Thu Mar 10, 2011 6:51am GMT
* Iron ore indexes at two-month lows; China imports slow
* Port Hedland sees 16 pct dfrop in shipments
* Stockpiles, steel demand eyed for signs market turning positive
SINGAPORE, March 10 (Reuters) - Steel prices extended losses in China on Thursday, while spot iron ore was steady to lower at around $180 a tonne as traders watched for signs of a turnaround in steel demand that would also herald a rally in ore prices.
Spot Indian fines around 63-63.5 percent iron were quoted at around $180 a tonne by consultancy Mysteel. By 0618 GMT, the 62 percent March iron ore futures contract on the Indian Commodity Exchange was 8,105 rupees ($180) per tonne, up 1.50 rupees.
Platts 62 percent iron ore benchmark IODBZ00-PLT fell $1 to $175 a tonne on Wednesday, extending its losing streak to a 15th consecutive session.
The index, widely used by global miners in setting quarterly contract prices, has lost 9.3 percent since hitting a record high of $193 in mid-February as demand from top iron ore buyer China slowed last month.
But the Steel Index's 62 percent gauge .IO62-CNI=SI was unchanged at $171.60 but Metal Bulletin's index .IO62-CNO=MB dropped $1.30 to $171.95 and all three indexes are at their lowest levels since early January.
China's iron ore imports in January-February rose 22.6 percent from a year ago to 120 million tonnes, China's customs agency said in a statement on Thursday.
"(January) demand was strong and prices were rising just because of supply issues in Brazil and Australia, and some materials (due in February) were brought forward to January," said Graeme Train, analyst with Macquarie in Shanghai.
China imported a record 68.97 million tonnes of the raw material in January, suggesting the volume tumbled to 51.03 million tonnes in February, according to Reuters calculations.
The price of ore has been in a steady decline for around three weeks on reduced Chinese appetite for imports due to high prices and a lacklustre steel market.
Shanghai's most-active steel rebar futures contract for October, fell 1.7 percent to 4,688 yuan a tonne and earlier dipped to 4,683 yuan, its weakest since mid November.
Iron ore shipments from Australia's Port Hedland fell 16 percent in February to 12.85 million tonnes from 15.33 million tonnes in January, according to port authority figures.
Shipments to China fell to 9.03 million tonnes in February from 9.97 million tonnes in January, the data showed.
Exports from India's largest port of Mormugao also dropped last month, falling 4.2 percent from a year earlier to 4.5 million tonnes.
Analysts said that suggested comparatively weaker import data for March too, with Chinese buyers meeting more of their needs from stockpiles of imported ore ashore at Chinese ports, currently standing near record highs, above 80 million tonnes.
"If you include floating stocks, inventories have been falling since mid January," Macquarie's Train said.
He noted the weakness in recent weeks in iron ore and worries about falling steel prices had made mills cautious, but added: "Once you start to see steel end use pick up, it will translate into a rapid recovery in ore prices."
(Reporting by Nick Trevethan; Additional reporting by Rujun Shen; Editing by Ed Lane, sourced :Thomson Reuters)
Showing posts with label The Platts iron ore index. Show all posts
Showing posts with label The Platts iron ore index. Show all posts
Thursday, March 10, 2011
Thursday, February 24, 2011
Iron Ore Prices Down Again Due To Unstable Steel Prices
Sophia Fain 11:48AM, February 23, 2011
Platts reported that "Seaborne iron ore cargo prices slid again Wednesday as buyers remained resistant to purchasing in the spot market.
The Platts 62%-Fe fines assessment was down 75 cents to $186.75/dry mt, and the Platts 63.5/63%-Fe assessment was down also down 75 cents at $191.75/dmt. Transactions were limited in the spot market, as buyers held back from purchasing, and trade slowed down...
'There are still some buyers in the bearish market, who are waiting for the right time and the right price to buy a spot cargo,' said a Shanghai trader.
'The price for iron ore is going down because everyone is panicked when the prices of steel futures fall suddenly from the peak, I believe the price of iron ore will stabilize by next week when the price of steel products and steel futures remain constant,' said the Beijing trader.
There were some bullish factors, as traders also talked of a possible supply slowdown from Australia following the recent cyclone, and although Port Headland had opened, there were reports that there were loading delays and queues at the port.
Added to this traders were wary, as in India on February 28 there will be a ruling on whether iron ore export duties will increase. However, not everyone was in agreement that prices would stabilize soon, with some pointing out that the price of iron ore still remained bearish in the short run.
'I was willing to pay $190 for a 63.5/63 Indian fines cargo yesterday, but not a single cent today, as the steel mills are shunning the spot market, many of them are reeling from the credit crunch in China today,' said the Beijing trader.
In the low-grade market there was talk that 58/58%-Fe cargo with 4% alumina and 5% silica had been sold at $163/dmt CFR North China, although sources also reported pressure on low-grade spot prices...
Spot prices of Q235 square billet stayed unchanged at Yuan 4,330/mt ($657) ex-stock while hot-rolled coil was down Yuan 50/mt at Yuan 4,870/mt ex-stock. On the Shanghai Futures exchange, the most active October rebar futures contract was down Yuan 60/mt at Yuan 4,940/mt.
'The price of many commodities futures suffered a huge dip today due to the instability in Libya, the steel futures are not spared either,' said a Shanghai trader."
The Platts 62%-Fe fines assessment was down 75 cents to $186.75/dry mt, and the Platts 63.5/63%-Fe assessment was down also down 75 cents at $191.75/dmt. Transactions were limited in the spot market, as buyers held back from purchasing, and trade slowed down...
'There are still some buyers in the bearish market, who are waiting for the right time and the right price to buy a spot cargo,' said a Shanghai trader.
'The price for iron ore is going down because everyone is panicked when the prices of steel futures fall suddenly from the peak, I believe the price of iron ore will stabilize by next week when the price of steel products and steel futures remain constant,' said the Beijing trader.
There were some bullish factors, as traders also talked of a possible supply slowdown from Australia following the recent cyclone, and although Port Headland had opened, there were reports that there were loading delays and queues at the port.
Added to this traders were wary, as in India on February 28 there will be a ruling on whether iron ore export duties will increase. However, not everyone was in agreement that prices would stabilize soon, with some pointing out that the price of iron ore still remained bearish in the short run.
'I was willing to pay $190 for a 63.5/63 Indian fines cargo yesterday, but not a single cent today, as the steel mills are shunning the spot market, many of them are reeling from the credit crunch in China today,' said the Beijing trader.
In the low-grade market there was talk that 58/58%-Fe cargo with 4% alumina and 5% silica had been sold at $163/dmt CFR North China, although sources also reported pressure on low-grade spot prices...
Spot prices of Q235 square billet stayed unchanged at Yuan 4,330/mt ($657) ex-stock while hot-rolled coil was down Yuan 50/mt at Yuan 4,870/mt ex-stock. On the Shanghai Futures exchange, the most active October rebar futures contract was down Yuan 60/mt at Yuan 4,940/mt.
'The price of many commodities futures suffered a huge dip today due to the instability in Libya, the steel futures are not spared either,' said a Shanghai trader."
Sunday, February 13, 2011
Iron Ore-Shanghai rebar, iron ore prices at record
SINGAPORE,Feb11,2011,Reuters
Shanghai steel futures rose to a record for a fifth day in a row on Friday as index-based spot iron ore prices bolted to all-time highs on tight supplies and strong demand from top buyer China.
Chinese steelmakers are boosting production in anticipation of a pickup in demand when construction activities restart in spring after halting in winter.
"People are pushing up prices because the cost of iron ore and coal are increasing and spring is approaching which means the resumption of construction activities in China," said an iron ore trader in China's eastern Shandong province.
The most active reinforcing bar, or rebar, contract for October delivery on the Shanghai Futures Exchange was up 0.5 percent at 5,213 yuan per tonne by the midday break, after peaking at 5,230 yuan earlier.
Most Chinese rebar exporters have stopped selling overseas and have turned to the domestic market given soaring prices at home, traders said.
Spot rebar is being sold at 4,800 yuan per tonne in northern China and at almost 5,000 yuan in the south, the Shandong trader said.
"Most steel mills are producing in full capacity which means there could be a big surplus of these steel products if demand is weak," he added.
RECORD IRON ORE
The surge in Shanghai rebar futures followed iron ore price indexes reaching record levels on Thursday.
Global miners Vale and Rio Tinto use the indexes in setting quarterly iron ore contracts, which is likely to hit a record in April-June given the recent surge in spot prices.
Vale and Rio price quarterly rates using the average index-based price for the past three months one month before the start of the relevant quarter.
Platts' 62 percent iron ore index IODBZ00-PLT has averaged $176.5 a tonne, cost and freight delivered to China, from Dec. 1 until this week, up more than 18 percent from the September-November average.
Platts' index rose $1.50 to $190.25 a tonne on Thursday, and with the bull trend intact, it could test $219 over the next three months, said Reuters market analyst Wang Tao.
The Steel Index 62 percent iron ore benchmark .IO62-CNI=SI climbed $1.60 to $188, and Metal Bulletin's 62 percent gauge .IO62-CNO=MB jumped $1.79 to $185.90.
BHP, Rio Tinto, Vale as well as Australian iron ore producer Fortescue Metals Group "are shipping as much as they can" while cargoes from No. 3 supplier India are crimped by an export ban in Karnataka and transport restrictions in Orissa, Commonwealth Bank of Australia said in a note.
India's Supreme Court is likely to rule on the Karnataka ban this month, which if lifted, could dampen the rally that has pushed up price indexes by 11 percent so far this year, after gaining more than 40 percent in 2010.
The Karnataka ban has been in place since last July, shrinking India's iron ore exports for a sixth straight month in December.
Indian ore with 63.5 percent iron content was being offered in China at $190-$192 a tonne, including freight, up from $188-$190 earlier this week, said Chinese consultancy Umetal.
That grade could hit $200 next week, said a Shanghai-based trader who saw offers of as high as $197 per tonne.
"But we may see some correction in March. Some mills are not buying because credit is getting tighter and the government is bent on controlling price increases," the Shanghai trader said.
China raised interest rates for the second time in six weeks on Tuesday to tame stubbornly high inflation that threatens to unsettle global markets.
Shanghai steel futures rose to a record for a fifth day in a row on Friday as index-based spot iron ore prices bolted to all-time highs on tight supplies and strong demand from top buyer China.
Chinese steelmakers are boosting production in anticipation of a pickup in demand when construction activities restart in spring after halting in winter.
"People are pushing up prices because the cost of iron ore and coal are increasing and spring is approaching which means the resumption of construction activities in China," said an iron ore trader in China's eastern Shandong province.
The most active reinforcing bar, or rebar, contract for October delivery on the Shanghai Futures Exchange was up 0.5 percent at 5,213 yuan per tonne by the midday break, after peaking at 5,230 yuan earlier.
Most Chinese rebar exporters have stopped selling overseas and have turned to the domestic market given soaring prices at home, traders said.
Spot rebar is being sold at 4,800 yuan per tonne in northern China and at almost 5,000 yuan in the south, the Shandong trader said.
"Most steel mills are producing in full capacity which means there could be a big surplus of these steel products if demand is weak," he added.
RECORD IRON ORE
The surge in Shanghai rebar futures followed iron ore price indexes reaching record levels on Thursday.
Global miners Vale and Rio Tinto use the indexes in setting quarterly iron ore contracts, which is likely to hit a record in April-June given the recent surge in spot prices.
Vale and Rio price quarterly rates using the average index-based price for the past three months one month before the start of the relevant quarter.
Platts' 62 percent iron ore index IODBZ00-PLT has averaged $176.5 a tonne, cost and freight delivered to China, from Dec. 1 until this week, up more than 18 percent from the September-November average.
Platts' index rose $1.50 to $190.25 a tonne on Thursday, and with the bull trend intact, it could test $219 over the next three months, said Reuters market analyst Wang Tao.
The Steel Index 62 percent iron ore benchmark .IO62-CNI=SI climbed $1.60 to $188, and Metal Bulletin's 62 percent gauge .IO62-CNO=MB jumped $1.79 to $185.90.
BHP, Rio Tinto, Vale as well as Australian iron ore producer Fortescue Metals Group "are shipping as much as they can" while cargoes from No. 3 supplier India are crimped by an export ban in Karnataka and transport restrictions in Orissa, Commonwealth Bank of Australia said in a note.
India's Supreme Court is likely to rule on the Karnataka ban this month, which if lifted, could dampen the rally that has pushed up price indexes by 11 percent so far this year, after gaining more than 40 percent in 2010.
The Karnataka ban has been in place since last July, shrinking India's iron ore exports for a sixth straight month in December.
Indian ore with 63.5 percent iron content was being offered in China at $190-$192 a tonne, including freight, up from $188-$190 earlier this week, said Chinese consultancy Umetal.
That grade could hit $200 next week, said a Shanghai-based trader who saw offers of as high as $197 per tonne.
"But we may see some correction in March. Some mills are not buying because credit is getting tighter and the government is bent on controlling price increases," the Shanghai trader said.
China raised interest rates for the second time in six weeks on Tuesday to tame stubbornly high inflation that threatens to unsettle global markets.
Friday, February 4, 2011
Iron Ore-Key index at record in thin trade
Thu Feb 3, 2011 7:07am GMT
* Indian exporters see higher prices after China holiday
* Indian futures flat to higher, volumes lean (Adds Indian futures)
By Manolo Serapio Jr
SINGAPORE, Feb 3 (Reuters) - A key iron ore price index edged up to a record although business is expected to remain light on Thursday with top buyer China off the market for the Lunar New Year break.
Platts' 62 percent iron ore index IODBZ00-PLT rose 50 cents to $187.25 a tonne, including freight, on Wednesday. Two similar indexes by Metal Bulletin .IO62-CNO=MB and Steel Index .IO62-CNI=SI were steady at $183.36 and $185.60, respectively.
The indexes, based on spot transactions in China, are used by global miners like Vale and Rio Tinto in deciding rates for quarterly contracts.
"Buying from Chinese players have almost stopped but Indian exporters are bullish and expect prices to open higher post-Chinese New Year holidays," said Dhruv Goel, managing partner at iron ore trader Steelmint in India's eastern state of Orissa.
Chinese markets are shut for the week-long Lunar New Year holiday that began on Wednesday. They will reopen on Feb. 9.
Iron ore forward swaps mostly gained on thin volumes on Wednesday, although prices remained below those of the indexes, pointing to caution among buyers on the near-term direction of spot prices.
The Singapore Exchange-cleared February contract rose 87 cents to $183 a tonne and March added 50 cents to $174. April slipped 50 cents to $165.50.
In India, iron ore futures were flat to firmer although volumes remained lean on the fifth day since two commodity exchanges there launched the world's first futures contract for the steelmaking ingredient.
At 0630 GMT, 62 percent ore for March delivery on the Indian Commodity Exchange rose 1 percent to 8,014 rupees ($176) a tonne, including freight cost to northern China.
On the Multi Commodity Exchange, March 62 percent ore was nearly flat at 7,516 rupees a tonne, free on board.
Indian exporters are eyeing a court ruling in mid-February on whether a ban on iron ore exports from the southern Karnataka state will be lifted.
Indian iron ore exports fell for the sixth straight month in December because of the ban.
($1 = 45.57 rupees) (Editing by Ed Lane, sourced:reuters)
* Indian exporters see higher prices after China holiday
* Indian futures flat to higher, volumes lean (Adds Indian futures)
By Manolo Serapio Jr
SINGAPORE, Feb 3 (Reuters) - A key iron ore price index edged up to a record although business is expected to remain light on Thursday with top buyer China off the market for the Lunar New Year break.
Platts' 62 percent iron ore index IODBZ00-PLT rose 50 cents to $187.25 a tonne, including freight, on Wednesday. Two similar indexes by Metal Bulletin .IO62-CNO=MB and Steel Index .IO62-CNI=SI were steady at $183.36 and $185.60, respectively.
The indexes, based on spot transactions in China, are used by global miners like Vale and Rio Tinto in deciding rates for quarterly contracts.
"Buying from Chinese players have almost stopped but Indian exporters are bullish and expect prices to open higher post-Chinese New Year holidays," said Dhruv Goel, managing partner at iron ore trader Steelmint in India's eastern state of Orissa.
Chinese markets are shut for the week-long Lunar New Year holiday that began on Wednesday. They will reopen on Feb. 9.
Iron ore forward swaps mostly gained on thin volumes on Wednesday, although prices remained below those of the indexes, pointing to caution among buyers on the near-term direction of spot prices.
The Singapore Exchange-cleared February contract rose 87 cents to $183 a tonne and March added 50 cents to $174. April slipped 50 cents to $165.50.
In India, iron ore futures were flat to firmer although volumes remained lean on the fifth day since two commodity exchanges there launched the world's first futures contract for the steelmaking ingredient.
At 0630 GMT, 62 percent ore for March delivery on the Indian Commodity Exchange rose 1 percent to 8,014 rupees ($176) a tonne, including freight cost to northern China.
On the Multi Commodity Exchange, March 62 percent ore was nearly flat at 7,516 rupees a tonne, free on board.
Indian exporters are eyeing a court ruling in mid-February on whether a ban on iron ore exports from the southern Karnataka state will be lifted.
Indian iron ore exports fell for the sixth straight month in December because of the ban.
($1 = 45.57 rupees) (Editing by Ed Lane, sourced:reuters)
Wednesday, February 2, 2011
India iron ore futures rise a tad; volumes moderate
Wed Feb 2, 2011 8:37 amEST
* Volumes moderate even as trading enters fourth day
* Brokers says getting enquiries from exporters for hedging
MUMBAI Feb 2 (Reuters) The world's first iron ore futures in India rose a tad on Wednesday, tracing gains in the overseas spot market, which hovered near its record high, traders and analysts said.
At 5:00 p.m. on the Indian Commodity Exchange (ICEX), iron ore of 62 percent fines for March delivery was trading 0.85 percent higher at 8,014 rupees per tonne, including freight cost for delivery to northern China.
While on the Multi Commodity Exchange (MCX), the country's largest by turnover, 62 percent fines for February delivery was trading 0.30 percent higher at 7,380 rupees per tonne, free on board.
ICEX, which is part-owned by state-run MMTC Ltd (MMTC.BO), the biggest Indian trader of iron ore, recorded volumes of 20,800 tonnes, down 15 percent from a day ago. MCX volumes were at 1,500 tonnes.
The Platts 62 percent iron ore index IODBZ00-PLT was unchanged at $187.25 a tonne, cost and freight delivered to China. The Steel Index's 62 percent benchmark .IO62-CNI=SI was steady at $185.60.
The trading entered into its fourth day, and have been witnessing moderate volumes since its launch, and analysts said volumes would remain thin until exporters get used to the contract.
"We have been getting enquiries from iron ore exporters. We see potential in these contracts going forward," said Aurobinda Prasad, head of research, Karvy Comtrade.
Before India's futures contracts, trading in iron ore derivatives were mostly done through forward swaps with exchanges from Singapore to the United States and Europe offering clearing services, hoping to draw steelmakers into hedging price risks.
India is the world's third-biggest iron ore exporter after Australia and Brazil, but shipments have been hit by an export ban in its southern Karnataka state.
India normally exports around 100 million tonnes of iron ore annually of which around a quarter comes from Karnataka. (Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil, sourced:Reuters)
* Volumes moderate even as trading enters fourth day
* Brokers says getting enquiries from exporters for hedging
MUMBAI Feb 2 (Reuters) The world's first iron ore futures in India rose a tad on Wednesday, tracing gains in the overseas spot market, which hovered near its record high, traders and analysts said.
At 5:00 p.m. on the Indian Commodity Exchange (ICEX), iron ore of 62 percent fines for March delivery was trading 0.85 percent higher at 8,014 rupees per tonne, including freight cost for delivery to northern China.
While on the Multi Commodity Exchange (MCX), the country's largest by turnover, 62 percent fines for February delivery was trading 0.30 percent higher at 7,380 rupees per tonne, free on board.
ICEX, which is part-owned by state-run MMTC Ltd (MMTC.BO), the biggest Indian trader of iron ore, recorded volumes of 20,800 tonnes, down 15 percent from a day ago. MCX volumes were at 1,500 tonnes.
The Platts 62 percent iron ore index IODBZ00-PLT was unchanged at $187.25 a tonne, cost and freight delivered to China. The Steel Index's 62 percent benchmark .IO62-CNI=SI was steady at $185.60.
The trading entered into its fourth day, and have been witnessing moderate volumes since its launch, and analysts said volumes would remain thin until exporters get used to the contract.
"We have been getting enquiries from iron ore exporters. We see potential in these contracts going forward," said Aurobinda Prasad, head of research, Karvy Comtrade.
Before India's futures contracts, trading in iron ore derivatives were mostly done through forward swaps with exchanges from Singapore to the United States and Europe offering clearing services, hoping to draw steelmakers into hedging price risks.
India is the world's third-biggest iron ore exporter after Australia and Brazil, but shipments have been hit by an export ban in its southern Karnataka state.
India normally exports around 100 million tonnes of iron ore annually of which around a quarter comes from Karnataka. (Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil, sourced:Reuters)
Iron Ore-Prices steady, China shut for holidays
Wed Feb 2, 2011 5:30am GMT
* China tightening could sap iron ore strength
* Indian futures mixed, swaps fall
By Manolo Serapio Jr
SINGAPORE, Feb 2 (Reuters) - Spot iron ore prices hovered around record levels on Wednesday with slower market activity with top buyer China off for the week-long Lunar New Year holiday.
The key price indexes, which global miners like Vale and Rio Tinto use in setting rates for quarterly contracts, were mostly flat on Tuesday but stayed near recent record highs as tight supplies remained a key concern.
The Platts 62 percent iron ore index IODBZ00-PLT was unchanged at $186.75 a tonne, cost and freight delivered to China. The Steel Index's 62 percent benchmark .IO62-CNI=SI was also steady at $185.60.
Metal Bulletin's 62 percent gauge .IO62-CNO=MB eased 23 cents to $183.36, but still near the record $184.43 hit last week.
"I'm still bullish about prices after the Chinese New Year, especially in February and March. It's highly possible that the market will continue to go up," said Destiny Guo, an iron ore physical and derivatives broker at Market Securities.
"I think end-user demand in China is picking up, although the downside risk is what China will do to address inflation."
China has been tightening monetary policy to tame inflation and analysts expect further tightening ahead if the rise in consumer prices quickens to a 30-month high in January.
Rising raw material cost had buoyed Shanghai's steel reinforcing bar futures to a record high on Tuesday, a day before Chinese markets shut for the Lunar New Year Break.
Chinese markets will reopen on Feb. 9.
In India, iron ore futures edged higher on Wednesday, riding on firmer spot prices, although volumes were expected to remain thin.
India's Multi Commodity Exchange (MCX), its largest by turnover, and the Indian Commodity Exchange (ICEX), on Saturday launched the world's first iron ore futures. But volumes have been modest since with trading limited to domestic players.
At 0500 GMT, March 62 percent fines on ICEX gained 0.8 percent to 8,011.50 rupees ($176) per tonne, including freight cost for delivery to northern China.
On MCX, 62 percent fines for March delivery slipped 0.3 percent to 7,473 rupees per tonne, free on board.
Before India's futures contracts, trading in iron ore derivatives were mostly done through forward swaps with exchanges from Singapore to the United States and Europe offering clearing services, hoping to draw steelmakers into hedging price risks.
The Singapore Exchange clears the bulk of global swaps and prices fell on Tuesday as investors locked in recent gains.
The February contract eased 67 cents to $182.13 a tonne, March fell $1.50 to $173.50 and April dropped 20 cents to $166. ($1 = 45.45 rupees) (Editing by Ed Lane,sourced:Thomson reuters)
Thursday, January 27, 2011
London Mining inks iron ore off take agreement with Glencore
Thursday, 27 Jan 2011
London Mining announced that it has signed an offtake agreement with the trading house Glencore International AG.
The offtake will cover 9.5 million WMT production from Phase 1A of the Company's Marampa project.
The five year agreement, which includes a pre-payment facility for up to USD 27 million, will provide guaranteed offtake and shipping from Sierra Leone for all Phase 1A production, with the option for London Mining to expand the agreement to Phase 1B on the same terms.
The offtake will be priced at around Platts 62% CFR China benchmark, with an upward adjustment for the Fe content of the Company's 65% Fe sinter feed concentrate and an incentive to place product at locations such as Europe where there is a net pricing benefit through lower shipping costs.
The offtake accommodates London Mining's ramp up expectations and is flexible to accommodate varying shipping sizes and frequencies to supply European, Chinese and other markets.
Mr Graeme Hossie CEO of London Mining said “This offtake agreement is an important development for the Marampa project. It provides London Mining with certainty of proceeds directly correlated to the benchmark CFR China price, positive working capital and provides an external validation of the high quality of our product. In addition, it gives us a reliable counterparty which will also provide shipping and agency services for us if we wish to supply particular steel industry clients from our next stage expanded production."
London Mining announced that it has signed an offtake agreement with the trading house Glencore International AG.
The offtake will cover 9.5 million WMT production from Phase 1A of the Company's Marampa project.
The five year agreement, which includes a pre-payment facility for up to USD 27 million, will provide guaranteed offtake and shipping from Sierra Leone for all Phase 1A production, with the option for London Mining to expand the agreement to Phase 1B on the same terms.
The offtake will be priced at around Platts 62% CFR China benchmark, with an upward adjustment for the Fe content of the Company's 65% Fe sinter feed concentrate and an incentive to place product at locations such as Europe where there is a net pricing benefit through lower shipping costs.
The offtake accommodates London Mining's ramp up expectations and is flexible to accommodate varying shipping sizes and frequencies to supply European, Chinese and other markets.
Mr Graeme Hossie CEO of London Mining said “This offtake agreement is an important development for the Marampa project. It provides London Mining with certainty of proceeds directly correlated to the benchmark CFR China price, positive working capital and provides an external validation of the high quality of our product. In addition, it gives us a reliable counterparty which will also provide shipping and agency services for us if we wish to supply particular steel industry clients from our next stage expanded production."
Wednesday, January 26, 2011
Iron Ore-Key indexes climb to high but buying wanes
Wednesday Jan 26, 2011
SHANGHAI Jan 26 (Reuters) -
Offers to sell iron ore to China remained unchanged on Wednesday as steel mills closed buying in the final week before the Lunar New Year holiday, although key indexes hovered near record highs on Tuesday.
China's iron ore market has gradually ground to a halt this week as the Feb.2-8 Lunar New Year holiday approaches, and offers of Indian ore with 63.5 percent iron content selling to China stood little changed at about $190 per tonne.
"Our steel mill customers have already stopped buying the raw materials this week; there is no market at all right now," said an iron ore trader in Shanghai.
Year-end restocking by Chinese steel mills since early January has boosted prices of imported iron ore to near $200 per tonne including freight, a level last seen in February 2008.
The Platts 62 percent iron ore index IODBZ00-PLT stood steady at $186 per tonne on Tuesday, still near the record $186.50 touched last Thursday.
The Steel Index 62 percent benchmark .IO62-CNI=SI rebounded 40 cents to $185.4 per tonne, holding close to last Friday's record $185.70 last Friday.
The Metal Bulletin Iron Ore Index .IO62-CNO=MB bucked the trend again by falling about $1 to $183.48 per tonne on Tuesday after gaining for 12 consecutive sessions. (Reporting by Ruby Lian and Manolo Serapio Jr in SINGAPORE; Editing by Chris Lewis, sourced reuters)
Wednesday, January 19, 2011
Key indexes near record high
19th January 2011
SINGAPORE – Key iron-ore price indexes were on track to hit record highs on Wednesday, aided by strong Chinese buying ahead of the Lunar New Year and persistent worries over tight supply.
Some Chinese steel mills continued to restock the steelmaking material for fear prices would go up further while some traders were adopting a more cautious stance with prices at near record highs, traders said.
The Platts 62% iron-ore index rose 1,4% to $185 a ton, cost and freight delivered to China, on Tuesday.
That is just a dollar away from the $186 posted on Platts on April 20 last year, the highest since the reference price provider began publishing daily iron ore prices in June 2008.
The Steel Index's (TSI) 62% benchmark edged up 60c to $181,40 a ton, also near its record $184,80 reached last April 23.
High-grade Carajas iron ore fines from top producer Vale were offered at above $200 a ton on Tuesday, TSI said in a note.
Rising prices of steelmaking materials like iron ore as well as coking coal, after floods ravaged top producer Australia, kept Shanghai steel rebar futures trading near record highs.
The most active May rebar contract on the Shanghai Futures Exchange touched a high of 4 931 yuan a ton on Wednesday, a tad off the record 4 933 yuan touched on Monday.
The outlook for the global steel sector is stable with the worst behind the industry after the economic downturn, although recovery is still relatively slow and not expected to accelerate, Standard & Poor's lead analyst Andrey Nikolaev said on Tuesday.
Edited by: Reuters
SINGAPORE – Key iron-ore price indexes were on track to hit record highs on Wednesday, aided by strong Chinese buying ahead of the Lunar New Year and persistent worries over tight supply.
Some Chinese steel mills continued to restock the steelmaking material for fear prices would go up further while some traders were adopting a more cautious stance with prices at near record highs, traders said.
The Platts 62% iron-ore index rose 1,4% to $185 a ton, cost and freight delivered to China, on Tuesday.
That is just a dollar away from the $186 posted on Platts on April 20 last year, the highest since the reference price provider began publishing daily iron ore prices in June 2008.
The Steel Index's (TSI) 62% benchmark edged up 60c to $181,40 a ton, also near its record $184,80 reached last April 23.
High-grade Carajas iron ore fines from top producer Vale were offered at above $200 a ton on Tuesday, TSI said in a note.
Rising prices of steelmaking materials like iron ore as well as coking coal, after floods ravaged top producer Australia, kept Shanghai steel rebar futures trading near record highs.
The most active May rebar contract on the Shanghai Futures Exchange touched a high of 4 931 yuan a ton on Wednesday, a tad off the record 4 933 yuan touched on Monday.
The outlook for the global steel sector is stable with the worst behind the industry after the economic downturn, although recovery is still relatively slow and not expected to accelerate, Standard & Poor's lead analyst Andrey Nikolaev said on Tuesday.
Edited by: Reuters
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