Thu, Jan05, 2012
Hazira: The $15 billion Essar group will become one of the first steel mills in India to use low-grade iron ore fines to make steel at the Essar Steel Hazira plant whose capacity has now been expanded to 10 million tonnes per annum from seven million tonnes per annum.
Prashant Ruia, group CEO at Essar group said, “Most of our raw material will be low-grade fines which is much cheaper. A bulk of our iron ore needs have been secured through off-take agreements with key players such as NMDC and captive mines in Jharkhand and Chhatisgarh. In addition, the iron ore benefication plants have been set up by the company to facilitate usage of low-grade iron ore fines abundantly available in the country.”
So far, iron ore fines have either been exported or dumped along with overburden, as Indian steelmakers have locked the technology to process this inferior grade raw material into iron.
Essar Steel has licensed the technology for iron ore benification from Sweden-based Metso and for pellets it has sourced technology from Germany-based Lurgi. The company refused to comment on the price it has paid for acquiring the technology. As per the current market prices using iron ore fines will help the company to reduce cost by 60 per cent, a senior company official said Ruia.
For its energy requirements, Essar has long-term power purchase agreements with Essar Power and will soon have access to cheaper coal based power from its captive plants too.
Essar is also producing ore pellets through benefication of iron ore. Every million tonnes of steel requires 1.4 million tonne pellet for manufacturing. Essar Steel will have 20 million tonne pellet making capacity operational once its Orissa benefication plant goes on stream in two equal phases starting from March 2012. The final six million tonnes at Orissa will be operational in a year’s time.
(sourced MyDigaltalFC)
Showing posts with label iron ore suppliers. Show all posts
Showing posts with label iron ore suppliers. Show all posts
Thursday, January 5, 2012
Wednesday, August 3, 2011
TATA Metaliks may close Goa plant
Wednesday, 03 Aug 2011 | By PTI
PTI reported that as a direct fall out of the iron ore mining scam in Karnataka, pig iron manufacturer TATA Metaliks Limited might have to close down its Goa plant in a week.
Mr Harsh Jha MD of TATA Metaliks a subsidiary of TATA Steel told PTI that "The iron ore supplies to the Goa plant are halted due to the Supreme Court ban on mining in Karnataka. We may have to close down the plant in a week.”
Mr Jha said the Goa plant depended on iron ore supplies from the Bellary Hospet belt in Karnataka.
He added that "Closure of the Goa plant will entail a huge revenue loss for the company.”
He said the Goa plant was contributing INR 500 crore out of TATA Metaliks' annual revenue of around INR 1,300 crore.
The Goa plant has a capacity of 200,000 tonne per annum.
The company was also in the process of acquiring 1,900 acre in Karnataka for its 3 million tonne steel plant. Mr Jha said the company was in the process of obtaining consent of the people for acquiring 75% and the balance would be acquired by the Karnataka government.
Mr Harsh Jha MD of TATA Metaliks a subsidiary of TATA Steel told PTI that "The iron ore supplies to the Goa plant are halted due to the Supreme Court ban on mining in Karnataka. We may have to close down the plant in a week.”
Mr Jha said the Goa plant depended on iron ore supplies from the Bellary Hospet belt in Karnataka.
He added that "Closure of the Goa plant will entail a huge revenue loss for the company.”
He said the Goa plant was contributing INR 500 crore out of TATA Metaliks' annual revenue of around INR 1,300 crore.
The Goa plant has a capacity of 200,000 tonne per annum.
The company was also in the process of acquiring 1,900 acre in Karnataka for its 3 million tonne steel plant. Mr Jha said the company was in the process of obtaining consent of the people for acquiring 75% and the balance would be acquired by the Karnataka government.
Tuesday, July 26, 2011
JSW changes iron ore suppliers
Tue,July 26,2011
By Shubhashish, Business Standard
Mumbai: In the wake of the tussle between the Karnataka government and iron ore miners in Karnataka’s Bellary district, many steelmakers are facing shortage in supply of the raw material. JSW Steel, which operates an 11-million-tonne plant in the region, has secured iron ore supplies from the neighbouring Chitradurga, thereby reducing its dependence on Bellary.
“We are able to meet our requirement of iron ore from Chitradurga in Karnataka,” Vice-Chairman and Managing Director Sajjan Jindal said while addressing the 17th annual general meeting.
He said there were a lot of issues relating to iron ore miners in Bellary but declined to comment on the issue as the case was in the Supreme Court.
Vinod Nowal, director and CEO, JSW Steel, told Business Standard, “We were getting 50 per cent of our iron ore requirements from Bellary which is roughly around 20 million tonnes (mt). We are sourcing an additional 10 mt from Chitradurga.”
Nowal said of the 50 per cent iron ore that used to come from Bellary, the company is sourcing around 30 per cent from Chitradurga. The remaining 20 per cent is still being sourced from companies in Bellary with which JSW Steel has long-term contracts.
The company sources 20 per cent of iron ore from its captive resources. It gets another 30 per cent of the raw material through purchase agreements with state-run NMDC and Mysore Minerals Ltd. The remaining 50 per cent was being sourced from miners in the Bellary area.
“As on today, we are comfortable with our sourcing,” he said.
JSW Steel has also commissioned its benefication plant which has reduced its dependence on high grade of iron ore, thereby bringing the costs down. The company said that in 2009-10, 80 per cent of its total iron ore was of high grade, which has come down to just 30 per cent in 2010-11.
For the current financial year, the company will continue to source low-grade iron ore to meet its entire requirement, resulting in cost savings.
Talking about the production growth for the current year, Jindal said the company planned to produce nine million tonne of steel, which 40 per cent more from the previous year. The company has also commissioned a 3.2-mt blast furnace, taking its total installed capacity to 11 mt.
It said that the company has tied up for additional iron ore sources to feed the 3.2 million tonne steel melting capacity that has become operational in the first quarter of this year.
“We are able to meet our requirement of iron ore from Chitradurga in Karnataka,” Vice-Chairman and Managing Director Sajjan Jindal said while addressing the 17th annual general meeting.
He said there were a lot of issues relating to iron ore miners in Bellary but declined to comment on the issue as the case was in the Supreme Court.
Vinod Nowal, director and CEO, JSW Steel, told Business Standard, “We were getting 50 per cent of our iron ore requirements from Bellary which is roughly around 20 million tonnes (mt). We are sourcing an additional 10 mt from Chitradurga.”
Nowal said of the 50 per cent iron ore that used to come from Bellary, the company is sourcing around 30 per cent from Chitradurga. The remaining 20 per cent is still being sourced from companies in Bellary with which JSW Steel has long-term contracts.
The company sources 20 per cent of iron ore from its captive resources. It gets another 30 per cent of the raw material through purchase agreements with state-run NMDC and Mysore Minerals Ltd. The remaining 50 per cent was being sourced from miners in the Bellary area.
“As on today, we are comfortable with our sourcing,” he said.
JSW Steel has also commissioned its benefication plant which has reduced its dependence on high grade of iron ore, thereby bringing the costs down. The company said that in 2009-10, 80 per cent of its total iron ore was of high grade, which has come down to just 30 per cent in 2010-11.
For the current financial year, the company will continue to source low-grade iron ore to meet its entire requirement, resulting in cost savings.
Talking about the production growth for the current year, Jindal said the company planned to produce nine million tonne of steel, which 40 per cent more from the previous year. The company has also commissioned a 3.2-mt blast furnace, taking its total installed capacity to 11 mt.
It said that the company has tied up for additional iron ore sources to feed the 3.2 million tonne steel melting capacity that has become operational in the first quarter of this year.
Thursday, June 2, 2011
Big three iron ore suppliers drop price
June02, 2011
The third quarter's iron ore prices offered by the big three suppliers, namely, Vale, Rio Tinto and BHP Billiton, to China's steelmakers have seen a drop of an average of $1.5 per metric ton.
Clearly, this is good news for Chinese steelmakers. However, ongoing power shortages may dampen steelmaker output, but help prop up the steel price.
By May 30, the iron ore stock at China's 25 seaports was at a high level – 93.07 million tons, up 610,000 tons week-on-week.
Analysts said steelmakers are likely to put off iron ore orders as they expect prices offered by the big three to be further cut.
source Global Times
The third quarter's iron ore prices offered by the big three suppliers, namely, Vale, Rio Tinto and BHP Billiton, to China's steelmakers have seen a drop of an average of $1.5 per metric ton.
Clearly, this is good news for Chinese steelmakers. However, ongoing power shortages may dampen steelmaker output, but help prop up the steel price.
By May 30, the iron ore stock at China's 25 seaports was at a high level – 93.07 million tons, up 610,000 tons week-on-week.
Analysts said steelmakers are likely to put off iron ore orders as they expect prices offered by the big three to be further cut.
source Global Times
Friday, May 20, 2011
Quality issues threaten India iron ore sales to China
May 19, 2011 1:59pm GMT
* China says over 800 shipments from India substandard in Jan-Apr
* China buyer of nearly all India's iron ore exports
(Releads with Indian industry reaction, trader quote, changes dateline)
By Rajendra Jadhav and David Stanway
MUMBAI/BEIJING, May 19 (Reuters) - India's iron ore exports and prices could be hit by quality issues on $2.2 billion of shipments raised by top buyer China, an Indian industry official said on Thursday.
India is the world's third-largest iron ore supplier and sends almost all its exports to China, trade worth around $1.5 billion per month.
During the first four months of 2011, over a third of India's exports to the Chinese province of Jiangsu were substandard, China's General Administration of Quality, Supervision, Inspection and Quarantine (AQSIQ) said in a notice posted on its website (www.aqsiq.gov.cn).
"We should check the quality of ore before shipping. It is a serious issue. It may affect India's exports (and) price realisation," Basant Poddar, vice-president, Federation of Indian Mineral Industries told Reuters.
Jiangsu is China's third-largest importing province, receiving over 10 percent of the country's iron shipments in the first quarter.
Of the 2289 shipments that AQSIQ inspected from India into Jiangsu from January to April, 827 either had a lower iron content than stipulated in contracts or contained too many impurities, AQSIQ said.
India's shipments to China have yet to recover after Karnataka state, supplier of about a quarter of India's shipments, lifted an export ban in April. China's imports from India in the first quarter were down over 20 percent on the year at 26.5 million tonnes.
Iron ore prices are around $185 a tonne for spot sales while contract prices, set on a quarterly basis, hit a record $179.2 per tonne in the second quarter. [ID:nL4E7GJ0DM]
The problems were with cargoes sent by some traders rather than those from India's large mining companies, AQSIQ and industry players said. India's biggest iron ore miner is state-run NMDC and its biggest iron ore exporter is Sesa Goa .
Some traders and inspectors had produced inaccurate shipment reports for iron ore cargoes, AQSIQ said.
AQSIQ said local inspection departments would crack down on the practise and urged local iron ore importers to pay more attention to contracts, and to the reputation and size of their trading partners.
"Small miners and traders sometimes supply substandard ore as some of them are buying (different-grade) ores and blending them," said an iron ore trader based in Jiangsu province.
Chinese buyers often pay as much as 98 percent of the price for the key steel-making ingredient up front on the basis of Indian inspection reports.
After the shipment has cleared customs, buyers get their own checks on quality. If the shipment is below standard, they ask for compensation.
(Additional reporting by Ruby Lian in Shanghai, sourced Thomson Reuters)
(Writing by Jo Winterbottom; Editing by Simon Webb)
* China says over 800 shipments from India substandard in Jan-Apr
* China buyer of nearly all India's iron ore exports
(Releads with Indian industry reaction, trader quote, changes dateline)
By Rajendra Jadhav and David Stanway
MUMBAI/BEIJING, May 19 (Reuters) - India's iron ore exports and prices could be hit by quality issues on $2.2 billion of shipments raised by top buyer China, an Indian industry official said on Thursday.
India is the world's third-largest iron ore supplier and sends almost all its exports to China, trade worth around $1.5 billion per month.
During the first four months of 2011, over a third of India's exports to the Chinese province of Jiangsu were substandard, China's General Administration of Quality, Supervision, Inspection and Quarantine (AQSIQ) said in a notice posted on its website (www.aqsiq.gov.cn).
"We should check the quality of ore before shipping. It is a serious issue. It may affect India's exports (and) price realisation," Basant Poddar, vice-president, Federation of Indian Mineral Industries told Reuters.
Jiangsu is China's third-largest importing province, receiving over 10 percent of the country's iron shipments in the first quarter.
Of the 2289 shipments that AQSIQ inspected from India into Jiangsu from January to April, 827 either had a lower iron content than stipulated in contracts or contained too many impurities, AQSIQ said.
India's shipments to China have yet to recover after Karnataka state, supplier of about a quarter of India's shipments, lifted an export ban in April. China's imports from India in the first quarter were down over 20 percent on the year at 26.5 million tonnes.
Iron ore prices are around $185 a tonne for spot sales while contract prices, set on a quarterly basis, hit a record $179.2 per tonne in the second quarter. [ID:nL4E7GJ0DM]
The problems were with cargoes sent by some traders rather than those from India's large mining companies, AQSIQ and industry players said. India's biggest iron ore miner is state-run NMDC and its biggest iron ore exporter is Sesa Goa .
Some traders and inspectors had produced inaccurate shipment reports for iron ore cargoes, AQSIQ said.
AQSIQ said local inspection departments would crack down on the practise and urged local iron ore importers to pay more attention to contracts, and to the reputation and size of their trading partners.
"Small miners and traders sometimes supply substandard ore as some of them are buying (different-grade) ores and blending them," said an iron ore trader based in Jiangsu province.
Chinese buyers often pay as much as 98 percent of the price for the key steel-making ingredient up front on the basis of Indian inspection reports.
After the shipment has cleared customs, buyers get their own checks on quality. If the shipment is below standard, they ask for compensation.
(Additional reporting by Ruby Lian in Shanghai, sourced Thomson Reuters)
(Writing by Jo Winterbottom; Editing by Simon Webb)
Friday, February 18, 2011
Chinese plan for steel super firms seen floundering
Friday, 18 Feb 2011
Reuters reported that China is likely to fail in its drive for state owned steel giants to swallow small mills and create iron ore super buyers to wring better prices from leading sellers Vale, Rio Tinto and BHP Billiton as failure to get the three major iron ore suppliers to agree to price cuts in 2009 was blamed on small mills breaking ranks.
China latest five year plan aims to fix by bringing more than 60% of national steel capacity under the control of its top ten producers by 2015.
Cutting total steel capacity in China, variously estimated at 720 million to 750 million tonnes a year roughly more than 100 million tonnes over 2010 output of 626.6 million tonnes, by forcing mergers and shutdowns may not work as well as market forces.
China industry ministry last month said the top ten steel mills produced 48.1% of national output last year up by 3.6 percentage points from 2009 and close to its original target of 50%.
But analysts say that up to now, many of the consolidations have been cosmetic gestures to appease regulators.
Mr Henry Liu head of commodity research at Mirae Assets Securities in Hong Kong said "The government led administrative push will not work and the best way is to allow the market to play a major role in mergers and acquisitions"
Mr Du Hui with China Qilu Securities said "The majority of mergers and acquisitions have been sought to create a simple sum of output and haven't met the real target of regrouping assets and jointly utilizing resources."
(sourced:Reuters)
Tags: Chinese plan for steel super firms, BHP Billiton, Rio Tinto, iron ore suppliers, Vale, iron ore suppliers, small steel mills, China steel industry,China Qilu Securities, Mirae Assets Securities,Hong Kong
Reuters reported that China is likely to fail in its drive for state owned steel giants to swallow small mills and create iron ore super buyers to wring better prices from leading sellers Vale, Rio Tinto and BHP Billiton as failure to get the three major iron ore suppliers to agree to price cuts in 2009 was blamed on small mills breaking ranks.
China latest five year plan aims to fix by bringing more than 60% of national steel capacity under the control of its top ten producers by 2015.
Cutting total steel capacity in China, variously estimated at 720 million to 750 million tonnes a year roughly more than 100 million tonnes over 2010 output of 626.6 million tonnes, by forcing mergers and shutdowns may not work as well as market forces.
China industry ministry last month said the top ten steel mills produced 48.1% of national output last year up by 3.6 percentage points from 2009 and close to its original target of 50%.
But analysts say that up to now, many of the consolidations have been cosmetic gestures to appease regulators.
Mr Henry Liu head of commodity research at Mirae Assets Securities in Hong Kong said "The government led administrative push will not work and the best way is to allow the market to play a major role in mergers and acquisitions"
Mr Du Hui with China Qilu Securities said "The majority of mergers and acquisitions have been sought to create a simple sum of output and haven't met the real target of regrouping assets and jointly utilizing resources."
(sourced:Reuters)
Tags: Chinese plan for steel super firms, BHP Billiton, Rio Tinto, iron ore suppliers, Vale, iron ore suppliers, small steel mills, China steel industry,China Qilu Securities, Mirae Assets Securities,Hong Kong
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