Saturday, 24 Mar 2012
Returns for Capesize ships that haul commodities including iron ore and coal plunged to the lowest in 12 months as Chinese steel production slows and raw material prices fall.
According to the Baltic Exchange, a London based provider of freight costs on 29 dry bulk routes, daily returns for Capesize vessels fell to USD 4,881 on March 20th 2101. That’s the lowest price since March 2 last year.
Oslo based investment bank RS Platou Markets AS said that “A full blown recovery to match our yearly average target of USD 13,000 a day remains an uphill battle.”
Capesizes are the largest vessels in the Baltic Dry Index, a broader measure of costs to transport commodities. The gauge advanced for a 19th session, the longest winning streak since it rose for 23 days in June 2009. The index rose 0.6% to 884 as charter rates for three of the smaller ship classes tracked increased, figures from the exchange showed.
Panamaxes, the biggest ships that can navigate the Panama Canal, advanced 1.4% to USD 8,037, the longest winning streak in five months, according to the exchange. Supramaxes, about 25% smaller, added 2.7% to USD 10,340. Handysizes, the smallest ships in the index, rose 1.7% to USD 7,915, the highest rate in more than nine weeks.
Source - Bloomberg
Showing posts with label iron ore shipment. Show all posts
Showing posts with label iron ore shipment. Show all posts
Sunday, March 25, 2012
Monday, February 13, 2012
Iron ore cargos increase on the US Great Lakes while coal continues to slip
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)
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)
Tuesday, January 31, 2012
Vale readies iron ore transshipment hub in Philippines
Tue Jan 31, 2012
* Ore Fabrica arrives in Philippines' Subic Bay port
* Ship is the biggest dry bulk floating storage vessel
* Comes ahead of two Valemaxes due in February
SINGAPORE, Jan 31 (Reuters) - The world's largest dry bulk floating storage vessel, owned by Vale, has arrived in the Philippines as the Brazilian miner readies a base in the country to onship iron ore to top market China, port and shipping sources said on Tuesday.
Ore Fabrica, to be stationed in Subic Bay Freeport, is part of Vale's plan to make the Philippines a transshipment hub to overcome Chinese opposition to its new 400,000-tonne iron ore carriers, known as "Valemaxes".
The 280,000-deadweight-tonne Ore Fabrica will serve as a platform to transfer iron ore from the Valemaxes to smaller vessels for transport to Asian markets like China, Japan and South Korea.
"It was anchored yesterday. The vessel, which has a crane on it, will be used by Vale to transship iron ore from Valemaxes to two or three other ships," said a maritime source involved in the management of the vessel.
Previously a crude oil tanker, Ore Fabrica was converted by a Chinese shipyard to a floating storage vessel to be based in Subic Bay Freeport, located in the Philippines' main Luzon island, according to shipping data.
China, the world's largest iron ore importer, has yet to fully open its seaports to the giant Valemaxes after domestic ship owners strongly protested the arrival of the first and only vessel of the type into the country in late December.
Officials at Vale in Singapore were not immediately available for comment. A spokeswoman for Subic Bay Freeport said she was still checking with the company's seaport department.
Two Valemaxes are headed for Subic Bay port next month.
The 400,000-deadweight-tonne Vale Brasil is expected to arrive in Subic Bay Freeport on Feb. 12, shipping data showed. It wll be followed by the similar-sized Vale China on Feb. 22.
Apart from the Philippines, Vale is also setting up a transshipment centre in Malaysia.
The Brazilian miner in October broke ground for a $1.3 billion iron ore distribution centre in Malaysia's northern Perak state, which could be ready to handle the giant ships by 2014.
Vale is counting on a fleet of 35 Valemaxes to slash shipping costs to China to help it better compete with Australian rivals BHP Billiton and Rio Tinto .
The 388,000-tonne Berge Everest was the first and only Valemax allowed into China, docking at Dalian Port on Dec. 28 to unload iron ore that has yet to be sold.
The China Shipowners Association has helped keep further ships from arriving at its domestic ports. The group fears the fleet will give Vale a monopoly on both the shipping and iron ore markets at China's expense.
(sourced Reuters)
* Ore Fabrica arrives in Philippines' Subic Bay port
* Ship is the biggest dry bulk floating storage vessel
* Comes ahead of two Valemaxes due in February
SINGAPORE, Jan 31 (Reuters) - The world's largest dry bulk floating storage vessel, owned by Vale, has arrived in the Philippines as the Brazilian miner readies a base in the country to onship iron ore to top market China, port and shipping sources said on Tuesday.
Ore Fabrica, to be stationed in Subic Bay Freeport, is part of Vale's plan to make the Philippines a transshipment hub to overcome Chinese opposition to its new 400,000-tonne iron ore carriers, known as "Valemaxes".
The 280,000-deadweight-tonne Ore Fabrica will serve as a platform to transfer iron ore from the Valemaxes to smaller vessels for transport to Asian markets like China, Japan and South Korea.
"It was anchored yesterday. The vessel, which has a crane on it, will be used by Vale to transship iron ore from Valemaxes to two or three other ships," said a maritime source involved in the management of the vessel.
Previously a crude oil tanker, Ore Fabrica was converted by a Chinese shipyard to a floating storage vessel to be based in Subic Bay Freeport, located in the Philippines' main Luzon island, according to shipping data.
China, the world's largest iron ore importer, has yet to fully open its seaports to the giant Valemaxes after domestic ship owners strongly protested the arrival of the first and only vessel of the type into the country in late December.
Officials at Vale in Singapore were not immediately available for comment. A spokeswoman for Subic Bay Freeport said she was still checking with the company's seaport department.
Two Valemaxes are headed for Subic Bay port next month.
The 400,000-deadweight-tonne Vale Brasil is expected to arrive in Subic Bay Freeport on Feb. 12, shipping data showed. It wll be followed by the similar-sized Vale China on Feb. 22.
Apart from the Philippines, Vale is also setting up a transshipment centre in Malaysia.
The Brazilian miner in October broke ground for a $1.3 billion iron ore distribution centre in Malaysia's northern Perak state, which could be ready to handle the giant ships by 2014.
Vale is counting on a fleet of 35 Valemaxes to slash shipping costs to China to help it better compete with Australian rivals BHP Billiton and Rio Tinto .
The 388,000-tonne Berge Everest was the first and only Valemax allowed into China, docking at Dalian Port on Dec. 28 to unload iron ore that has yet to be sold.
The China Shipowners Association has helped keep further ships from arriving at its domestic ports. The group fears the fleet will give Vale a monopoly on both the shipping and iron ore markets at China's expense.
(sourced Reuters)
Tuesday, January 24, 2012
Vale lifts force majeure on iron ore shipments
Tuesday, 24 Jan 2012
Vale informed that it is lifting force majeure effective January 23, 2012, on a number of its iron ore sales contracts.
Force majeure was declared on January 11, 2012 following heavy rainfall since mid December 2011 and continuing over the beginning of January in the Brazilian states of Minas Gerais, Rio de Janeiro and Espírito Santo, that affected the Southern and Southeastern systems.
Vale informed that it is lifting force majeure effective January 23, 2012, on a number of its iron ore sales contracts.
Force majeure was declared on January 11, 2012 following heavy rainfall since mid December 2011 and continuing over the beginning of January in the Brazilian states of Minas Gerais, Rio de Janeiro and Espírito Santo, that affected the Southern and Southeastern systems.
Saturday, January 14, 2012
Mr Martins estimates at least 10 ships wait for Vale Production
Saturday, 14 Jan 2012
Bloomberg cited Mr Jose Carlos Martins Vale head of ferrous and strategy as saying that Vale SA estimates at least 10 ships are waiting for its output which is backlogged because of heavy rain in three Brazilian states.
Vale, the world largest producer of iron-ore declared a force majeure on iron-ore shipments because of the rain.
(Sourced from Bloomberg)
Bloomberg cited Mr Jose Carlos Martins Vale head of ferrous and strategy as saying that Vale SA estimates at least 10 ships are waiting for its output which is backlogged because of heavy rain in three Brazilian states.
Vale, the world largest producer of iron-ore declared a force majeure on iron-ore shipments because of the rain.
(Sourced from Bloomberg)
CSN may declare Force Majeure on iron ore shipments on rains
Saturday, 14 Jan 2012
Dow Jones reported that Brazilian steelmaker and iron ore miner Companhia Siderurgica Nacional SA study the possibility of declaring force majeure on shipments from its iron ore operations in Minas Gerais state, southeast Brazil on heavy rains.
(Sourced from Dow Jones)
Dow Jones reported that Brazilian steelmaker and iron ore miner Companhia Siderurgica Nacional SA study the possibility of declaring force majeure on shipments from its iron ore operations in Minas Gerais state, southeast Brazil on heavy rains.
(Sourced from Dow Jones)
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)
Tuesday, January 3, 2012
Giant Vale ship completes maiden journey to China
Tue Jan 3, 2012
SINGAPORE Jan 3 (Reuters) - The first of Vale's giant dry bulk vessels to arrive in China has completed delivery of its iron ore cargo, shipping data showed on Tuesday, a key step forward in the Brazilian miner's plan to cut shipping costs to its biggest market.
Reuters Freightviews and independent shipping data confirmed the 388,000-tonne vessel, Berge Everest, had departed China's Port of Dalian over the weekend for Singapore, where it will likely refuel for its journey back to Brazil.
Draught measurements indicated the ship had unloaded all or nearly all of its iron ore cargo in Dalian.
Vale has ordered 35 of the world's largest dry bulk carriers, of which six are already on the water, at an estimated cost of $4.2 billion from Chinese and Korean shipyards.
The world's second largest miner had been trying since June 2011 to get Chinese authorities to allow the megaships to enter the country's ports.
Chinese port officials have declined to comment on the arrival of Berge Everest, leaving it unclear as to whether other giant Vale ships will be allowed to dock in the country's ports.
Five other giant ships operated by Vale, the world's top iron ore producer, were not expected to follow Berge Everest into China at least in the near term.
Shipping data showed two heading back to Brazil, two in Europe and one -- the Vale Beijing -- anchored off Brazil's Ponta da Madeira Port.
The Vale Beijing, the newest member of the "Valemax" fleet, developed cracks in its hull on its maiden voyage, sparking concerns from Chinese shipowners about the safety of these ships.
Chinese shipowners and steelmakers are strongly opposed to Vale's vessels, fearing the ships are a "Trojan Horse" that the miner will use to monopolize both the shipping and iron ore markets at China's expense.
Vale, which sells about 40 percent of its ore to China, is counting on Valemaxes to slash shipping costs and better compete with Australian rivals BHP Billiton and Rio Tinto . While Vale's ore is generally of higher quality, that advantage is cancelled by Australia's proximity to China, the world's top steelmaker and biggest ore importer.
(sourced Reuters)
SINGAPORE Jan 3 (Reuters) - The first of Vale's giant dry bulk vessels to arrive in China has completed delivery of its iron ore cargo, shipping data showed on Tuesday, a key step forward in the Brazilian miner's plan to cut shipping costs to its biggest market.
Reuters Freightviews and independent shipping data confirmed the 388,000-tonne vessel, Berge Everest, had departed China's Port of Dalian over the weekend for Singapore, where it will likely refuel for its journey back to Brazil.
Draught measurements indicated the ship had unloaded all or nearly all of its iron ore cargo in Dalian.
Vale has ordered 35 of the world's largest dry bulk carriers, of which six are already on the water, at an estimated cost of $4.2 billion from Chinese and Korean shipyards.
The world's second largest miner had been trying since June 2011 to get Chinese authorities to allow the megaships to enter the country's ports.
Chinese port officials have declined to comment on the arrival of Berge Everest, leaving it unclear as to whether other giant Vale ships will be allowed to dock in the country's ports.
Five other giant ships operated by Vale, the world's top iron ore producer, were not expected to follow Berge Everest into China at least in the near term.
Shipping data showed two heading back to Brazil, two in Europe and one -- the Vale Beijing -- anchored off Brazil's Ponta da Madeira Port.
The Vale Beijing, the newest member of the "Valemax" fleet, developed cracks in its hull on its maiden voyage, sparking concerns from Chinese shipowners about the safety of these ships.
Chinese shipowners and steelmakers are strongly opposed to Vale's vessels, fearing the ships are a "Trojan Horse" that the miner will use to monopolize both the shipping and iron ore markets at China's expense.
Vale, which sells about 40 percent of its ore to China, is counting on Valemaxes to slash shipping costs and better compete with Australian rivals BHP Billiton and Rio Tinto . While Vale's ore is generally of higher quality, that advantage is cancelled by Australia's proximity to China, the world's top steelmaker and biggest ore importer.
(sourced Reuters)
Friday, December 30, 2011
Brazil’s MMX secures iron ore transportation contract
Friday, 30 December 2011
Brazilian mining company MMX, run by billionaire Eike Batista, signed a 15-year shipping contract with MRS Logistica on Wednesday. MRS will transport iron ore from MMX's mine in Minas Gerais, Brazil to the Sudeste port in Rio de Janeiro.
Under the terms of the contract, MRS will transport 36 million metric tons of iron ore annually from the MMX mine for R26.5 (US$14.12) per metric ton shipped.
Tags: iron ore , raw mat , Brazil , South America , trading , mining
Sourced:SteelOrbis
Brazilian mining company MMX, run by billionaire Eike Batista, signed a 15-year shipping contract with MRS Logistica on Wednesday. MRS will transport iron ore from MMX's mine in Minas Gerais, Brazil to the Sudeste port in Rio de Janeiro.
Under the terms of the contract, MRS will transport 36 million metric tons of iron ore annually from the MMX mine for R26.5 (US$14.12) per metric ton shipped.
Tags: iron ore , raw mat , Brazil , South America , trading , mining
Sourced:SteelOrbis
Thursday, December 22, 2011
Anglo American ships first iron ore from Kolomela in South Africa
Thursday, 22 Dec 2011
Reuters reported that global miner Anglo American has exported the first shipment from the USD 1 billion Kolomela iron ore mine in South Africa one of its key growth projects putting the mine ahead of schedule and on track to achieve full production by 2013.
The miner said Kolomela one of the projects expected to drive organic volume growth for Anglo has been commissioned five months ahead of schedule and on budget.
Mr Chris Griffith CEO of Anglo American Kumba Iron Ore business said "The first shipment of 100,000 tonnes of Kolomela lump ore left the port of Saldanha on 19 December 2011."
He said that "The commissioning of the Kolomela project is in line with our growth strategy of ramping our South African production up to 70 million tonnes per year by 2019."
Kolomela had been expected to deliver initial production at the end of the first half of 2012.
(Sourced from Reuters)
Reuters reported that global miner Anglo American has exported the first shipment from the USD 1 billion Kolomela iron ore mine in South Africa one of its key growth projects putting the mine ahead of schedule and on track to achieve full production by 2013.
The miner said Kolomela one of the projects expected to drive organic volume growth for Anglo has been commissioned five months ahead of schedule and on budget.
Mr Chris Griffith CEO of Anglo American Kumba Iron Ore business said "The first shipment of 100,000 tonnes of Kolomela lump ore left the port of Saldanha on 19 December 2011."
He said that "The commissioning of the Kolomela project is in line with our growth strategy of ramping our South African production up to 70 million tonnes per year by 2019."
Kolomela had been expected to deliver initial production at the end of the first half of 2012.
(Sourced from Reuters)
Monday, December 12, 2011
Vale may begin iron ore transshipment ops in Philippines Jan/Feb-source
Mon Dec 12, 2011
SINGAPORE Dec 12 (Reuters) - Top iron ore miner Vale may start operating its iron ore transshipment centre in the Philippines' Subic Bay Freeport in late January or early February, a source with knowledge of the plan said on Monday.
Vale will be putting a large floating storage vessel in the Subic port, located in the main Luzon island, where iron ore from its massive 400,000-tonne carriers can be stored and transferred to smaller vessels that would bring the raw material to Asian buyers such as China, the source told Reuters.
Brazil's Vale is spending more than $2 billion on the fleet of giant vessels to cut its cost of shipping iron ore to top market China.
"We are just waiting for the arrival of their floating storage vessel right now and we are in contact with Vale Singapore regarding the project," said the source.
"We expect it to start in late January or early February," the source said, referring to Vale's planned iron ore distribution center in Subic Bay.
Officials at Vale in Singapore and Subic Bay Freeport in the Philippines declined to comment.
The iron ore transshipment center in Subic is one of at least two that Vale is planning to set up in the region.
The Brazilian company in October broke ground for its $1.3 billion iron ore distribution center in Malaysia's northern Perak state. The Malaysian project would only be ready by 2014.
Vale's Subic transshipment centre was previously scheduled to start in October following a memorandum of agreement signed between the firm and the Subic Bay Metropolitan Authority earlier in the year.
"There was a delay because the floating storage vessel that will be stationed in Subic had to be retrofitted," the source said. "We had to upgrade it."
(sourced Reuters)
SINGAPORE Dec 12 (Reuters) - Top iron ore miner Vale may start operating its iron ore transshipment centre in the Philippines' Subic Bay Freeport in late January or early February, a source with knowledge of the plan said on Monday.
Vale will be putting a large floating storage vessel in the Subic port, located in the main Luzon island, where iron ore from its massive 400,000-tonne carriers can be stored and transferred to smaller vessels that would bring the raw material to Asian buyers such as China, the source told Reuters.
Brazil's Vale is spending more than $2 billion on the fleet of giant vessels to cut its cost of shipping iron ore to top market China.
"We are just waiting for the arrival of their floating storage vessel right now and we are in contact with Vale Singapore regarding the project," said the source.
"We expect it to start in late January or early February," the source said, referring to Vale's planned iron ore distribution center in Subic Bay.
Officials at Vale in Singapore and Subic Bay Freeport in the Philippines declined to comment.
The iron ore transshipment center in Subic is one of at least two that Vale is planning to set up in the region.
The Brazilian company in October broke ground for its $1.3 billion iron ore distribution center in Malaysia's northern Perak state. The Malaysian project would only be ready by 2014.
Vale's Subic transshipment centre was previously scheduled to start in October following a memorandum of agreement signed between the firm and the Subic Bay Metropolitan Authority earlier in the year.
"There was a delay because the floating storage vessel that will be stationed in Subic had to be retrofitted," the source said. "We had to upgrade it."
(sourced Reuters)
Baltic index higher, capesizes at over 1-yr high
Monday, 12 December 2011
The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose for a third day on Friday helped by firm iron ore trade to China with earnings for the larger capesizes jumping to their highest in over a year.
Nevertheless, the shipping sector is expected to see more turmoil in coming months as a supply glut and growing economic gloom keep earnings under pressure with growing worries over the outlook for Chinese raw materials demand.
The overall index rose 40 points or 2.13 percent to 1,922 points.
"Despite the demand headwinds from muted steel production in China and slowing industrial production, the capesize segment has been remarkably resilient. Mix of factors including higher port congestion, recovery in coal exports from Australia and increasing Chinese iron ore imports from Brazil, aiding tonne mile have supported the segment," RS Platou Markets said.
"Declining steel output and slowing industrial production remains a key challenge going into 2012 for dry bulk demand and we still expect rates to see a gradual decline."
China's industrial output growth hit its slowest pace in more than two years in November and inflation tumbled as economic conditions deteriorated, raising expectations Beijing will ease monetary policy again.
Iron ore shipments account for around a third of seaborne volumes on the larger capesizes, and brokers said price developments remained a key factor for dry freight.
Shanghai rebar futures dropped for a second day on Friday, weighed down by a weak outlook for steel demand in top market China after fresh data suggested the Chinese economy was cooling off rapidly, although hopes of further monetary easing capped losses.
Capesizes, which typically transport 150,000 tonne cargoes such as iron ore and coal, had driven a recent rally, helped by firmer coal and iron ore exports from Australia and Brazil to China as well as a pick-up in Japanese coal imports. A build-up of port congestion also provided support.
The Baltic's capesize index rose 4.76 percent on Friday, with average daily earnings rising to $32,617 and at their highest since November 2010.
In August, the overall index, which gauges the cost of shipping commodities including iron ore, coal and grain, fell for 18 consecutive sessions and reached its lowest in more than three months. It has remained erratic and is still down over 12 percent from the same period last year.
The Baltic's panamax index rose 1.18 percent. Average daily earnings for panamaxes, which usually transport 60,000-70,000 tonne cargoes of coal or grains, reached $$13,682.
"In the Pacific, the Christmas holiday lull is biting further and business conditions have continued to slow, with much of owners' focus on securing sufficient employment duration to see their (panamax) vessels past the holiday period," broker Braemar Seascope said. "The outlook for the remainder of the year is still flat/negative."
Growing ship supply, which is outpacing commodity demand, is set to cap dry bulk freight rate gains in the coming months, with economic uncertainty and a slowdown in China adding to headwinds.
Daewoo Shipbuilding & Marine Engineering said on Friday it had lost an order from a European customer, including two dry bulk vessels, worth over half a billion dollars in a sign of worsening conditions in the seaborne sector and a growing euro zone lending squeeze.
Source: Reuters
Friday, December 9, 2011
Take time for mega ships to enter China - Vale
Friday, 09 Dec 2011
Brazilian iron ore miner Vale said it would take time for its new mega ships to be able to enter Chinese ports but stood by its shipping strategy.
Its multi billion dollar plan to cut freight costs by ordering a fleet of 35 of the world's biggest iron ore carriers as it aims to tap demand in China, the world's No 1 importer of the raw material used to produce steel, has faced stiff opposition from Chinese shipping players.
Mr Jose Carlos Martins Vale's executive director of iron ore and strategy told a news conference that "It was definitely not a mistake.”
These safety measures, the drafting situations when asked whether he regretted building the mega vessels before getting permission to berth at Chinese ports.
Mr Martins said that "I think it is a question of time, and these vessels will be very much used on this route from Brazil to Asia." Mr Martins would not speculate how long it will take.
He added that "I think things will happen in ports, all of these things have to be seen, to be developed, without being in a hurry. It takes time. You need to be patient.”
China has yet to allow any of Vale's giant ships to dock at its ports, forcing the world's biggest iron-ore producer to send its vessels instead to Italy, Oman and other destinations.
(Sourced from Reuters)
Brazilian iron ore miner Vale said it would take time for its new mega ships to be able to enter Chinese ports but stood by its shipping strategy.
Its multi billion dollar plan to cut freight costs by ordering a fleet of 35 of the world's biggest iron ore carriers as it aims to tap demand in China, the world's No 1 importer of the raw material used to produce steel, has faced stiff opposition from Chinese shipping players.
Mr Jose Carlos Martins Vale's executive director of iron ore and strategy told a news conference that "It was definitely not a mistake.”
These safety measures, the drafting situations when asked whether he regretted building the mega vessels before getting permission to berth at Chinese ports.
Mr Martins said that "I think it is a question of time, and these vessels will be very much used on this route from Brazil to Asia." Mr Martins would not speculate how long it will take.
He added that "I think things will happen in ports, all of these things have to be seen, to be developed, without being in a hurry. It takes time. You need to be patient.”
China has yet to allow any of Vale's giant ships to dock at its ports, forcing the world's biggest iron-ore producer to send its vessels instead to Italy, Oman and other destinations.
(Sourced from Reuters)
Iron ore price negotiations - Who will blink first - Vale or China
Friday, 09 Dec 2011
FE reported that Vale SA’s scare as one of its new gigantic iron ore ships cracked two ballast tanks is a mere sideshow to the bigger battle between the world’s largest producer of the ore and China, the biggest buyer. At stake is who gets to hold the whip hand in the 1 billion tonne a year seaborne iron ore market, and neither side is going to want to blink first.
Neither the Brazilian company or the Chinese may have to give in first, as there are reasons to think that a compromise may be the best way to resolve the dispute.
The heart of the problem lies in Vale’s plan to build 35 mega-bulk carriers with a capacity of around 4,00,000 tonne each, or about double the average size of existing Capesize vessels that haul the world’s iron ore.
Vale’s reasoning is simple enough, it will allow them to cut freight costs and better compete with BHP Billiton and Rio Tinto, whose mines in Western Australia are substantially closer to China than those in Brazil, whose ore has to cross two oceans and go around the Cape of Good Hope. Using the massive vessels, six of which are already sailing will reduce freight costs and could cut the USD 14 per tonne freight charge from Brazil to China in half.
If Vale owns the ships, it will get the saving, and USD 7 a tonne on the around 140 million tonne a year Vale sells to China represents a gain of as much as USD 980 million. The entry of the ultra-large ore carriers will also depress freight rates for Capesize vessels, meaning Vale will also benefit from lower charges on the 180 million tonne of output that it sells to customers other than China. And it’s here where the Chinese objections to Vale’s shipping plans come to the fore.
China’s state owned Cosco Group will suffer if Vale’s giant vessels depress freight rates further. COSCO will also lose volumes to the Vale ships, so it’s a double whammy. And Chinese steelmarkers fear that if Vale controls both the mines and the ships it will lessen their ability to bargain for better prices.
The steelmakers also worry they won’t share in the benefit of falling freight rates, with the extra cash accruing to the miners, who have already gained from changing to short-term contracts . So it comes as no surprise that Vale’s ships have so far been blocked from docking at Chinese ports, on the grounds that facilities aren’t yet ready for them and questions as to how they would be guided to the docks.
But it may also be that the Chinese are upping the ante with Vale, effectively saying that they aren’t going to allow the ships in until the Brazilian company makes some concessions.
These could include leasing out or selling the massive ore carriers, or agreeing to some price reductions to steelmakers so the benefits of cheaper freight costs are shared.
Vale maintains it doesn’t want the new vessels in order to make money from the volatile shipping business, rather it wants to improve its own competitiveness against the Australians. That may well be the case, but then Vale should be willing to compromise in order to lock in some profits.
The longer the matter remains unresolved, the more likely it becomes that the winners will be BHP and Rio. China’s imports of iron ore rose 10.9% in the year to October over the same period last year, with Brazil’s share gaining 13.3% while Australia’s rose by 9.2%.
(Sourced from FE)
FE reported that Vale SA’s scare as one of its new gigantic iron ore ships cracked two ballast tanks is a mere sideshow to the bigger battle between the world’s largest producer of the ore and China, the biggest buyer. At stake is who gets to hold the whip hand in the 1 billion tonne a year seaborne iron ore market, and neither side is going to want to blink first.
Neither the Brazilian company or the Chinese may have to give in first, as there are reasons to think that a compromise may be the best way to resolve the dispute.
The heart of the problem lies in Vale’s plan to build 35 mega-bulk carriers with a capacity of around 4,00,000 tonne each, or about double the average size of existing Capesize vessels that haul the world’s iron ore.
Vale’s reasoning is simple enough, it will allow them to cut freight costs and better compete with BHP Billiton and Rio Tinto, whose mines in Western Australia are substantially closer to China than those in Brazil, whose ore has to cross two oceans and go around the Cape of Good Hope. Using the massive vessels, six of which are already sailing will reduce freight costs and could cut the USD 14 per tonne freight charge from Brazil to China in half.
If Vale owns the ships, it will get the saving, and USD 7 a tonne on the around 140 million tonne a year Vale sells to China represents a gain of as much as USD 980 million. The entry of the ultra-large ore carriers will also depress freight rates for Capesize vessels, meaning Vale will also benefit from lower charges on the 180 million tonne of output that it sells to customers other than China. And it’s here where the Chinese objections to Vale’s shipping plans come to the fore.
China’s state owned Cosco Group will suffer if Vale’s giant vessels depress freight rates further. COSCO will also lose volumes to the Vale ships, so it’s a double whammy. And Chinese steelmarkers fear that if Vale controls both the mines and the ships it will lessen their ability to bargain for better prices.
The steelmakers also worry they won’t share in the benefit of falling freight rates, with the extra cash accruing to the miners, who have already gained from changing to short-term contracts . So it comes as no surprise that Vale’s ships have so far been blocked from docking at Chinese ports, on the grounds that facilities aren’t yet ready for them and questions as to how they would be guided to the docks.
But it may also be that the Chinese are upping the ante with Vale, effectively saying that they aren’t going to allow the ships in until the Brazilian company makes some concessions.
These could include leasing out or selling the massive ore carriers, or agreeing to some price reductions to steelmakers so the benefits of cheaper freight costs are shared.
Vale maintains it doesn’t want the new vessels in order to make money from the volatile shipping business, rather it wants to improve its own competitiveness against the Australians. That may well be the case, but then Vale should be willing to compromise in order to lock in some profits.
The longer the matter remains unresolved, the more likely it becomes that the winners will be BHP and Rio. China’s imports of iron ore rose 10.9% in the year to October over the same period last year, with Brazil’s share gaining 13.3% while Australia’s rose by 9.2%.
(Sourced from FE)
Iron ore price offers steady but no impact from Vale ship incident
Friday, 09 Dec 2011
Iron ore price offers in top market China steadied on Tuesday as leaner steel demand curbed buying interest in the raw material, with Shanghai steel futures edging lower.
Traders said while a disabled mega vessel of top miner Vale in a Brazilian port has the potential to affect supplies if the problem is not resolved soon, it was too early to influence spot trading in iron ore.
Shipping agents and the ship's operator said that world's largest iron-ore vessel is disabled and could sink in a port where Vale, the world top producer, loads about 10 percent of global supplies of the commodity.
An iron ore trader in Singapore said that "It's not going to affect the (iron ore) market in the very short term but it has the potential to. It depends on how long it's going to take them for it to get off the berth.”
(Sourced from Reuters)
Iron ore price offers in top market China steadied on Tuesday as leaner steel demand curbed buying interest in the raw material, with Shanghai steel futures edging lower.
Traders said while a disabled mega vessel of top miner Vale in a Brazilian port has the potential to affect supplies if the problem is not resolved soon, it was too early to influence spot trading in iron ore.
Shipping agents and the ship's operator said that world's largest iron-ore vessel is disabled and could sink in a port where Vale, the world top producer, loads about 10 percent of global supplies of the commodity.
An iron ore trader in Singapore said that "It's not going to affect the (iron ore) market in the very short term but it has the potential to. It depends on how long it's going to take them for it to get off the berth.”
(Sourced from Reuters)
Monday, December 5, 2011
Rio Tinto ships 100 millionth tonne of iron ore to BaoSteel
Monday, 05 Dec 2011
miningaustralia.com.au reported that Rio Tinto has shipped its 100 millionth tonne of iron ore from the Pilbara to Baosteel under its Bao HI joint venture.
The 100 millionth tonne left Dampier on Friday, bound for Shanghai.
Under this milestone, the joint venture has reached the half way mark of the agreement for 200 million tonnes to be mined and sold to Chinese company Baosteel.
Mr Sam Walsh Rio Tinto's head of iron ore and Australia said that this is a great day for Rio Tinto, for Baosteel and for the relationship between our two nations.
He said “The Bao-HI joint venture is one of two such partnerships we have forged since [Rio Tinto first shipped iron ore to China in 1973], delivering hundreds of millions of tonnes into the world’s fastest growing and largest steel industry.”
The joint venture was first formed in 2002 between Rio's subsidiary Ranges Mining, which owns 54%, and Baosteel Australia Mining which owns 46%. The majority of the iron ore shipped under the joint venture was produced at the Eastern Ranges mines, near Paraburdoo, which was established specifically for the joint venture.
(Sourced from miningaustralia.com.au)
miningaustralia.com.au reported that Rio Tinto has shipped its 100 millionth tonne of iron ore from the Pilbara to Baosteel under its Bao HI joint venture.
The 100 millionth tonne left Dampier on Friday, bound for Shanghai.
Under this milestone, the joint venture has reached the half way mark of the agreement for 200 million tonnes to be mined and sold to Chinese company Baosteel.
Mr Sam Walsh Rio Tinto's head of iron ore and Australia said that this is a great day for Rio Tinto, for Baosteel and for the relationship between our two nations.
He said “The Bao-HI joint venture is one of two such partnerships we have forged since [Rio Tinto first shipped iron ore to China in 1973], delivering hundreds of millions of tonnes into the world’s fastest growing and largest steel industry.”
The joint venture was first formed in 2002 between Rio's subsidiary Ranges Mining, which owns 54%, and Baosteel Australia Mining which owns 46%. The majority of the iron ore shipped under the joint venture was produced at the Eastern Ranges mines, near Paraburdoo, which was established specifically for the joint venture.
(Sourced from miningaustralia.com.au)
Sunday, November 13, 2011
Goa port October iron ore exports down by 25pct
Sunday, 13 Nov 2011
ET reported that shipments of iron ore from India's largest port, Mormugao in Goa state, fell by a quarter in October to 2.83 million tonnes as a slump in global prices and high costs made shipments unprofitable.
Exports of iron ore from the port on India's west coast fell 15.4% to 14.71 million tonnes in the first seven months of the fiscal year.
A Mormugao Port Trust source said that "Export of iron ore is down due to internal transport problems as locals are stopping the movement of goods.”
The port is the biggest shipper of the steel making ingredient from India but the Goa state government has made it mandatory for exporters to obtain from the mines department a no objection certificate to ship iron ore.
Total shipments from India were down 24.4% in the first five months of the fiscal year starting April 1 to 28.02 million tonnes as Karnataka state exports have still not resumed despite orders from the Supreme Court in April to lift a ban.
(Sourced from ET)
ET reported that shipments of iron ore from India's largest port, Mormugao in Goa state, fell by a quarter in October to 2.83 million tonnes as a slump in global prices and high costs made shipments unprofitable.
Exports of iron ore from the port on India's west coast fell 15.4% to 14.71 million tonnes in the first seven months of the fiscal year.
A Mormugao Port Trust source said that "Export of iron ore is down due to internal transport problems as locals are stopping the movement of goods.”
The port is the biggest shipper of the steel making ingredient from India but the Goa state government has made it mandatory for exporters to obtain from the mines department a no objection certificate to ship iron ore.
Total shipments from India were down 24.4% in the first five months of the fiscal year starting April 1 to 28.02 million tonnes as Karnataka state exports have still not resumed despite orders from the Supreme Court in April to lift a ban.
(Sourced from ET)
Friday, November 11, 2011
First African Minerals iron ore shipment leaves S.Leone
Fri Nov 11, 2011
FREETOWN (Reuters) - The first shipment of iron ore from African Minerals' Ltd Tonkolili mine in Sierra Leone has left for China, the West African state's deputy minister for natural resources said on Friday.
Ignoses Koroma said a 40,000-tonne shipment of ore mined by the London-listed miner had been put on a ship destined for China.
African Minerals started mining late last year and had since been stockpiling the ore. It expects to export about 1.2 million tonnes of iron ore during the current fourth quarter.
The first shipment is a significant step in Sierra Leone's recovery from over a decade of war that ended in 2002, having killed tens of thousands of people.
Production capacity at Tonkolili mine, African Minerals' primary asset, is currently at 2.5-3.0 million tonnes per year and it will increase to 15 million tonnes per year once phase one of the project will be completed, likely in the second quarter of 2012, the company has said.
(sourced Reuters)
FREETOWN (Reuters) - The first shipment of iron ore from African Minerals' Ltd Tonkolili mine in Sierra Leone has left for China, the West African state's deputy minister for natural resources said on Friday.
Ignoses Koroma said a 40,000-tonne shipment of ore mined by the London-listed miner had been put on a ship destined for China.
African Minerals started mining late last year and had since been stockpiling the ore. It expects to export about 1.2 million tonnes of iron ore during the current fourth quarter.
The first shipment is a significant step in Sierra Leone's recovery from over a decade of war that ended in 2002, having killed tens of thousands of people.
Production capacity at Tonkolili mine, African Minerals' primary asset, is currently at 2.5-3.0 million tonnes per year and it will increase to 15 million tonnes per year once phase one of the project will be completed, likely in the second quarter of 2012, the company has said.
(sourced Reuters)
Sunday, November 6, 2011
African Minerals loads first Tonkolili iron ore shipment
Sunday, 06 Nov 2011
It is reported that shares in African Minerals rose after revealed that it had started loading the first iron ore shipment from its Tonkolili project. This is the first such shipment from Sierra Leone in more than 30 years.
The 40,000 tonne shipment will be delivered to Shandong Iron and Steel Group and constitutes the trial cargo to be tested prior to the closing of its USD 1.5 billion investment, which remains on track for the year end.
AML said that the shipment was the result of an integrated mine, rail and port infrastructure built by the firm within 14 months of receiving the mining lease and environmental impact assessment license.
Edenville has completed drilling at the Mkomolo and Namwele basins at the Rukwa coal field project in south western Tanzania. Edenville said eight holes were completed at Namwele for 934.30 meters and 2,585.10m in 22 holes at Mkomolo.
Samples results are being analyzed by international consultant Wardell Armstrong International for an initial resource estimate at Mkomolo by the year end.
Mr Simon Rollason chairman said that "The completion of core diamond drilling at the Mkomolo and Namwele basins should allow us to prove up an initial JORC compliant coal resource at the Rukwa coalfield in Tanzania. We confidently await the results of the analyzed samples from the laboratory and we will keep our shareholders up to date with the company's progress as and when we receive further news."
(sourced from Sierraexpressmedia)
It is reported that shares in African Minerals rose after revealed that it had started loading the first iron ore shipment from its Tonkolili project. This is the first such shipment from Sierra Leone in more than 30 years.
The 40,000 tonne shipment will be delivered to Shandong Iron and Steel Group and constitutes the trial cargo to be tested prior to the closing of its USD 1.5 billion investment, which remains on track for the year end.
AML said that the shipment was the result of an integrated mine, rail and port infrastructure built by the firm within 14 months of receiving the mining lease and environmental impact assessment license.
Edenville has completed drilling at the Mkomolo and Namwele basins at the Rukwa coal field project in south western Tanzania. Edenville said eight holes were completed at Namwele for 934.30 meters and 2,585.10m in 22 holes at Mkomolo.
Samples results are being analyzed by international consultant Wardell Armstrong International for an initial resource estimate at Mkomolo by the year end.
Mr Simon Rollason chairman said that "The completion of core diamond drilling at the Mkomolo and Namwele basins should allow us to prove up an initial JORC compliant coal resource at the Rukwa coalfield in Tanzania. We confidently await the results of the analyzed samples from the laboratory and we will keep our shareholders up to date with the company's progress as and when we receive further news."
(sourced from Sierraexpressmedia)
Saturday, October 29, 2011
Brazil Vale diverting some iron to China - Mr Jose Carlos
Saturday, 29 Oct 2011
Reuters cited Mr Jose Carlos Martins executive director said the Brazilian miner Vale is diverting some iron ore shipments to China.
(Sourced from Reuters)
Reuters cited Mr Jose Carlos Martins executive director said the Brazilian miner Vale is diverting some iron ore shipments to China.
(Sourced from Reuters)
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