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)
Showing posts with label prices. Show all posts
Showing posts with label prices. Show all posts
Tuesday, February 8, 2011
Monday, February 7, 2011
Cost of construction going up sharply in Turkey
Monday, 07 Feb 2011
According to sector representatives, real estate prices in Turkey are expected to increase by as much as 20% in the near future due to the rising cost of cement and iron over the past year.
Mr Ali Agaoglu chairman of the Agaoglu Group said that "If this situation continues, we will be obliged to reflect the costs in house prices.”
According to companies, the trouble instead stemmed from the 33% in cement costs and the 44 rise in iron prices. Domestic rebar prices at the end January was in the range of USD 670 per tonne to USD 690 per tonne. The rising costs are likely hike house prices by between 10% and 20% as of May this year.
Mr Ismail Durak an executive from Turkey’s leading iron and steel producer, Kardemir said that Cement and iron and steel producers, however, said they were not to blame for the current situation. The price hike in iron stems from scrap prices.
(sourced:Hurriyet Daily News)
According to sector representatives, real estate prices in Turkey are expected to increase by as much as 20% in the near future due to the rising cost of cement and iron over the past year.
Mr Ali Agaoglu chairman of the Agaoglu Group said that "If this situation continues, we will be obliged to reflect the costs in house prices.”
According to companies, the trouble instead stemmed from the 33% in cement costs and the 44 rise in iron prices. Domestic rebar prices at the end January was in the range of USD 670 per tonne to USD 690 per tonne. The rising costs are likely hike house prices by between 10% and 20% as of May this year.
Mr Ismail Durak an executive from Turkey’s leading iron and steel producer, Kardemir said that Cement and iron and steel producers, however, said they were not to blame for the current situation. The price hike in iron stems from scrap prices.
(sourced:Hurriyet Daily News)
Friday, February 4, 2011
Chinese steel mills diversifying sources for iron ore supply
Friday, 04 Feb 2011
Indian iron ore spot prices in recent days kept surging due to iron ore supply shortage in the market, triggered by the news about Indian government hiking iron ore exports duty, flooding situation in Australia, Iran also contemplating 50% duty tax on iron ore fines and 35% on pellet exports.
With the expectation of housing project, railway project and underground projects undertaking in 2011 and many experts believe the Chinese steel demand will continue to see rapid growth in the next few years. The supply of the main source for steelmaking, iron ore has long been controlled by the three major supplying countries, Brazil, Australia and India. It has become a serious concern that China needs to diversify the sources of iron ore supply in the future in order to secure the necessary resources for the steel industry.
In fact, the recent data from China Custom have revealed the efforts. China imported 617 million tonnes of iron ore in 2010, down 1.4% than the previous year.
However, imports from smaller miners have showed significant growth in the past year. Between January to November in 2010, China imported 6.68 million tonnes of iron ore from Peru up by 22%, 4.41 million tonnes from Venezuela up by 77%, 12.88 million tonnes from Iran, up by 128%, 6.9 million tonnes from Indonesia up by 19%, 1.84 million tonnes from North Korea up by 167%, 1.72 million tonnes from Vietnam up by 10% and 6.10 million tonnes from Chile up by 17%.
Apparently, the surging iron ore spot prices and profitability of iron ore encourage smaller suppliers to jump into the iron ore market, thus pushing the imports from these countries to go up. Meanwhile, the overall decreasing in total imports and increasing amount from non-traditional iron ore suppliers indicated the Brazil, Australia and India market share have dropped in 2010.
Analysts pointed out that their market shares drops might be result from the economic recovery in Europe market and Vale have distributed quite a great deal of stock to the region. Traders revealed that importing iron ore from the major suppliers meant accepting the high cost at the market, and importing from smaller miners could mean the prices could be more flexible and thus more attractive.
The high iron ore spot prices have been pushing the index base quarterly contract prices to go up in the quarter one of 2011 as well. Sensing the huge demand from Chinese steel industry, major supplier like Rio, BHP and Vale have planned to expand production in 2011 and the onwards years.(sourced:mysteel.net, for real time access to China steel news)
Indian iron ore spot prices in recent days kept surging due to iron ore supply shortage in the market, triggered by the news about Indian government hiking iron ore exports duty, flooding situation in Australia, Iran also contemplating 50% duty tax on iron ore fines and 35% on pellet exports.
With the expectation of housing project, railway project and underground projects undertaking in 2011 and many experts believe the Chinese steel demand will continue to see rapid growth in the next few years. The supply of the main source for steelmaking, iron ore has long been controlled by the three major supplying countries, Brazil, Australia and India. It has become a serious concern that China needs to diversify the sources of iron ore supply in the future in order to secure the necessary resources for the steel industry.
In fact, the recent data from China Custom have revealed the efforts. China imported 617 million tonnes of iron ore in 2010, down 1.4% than the previous year.
However, imports from smaller miners have showed significant growth in the past year. Between January to November in 2010, China imported 6.68 million tonnes of iron ore from Peru up by 22%, 4.41 million tonnes from Venezuela up by 77%, 12.88 million tonnes from Iran, up by 128%, 6.9 million tonnes from Indonesia up by 19%, 1.84 million tonnes from North Korea up by 167%, 1.72 million tonnes from Vietnam up by 10% and 6.10 million tonnes from Chile up by 17%.
Apparently, the surging iron ore spot prices and profitability of iron ore encourage smaller suppliers to jump into the iron ore market, thus pushing the imports from these countries to go up. Meanwhile, the overall decreasing in total imports and increasing amount from non-traditional iron ore suppliers indicated the Brazil, Australia and India market share have dropped in 2010.
Analysts pointed out that their market shares drops might be result from the economic recovery in Europe market and Vale have distributed quite a great deal of stock to the region. Traders revealed that importing iron ore from the major suppliers meant accepting the high cost at the market, and importing from smaller miners could mean the prices could be more flexible and thus more attractive.
The high iron ore spot prices have been pushing the index base quarterly contract prices to go up in the quarter one of 2011 as well. Sensing the huge demand from Chinese steel industry, major supplier like Rio, BHP and Vale have planned to expand production in 2011 and the onwards years.(sourced:mysteel.net, for real time access to China steel news)
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