Saturday, 21 Jan 2012
BS reported that deputy director of mines for Joda circle has suspended 121 mineral trading licences for not submitting transaction reports.
The local mines director had recently ordered 357 traders in the region to submit details of trading transactions out of which 121 did not respond. The DDM is currently scrutinizing the submitted returns and said strict action will be taken on those who have given false information.
Mr UC Jena DDM of Joda said that “We took action on 121 traders for not complying with the order to submit returns related to transactions. Several other licences might also get suspended very soon.”
Sources said that the strict action from the Joda office is in sync with the state government policy to discourage intermediaries in mineral trade.
The state government, in December, decided not to issue any trading licences for mineral transshipment and also barred trader to trader mineral sale through a notification. It said the stockyards used for transshipment have been main source of illegal mineral trading.
The order issued from state steel and mines department said that “Intermediate stockyards which operate between the source of mineral and the point of end use (ports or steel plants) have the potential to facilitate illegal mining activities on the account of their location in such geographically distributed manner making it difficult to put an effective monitoring mechanism in place.”
(Sourced from BS)
Showing posts with label iron ore trading. Show all posts
Showing posts with label iron ore trading. Show all posts
Saturday, January 21, 2012
Monday, November 21, 2011
Adani denies involvement
Monday, 21 Nov 2011
Adani Enterprises said that it has no iron ore mine in Karnataka or anywhere else in the country and its only interest in the mineral is rendering port services to exporters.
An Adani spokesperson said in a statement that "We hereby confirm that Adani Enterprises has no iron ore mine in Karnataka or anywhere else in the country. We do not have any interest in iron ore except rendering port services to exporters/ miners of iron ore.”
The company provides services like storage, handling of various cargo and pay warfage charges to the port authorities. The entire responsibility of approvals relating to mine permits and transportation up to Belakary Port lie with the miner and or exporter.
It added that "Adani Enterprises has rendered such services in compliance of all rules and regulations laid down by the Port and Customs authorities. We would like to reiterate that we have not indulged in any unauthorized activities.”
The company's comments follow the Supreme Court today asking its expert committee to examine alleged illegalities committed by major companies involved in mining activities in Bellary district of Karnataka and neighboring Andhra Pradesh which have been indicted in the Lokayukta report.
An NGO has sought the extension of the CBI probe to cover two companies, including Adani Enterprises, that have been strongly indicted in the Karnataka Lokayukta report for illegal mining of iron and ore.
(Sourced from profit.ndtv.com)
Adani Enterprises said that it has no iron ore mine in Karnataka or anywhere else in the country and its only interest in the mineral is rendering port services to exporters.
An Adani spokesperson said in a statement that "We hereby confirm that Adani Enterprises has no iron ore mine in Karnataka or anywhere else in the country. We do not have any interest in iron ore except rendering port services to exporters/ miners of iron ore.”
The company provides services like storage, handling of various cargo and pay warfage charges to the port authorities. The entire responsibility of approvals relating to mine permits and transportation up to Belakary Port lie with the miner and or exporter.
It added that "Adani Enterprises has rendered such services in compliance of all rules and regulations laid down by the Port and Customs authorities. We would like to reiterate that we have not indulged in any unauthorized activities.”
The company's comments follow the Supreme Court today asking its expert committee to examine alleged illegalities committed by major companies involved in mining activities in Bellary district of Karnataka and neighboring Andhra Pradesh which have been indicted in the Lokayukta report.
An NGO has sought the extension of the CBI probe to cover two companies, including Adani Enterprises, that have been strongly indicted in the Karnataka Lokayukta report for illegal mining of iron and ore.
(Sourced from profit.ndtv.com)
Sunday, November 20, 2011
Iron ore derivatives market will continue to grow - Ms Brlas
Sunday, 20 Nov 2011
Ms Laurie Brlas chief financial officer of Cliffs Natural Resources said that the iron ore derivatives market will continue to grow, but miners of the steel component don't see a need to hedge at current prices.
Ms Laurie Brlas said while the company was watching developments in the market for iron ore derivatives, Cliffs wasn't interested in participating. The Cleveland company is the largest North American iron ore producer.
Ms Brlas told Dow Jones Newswires on the sidelines of a Dahlman Rose & Co conference that "We're not in the business of speculating in the market adding she was satisfied with Cliffs' exposure to cash prices, which is growing as Cliffs' long-term pricing agreements expire and are replaced with contracts that move more in line with market prices.
In some metals and other commodities markets, producers use derivatives contracts to lock in sales prices on a portion of their production and guarantee some of their cash flow. Iron-ore miners and steelmakers have generally been reluctant to use such hedges.
Other market participants have stepped in, and trading activity in iron-ore swaps cleared by Singapore Exchange Ltd reached record highs in October.
Ms Brlas said that iron ore trading will evolve into a real marketplace, but she said mining companies have yet to see the benefit of jumping into the market.
Ms Brlas said she expects prices in the coming years to remain at levels that maintain a healthy profit margin, underpinned by rapid growth in emerging market steel demand and the high cost of iron-ore mining in top producer China.
(Sourced from Dow Jones Newswires)
Ms Laurie Brlas chief financial officer of Cliffs Natural Resources said that the iron ore derivatives market will continue to grow, but miners of the steel component don't see a need to hedge at current prices.
Ms Laurie Brlas said while the company was watching developments in the market for iron ore derivatives, Cliffs wasn't interested in participating. The Cleveland company is the largest North American iron ore producer.
Ms Brlas told Dow Jones Newswires on the sidelines of a Dahlman Rose & Co conference that "We're not in the business of speculating in the market adding she was satisfied with Cliffs' exposure to cash prices, which is growing as Cliffs' long-term pricing agreements expire and are replaced with contracts that move more in line with market prices.
In some metals and other commodities markets, producers use derivatives contracts to lock in sales prices on a portion of their production and guarantee some of their cash flow. Iron-ore miners and steelmakers have generally been reluctant to use such hedges.
Other market participants have stepped in, and trading activity in iron-ore swaps cleared by Singapore Exchange Ltd reached record highs in October.
Ms Brlas said that iron ore trading will evolve into a real marketplace, but she said mining companies have yet to see the benefit of jumping into the market.
Ms Brlas said she expects prices in the coming years to remain at levels that maintain a healthy profit margin, underpinned by rapid growth in emerging market steel demand and the high cost of iron-ore mining in top producer China.
(Sourced from Dow Jones Newswires)
Friday, November 18, 2011
'Ore, exploration can take India-China trade to $100 bn'
Friday, Nov.18, 2011
Creating a favourable macro-environment in the area of iron ore trade and co-operation in the field of mining exploration can help achieve the ambitious India-China trade target of $100 billion by 2015, a top Chinese diplomat said here Thursday.
Speaking at a Conference on International Iron Ore Steel Making Raw Materials at a resort near Panaji, Economic and Commercial Counselor of the Embassy of China Peng Gang said the target set during Premier Wen Jiabao's New Delhi visit last year was a challenge against the backdrop of the ongoing global financial crisis.
'Our two sides should continue to deepen mutual trust, strengthen communication, promote mutually beneficial cooperation, properly handle differences so as to enhance the development of China-India Strategic Cooperative Partnership...,' the diplomat said.
Peng also called for preferential foreign direct investment (FDI) policies and creating a better investment opportunity had helped China in its long 30 year phase of opening up and reform.
'We would like to encourage more Chinese competent enterprises to establish more joint ventures in iron ore and steel-making sector with their Indian peers to increase the capability of iron processing and steel production of India,' he said.
Peng said the $1 trillion thrust in India's 12th Five Year Plan on infrastructure development would also open up new opportunities for development of mines in India. He said it was 'important to keep a transparent and stable policy system of mining, trading and export'.
'The companies of both countries might strengthen cooperate and investment with each other in mining supporting transport, logistics, ports construction and improvement with a purpose of creating favourable infrastructure conditions of mining development and trade between the two countries,' he said.
He said that both sides might also try to establish long-term iron ore trade agreement with a new pricing system.
Peng also advocated green innovative technologies to produce green and clean steel and other products.
The international conference comes against the backdrop of uncertainty in the mining sector as well as a potential ban on iron ore exports from Goa.
source: Bombay News
Creating a favourable macro-environment in the area of iron ore trade and co-operation in the field of mining exploration can help achieve the ambitious India-China trade target of $100 billion by 2015, a top Chinese diplomat said here Thursday.
Speaking at a Conference on International Iron Ore Steel Making Raw Materials at a resort near Panaji, Economic and Commercial Counselor of the Embassy of China Peng Gang said the target set during Premier Wen Jiabao's New Delhi visit last year was a challenge against the backdrop of the ongoing global financial crisis.
'Our two sides should continue to deepen mutual trust, strengthen communication, promote mutually beneficial cooperation, properly handle differences so as to enhance the development of China-India Strategic Cooperative Partnership...,' the diplomat said.
Peng also called for preferential foreign direct investment (FDI) policies and creating a better investment opportunity had helped China in its long 30 year phase of opening up and reform.
'We would like to encourage more Chinese competent enterprises to establish more joint ventures in iron ore and steel-making sector with their Indian peers to increase the capability of iron processing and steel production of India,' he said.
Peng said the $1 trillion thrust in India's 12th Five Year Plan on infrastructure development would also open up new opportunities for development of mines in India. He said it was 'important to keep a transparent and stable policy system of mining, trading and export'.
'The companies of both countries might strengthen cooperate and investment with each other in mining supporting transport, logistics, ports construction and improvement with a purpose of creating favourable infrastructure conditions of mining development and trade between the two countries,' he said.
He said that both sides might also try to establish long-term iron ore trade agreement with a new pricing system.
Peng also advocated green innovative technologies to produce green and clean steel and other products.
The international conference comes against the backdrop of uncertainty in the mining sector as well as a potential ban on iron ore exports from Goa.
source: Bombay News
Saturday, November 12, 2011
Barge owners want cap on vessels in Goa
Saturday, 12 Nov 2011
IANS reported that amid predictions that iron ore trade volumes will drastically dip this fiscal, an association of ore ferrying river barges in Goa has asked the state government to stop registering more vessels.
The All Goa Barge Owners Association, representing the nearly 400 odd barges in the state, has asked chief minister Mr Digambar Kamat to put a ceiling on the number of barges in Goa.
Mr William D'Costa secretary of the association said that “Our waterways are congested. There is no place for more barges. Taking into account the amount of ore transported, having more barges in Goa will be uneconomical.”
Mr D'Costa said that “The total dead weight of all barges together is 650,000 tonnes. Considering the existing capacity, all barges together can have on an average 70 trips a year, which is uneconomical.”
Goa exported nearly 54 million tonnes of iron ore from the two ports in the state's jurisdiction, a minor port off Panaji and a major port Mormugao Port Trust. Ore from the mining pits in Goa's hinterland are ferried from mining jetties to the loading areas in these ports by river barges which ply along the Mandovi and Zuari rivers that open into the Arabian sea.
Even though Goa exported in excess of 50 million tonnes, there are growing fears of a crackdown on illegal mining, following the submission of the Justice MB Shah Commission report on illegal mining to the central government. Industry experts have predicted a sharp dip in Goa's mining exports this financial year.
(Sourced from IANS)
IANS reported that amid predictions that iron ore trade volumes will drastically dip this fiscal, an association of ore ferrying river barges in Goa has asked the state government to stop registering more vessels.
The All Goa Barge Owners Association, representing the nearly 400 odd barges in the state, has asked chief minister Mr Digambar Kamat to put a ceiling on the number of barges in Goa.
Mr William D'Costa secretary of the association said that “Our waterways are congested. There is no place for more barges. Taking into account the amount of ore transported, having more barges in Goa will be uneconomical.”
Mr D'Costa said that “The total dead weight of all barges together is 650,000 tonnes. Considering the existing capacity, all barges together can have on an average 70 trips a year, which is uneconomical.”
Goa exported nearly 54 million tonnes of iron ore from the two ports in the state's jurisdiction, a minor port off Panaji and a major port Mormugao Port Trust. Ore from the mining pits in Goa's hinterland are ferried from mining jetties to the loading areas in these ports by river barges which ply along the Mandovi and Zuari rivers that open into the Arabian sea.
Even though Goa exported in excess of 50 million tonnes, there are growing fears of a crackdown on illegal mining, following the submission of the Justice MB Shah Commission report on illegal mining to the central government. Industry experts have predicted a sharp dip in Goa's mining exports this financial year.
(Sourced from IANS)
Thursday, September 15, 2011
Banks muscling in on physical iron ore trading and lured by volume
Thursday, 15 Sep 2011
It is reported that an increasing number of investment banks are poised to muscle into the trading of physical iron ore a business long dominated by trading houses lured by the market’s huge size and its shift to a more transparent pricing system.
Mr Colin Hamilton Macquarie analyst said “The global market volume is a major incentive, the iron ore market dwarfs any other metals and now they have a functioning financial market.”
He said that “The majority of the commodities banks including Macquarie are looking at physical iron ore.”
About 1bn tonnes of sea borne iron ore are traded every year with about 20-30% sold on the spot market and the rest sold in long-term contracts. The banks may never match trading houses in this market, because their risk limits will curb both speculative trading and deals in some risky parts of the world.
Even so banks will build their physical iron ore businesses for several reasons. Involvement in this market will help them to limit risk in their burgeoning iron ore derivatives businesses as well as to forge deals to finance companies in the booming mining business.
Mr Abe Ulusal a trader at Mitsui Bussan Commodities said “Having access to the physical material will give banks more leverage and will limit their risk on the derivatives side.”
After pioneering iron ore derivatives trading, Deutsche Bank started trading physical iron ore in 2010. Other banks such as Citi and Goldman Sachs are now following.
Iron ore swaps trading started in 2008 but began to gain more traction in 2010, when iron ore miners dumped a decades old annual price benchmark system and moved to pricing in the shorter term.
Iron ore swaps allow producers, consumers and financial market participants to hedge or bet on prices in the future.
The volume of swaps cleared on the Singapore Exchange reached a record annualised level of almost 50 million tonnes last month and although it is still small compared with the physical market and it is growing quickly.
(sourced from Gulf-Times)
It is reported that an increasing number of investment banks are poised to muscle into the trading of physical iron ore a business long dominated by trading houses lured by the market’s huge size and its shift to a more transparent pricing system.
Mr Colin Hamilton Macquarie analyst said “The global market volume is a major incentive, the iron ore market dwarfs any other metals and now they have a functioning financial market.”
He said that “The majority of the commodities banks including Macquarie are looking at physical iron ore.”
About 1bn tonnes of sea borne iron ore are traded every year with about 20-30% sold on the spot market and the rest sold in long-term contracts. The banks may never match trading houses in this market, because their risk limits will curb both speculative trading and deals in some risky parts of the world.
Even so banks will build their physical iron ore businesses for several reasons. Involvement in this market will help them to limit risk in their burgeoning iron ore derivatives businesses as well as to forge deals to finance companies in the booming mining business.
Mr Abe Ulusal a trader at Mitsui Bussan Commodities said “Having access to the physical material will give banks more leverage and will limit their risk on the derivatives side.”
After pioneering iron ore derivatives trading, Deutsche Bank started trading physical iron ore in 2010. Other banks such as Citi and Goldman Sachs are now following.
Iron ore swaps trading started in 2008 but began to gain more traction in 2010, when iron ore miners dumped a decades old annual price benchmark system and moved to pricing in the shorter term.
Iron ore swaps allow producers, consumers and financial market participants to hedge or bet on prices in the future.
The volume of swaps cleared on the Singapore Exchange reached a record annualised level of almost 50 million tonnes last month and although it is still small compared with the physical market and it is growing quickly.
(sourced from Gulf-Times)
Thursday, August 25, 2011
GFI Group launches iron ore swaps trading on EnergyMatch platform
Thursday, 25 Aug 2011
Dow Jones reported that GFI Group Inc has launched iron ore swaps trading on its EnergyMatch platform in Europe amid a broad move to expand its product offerings on the platform.
According the company, it has now successfully traded a number of iron ore swap products on EnergyMatch Europe, GFI's online energy trading platform.
The move follows the July 2011 introduction of fuel oil trading on EnergyMatch Europe amid an increasing push by regulatory authorities to move trade onto electronic screens.
Mr Dorian Benson head of GFI Dry Freight Group said that "Iron Ore Swaps is another example of our focus on adding new products to EnergyMatch. We look forward to making further announcements as we continue expand our offerings."
An iron ore swap involves buying or selling at a fixed price against a floating price, like an index and is a relatively new feature of the iron ore industry. Liquidity is still an issue for the iron ore swaps market, which Credit Suisse and Deutsche Bank AG pioneered a couple of years ago.
(Sourced from Dow Jones Newswires)
Dow Jones reported that GFI Group Inc has launched iron ore swaps trading on its EnergyMatch platform in Europe amid a broad move to expand its product offerings on the platform.
According the company, it has now successfully traded a number of iron ore swap products on EnergyMatch Europe, GFI's online energy trading platform.
The move follows the July 2011 introduction of fuel oil trading on EnergyMatch Europe amid an increasing push by regulatory authorities to move trade onto electronic screens.
Mr Dorian Benson head of GFI Dry Freight Group said that "Iron Ore Swaps is another example of our focus on adding new products to EnergyMatch. We look forward to making further announcements as we continue expand our offerings."
An iron ore swap involves buying or selling at a fixed price against a floating price, like an index and is a relatively new feature of the iron ore industry. Liquidity is still an issue for the iron ore swaps market, which Credit Suisse and Deutsche Bank AG pioneered a couple of years ago.
(Sourced from Dow Jones Newswires)
Wednesday, August 24, 2011
Standard Bank expanding physical iron ore and swaps trade
Wednesday, 24 Aug 2011
Reuters reported that Standard Bank started to trade iron ore swaps this year, chiefly as an add on to its expanding physical iron ore business and this derivatives activity is attracting ever more customer interest.
Mr Jim Coupland global head of base metals and bulk commodities, told Reuters in an interview that “We see the key being the physical flow and the derivatives being an add on to manage price risk. We started to trade iron ore swaps this year mainly to manage our prices risk, but from a customers' point of view it has also become more interesting.”
He added “We have already concluded some long term iron ore off takes in Sweden, Latin America and Australia and we are actively trading material in China as well.”
Iron ore swaps allow producers, consumers and financial market participants to hedge or bet on prices in the future. A number of investment banks have started to trade iron ore swaps in the last few months. Some, including Citi and Goldman Sachs are also looking at physical iron ore trading, attracted by large market volumes that mean potentially high returns.
Standard Bank also started trading physical steel products such as billet and scrap last year and is active in steel derivatives such as rebar on the Shanghai Futures Exchange and billet in the London Metal Exchange.
Standard Bank physical steel and iron ore traders are based in Shanghai, Hong Kong, Singapore and London while the bulk of the risk management team is based in Singapore.
(Sourced Thomson Reuters)
Reuters reported that Standard Bank started to trade iron ore swaps this year, chiefly as an add on to its expanding physical iron ore business and this derivatives activity is attracting ever more customer interest.
Mr Jim Coupland global head of base metals and bulk commodities, told Reuters in an interview that “We see the key being the physical flow and the derivatives being an add on to manage price risk. We started to trade iron ore swaps this year mainly to manage our prices risk, but from a customers' point of view it has also become more interesting.”
He added “We have already concluded some long term iron ore off takes in Sweden, Latin America and Australia and we are actively trading material in China as well.”
Iron ore swaps allow producers, consumers and financial market participants to hedge or bet on prices in the future. A number of investment banks have started to trade iron ore swaps in the last few months. Some, including Citi and Goldman Sachs are also looking at physical iron ore trading, attracted by large market volumes that mean potentially high returns.
Standard Bank also started trading physical steel products such as billet and scrap last year and is active in steel derivatives such as rebar on the Shanghai Futures Exchange and billet in the London Metal Exchange.
Standard Bank physical steel and iron ore traders are based in Shanghai, Hong Kong, Singapore and London while the bulk of the risk management team is based in Singapore.
(Sourced Thomson Reuters)
Legacy Iron Ore in trading halt on pending NMDC transaction
Wednesday, 24 Aug 2011
It is reported that Legacy Iron Ore has been granted a trading halt by the ASX pending an update on the transaction with the National Mineral Development Corporation Limited of India, with the company's shares placed in pre open.
Legacy Iron will be in the halt until the earlier of trade opening on Friday 26 August, or the announcement being released.
NMDC, which is India’s largest iron ore group is looking to lock in iron ore supplies, and has inked an MOU with Legacy Iron to acquire 50% equity in the company.
This would enable Legacy Iron to unlock and monetize the value inherent at Mt Bevan and gain a large cash infusion.
Mt Bevan offers low strip ratios, coarse grind size, low silica and an average concentrate grade of 69.8% iron.
Importantly, the project is located close to road, rail and an existing deep water port, mitigating the need for excessive investment in infrastructure, notably port facilities.
There is potential for early cash flows from DSO hematite.
Legacy Iron Ore is a Perth based Australian exploration company, established to search for iron ore and gold deposits. The flagship project is Mt Bevan Iron Ore project located approximately 100 kilometres west of Leonora in the central Yilgarn region.
Mt Bevan is a joint venture between Legacy and Hawthorn Resources whereby Legacy will earn a 60% interest in the project by expending a minimum of AUD 3.5 million to develop the project to a pre feasibility status.
(sourced proactiveinvestors)
It is reported that Legacy Iron Ore has been granted a trading halt by the ASX pending an update on the transaction with the National Mineral Development Corporation Limited of India, with the company's shares placed in pre open.
Legacy Iron will be in the halt until the earlier of trade opening on Friday 26 August, or the announcement being released.
NMDC, which is India’s largest iron ore group is looking to lock in iron ore supplies, and has inked an MOU with Legacy Iron to acquire 50% equity in the company.
This would enable Legacy Iron to unlock and monetize the value inherent at Mt Bevan and gain a large cash infusion.
Mt Bevan offers low strip ratios, coarse grind size, low silica and an average concentrate grade of 69.8% iron.
Importantly, the project is located close to road, rail and an existing deep water port, mitigating the need for excessive investment in infrastructure, notably port facilities.
There is potential for early cash flows from DSO hematite.
Legacy Iron Ore is a Perth based Australian exploration company, established to search for iron ore and gold deposits. The flagship project is Mt Bevan Iron Ore project located approximately 100 kilometres west of Leonora in the central Yilgarn region.
Mt Bevan is a joint venture between Legacy and Hawthorn Resources whereby Legacy will earn a 60% interest in the project by expending a minimum of AUD 3.5 million to develop the project to a pre feasibility status.
(sourced proactiveinvestors)
Tuesday, August 23, 2011
Singapore SMX iron ore futures see small volumes
Tuesday, 23 Aug 2011
Reuters reported that volumes traded on the Singapore Mercantile Exchange's iron ore futures remained thin a week after the bourse launched the contract with market participants opting for widely traded swaps instead.
SMX owned by India's Financial Technologies introduced its cash settled iron ore futures contract on August 12, hoping to tap into a growing market to hedge prices of the steelmaking raw ingredient.
From two lots traded on the launch date, volume rose as high as 38 lots on Tuesday. Volumes reached 36 lots by 0909 GMT on Friday.
The most traded August iron ore contract stood at USD 177.50 a tonne, after closing at USD 177.80 on Thursday. It began trading at USD 177 on August 12.
A Singapore based iron ore trader said that "It will take some time before people start trading it. More people are into swaps and I don't think many people are even aware about SMX's iron ore futures.”
(Sourced from Reuters)
Reuters reported that volumes traded on the Singapore Mercantile Exchange's iron ore futures remained thin a week after the bourse launched the contract with market participants opting for widely traded swaps instead.
SMX owned by India's Financial Technologies introduced its cash settled iron ore futures contract on August 12, hoping to tap into a growing market to hedge prices of the steelmaking raw ingredient.
From two lots traded on the launch date, volume rose as high as 38 lots on Tuesday. Volumes reached 36 lots by 0909 GMT on Friday.
The most traded August iron ore contract stood at USD 177.50 a tonne, after closing at USD 177.80 on Thursday. It began trading at USD 177 on August 12.
A Singapore based iron ore trader said that "It will take some time before people start trading it. More people are into swaps and I don't think many people are even aware about SMX's iron ore futures.”
(Sourced from Reuters)
Saturday, August 20, 2011
Africa may turn major iron ore exporter after 2020 - Analysts
Saturday, 20 Aug 2011
Reuters reported that Africa, regarded as the next iron ore frontier, is only likely to boost global supply from 2020 and only if countries overcome infrastructure and political hurdles.
Mr Phillip Killicoat iron ore manager at Credit Suisse commodities said that the market for iron ore, used in stainless steel production, is the second biggest commodity trading market in the world, valued at some USD 150 billion.
He said that of that, Africa accounts for only about 2%, although it holds some 20% of the world's resources. He added that "Africa has enormous potential, never mind the fact that the iron industry itself is growing at a rate even faster than global GDP, driven primarily by East Asia."
Steel demand, spurred by China's economic growth, has recovered more than anticipated in 2010, with future growth expected to be powered by emerging markets to 2015 and beyond. Africa, the world's poorest continent where many countries still rely on their minerals as a key foreign currency earner, hopes to cash in on this forecast amid good prices for iron ore.
Mr Yaoyun Xin MD at independent metals consultancy SMM Information and Technology told Reuters that "China is expected to increasingly turn to Africa to satisfy its iron ore needs as more Chinese companies look to invest or partner in mines."
Top global iron miners, including Rio Tinto, Vale and ArcelorMittal, have projects either in production or at an exploration stage in Africa, with three major iron ore bearing regions identified in the west, central and southern parts of the continent.
At the moment, Australia and Brazil are the two top global producers of the material, with South Africa being the only African country recognized as a major exporter, accounting for about 80% of the continent's total output.
Mr Ian Cope, global exploration manager for iron and coal at ArcelorMittal, said that "African projects are only expected to contribute less than 5 percent of the projected 47% growth in global iron ore demand by 2020. The potential is there but there are challenges and it's not a given that this ore will get out of Africa."
Mr Cope said that most of the iron ore in Africa was of a lower grade, although top grade hematite deposits were found in South Africa, the Democratic Republic of Congo and Guinea, where the promising Simandou deposit was in the process of being mined.
Mr Ernst Venter, a manager at Exxaro, said that "By 2025 we see it is possible that Africa can supply 200 million tonnes per annum of additional iron ore into the iron ore market."
He said the forecast excludes current expansion plans for the Sishen mine owned by Kumba Iron Ore, the world's 10th largest producer and the biggest in Africa.
(Sourced from www.reuters.com)
Reuters reported that Africa, regarded as the next iron ore frontier, is only likely to boost global supply from 2020 and only if countries overcome infrastructure and political hurdles.
Mr Phillip Killicoat iron ore manager at Credit Suisse commodities said that the market for iron ore, used in stainless steel production, is the second biggest commodity trading market in the world, valued at some USD 150 billion.
He said that of that, Africa accounts for only about 2%, although it holds some 20% of the world's resources. He added that "Africa has enormous potential, never mind the fact that the iron industry itself is growing at a rate even faster than global GDP, driven primarily by East Asia."
Steel demand, spurred by China's economic growth, has recovered more than anticipated in 2010, with future growth expected to be powered by emerging markets to 2015 and beyond. Africa, the world's poorest continent where many countries still rely on their minerals as a key foreign currency earner, hopes to cash in on this forecast amid good prices for iron ore.
Mr Yaoyun Xin MD at independent metals consultancy SMM Information and Technology told Reuters that "China is expected to increasingly turn to Africa to satisfy its iron ore needs as more Chinese companies look to invest or partner in mines."
Top global iron miners, including Rio Tinto, Vale and ArcelorMittal, have projects either in production or at an exploration stage in Africa, with three major iron ore bearing regions identified in the west, central and southern parts of the continent.
At the moment, Australia and Brazil are the two top global producers of the material, with South Africa being the only African country recognized as a major exporter, accounting for about 80% of the continent's total output.
Mr Ian Cope, global exploration manager for iron and coal at ArcelorMittal, said that "African projects are only expected to contribute less than 5 percent of the projected 47% growth in global iron ore demand by 2020. The potential is there but there are challenges and it's not a given that this ore will get out of Africa."
Mr Cope said that most of the iron ore in Africa was of a lower grade, although top grade hematite deposits were found in South Africa, the Democratic Republic of Congo and Guinea, where the promising Simandou deposit was in the process of being mined.
Mr Ernst Venter, a manager at Exxaro, said that "By 2025 we see it is possible that Africa can supply 200 million tonnes per annum of additional iron ore into the iron ore market."
He said the forecast excludes current expansion plans for the Sishen mine owned by Kumba Iron Ore, the world's 10th largest producer and the biggest in Africa.
(Sourced from www.reuters.com)
Tuesday, February 8, 2011
Iron ore trading activity kept prices steady
Tuesday, 08 Feb 2011
Reuters reported that thin spot iron ore trading activity on Monday kept prices steady near record highs with top buyer China off the market for the Lunar New Year holiday.
Prices are expected to resume their rally when the Chinese markets reopen on Wednesday on persistent worries about tight supplies through the first half of 2011.
Macquarie Research said in a note that "There is little expansion potential in the global supply chain while rampant Chinese steel production growth is bolstering demand conditions. We would expect the price to keep edging upwards post Chinese New Year with USD 200 per tonne in sight."
Macquarie said the sharp decline in Brazil iron ore exports last month along with continuously tight cargoes from India suggest that the iron ore market will remain in an extremely tight situation in the first half of the year.
Iron ore exports from Brazil the world No 2 supplier of the steelmaking ingredient fell 29% in January from the previous month as heavy rains disrupted shipments.
Supplies from India, the world No 3 exporter had been tight because of a continuing ban on shipments from its Karnataka state. Macquarie said while a possible lifting of the ban this month could bring some material back to the market, the revamped state rules may make paperwork more rigorous and curb shipments compared to last year.
(sourced:Reuters)
Reuters reported that thin spot iron ore trading activity on Monday kept prices steady near record highs with top buyer China off the market for the Lunar New Year holiday.
Prices are expected to resume their rally when the Chinese markets reopen on Wednesday on persistent worries about tight supplies through the first half of 2011.
Macquarie Research said in a note that "There is little expansion potential in the global supply chain while rampant Chinese steel production growth is bolstering demand conditions. We would expect the price to keep edging upwards post Chinese New Year with USD 200 per tonne in sight."
Macquarie said the sharp decline in Brazil iron ore exports last month along with continuously tight cargoes from India suggest that the iron ore market will remain in an extremely tight situation in the first half of the year.
Iron ore exports from Brazil the world No 2 supplier of the steelmaking ingredient fell 29% in January from the previous month as heavy rains disrupted shipments.
Supplies from India, the world No 3 exporter had been tight because of a continuing ban on shipments from its Karnataka state. Macquarie said while a possible lifting of the ban this month could bring some material back to the market, the revamped state rules may make paperwork more rigorous and curb shipments compared to last year.
(sourced:Reuters)
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