Thursday, 20 Oct 2011
According to Xinhua, China Iron Ore Price Index released, inventories of China iron ore at 25 major ports dipped 0.12% WoW to 93.07 million tonnes in the week ending October 17.
According to the index last week supplies of imported iron ore were 110,000 tonnes lower than that of the previous week.
The price index for 63.5% purity and 58% purity iron ore imports both dropped 10 points to 167 points and 138 points respectively.
According to Xinhua analysts the downward trend in China's iron ore price will continue due to sluggish demand from steel manufacturers and the global economic downturn.
According to the analysts the weakening domestic demand from industries such as construction, automobiles and railway construction will continue to weigh on imported iron ore prices, as a wait-and-see approach has become common among downstream companies.
Iron ore producer giant Vale of Brazil recently said it would scale down its contracting prices of iron ore with Chinese steel companies in the fourth quarter.
(Sourced from www.chinadaily.com.cn)
Showing posts with label imported iron ore. Show all posts
Showing posts with label imported iron ore. Show all posts
Thursday, October 20, 2011
Wednesday, August 3, 2011
Perwaja new iron ore plant will rejuvenate local steel industry - Analyst
Wednesday, 03 Aug 2011 |By BERNAMA
Perwaja Holdings Bhd's decision to build its own MYR 400 million iron ore concentration and palletizing plant in Kemaman, Terengganu is set to rejuvenate the local steel industry.
Senior analyst with MIDF Research, Syed Muhammad Kifni Syed Kamaruddin said that one benefit for the industry would be the reduced dependency on imported iron ore pellets
He said that Perwaja could also gain in terms of cost adding that however no change could be expected in terms of steel pricing as the metal's pricing would follow international prices.
He told that another way the local industry could benefit will be the stability in terms steel supply in the local market. This, however, could be achieved only if the right amount of steel is produced without disrupting prices.
Ranked among the country's largest integrated producer of primary steel products such as billets, blooms and beam blanks, Perwaja supplies its products directly to downstream producers both in the local and overseas markets including the Middle East.
Perwaja also recently announced that it had put in an application to the state government to mine for iron ore, the basic material used to make primary steel, in Bukit Besi, which is about 80km from its proposed plant in Terengganu.
The proposal is still under consideration from the Terengganu state government.
Bukit Besi has an estimated 50 million tonnes of raw iron ore deposits, and this could be translated into at least 12 years of supply based on Perwaja's full capacity requirement of four million tonnes of raw iron ore annually for its plant.
OSK Research in its report that if Perwaja obtains the mining license, it could save itself a cost of more than USD100 for per tonne of raw iron ore.
The calculation was based on the current price of imported raw iron ore of USD 160 per tonne against local cost for mining which would amount to less than USD 50 per tonne.
Therefore, obtaining the mining concession would mean a lucrative income to the steel manufacturing company after considering the amount of cost reduction that they would gain from operating their own iron ore mine and processing.
Perwaja Holdings Bhd's decision to build its own MYR 400 million iron ore concentration and palletizing plant in Kemaman, Terengganu is set to rejuvenate the local steel industry.
Senior analyst with MIDF Research, Syed Muhammad Kifni Syed Kamaruddin said that one benefit for the industry would be the reduced dependency on imported iron ore pellets
He said that Perwaja could also gain in terms of cost adding that however no change could be expected in terms of steel pricing as the metal's pricing would follow international prices.
He told that another way the local industry could benefit will be the stability in terms steel supply in the local market. This, however, could be achieved only if the right amount of steel is produced without disrupting prices.
Ranked among the country's largest integrated producer of primary steel products such as billets, blooms and beam blanks, Perwaja supplies its products directly to downstream producers both in the local and overseas markets including the Middle East.
Perwaja also recently announced that it had put in an application to the state government to mine for iron ore, the basic material used to make primary steel, in Bukit Besi, which is about 80km from its proposed plant in Terengganu.
The proposal is still under consideration from the Terengganu state government.
Bukit Besi has an estimated 50 million tonnes of raw iron ore deposits, and this could be translated into at least 12 years of supply based on Perwaja's full capacity requirement of four million tonnes of raw iron ore annually for its plant.
OSK Research in its report that if Perwaja obtains the mining license, it could save itself a cost of more than USD100 for per tonne of raw iron ore.
The calculation was based on the current price of imported raw iron ore of USD 160 per tonne against local cost for mining which would amount to less than USD 50 per tonne.
Therefore, obtaining the mining concession would mean a lucrative income to the steel manufacturing company after considering the amount of cost reduction that they would gain from operating their own iron ore mine and processing.
Wednesday, March 9, 2011
Masteel plans to reduce dependence on imported iron ore
Wednesday, 09 Mar 2011
According to Mr Gu Jianguo chairman of Maanshan, Anhui Province based Chinese steelmaker Maanshan Iron and Steel Company Ltd d that 75% of the iron ore Masteel uses in its production consists of imports with the result that the recent rising ore import prices have significantly increased the company's production costs.
M Gu said Masteel hopes to accelerate the exploration of its own mineral resources and increase the share of its own iron ore resources in its overall ore consumption to 30% by the end of the 12th five-year plan period (2011-2015). In addition, the company is also interested in acquiring overseas mineral resources.
Mr Gu also said that, with profitability in the Chinese steel industry currently at low levels, Masteel will seek to increase its production of high value added products such as steel products applied in high-speed railways. Masteel also hopes to increase the share of its non-steel business revenues in its overall revenues in the 12th five-year plan period.
M Gu said Masteel hopes to accelerate the exploration of its own mineral resources and increase the share of its own iron ore resources in its overall ore consumption to 30% by the end of the 12th five-year plan period (2011-2015). In addition, the company is also interested in acquiring overseas mineral resources.
Mr Gu also said that, with profitability in the Chinese steel industry currently at low levels, Masteel will seek to increase its production of high value added products such as steel products applied in high-speed railways. Masteel also hopes to increase the share of its non-steel business revenues in its overall revenues in the 12th five-year plan period.
Subscribe to:
Posts (Atom)
Posts
