that with the projected demand and supply gap, it is imperative for US to enhance energy security for the country for which intense efforts in exploration activities in India as well as abroad are being made.

(Sourced from Tehrantimes.com

India charters new tanker to ship more Iranian crude

Tuesday, 28 Feb 2012

Press TV reported that India’s largest refiner has chartered a tanker to enable the South Asian country to import more crude oil from the Islamic Republic.

The Indian Oil Company has booked the Mykonos Warrior, currently sailing in the Indian Ocean to ship more than 130,000 tonnes of Iranian crude to Mundra on India’s west coast in March. The Liberia flagged vessel is reportedly expected to arrive in Iran’s Kharg Island on March 9th 2012.

India purchases around USD 12 billion worth of Iranian crude every year about 12% of its total consumption. In January, Iranian crude exports to India rose to 550,000 barrels a day up 37.5% from December 2011.

New Delhi’s growing interest in expanding its trade ties with Tehran comes as the Western powers recently adopted fresh sanctions against Iran's oil and financial sectors and have ever since sought to pressure other countries to follow suit.

On December 31st 2011, The United States imposed new sanctions against the Islamic Republic aimed at preventing other countries from importing Iran’s oil and doing transactions with its Central Bank.

European Union foreign ministers also approved sanctions against Iran’s oil and financial sectors on January 23rd 2012 including a ban on Iranian oil imports, a freeze on the assets of the country’s Central Bank within EU states and a ban on selling diamonds, gold and other precious metals to Tehran.

Many observers believe that India will press on with its plan to increase trade ties with the Islamic Republic despite the fresh Western sanctions.

(Sourced from Press TV)

Iran’s cutting steel imports, depressing global steel market

Monday, 13 February 2012

Steel exports to Iran, one of the world's top importers of billet used in construction, are grinding to a halt, traders said. "Iran is the only market in the world that can move billet prices and now trading has basically come to a halt," a steel trader based in Britain said.

"Now you can really feel the effects of the sanctions imposed by the U.S. and Europe...It is very difficult to do any business with Iran at the moment," a steel trader at a Swiss metals trading house said. Thanks to large-scale building programs in the last few years, Iran has become one of the top importers of steel billet, a semi-finished long steel product mainly used for construction.

The country imported over 3 million tons of semi-finished steel products in 2010 and almost 2 million of hot-rolled coil, a steel product used in transport, construction, shipbuilding and energy pipelines, according to data from the International Steel Statistics Bureau. Boris Krasnojenov, an analyst with Moscow-based Renaissance Capital, said monthly Iran imports from Russia were over 300,000 tons for most of last year.

"As far as I know, the situation is much worse. Some say CIS mills cut sales 10 times," he said.
The collapse in Iranian imports is depressing international steel billet prices, which fell by about $50 a ton in a month to $560 a ton fob Russia and Ukraine this week. "All volumes from the Caspian Sea will be redirected to the Black Sea," Krasnojenov said. "That is a major problem for Russian steel plants." Russia sends about 15 percent of its total exports to Iran, making it the largest source of foreign steel, but the sanctions are pushing it out of the market.

"Steel demand is pretty strong, the problem is the banking system," said Dmitry Smolin, metals and mining analyst at URALSIB Capital. "Russian banks do not have trading lines with Iranian banks to facilitate rouble transactions." Iran's envoy to Moscow said late last month that Iran and Russia had started using their domestic rial and rouble currencies in bilateral trade instead of the U.S. dollar. However, market players say the dollar shortage is crippling the steel trade.

(sourced Reuters)

India increases Iran oil imports

Monday, 13 February 2012

Iran's crude oil exports to India have increased 37.5% in January. India has increased oil imports from Iran to become the Islamic Republic's largest customer last month, ignoring recent sanctions imposed by US and EU on importing Iran’s oil. According to The Wall Street Journal Iranian crude exports to India rose to 550,000 barrels a day in January, up 37.5 percent from December 2011.

The development, the report said, has partly offset a 50 percent cut in crude exports to China as a result of pricing dispute. China now imports around 250,000 barrels a day from Iran. The news comes despite the West’s rising pressure on Iran to halt its peaceful nuclear program.On the New Year’s Eve, the United States imposed new sanctions against Iran aimed at preventing other countries from importing Iran’s oil and doing transactions with its central bank.

European Union foreign ministers also approved sanctions against Iran’s oil and financial sectors on January 23, including a ban on Iranian oil imports, a freeze on the assets of the country’s Central Bank within EU states, and a ban on selling diamonds, gold, and other precious metals to Tehran.Although financial sanctions have caused problems with regard to payment for Iran’s oil by other countries, they have apparently not been able to deter India.

Iran's Ambassador to India Seyyed Mehdi Nabizadeh said last Tuesday that India had agreed to pay for some purchases of Iranian oil in Indian rupees, a route that would avoid the risk of an interruption in banking transfers. Meanwhile, despite a pledge to find alternative supply sources for Iran’s oil, South Africa has also increased its Iranian oil imports to 100,000 barrels a day, The Wall Street Journal quoted an unnamed informed source as saying.

The US, Israel and their European allies accuse Iran of diversion in its peaceful nuclear program and have used this as an excuse to pass four rounds of international sanctions against the country at the UN Security Council. Refuting the claims, Tehran insists that as a member to the International Atomic Energy Agency and the Nuclear Non-Proliferation Treaty (NPT), it is fully entitled to peaceful applications of the nuclear energy.
Source: Press TV

Steam coal prices move up with oil on Iranian tension

Thursday, 05 Jan 2012

Reuters reported that physical prompt coal prices moved slightly higher on Wednesday, in line with gains in oil due to growing tension between Iran and the United States and European Union.

A few index inked DES ARA trades took place but no fixed price trades.

A January loading South African cargo was bid at USD 108.50 and offered at USD 112.50, up 25 cents.

A February cargo was bid at USD 104.50, while a March cargo was bid at USD 105.00, unchanged.

A January DES ARA cargo was bid at USD 108, up USD 1.00

A February DES ARA cargo was bid at USD 110.00 and offered at USD 115.00, up USD 1.50

Unless there are fresh supply disruptions, prices look set to continue to drift lower, traders and utilities said.

Coal would not be immune to a spike in oil prices if the United States and EU decide to place an embargo on Iranian oil imports and this escalates.

The US and EU on Wednesday agreed in principle to ban Iranian oil imports but have yet to decide when an embargo would come into effect.

Iran has threatened to close the Strait of Hormuz to oil shipping in response to sanctions.

(Sourced from Reuters)

India has no problem with Iran imports

Friday, 09 Dec 2011

Gulf News reported that India sees no impediments to importing Iranian oil despite a new wave of sanctions imposed by the West.

Mr S Jaipal Reddy oil minister of India said that "As long as there are no sanctions on oil as such, other problems can be managed. There are some practical problems in making payments but we have managed to surmount those problems."

Iran is India's second biggest oil supplier after Saudi Arabia and exports total about USD 12 billion per year meeting about 12% of India's import needs.

India and Iran have been struggling to find a permanent mechanism to settle their bilateral trade especially since December when India's central bank scrapped a clearing house mechanism a move welcomed by the US which is trying to isolate Iran over its nuclear program.

The US, Britain and Canada announced new measures against Iran's energy and financial sectors last month and France proposed unprecedented new sanctions including freezing the assets of its central bank and suspending purchases of its oil. Meanwhile, the European Union last week added 180 people and entities to its Iran sanctions list and laid out plans for a possible embargo of Iranian oil.

Mr Reddy declined to comment on whether India would buy more Iranian oil if the EU bans imports or whether India was in talks with Saudi Arabia about fallback supplies if Iran crude stops coming, saying both were hypothetical situations.

(Sourced from Gulf News)

Afghanistan’s Hajigak Iron Ore Deposit Draws Bids From India, Iran, Canada

Wed, Sep 7,2011
By Eltaf Najafizada and James Rupert

Afghanistan’s richest iron-ore deposit drew bids from an Indian government-backed group, two Iranian contenders and Canada’s Kilo Goldmines Ltd. (KGL), an Afghan official said.

Afghanistan’s mines ministry opened the bids yesterday for the estimated 1.8 billion metric tons of ore at Hajigak, 100 kilometers (60 miles) west of Kabul, said Abdul Jalil Jumriany, a ministry director-general. The tender is the biggest on offer in a country that the U.S. government estimated last year holds $1 trillion in untapped minerals.

Seven Indian steel and mining companies, led by state-owned Steel Authority of India Ltd. (SAIL) and NMDC Ltd. (NMDC), offered a bid that is part of an effort by Prime Minister Manmohan Singh’s government for a bigger role in a nearby country whose stability it calls essential.

In neighboring Pakistan, the politically powerful army “would have concerns about India having such a new role” in Afghanistan, said Bashir Ahmed, a senior fellow and retired army brigadier at the Institute of Regional Studies in Islamabad.

“Many in the Pakistani establishment are quite sensitive to India’s presence in Afghanistan,” seeing it as a security threat, he said.

The Indian group includes state-owned Rashtriya Ispat Nigam Ltd., and private-sector companies JSW Steel Ltd. (JSTL), Jindal Steel & Power Ltd. (JSP), Monnet Ispat Ltd. and JSW Ispat Steel Ltd. A separate Indian contender is Corporate Ispat Alloys Ltd., said Jumriany in a text message listing the bidders.
Iranian Interest

Two Iranian bidders are Gol-e-Gohar Iron Ore Co., one of Iran’s biggest iron ore producers, and Behin Sanate Diba Co., a privately run group of 10 investment, mining and industrial companies, some of which are partly state-owned, said Leyla Rashno, the group’s director for tenders.

Rashno declined in a phone interview in Tehran to say whether the group’s bid has been encouraged or backed by Iran’s government.

Toronto-based Kilo Goldmines, which trades on Canada’s TSX Venture Exchange, focuses mainly on gold mining in the Democratic Republic of Congo.

The other bidder for Hajigak is Acatco LLC, whose owner, Afghan-American businessman Nasir Shansab, lives near Washington and said in a phone interview his partnership, which employs 30 people, would bring in unnamed additional partners to develop the mine.
Indian Strategy

Indian authorities decided to facilitate their country’s group because “it makes business and strategic sense to have a presence in mining in Afghanistan,” Indian Mines Secretary S. Vijay Kumar said in January. Hajigak also may offer India an investment foothold in Afghanistan to rival that of state-owned Metallurgical Corp. of China Ltd., which is developing the country’s biggest copper deposit, at Aynak.

India and Afghanistan accused Pakistan’s army of secretly backing the July 2008 Taliban bomb attack on India’s embassy in Kabul, one of at least three deadly attacks on Indians in the city since that time. Pakistan denied the accusation.
Stalled Parliament

The mines ministry will this month recommend one bid to receive the license, plus one alternate, or reserve, bid, for each of four blocks at Hajigak, a ministry statement said. Ministry spokesman Jawad Omar said the awards will require approval by the cabinet and by Afghanistan’s parliament, where sessions have been stalled by a dispute over which candidates should be seated following disputed elections a year ago.

Hajigak is a range of treeless mountain ridges with a thin population of villagers who graze animals and farm the valleys below. The costs of developing mines will be increased by the need to build paved roads or rail lines to connect the site to potential markets.

While the ultimate cost of mining Hajigak is unclear, Indian companies “should have every reason to go for the Hajigak mines” if the cost of acquisition is about $1 to $1.5 per ton, said Ravindra Deshpande, an analyst with Mumbai-based Elara Securities Ltd.

While the bidders do not include the world’s biggest mining groups, which President Hamid Karzai’s government had hoped to attract, the six contenders represent progress in attracting investors’ interest. Afghanistan canceled a previous tender last year when only one of seven initial competitors showed up to visit the Hajigak site.
Corruption Issue

The U.S. Defense Department has backed efforts to draw in international investors that it says are essential to stabilizing Afghanistan. Still, the decade-old war and corruption remain obstacles. Afghanistan last year tied with Myanmar for the second-worst ranking among 178 countries in Transparency International’s perceived corruption index.

Karzai’s government has pledged to manage and publish its mining contracts under the provisions of the Extractive Industries Transparency Initiative, or EITI, a voluntary anti- corruption regime, Mines Minister Wahidullah Shahrani has said.

EITI, based in Oslo, Norway, advocates rules for improving the transparency of contracts and payments in mining and oil and gas extraction. The group rates 11 countries, including Nigeria, Norway, Liberia and Azerbaijan, as fully compliant, while 23 states, including Afghanistan, Kazakhstan and Indonesia, are pursuing the two-year process to achieve that status.

(sourced Bloomberg)

Wuyang Steel exports 18000 tonnes of steel plate in February

Monday, 14 Mar 2011

It is reported that Hebei Province based Chinese steelmaker Wuyang Iron and Steel Co Ltd exported 18,000 tonnes of steel plate in February this year marking its best monthly export performance since the outbreak of the financial crisis.

Wuyang Steel mainly exports boiler plate, container plate, thick Z-plate and offshore platform steel plate to be used in hydroelectric and wind power projects in South America as well as in oil storage tank manufacturing in the Gulf region. In addition, Wuyang Steel also exports its steel plates to countries such as South Korea, Vietnam and Iran.

In H1 2010 Wuyang Steel exported 92,000 tonnes of wide and thick plate, almost equal to the company total export volume for the whole of 2009.

Bonds worth USD 500 million for Iranian steel projects

Tuesday, 25 Jan 2011
Mehr News Agency reported that some IRR 5 trillion worth of bonds will be offered to the public for the funding of eight steel projects.In February 2010, Iran offered some IRR 5 trillion worth of bonds to the public for the funding of steel projects as the first offering. Each of these eight projects has the capacity to produce 1 million tonnes of steel per year.Previously, Mr Hassan Polarak director of Iranian Mines and Mine Industries Development and Renovation Organization said that steel projects in the country are estimated to cost USD 10 billion of which USD 9 billion will be spent in the country.He said that to build a 1 million tonne steel factory, USD 550 million to USD 600 million is needed and in the past the equipment for these factories was mostly imported. He added that "In heavy industries such as mines we have become self sufficient, while four years ago we were 70% dependant. In steel industry, we are 90% self sufficient and by next year we will be 100%."(Sourced from www.mehrnews.com)

Chinese iron ore imports from Brazil and India fall sharply in 2010

Monday, 24 Jan 2011

Reuters quoted according to data issued by customs that Chinese imports of iron ore from Brazil and India fell sharply during 2010 while Australian shipments inched up slightly over the year.

Shipments from India fell 9.98% to 96.59 million tonnes in 2010, and Brazilian deliveries declined by 9.09% to 130.86 million tonnes compared to a year earlier.
Imports from Australia reached 265.33 million tonnes up by 1.36%YoY.

China stung by its dependence on the three dominant global supplier countries, vowed early last year to diversify its sources of iron ore. Australia, Brazil and India provided 79.7% of China total iron ore imports over 2010 down from 81.5% in 2009 and much of the gap was met by increasing shipments from countries such as Iran, Ukraine and Venezuela.
(Sourced from Reuters)

Iran Says No Need for OPEC to Meet Soon Even if Crude Prices Rise to $120

OPEC members see no reason for the group to hold an emergency meeting even if prices rise as high as $110 or $120 a barrel, Iran’s Oil Minister Masoud Mir- Kazemi told reporters today. “I don’t see a need any time soon for an emergency meeting,” he said in Tehran. The Organization of Petroleum Exporting Countries plans to hold its next regular meeting in June. Iran currently hold the OPEC presidency.
source:Bloomberg

Jalal Abad produces 878,000 mt of iron ore in first nine months of Iranian year

Wednesday, 12 January 2011

Iranian iron ore producer Jalal Abad produced 878,000 mt of iron ore in the first nine months of the current Iranian year (started March 21), which is 26 percent more compared to the same period of the previous Iranian year, according to the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).
Iron ore miner Jalal Abad exploited about 3,416,000 mt of run of mine iron ore in the first nine months of the current Iranian year.