Monday, 13 Feb 2012
The Lake Carriers' Association announced that drybulk cargo shipments totaled 3.9 million tons in January, an increase of 14% compared to January 2011 and 41% ahead of the month's five year average.
Iron ore cargos for the steel industry increased 21% compared to a year ago and outperformed their five year average by 58%. Shipments of iron ore on the Great Lakes totaled 3,587,016 net tons in January, an increase of 24% over January 2011 and 57% ahead of the month's five year average.
However, coal loadings slipped by 53% compared to January 2011, and slightly less 45% compared to the trade's five year average. Shipments of coal on the Great Lakes totaled 382,312 net tons in January, a decrease of 49% compared to January 2011 and decreased by 62% on the month's five year average.
Limestone cargos, on the other hand only had one cargo moved during the month of January due to low temperatures which make rinsing the limestone difficult.
(sourced from steelorbis.com)
Showing posts with label iron ore cargoes. Show all posts
Showing posts with label iron ore cargoes. Show all posts
Monday, February 13, 2012
Wednesday, February 8, 2012
Vale iron ore ships face elevated cancellation risk - HSBC
Wednesday, 08 Feb 2012
HSBC Shipping Services Ltd said that there’s an elevated risk that Vale SA, the Brazilian mining company amassing a fleet of 35 of the world’s largest iron ore carriers, may cancel some of the contracts.
The vessels, each able to hold as much as 400,000 metric tonnes of ore, are excluded from China by port entry requirements for very large vessels that were tightened last week. The rules apply to dry bulk vessels larger than 350,000 deadweight tonnes, the China Shipowners Association said. Vale, the world’s largest ore producer, says it’s operating six vessels above that size, of which it owns four and charters two.
Vale remained committed to the construction of the remaining 29 ships, the Rio de Janeiro based company said last week, as part of plans to spend USD 8.1 billion on new ships and take greater control over freight costs from Brazil to China, its fastest growing market in Asia.
HSBC said in the report that “The shipbuilding program might look like an expensive mistake, but it is potentially even worse than that if they are banned from entering China. Six have already entered service and some of the remainder must now be at elevated risk of cancellation.”
None of the existing Vale owned ore carriers have been permitted to call at Chinese ports. The Berge Everest, owned by BW Group Ltd. and under a long-term contract to Vale, called at Dalian in December. Chinese shipowners opposed the vessels’ introduction on concern it would worsen a capacity glut and plunging rates. China is the biggest global user of iron ore, a steelmaking ingredient.
(Sourced from Bloomberg)
HSBC Shipping Services Ltd said that there’s an elevated risk that Vale SA, the Brazilian mining company amassing a fleet of 35 of the world’s largest iron ore carriers, may cancel some of the contracts.
The vessels, each able to hold as much as 400,000 metric tonnes of ore, are excluded from China by port entry requirements for very large vessels that were tightened last week. The rules apply to dry bulk vessels larger than 350,000 deadweight tonnes, the China Shipowners Association said. Vale, the world’s largest ore producer, says it’s operating six vessels above that size, of which it owns four and charters two.
Vale remained committed to the construction of the remaining 29 ships, the Rio de Janeiro based company said last week, as part of plans to spend USD 8.1 billion on new ships and take greater control over freight costs from Brazil to China, its fastest growing market in Asia.
HSBC said in the report that “The shipbuilding program might look like an expensive mistake, but it is potentially even worse than that if they are banned from entering China. Six have already entered service and some of the remainder must now be at elevated risk of cancellation.”
None of the existing Vale owned ore carriers have been permitted to call at Chinese ports. The Berge Everest, owned by BW Group Ltd. and under a long-term contract to Vale, called at Dalian in December. Chinese shipowners opposed the vessels’ introduction on concern it would worsen a capacity glut and plunging rates. China is the biggest global user of iron ore, a steelmaking ingredient.
(Sourced from Bloomberg)
Monday, February 6, 2012
Vale-China standoff over mega iron ore ships deepens
Monday, 06 February 2012
Beijing has effectively barred mega iron ore ships owned by Brazilian miner Vale SA, stepping up protection of the domestic shipping industry and control over imports of the key steelmaking ingredient.
China's Ministry of Transport on Tuesday, citing a downturn in the shipping industry, banned giant dry bulk vessels and oil tankers with immediate effect. It did not specifically mention Vale in the new regulation, which affects all large vessels including the fleet of 400,000 deadweight tonne vessels called Valemaxes.The statement comes just a month after Vale managed to unload iron ore from its 388,000-tonne vessel Berge Everest at Dalian port. The shipment swiftly drew an outcry from the influential China Shipowners Association, which has been actively lobbying Beijing to ban Vale's giant carriers.
The Shipowners Association and powerful steelmakers have said that Vale's fleet of giant carriers could be a "Trojan horse", which would allow the miner to monopolize the shipping and the iron ore markets in the world's largest importer of the raw material by sending supplies cheaper than could rivals such as Australia's Rio Tinto and BHP Billiton ."At the end of the day, they (China) want to support their own. They are not interested in whether Vale will be able to provide cheap imports in comparison to Australian imports," said George Lazardis, an analyst at Greek broker Intermodal.
"They are interested in giving support to their shipowners, which are starting to become a significant force over the past couple of years, and to help that part of the industry grow."At present, no Chinese ports have regulatory approval to receive dry bulk carriers of more than 300,000 tonnes, and industry sources have said Berge Everest's entry to Dalian's Port was probably a bureaucratic fluke.
Chinese financial magazine Caixin said on Tuesday that Vale had apparently got around the regulation in December by using the Berge Everest, a carrier owned by a Singapore company and leased back to the Brazilian miner, to deliver ore. Chinese maritime regulations require shipowners, or representatives, to cooperate with customs when applying for special entry permits.The transport ministry said its decision to bar the mega ships was also in part linked to maritime safety issues.
COSTLIER OPTIONS
With Beijing keeping its ports closed to Valemaxes, the Rio de Janeiro-based miner will have to rely on a costlier trans-shipment hub in the Philippines to ensure its mega ships, each costing around $110 million, remained employed. Vale is already building an Asian distribution center in Malaysia that will be able to stock 60 million metric tons, about a fifth of the firm's annual output of 300 million tonnes, starting in 2014.
The world's largest dry bulk floating storage vessel, Ore Fabrica, owned by Vale, has docked in the Philippines' Subic Bay Freeport, a spokeswoman for the port told Reuters on Tuesday.
The 280,000 deadweight tonne vessel will serve as a platform to transfer iron ore from the so-called Valemaxes to smaller ships for transport to China and other Asian markets such as Japan and South Korea.
BAD INVESTMENT
Vale inked a contract with Rongsheng Shipbuilding and Heavy Industries of China in 2008 to build 12 carries valued at $1.6 billion and is counting on a fleet of 35 Valemaxes to slash shipping costs to China to help it better compete.
But China's latest snub shows Vale may have made a bad and costly investment in one of the most talked-about shipbuilding ventures of this decade.The episode also highlights the difficulties foreign firms face when doing businesses in China, where many senior executives are closely intertwined with the Chinese government and can wield immense power in influencing policy decisions.
China Shipowners Association Executive Vice-President Zhang Shouguo is also a former deputy director of the water transport division of the Ministry of Transport.With the government owning a raft of companies, what would be commercial information in a capitalist countries could also become a state secret in China.Rio Tinto's iron ore negotiations manager, Stern Hu, was arrested and charged in 2009 for stealing state secrets and sentenced to 10 years in jail.
Source: Reuters
Beijing has effectively barred mega iron ore ships owned by Brazilian miner Vale SA, stepping up protection of the domestic shipping industry and control over imports of the key steelmaking ingredient.
China's Ministry of Transport on Tuesday, citing a downturn in the shipping industry, banned giant dry bulk vessels and oil tankers with immediate effect. It did not specifically mention Vale in the new regulation, which affects all large vessels including the fleet of 400,000 deadweight tonne vessels called Valemaxes.The statement comes just a month after Vale managed to unload iron ore from its 388,000-tonne vessel Berge Everest at Dalian port. The shipment swiftly drew an outcry from the influential China Shipowners Association, which has been actively lobbying Beijing to ban Vale's giant carriers.
The Shipowners Association and powerful steelmakers have said that Vale's fleet of giant carriers could be a "Trojan horse", which would allow the miner to monopolize the shipping and the iron ore markets in the world's largest importer of the raw material by sending supplies cheaper than could rivals such as Australia's Rio Tinto and BHP Billiton ."At the end of the day, they (China) want to support their own. They are not interested in whether Vale will be able to provide cheap imports in comparison to Australian imports," said George Lazardis, an analyst at Greek broker Intermodal.
"They are interested in giving support to their shipowners, which are starting to become a significant force over the past couple of years, and to help that part of the industry grow."At present, no Chinese ports have regulatory approval to receive dry bulk carriers of more than 300,000 tonnes, and industry sources have said Berge Everest's entry to Dalian's Port was probably a bureaucratic fluke.
Chinese financial magazine Caixin said on Tuesday that Vale had apparently got around the regulation in December by using the Berge Everest, a carrier owned by a Singapore company and leased back to the Brazilian miner, to deliver ore. Chinese maritime regulations require shipowners, or representatives, to cooperate with customs when applying for special entry permits.The transport ministry said its decision to bar the mega ships was also in part linked to maritime safety issues.
COSTLIER OPTIONS
With Beijing keeping its ports closed to Valemaxes, the Rio de Janeiro-based miner will have to rely on a costlier trans-shipment hub in the Philippines to ensure its mega ships, each costing around $110 million, remained employed. Vale is already building an Asian distribution center in Malaysia that will be able to stock 60 million metric tons, about a fifth of the firm's annual output of 300 million tonnes, starting in 2014.
The world's largest dry bulk floating storage vessel, Ore Fabrica, owned by Vale, has docked in the Philippines' Subic Bay Freeport, a spokeswoman for the port told Reuters on Tuesday.
The 280,000 deadweight tonne vessel will serve as a platform to transfer iron ore from the so-called Valemaxes to smaller ships for transport to China and other Asian markets such as Japan and South Korea.
BAD INVESTMENT
Vale inked a contract with Rongsheng Shipbuilding and Heavy Industries of China in 2008 to build 12 carries valued at $1.6 billion and is counting on a fleet of 35 Valemaxes to slash shipping costs to China to help it better compete.
But China's latest snub shows Vale may have made a bad and costly investment in one of the most talked-about shipbuilding ventures of this decade.The episode also highlights the difficulties foreign firms face when doing businesses in China, where many senior executives are closely intertwined with the Chinese government and can wield immense power in influencing policy decisions.
China Shipowners Association Executive Vice-President Zhang Shouguo is also a former deputy director of the water transport division of the Ministry of Transport.With the government owning a raft of companies, what would be commercial information in a capitalist countries could also become a state secret in China.Rio Tinto's iron ore negotiations manager, Stern Hu, was arrested and charged in 2009 for stealing state secrets and sentenced to 10 years in jail.
Source: Reuters
Sunday, January 22, 2012
Vale superships challenge rivals
Sunday, 22 Jan 2012
It is reported that with the docking of Vale first monster 400,000 tonne ore carrier in China, the Brazilian iron ore producer hopes to increase competitive pressure on BHP Billiton and Rio Tinto.
After much protest from Chinese steel mills and freighters, the first of its Valemax super-size ore carriers docked in the Chinese port of Dalian on December 28.
Industry analysts say it is the latest attempt by Vale to rein in its transport costs and expand its presence in the all-important Chinese market where BHP and Rio Tinto enjoy a significant cost advantage.
But the miner decision to run its own fleet of super ships instead of using charter vessels as it has in the past also has ramifications for global shipping, especially the charter companies that have benefited from soaring shipping costs during the decade-long iron ore boom.
Chinese ship owners had petitioned Chinese authorities to prevent the Valemax ships from docking and had succeeded until last month. China Ministry of Transport is still considering whether to allow further Valemax dockings.
UBS global commodity analyst Mr Thomas Price who said it might result in dry bulk freight rates dropping more than 10% in the next year said ''Vale's decision to build its own fleet of Valemax vessels has sent shock waves through the global shipping industry.”
Vale has described the move to the Valemax vessels as strategic.
Mr Jose Carlos Martins head of Vale iron ore division said ''The Australians are 10 days from China we are 45 days.”
But Australian mining industry sources played down the threat to BHP and Rio arguing that Western Australia 35 day advantage was still likely to trump any cost savings Vale gained.
(Sourced from www.theage.com.au)
It is reported that with the docking of Vale first monster 400,000 tonne ore carrier in China, the Brazilian iron ore producer hopes to increase competitive pressure on BHP Billiton and Rio Tinto.
After much protest from Chinese steel mills and freighters, the first of its Valemax super-size ore carriers docked in the Chinese port of Dalian on December 28.
Industry analysts say it is the latest attempt by Vale to rein in its transport costs and expand its presence in the all-important Chinese market where BHP and Rio Tinto enjoy a significant cost advantage.
But the miner decision to run its own fleet of super ships instead of using charter vessels as it has in the past also has ramifications for global shipping, especially the charter companies that have benefited from soaring shipping costs during the decade-long iron ore boom.
Chinese ship owners had petitioned Chinese authorities to prevent the Valemax ships from docking and had succeeded until last month. China Ministry of Transport is still considering whether to allow further Valemax dockings.
UBS global commodity analyst Mr Thomas Price who said it might result in dry bulk freight rates dropping more than 10% in the next year said ''Vale's decision to build its own fleet of Valemax vessels has sent shock waves through the global shipping industry.”
Vale has described the move to the Valemax vessels as strategic.
Mr Jose Carlos Martins head of Vale iron ore division said ''The Australians are 10 days from China we are 45 days.”
But Australian mining industry sources played down the threat to BHP and Rio arguing that Western Australia 35 day advantage was still likely to trump any cost savings Vale gained.
(Sourced from www.theage.com.au)
Thursday, January 12, 2012
Vale is yet to sell huge iron ore cargo in China - Report
Thursday, 12 Jan 2012
Reuters quoted traders said Brazilian miner Vale has not yet sold a huge iron ore cargo delivered to China via the maiden voyage of its giant dry bulk vessel to its top market two weeks ago, opting to store the material near a port.
The 388,000 deadweight tonne vessel, Berge Everest which carried 350,000 tonnes of iron ore, docked and unloaded the ore at China Dalian port in late December, ending months of delays in getting the world biggest dry bulk ships into China.
An iron ore broker in Singapore said "It was discharged into a bonded warehouse in Dalian. From Vale's point of view, it's not particularly wise to sell right now given the lackluster demand from Chinese mills."
He said that "There's a lot of material in bonded warehouses across the coast at the moment because of the demand situation."
(Sourced from Reuters)
Reuters quoted traders said Brazilian miner Vale has not yet sold a huge iron ore cargo delivered to China via the maiden voyage of its giant dry bulk vessel to its top market two weeks ago, opting to store the material near a port.
The 388,000 deadweight tonne vessel, Berge Everest which carried 350,000 tonnes of iron ore, docked and unloaded the ore at China Dalian port in late December, ending months of delays in getting the world biggest dry bulk ships into China.
An iron ore broker in Singapore said "It was discharged into a bonded warehouse in Dalian. From Vale's point of view, it's not particularly wise to sell right now given the lackluster demand from Chinese mills."
He said that "There's a lot of material in bonded warehouses across the coast at the moment because of the demand situation."
(Sourced from Reuters)
Wednesday, January 11, 2012
Vale yet to sell huge iron ore cargo in China-traders
Wed Jan 11, 2012
* Vale cargo stored in bonded warehouse in Dalian
* Shipment may be sold in spot market at discount
* Vessel carried 350,000 tonnes of iron ore
SINGAPORE, Jan 11 (Reuters) - Brazilian miner Vale has not yet sold its first mega iron ore cargo delivered to China two weeks ago, and has instead stored the material near a port for now, traders said on Wednesday.
The 388,000-deadweight-tonne vessel Berge Everest, which carried 350,000 tonnes of iron ore, unloaded at China's Dalian port in late December, ending months of delays in getting the world's biggest dry bulk ships into China.
"It was discharged into a bonded warehouse in Dalian," said an iron ore broker in Singapore. "From Vale's point of view, it's not particularly wise to sell right now given the lacklustre demand from Chinese mills."
"There's a lot of material in bonded warehouses across the coast at the moment because of the demand situation," he said.
Vale may be waiting for Chinese demand to pick up, possibly after the week-long Lunar New Year break in late January, before selling the cargo, traders said.
The world's biggest iron ore miner, hoping to slash shipping costs to China by using a new fleet of mega dry bulk carriers, was not planning to sell the maiden cargo from Berge Everest immediately, said an iron ore trader in Hong Kong.
Vale, which sells about 40 percent of its ore to China, is counting on a fleet of 35 Valemaxes to cut shipping costs and better compete with Australian rivals BHP Billiton and Rio Tinto.
"Vale just wanted to show its Chinese clients that its vessel can berth in China," he said, adding the cargo is likely to be sold into the spot market, instead of to a single buyer on a long-term contract.
"We're quite sure it's not sold yet. It should be put in the spot market, we're quite confident," said the Hong Kong trader, who sells iron ore to mills in mainland China.
SHORT-TERM PLOY
Vale may offer a discount for the cargo of high-grade ore with 65-percent iron content given that it was the first material shipped on its Valemax, he said.
Offering a discount for the cargo could be a "short-term ploy" by Vale to draw customers to its big shipments, said Mark Pervan, global head of commodity research at Australia and New Zealand Bank.
"From a short-term point of view there potentially could be some discount. But they won't want to be doing this on an ongoing basis because it defeats the whole purpose.
"The whole reason for those ships was to try and be competitive against the Australians. So if you're going to be selling it to the market at a big discount, you'll lose any upside from the lower freight cost," Pervan said.
A spokesperson for Vale was not immediately available for comment.
Vale's first megaship cargo to China was forced to turn back in June last year due to the lack of permits . In early December, Vale Beijing, the newest member of the "Valemax" fleet -- 50 percent bigger than most ore carriers and one of the largest afloat -- developed cracks in its hull on its maiden voyage.
The China Shipowners Association has opposed Vale's fleet, worried that the vessels will give the miner monopoly on both the shipping and iron ore markets at China's expense.
The low quality of China's iron ore has made it heavily reliant on imported material, a market controlled by Vale, Rio Tinto and BHP Billiton .
A Reuters poll of analysts in mid-December showed China's iron ore imports would jump to a record 720 million tonnes in 2012, with its steel output rising to 728 million tonnes, also an all-time high.
China's iron ore imports rose nearly 11 percent to 686.06 million tonnes in 2011, and traders said firm Chinese demand should keep spot iron ore prices .IO62-CNI=SI, which stood at a seven-week high of $142.30 a tonne on Tuesday, high.
(sourced Reuters)
* Vale cargo stored in bonded warehouse in Dalian
* Shipment may be sold in spot market at discount
* Vessel carried 350,000 tonnes of iron ore
SINGAPORE, Jan 11 (Reuters) - Brazilian miner Vale has not yet sold its first mega iron ore cargo delivered to China two weeks ago, and has instead stored the material near a port for now, traders said on Wednesday.
The 388,000-deadweight-tonne vessel Berge Everest, which carried 350,000 tonnes of iron ore, unloaded at China's Dalian port in late December, ending months of delays in getting the world's biggest dry bulk ships into China.
"It was discharged into a bonded warehouse in Dalian," said an iron ore broker in Singapore. "From Vale's point of view, it's not particularly wise to sell right now given the lacklustre demand from Chinese mills."
"There's a lot of material in bonded warehouses across the coast at the moment because of the demand situation," he said.
Vale may be waiting for Chinese demand to pick up, possibly after the week-long Lunar New Year break in late January, before selling the cargo, traders said.
The world's biggest iron ore miner, hoping to slash shipping costs to China by using a new fleet of mega dry bulk carriers, was not planning to sell the maiden cargo from Berge Everest immediately, said an iron ore trader in Hong Kong.
Vale, which sells about 40 percent of its ore to China, is counting on a fleet of 35 Valemaxes to cut shipping costs and better compete with Australian rivals BHP Billiton and Rio Tinto.
"Vale just wanted to show its Chinese clients that its vessel can berth in China," he said, adding the cargo is likely to be sold into the spot market, instead of to a single buyer on a long-term contract.
"We're quite sure it's not sold yet. It should be put in the spot market, we're quite confident," said the Hong Kong trader, who sells iron ore to mills in mainland China.
SHORT-TERM PLOY
Vale may offer a discount for the cargo of high-grade ore with 65-percent iron content given that it was the first material shipped on its Valemax, he said.
Offering a discount for the cargo could be a "short-term ploy" by Vale to draw customers to its big shipments, said Mark Pervan, global head of commodity research at Australia and New Zealand Bank.
"From a short-term point of view there potentially could be some discount. But they won't want to be doing this on an ongoing basis because it defeats the whole purpose.
"The whole reason for those ships was to try and be competitive against the Australians. So if you're going to be selling it to the market at a big discount, you'll lose any upside from the lower freight cost," Pervan said.
A spokesperson for Vale was not immediately available for comment.
Vale's first megaship cargo to China was forced to turn back in June last year due to the lack of permits . In early December, Vale Beijing, the newest member of the "Valemax" fleet -- 50 percent bigger than most ore carriers and one of the largest afloat -- developed cracks in its hull on its maiden voyage.
The China Shipowners Association has opposed Vale's fleet, worried that the vessels will give the miner monopoly on both the shipping and iron ore markets at China's expense.
The low quality of China's iron ore has made it heavily reliant on imported material, a market controlled by Vale, Rio Tinto and BHP Billiton .
A Reuters poll of analysts in mid-December showed China's iron ore imports would jump to a record 720 million tonnes in 2012, with its steel output rising to 728 million tonnes, also an all-time high.
China's iron ore imports rose nearly 11 percent to 686.06 million tonnes in 2011, and traders said firm Chinese demand should keep spot iron ore prices .IO62-CNI=SI, which stood at a seven-week high of $142.30 a tonne on Tuesday, high.
(sourced Reuters)
Monday, February 14, 2011
Rizhao Steel refuses to pay contract breach fines to Mount Gibson
Monday, 14 Feb 2011
It is reported that due to the refusal of paying a contract-breach compensation of about CNY 700 million to the Australian Mount Gibson Iron Ltd, Rizhao Steel is confronted with Mount Gibson’s detention for its iron ore cargoes from the Australian ports in a bid to recover damages from Rizhao Steel.
According to the report published on The Australian , iron ore miner Mount Gibson put forward solutions in early February hoping to recover compensation through seizing iron ore cargoes from the ports of Rio Tinto and other miners as it struggles to recover USD 114 million of fines awarded to it from China's Rizhao Steel.
Mr Alan CFO of Mount Gibson said that he doesn’t make sure whether other Australian suppliers were helping us if we seize one of Rizhao ships which may only be worth USD 15 million or USD 20 million.
In July 2007, the two companies signed a 15 year contract, in which Rizhao committed to purchase up to 1.5 million tons of iron ore every year from Mount Gibson. In 2008, affected by financial crisis and the market prices of iron ore dropped below the negotiated long term prices in the international iron ore market, many small steelmakers including Rizhao were unable to fulfill their duty stipulated in their long term contracts and diverted to purchase iron ore in spot market.
(sourced:mysteel.net)
It is reported that due to the refusal of paying a contract-breach compensation of about CNY 700 million to the Australian Mount Gibson Iron Ltd, Rizhao Steel is confronted with Mount Gibson’s detention for its iron ore cargoes from the Australian ports in a bid to recover damages from Rizhao Steel.
According to the report published on The Australian , iron ore miner Mount Gibson put forward solutions in early February hoping to recover compensation through seizing iron ore cargoes from the ports of Rio Tinto and other miners as it struggles to recover USD 114 million of fines awarded to it from China's Rizhao Steel.
Mr Alan CFO of Mount Gibson said that he doesn’t make sure whether other Australian suppliers were helping us if we seize one of Rizhao ships which may only be worth USD 15 million or USD 20 million.
In July 2007, the two companies signed a 15 year contract, in which Rizhao committed to purchase up to 1.5 million tons of iron ore every year from Mount Gibson. In 2008, affected by financial crisis and the market prices of iron ore dropped below the negotiated long term prices in the international iron ore market, many small steelmakers including Rizhao were unable to fulfill their duty stipulated in their long term contracts and diverted to purchase iron ore in spot market.
(sourced:mysteel.net)
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