Sept7,2011
SYDNEY (Reuters) - Iron ore shipments from Australia's Port Hedland, one of the world's largest export terminals, jumped 15.3 percent to 20.22 million tonnes in August from July, data released by the port authority showed on Tuesday.
Shipments to China, the port's biggest destination, rose to 14.3 million tonnes from 12.62 million in July.
Billiton is the port's biggest user followed by Fortescue Metals Group Ltd .
Showing posts with label shipments. Show all posts
Showing posts with label shipments. Show all posts
Wednesday, September 7, 2011
Thursday, August 11, 2011
China July exports hit record high, surplus swells
By Koh Gui Qing and Zhou Xin
Aug10, 2011
BEIJING (Reuters) - China's exports hit a record high in July as shipments to Europe and the United States proved surprisingly buoyant, allaying concerns that debt problems abroad may hold back the world's No. 2 economy.
But analysts warned it was too soon to declare that Chinese exports can hold up in coming months as debt worries, sluggish consumer spending and now wildly volatile financial markets plague its two biggest customers.
"Both imports and exports are likely to grow at a slower pace in coming months," said Li Xunlei, an economist at Guotai Junan Securities in Shanghai. "The global financial market turbulence may lead to a contraction in external demand."
July exports rose 20.4 percent from a year ago, the strongest gain since April and surpassing economists' median forecast for a 17.4 percent rise, data on Wednesday showed.
Imports were roughly in line with expectations, rising 22.9 percent in July from a year earlier, the General Administration of Customs said. Economists had forecast growth of 22.3 percent.
"China's trade sector is still facing great uncertainties," said Nie Wen, an analyst at Hwabao Trust in Shanghai. "Developed countries are forced to take austerity measures, and emerging markets may tighten (policy) as well to tame inflation."
Indeed, just hours earlier, the U.S. Federal Reserve took the unprecedented step of promising to leave interest rates near zero for at least two more years, painting a gloomy picture for the world's largest economy.
Noting that monetary policy risks are shifting to supporting growth from fighting inflation, China has signaled it may pause its 10-month policy tightening campaign for now.
Wednesday's data suggested sluggishness in the U.S. and European economies has yet to put a big dent in Chinese export growth, as many investors had feared. Instead, robust U.S. and European shipments helped pushed the value of China's monthly exports to a record high of $175.1 billion.
Although annual growth in Chinese exports to the United States in July was marginally weaker than June at 9.5 percent, the total value hit the year's high of $30 billion.
Annual growth of exports to Europe nearly doubled to 22.3 percent, lifting the value of sales to $35.1 billion. Export growth to Japan also picked up sharply.
BHP Billiton (BHP.AX)(BLT.L), the world's biggest miner, said on Wednesday it expected weak growth in Europe and the United States to persist for many years as they deal with their debt crises, heightening the reliance on China's fast-growing economy.
PRESSURE ON YUAN TO RISE
Other data this week showed that China's inflation hit three-year highs of 6.5 percent in July, and some officials have said that it has likely peaked.
But underlining the fine balance that Beijing has to tread between managing growth and inflation, July's brisk exports caused China's trade surplus to balloon to $31.5 billion, its widest since January 2009.
That could fuel price pressures at home and more criticism from its trade partners abroad that Beijing is keeping its yuan currency suppressed to sell more exports at their expense, allegations China has always denied.
As part of Beijing's policy to prevent the yuan from rising too quickly, it buys dollars earned from trade revenues. But Beijing injects more than 6 yuan into China's banking system for every dollar it buys, adding to a surfeit of cash that fans inflation.
So even if Beijing is reluctant to tighten policy now, it may need to step aside nonetheless to let the yuan climb more briskly if it wants to keep a lid on prices, analysts said.
"China's monetary policy has been kidnapped by foreign capital inflows," said Zhang Lei, an analyst at Minsheng Securities in Shanghai, referring to the widening trade surplus.
"Yuan appreciation is still one important option."
"CHINA IS OK"
To be sure, all signs suggest that China's economy has taken the steady policy tightening in the past year well in its stride, with its red-hot growth moderating only slightly so far.
Most market watchers continue to predict a soft economic landing, with growth easing to 8-9 percent, rather than a sharp decline.
Many economists agreed that the latest trade data showed China's growth engine is whirring along, with domestic demand solid.
Retail sales climbed 17.2 percent in July from a year earlier, albeit not quite as much as analysts had expected, while car sales rose 6.7 percent, picking up momentum from the previous month.
Imports of raw materials such as copper and iron ore saw strong gains from June, and the recent plunge in global commodity prices is likely to stoke more Chinese buying.
That should comfort investors looking to China to pick up some slack in global demand as other major economies sputter.
And China's relatively low -- albeit rising -- production costs could keep its exports competitive when times are rough, analysts said.
"In the past couple of months, the U.S. economy has been turning down, but China's export growth has held out," said Bank of America-Merrill Lynch's Lu.
"This shows China's economy is okay."
Beijing, which has repeatedly voiced confidence in China's growth in the past year, reiterated the line this week, though it has been clearly rattled by heavy selling in financial markets after the United States lost its top-rated credit rating on Friday.
Premier Wen Jiabao said on Tuesday that China's economy continues to show good growth momentum. But in a sign Beijing would rather err on the side of caution, he signaled China may soften its strike against inflation.
An official Chinese newspaper also said as much on Wednesday by declaring in a front-page editorial that Beijing would refrain from raising interest rates for now due to the rout in global markets.
However, China top economic planner stressed that inflation dangers remained, including the possibility of a new round of monetary easing in the United States which could fuel fresh price pressures.
Aug10, 2011
BEIJING (Reuters) - China's exports hit a record high in July as shipments to Europe and the United States proved surprisingly buoyant, allaying concerns that debt problems abroad may hold back the world's No. 2 economy.
But analysts warned it was too soon to declare that Chinese exports can hold up in coming months as debt worries, sluggish consumer spending and now wildly volatile financial markets plague its two biggest customers.
"Both imports and exports are likely to grow at a slower pace in coming months," said Li Xunlei, an economist at Guotai Junan Securities in Shanghai. "The global financial market turbulence may lead to a contraction in external demand."
July exports rose 20.4 percent from a year ago, the strongest gain since April and surpassing economists' median forecast for a 17.4 percent rise, data on Wednesday showed.
Imports were roughly in line with expectations, rising 22.9 percent in July from a year earlier, the General Administration of Customs said. Economists had forecast growth of 22.3 percent.
"China's trade sector is still facing great uncertainties," said Nie Wen, an analyst at Hwabao Trust in Shanghai. "Developed countries are forced to take austerity measures, and emerging markets may tighten (policy) as well to tame inflation."
Indeed, just hours earlier, the U.S. Federal Reserve took the unprecedented step of promising to leave interest rates near zero for at least two more years, painting a gloomy picture for the world's largest economy.
Noting that monetary policy risks are shifting to supporting growth from fighting inflation, China has signaled it may pause its 10-month policy tightening campaign for now.
Wednesday's data suggested sluggishness in the U.S. and European economies has yet to put a big dent in Chinese export growth, as many investors had feared. Instead, robust U.S. and European shipments helped pushed the value of China's monthly exports to a record high of $175.1 billion.
Although annual growth in Chinese exports to the United States in July was marginally weaker than June at 9.5 percent, the total value hit the year's high of $30 billion.
Annual growth of exports to Europe nearly doubled to 22.3 percent, lifting the value of sales to $35.1 billion. Export growth to Japan also picked up sharply.
BHP Billiton (BHP.AX)(BLT.L), the world's biggest miner, said on Wednesday it expected weak growth in Europe and the United States to persist for many years as they deal with their debt crises, heightening the reliance on China's fast-growing economy.
PRESSURE ON YUAN TO RISE
Other data this week showed that China's inflation hit three-year highs of 6.5 percent in July, and some officials have said that it has likely peaked.
But underlining the fine balance that Beijing has to tread between managing growth and inflation, July's brisk exports caused China's trade surplus to balloon to $31.5 billion, its widest since January 2009.
That could fuel price pressures at home and more criticism from its trade partners abroad that Beijing is keeping its yuan currency suppressed to sell more exports at their expense, allegations China has always denied.
As part of Beijing's policy to prevent the yuan from rising too quickly, it buys dollars earned from trade revenues. But Beijing injects more than 6 yuan into China's banking system for every dollar it buys, adding to a surfeit of cash that fans inflation.
So even if Beijing is reluctant to tighten policy now, it may need to step aside nonetheless to let the yuan climb more briskly if it wants to keep a lid on prices, analysts said.
"China's monetary policy has been kidnapped by foreign capital inflows," said Zhang Lei, an analyst at Minsheng Securities in Shanghai, referring to the widening trade surplus.
"Yuan appreciation is still one important option."
"CHINA IS OK"
To be sure, all signs suggest that China's economy has taken the steady policy tightening in the past year well in its stride, with its red-hot growth moderating only slightly so far.
Most market watchers continue to predict a soft economic landing, with growth easing to 8-9 percent, rather than a sharp decline.
Many economists agreed that the latest trade data showed China's growth engine is whirring along, with domestic demand solid.
Retail sales climbed 17.2 percent in July from a year earlier, albeit not quite as much as analysts had expected, while car sales rose 6.7 percent, picking up momentum from the previous month.
Imports of raw materials such as copper and iron ore saw strong gains from June, and the recent plunge in global commodity prices is likely to stoke more Chinese buying.
That should comfort investors looking to China to pick up some slack in global demand as other major economies sputter.
And China's relatively low -- albeit rising -- production costs could keep its exports competitive when times are rough, analysts said.
"In the past couple of months, the U.S. economy has been turning down, but China's export growth has held out," said Bank of America-Merrill Lynch's Lu.
"This shows China's economy is okay."
Beijing, which has repeatedly voiced confidence in China's growth in the past year, reiterated the line this week, though it has been clearly rattled by heavy selling in financial markets after the United States lost its top-rated credit rating on Friday.
Premier Wen Jiabao said on Tuesday that China's economy continues to show good growth momentum. But in a sign Beijing would rather err on the side of caution, he signaled China may soften its strike against inflation.
An official Chinese newspaper also said as much on Wednesday by declaring in a front-page editorial that Beijing would refrain from raising interest rates for now due to the rout in global markets.
However, China top economic planner stressed that inflation dangers remained, including the possibility of a new round of monetary easing in the United States which could fuel fresh price pressures.
Monday, February 14, 2011
California Steel Industries Reports Fourth Quarter and Full Year 2010 Results
FONTANA, Calif., Feb. 10, 2011/PRNewswire
California Steel Industries, Inc. ("CSI") today reported profitable results for the year ended December 31, 2010, with net sales of $1.08 billion and net income of $25.4 million.
These results compare with net sales of $551.8 million and a net loss of $13.1 million for the year ended December 31, 2009.
The net loss for fourth quarter 2010 is $5.5 million, compared with a net loss of $2.3 million in fourth quarter 2009 and net income in third quarter 2010 of $2.0 million. Net sales for the quarter are $227.9 million, or 48 percent higher than fourth quarter 2009's net sales of $153.6 million, but 27 percent less than third quarter 2010's net sales of $313.9 million.
Shipments in fourth quarter 2010 are 279,641 net tons, 26 percent higher than fourth quarter 2009's shipments of 222,242 net tons and 24 percent lower than third quarter 2010 shipments of 365,608 net tons.
For the year, CSI shipped 1,335,256 net tons, 67 percent higher than 2009's shipments of 800,375 net tons.
The Company recorded $4.6 million in fourth quarter 2010 and $12.9 million in fiscal 2010 for writing down inventory to market value as CSI's inventory values are carried at the lower of cost or market (LCM).
"Fourth quarter 2010 results are normally impacted by the lower shipment levels we experience during this period each year," said Vicente Wright, President & Chief Executive Officer.
"But rather than focus on a quarter whose results are cyclical and thus typically diminished from the rest of the year, I look at the total results for fiscal 2010, and recognize the tremendous survival measures taken by our team and the resulting turnaround from 2009," he continued.
"The results for 2010 not only indicate an improvement to business conditions in the US, but also can be directly attributed to our Company's efforts to position itself to meet future changing conditions," Mr. Wright concluded.
EBITDA (as adjusted) for the quarter is $4.0 million, lower than fourth quarter 2009's adjusted EBITDA of $9.1 million, and also lower than third quarter 2010's adjusted EBITDA of $21.3 million.
For the year, EBITDA (as adjusted) is $88.2 million, 52 percent higher than 2009's adjusted EBITDA of $58.2 million.
The balance under the Company's Revolving Credit Agreement was zero as of December 31, 2010, with availability of $110 million. The Company has a cash balance as of December 31, 2010 of $27.7 million.
Results (in thousands, except for billed net tons) are as follows:
Company Information and Forward Looking Statements
California Steel Industries is the leading producer of flat rolled steel products in the western United States (the 11 states located west of the Rocky Mountains) based on tonnage billed, with a broad range of products, including hot rolled, cold rolled, and galvanized sheet and electric resistant welded pipe. Located in Fontana, California, CSI has slightly less than 900 employees. For more information, please visit our website at www.californiasteel.com.
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Actual outcomes and results may differ materially from what is expressed herein. In evaluating any forward-looking statements, please carefully consider factors that could cause actual results to differ materially from the expectations of the company or its management. For a more detailed discussion of these factors, please see the company's most recent filings with the Securities and Exchange Commission. In particular, we direct your attention to our most recent Form 10-K, in particular Item 1 with respect to the general discussion of factors affecting our business, Item 7 with respect to "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Item 7A with respect to "Quantitative and Qualitative Disclosures about Market Risk". The company undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances.
SOURCE California Steel Industries, Inc.
California Steel Industries, Inc. ("CSI") today reported profitable results for the year ended December 31, 2010, with net sales of $1.08 billion and net income of $25.4 million.
These results compare with net sales of $551.8 million and a net loss of $13.1 million for the year ended December 31, 2009.
The net loss for fourth quarter 2010 is $5.5 million, compared with a net loss of $2.3 million in fourth quarter 2009 and net income in third quarter 2010 of $2.0 million. Net sales for the quarter are $227.9 million, or 48 percent higher than fourth quarter 2009's net sales of $153.6 million, but 27 percent less than third quarter 2010's net sales of $313.9 million.
Shipments in fourth quarter 2010 are 279,641 net tons, 26 percent higher than fourth quarter 2009's shipments of 222,242 net tons and 24 percent lower than third quarter 2010 shipments of 365,608 net tons.
For the year, CSI shipped 1,335,256 net tons, 67 percent higher than 2009's shipments of 800,375 net tons.
The Company recorded $4.6 million in fourth quarter 2010 and $12.9 million in fiscal 2010 for writing down inventory to market value as CSI's inventory values are carried at the lower of cost or market (LCM).
"Fourth quarter 2010 results are normally impacted by the lower shipment levels we experience during this period each year," said Vicente Wright, President & Chief Executive Officer.
"But rather than focus on a quarter whose results are cyclical and thus typically diminished from the rest of the year, I look at the total results for fiscal 2010, and recognize the tremendous survival measures taken by our team and the resulting turnaround from 2009," he continued.
"The results for 2010 not only indicate an improvement to business conditions in the US, but also can be directly attributed to our Company's efforts to position itself to meet future changing conditions," Mr. Wright concluded.
EBITDA (as adjusted) for the quarter is $4.0 million, lower than fourth quarter 2009's adjusted EBITDA of $9.1 million, and also lower than third quarter 2010's adjusted EBITDA of $21.3 million.
For the year, EBITDA (as adjusted) is $88.2 million, 52 percent higher than 2009's adjusted EBITDA of $58.2 million.
The balance under the Company's Revolving Credit Agreement was zero as of December 31, 2010, with availability of $110 million. The Company has a cash balance as of December 31, 2010 of $27.7 million.
Results (in thousands, except for billed net tons) are as follows:
| Three Months Ended | Year Ended | |||||
| 12/31/10 | 12/31/09 | 12/31/10 | 12/31/09 | |||
| Billed net tons | 279,641 | 222,242 | 1,335,256 | 800,375 | ||
| Net sales revenue | $227,884 | $153,563 | $1,076,168 | $551,808 | ||
| Cost of sales | $231,510 | $151,380 | $1,013,891 | $561,120 | ||
| SG&A | $5,535 | $4,662 | $19,735 | $17,481 | ||
| Operating (loss) income | $(9,583) | $(2,935) | $41,449 | $(27,278) | ||
| Interest expense, net | $2,631 | $1,958 | $9,024 | $8,159 | ||
| (Loss) income before tax | $(11,407) | $(3,496) | $35,332 | $(26,945) | ||
| Net (loss) income | $(5,540) | $(2,291) | $25,394 | $(13,101) | ||
| Depreciation | $8,215 | $7,910 | $31,003 | $32,458 | ||
| Cash Flow Information: | ||||||
| Operating Activities | $51,724 | $(17,973) | $21,609 | $102,458 | ||
| Investing Activities | $(5,796) | $(14,662) | $(31,118) | $(46,667) | ||
| Financing Activities | $(27,700) | $(2,500) | $(24,443) | $(5,000) | ||
| EBITDA, as adjusted | $3,989 | $9,072 | $88,209 | $58,172 | ||
| A reconciliation between cash flows from operations and EBITDA and EBITDA as adjusted will be included in the Company's Current Report on Form 8-K, together with this press release. As noted in the reconciliation, EBITDA as adjusted is EBITDA adjusted to add back an inventory writedown for lower of cost or market adjustments. | |
California Steel Industries is the leading producer of flat rolled steel products in the western United States (the 11 states located west of the Rocky Mountains) based on tonnage billed, with a broad range of products, including hot rolled, cold rolled, and galvanized sheet and electric resistant welded pipe. Located in Fontana, California, CSI has slightly less than 900 employees. For more information, please visit our website at www.californiasteel.com.
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Actual outcomes and results may differ materially from what is expressed herein. In evaluating any forward-looking statements, please carefully consider factors that could cause actual results to differ materially from the expectations of the company or its management. For a more detailed discussion of these factors, please see the company's most recent filings with the Securities and Exchange Commission. In particular, we direct your attention to our most recent Form 10-K, in particular Item 1 with respect to the general discussion of factors affecting our business, Item 7 with respect to "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Item 7A with respect to "Quantitative and Qualitative Disclosures about Market Risk". The company undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances.
SOURCE California Steel Industries, Inc.
Sunday, February 6, 2011
Australian monthly iron ore exports up 13%
Feb4, 2010
Australian exports of iron ore in December hit a record high of 40.5 Mt (wet basis), according to the Australian Bureau of Statistics. This marks a rise of 4.7 Mt from 35.8 Mt in November. Chinese imports of Australian ore were 2.4 Mt higher month-on-month in December at 28.6 Mt, while shipments to Japan grew 1.7 Mt to 7.1 Mt over the same period. The total for 2010 now stands at 421.9 Mt up 11% on 2009 (sourced:SSYNews)
Australian exports of iron ore in December hit a record high of 40.5 Mt (wet basis), according to the Australian Bureau of Statistics. This marks a rise of 4.7 Mt from 35.8 Mt in November. Chinese imports of Australian ore were 2.4 Mt higher month-on-month in December at 28.6 Mt, while shipments to Japan grew 1.7 Mt to 7.1 Mt over the same period. The total for 2010 now stands at 421.9 Mt up 11% on 2009 (sourced:SSYNews)
Wednesday, January 26, 2011
U.S.Steel narrows 4Q loss
Tuesday, January 25, 2011
United States Steel Corp. narrowed its losses in the fourth quarter to $249 million, or $1.74 per share, compared with a loss of $267 million, or $1.86 per share, a year ago.U.S. Steel Corp., which has a mill in Granite City, narrowed its losses in the fourth quarter to $249 million, compared with a loss of $267 million a year ago.
Sales for the quarter were up 28 percent to $4.3 billion.The company (NYSE: X) also narrowed its losses for the full year, reporting a loss of $482 million in 2010, an improvement over 2009, when the steel maker lost $1.4 billion.Any gains were partially offset by seasonal conditions in the fourth quarter, with a decrease in shipments and a decrease in prices, Chairman and CEO John Surma said in the earnings release.
sourced:St. Louis Business Journal from the Malia Spencer
Malia Spencer writes for the Pittsburgh Business Times, an affiliated publication.
United States Steel Corp. narrowed its losses in the fourth quarter to $249 million, or $1.74 per share, compared with a loss of $267 million, or $1.86 per share, a year ago.U.S. Steel Corp., which has a mill in Granite City, narrowed its losses in the fourth quarter to $249 million, compared with a loss of $267 million a year ago.
Sales for the quarter were up 28 percent to $4.3 billion.The company (NYSE: X) also narrowed its losses for the full year, reporting a loss of $482 million in 2010, an improvement over 2009, when the steel maker lost $1.4 billion.Any gains were partially offset by seasonal conditions in the fourth quarter, with a decrease in shipments and a decrease in prices, Chairman and CEO John Surma said in the earnings release.
sourced:St. Louis Business Journal from the Malia Spencer
Malia Spencer writes for the Pittsburgh Business Times, an affiliated publication.
Friday, January 21, 2011
Steel shipment continues on upward trend in US and Canada
Friday, 21 Jan 2011
According to Metals Activity Report, US metals service center steel shipments for 2010 rose by 20.6% YoY above those of 2009 to nearly 35.7 million tonnes, while in Canada, steel shipments rose by 15.3% YoY to about 5.67 million tonnes.
Year over year shipments of steel products from US metal centers rose by 25.6% in December 2010 to about 2.82 million tonnes. Inventories at the end of December of 7.71 million tonnes were 25.6% YoY above those of a year ago and, at current shipping rates, represented a 2.7 month supply.
Canadian metals service centers shipped 380,800 tonnes of steel products during December 2010 or 18.1% more than during the same month in 2009. Canadian steel inventories at the end of December of nearly 1.4 million tonnes were 34% YoY above year earlier levels and equal to a 3.7 month supply at current shipping volume.
The Metals Activity Report, based on data from metals service centers in the United States and Canada, is produced by the Metals Service Center Institute and a third party econometrics and strategy firm, McCoy, Scott & Co.
Thursday, January 20, 2011
Industry: Great Lakes cargo shipping way up in '10
JANUARY 19, 2011, 6:19 P.M. ET, Associated Press
TRAVERSE CITY, Mich. — Shipments of bulk cargo such as iron ore on the Great Lakes jumped by one-third last year, a hopeful sign for a region battered by the recession, an industry spokesman said Wednesday.
The Lake Carriers Association credited a gradually healing economy for the increase in waterborne transport of coal, limestone, sand and other raw materials. But the dramatic statistical improvement in 2010 also reflects the industry's dismal showing the previous year.
"We obviously have a ways to go," said Glen Nekvasil, spokesman for the association, which represents 18 companies that operate 55 U.S.-flagged vessels on the Great Lakes.
The ships hauled 88.7 million tons of dry bulk freight last year, up from 66.5 million tons in 2009, an increase of 33.4 percent.
The biggest improvement was in iron ore for the steel industry, which shot up 75 percent — from 24 million tons in 2009 to 42 million tons last year.
"The steel industry is still a very important barometer of our economic health," Nekvasil said. "It's the basic material of so many things in our life — autos, refrigerators, washing machines, the frames of office buildings and malls."
Despite the uptick, overall cargo tonnage for 2010 was about 10 percent below the average for the previous five years. Bulk shipment totals regularly exceeded 100 million tons annually before plunging in 2009, when iron ore transport hit its lowest level since 1938.
"Our industry was in a pretty depressed state," said Dale Hemmila, a spokesman for Cliffs Natural Resources, which manages two iron ore mines in Michigan's Upper Peninsula and three in Minnesota. "We certainly have seen a big improvement since then."
Coal shipments totaled 21.5 million tons, a 4.1 percent increase over 2009 — but nearly 13 percent below the previous five-year average.
Similarly, limestone loads were up 19.6 percent in 2010 but were nearly 18 percent below the five-year average.
Limestone demand has lagged with a construction slowdown in the region, while coal shipments have been affected by the Ontario government's push to phase out coal-fired power plants, Nekvasil said.
Shipments of salt on the lakes rose about 10 percent last year, while cement and sand totals dropped.
Shipping on the upper lakes ended for the winter on Wednesday with closure of the Soo Locks, which elevate and lower vessels between Lakes Huron and Superior. They will reopen March 25, said Steven Rose, operations chief with the U.S. Army Corps of Engineers office in Sault Ste. Marie.
Source: Associated Press and the wall street journal
TRAVERSE CITY, Mich. — Shipments of bulk cargo such as iron ore on the Great Lakes jumped by one-third last year, a hopeful sign for a region battered by the recession, an industry spokesman said Wednesday.
The Lake Carriers Association credited a gradually healing economy for the increase in waterborne transport of coal, limestone, sand and other raw materials. But the dramatic statistical improvement in 2010 also reflects the industry's dismal showing the previous year.
"We obviously have a ways to go," said Glen Nekvasil, spokesman for the association, which represents 18 companies that operate 55 U.S.-flagged vessels on the Great Lakes.
The ships hauled 88.7 million tons of dry bulk freight last year, up from 66.5 million tons in 2009, an increase of 33.4 percent.
The biggest improvement was in iron ore for the steel industry, which shot up 75 percent — from 24 million tons in 2009 to 42 million tons last year.
"The steel industry is still a very important barometer of our economic health," Nekvasil said. "It's the basic material of so many things in our life — autos, refrigerators, washing machines, the frames of office buildings and malls."
Despite the uptick, overall cargo tonnage for 2010 was about 10 percent below the average for the previous five years. Bulk shipment totals regularly exceeded 100 million tons annually before plunging in 2009, when iron ore transport hit its lowest level since 1938.
"Our industry was in a pretty depressed state," said Dale Hemmila, a spokesman for Cliffs Natural Resources, which manages two iron ore mines in Michigan's Upper Peninsula and three in Minnesota. "We certainly have seen a big improvement since then."
Coal shipments totaled 21.5 million tons, a 4.1 percent increase over 2009 — but nearly 13 percent below the previous five-year average.
Similarly, limestone loads were up 19.6 percent in 2010 but were nearly 18 percent below the five-year average.
Limestone demand has lagged with a construction slowdown in the region, while coal shipments have been affected by the Ontario government's push to phase out coal-fired power plants, Nekvasil said.
Shipments of salt on the lakes rose about 10 percent last year, while cement and sand totals dropped.
Shipping on the upper lakes ended for the winter on Wednesday with closure of the Soo Locks, which elevate and lower vessels between Lakes Huron and Superior. They will reopen March 25, said Steven Rose, operations chief with the U.S. Army Corps of Engineers office in Sault Ste. Marie.
Source: Associated Press and the wall street journal
Monday, January 17, 2011
Exporters Predict `Sunny Days' for Orders Will Boost Rupee: India Credit
Source: Bloomberg By Tushar Dhara - Jan 17, 2011
Exporters in India say the surge in shipments at the end of 2010 will likely continue in a trend that may bolster the rupee and attract international investors to the nation’s bonds.
Exports expanded 36.4 percent in December while imports contracted 11.1 percent, Trade Secretary Rahul Khullar said in a Jan. 8 briefing. Finance Minister Pranab Mukherjee said Dec. 10 that the current-account deficit in the year through March may be about 3 percent of gross domestic product, compared with an earlier estimate of as much as 3.5 percent.
Overseas sales of Indian goods will increase as the U.S. economy strengthens and China’s production costs climb, textile and garment makers Suryavanshi Spinning Mills Ltd. and Raymond Ltd. said. Foreign investors more than doubled holdings of Indian debt to $17.7 billion in 2010, exchange data show, spurring a 4.1 percent gain in the currency.
“If Finance Minister Mukherjee’s prediction comes true and exports accelerate, it is an indication of the strength of the Indian economy,” Namrata Padhye, a Mumbai-based economist at IDBI Gilts Ltd., a primary dealer of the country’s debt, said in an interview on Jan. 12. “That could spur investors to buy the nation’s bonds.”
Sunny Days
India’s government bonds returned 4.3 percent in the past year, according to indexes compiled by HSBC Holdings Plc. The notes underperformed securities in Indonesia, which returned 21.1 percent, the most in Asia. The 7.8 percent security due May 2020 will yield 8.05 percent by the end of this year, according to the median forecast of six economists in a Bloomberg survey, compared with 8.19 percent on Jan. 14.
The Indian currency fell 0.3 percent to 45.50 per dollar, according to data compiled by Bloomberg. The rupee’s gain last year trailed behind advances in the Malaysian ringgit, the Thai baht, the Taiwanese and Singapore dollars, the Philippine peso and the Indonesian rupiah.
“The export industry will see some sunny days,” said J.K. Agarwal, executive director of Suryavanshi Spinning Mills Ltd., which ships garments to the U.S., Europe, the Middle East and Japan. “Orders from the U.S. have jumped in the last quarter and the return of growth in that economy is giving us reasons to be more optimistic.”
Agarwal predicts the rupee may “test” 44 a dollar by March. “We are bracing for a stronger rupee simply because the economy is not only stable but is accelerating at a high pace.”
Sovereign Spread
The difference in yields between 10-year Indian government notes and U.S. Treasuries due in a decade has widened to 489 basis points from a six-month low of 442 on Dec. 28. India’s three-year government bond yield of 7.70 percent compares with 12.7 percent in Brazil, 3.26 percent in China and 7.2 percent in Russia.
The benchmark yield touched an eight-month high of 8.26 percent on Jan. 10 on concern that rising food and crude oil prices will prompt the central bank to raise interest rates for the seventh time in a year. Wholesale prices rose 8.43 percent in December, compared with 7.48 percent the previous month.
Exporters in India say the surge in shipments at the end of 2010 will likely continue in a trend that may bolster the rupee and attract international investors to the nation’s bonds.
Exports expanded 36.4 percent in December while imports contracted 11.1 percent, Trade Secretary Rahul Khullar said in a Jan. 8 briefing. Finance Minister Pranab Mukherjee said Dec. 10 that the current-account deficit in the year through March may be about 3 percent of gross domestic product, compared with an earlier estimate of as much as 3.5 percent.
Overseas sales of Indian goods will increase as the U.S. economy strengthens and China’s production costs climb, textile and garment makers Suryavanshi Spinning Mills Ltd. and Raymond Ltd. said. Foreign investors more than doubled holdings of Indian debt to $17.7 billion in 2010, exchange data show, spurring a 4.1 percent gain in the currency.
“If Finance Minister Mukherjee’s prediction comes true and exports accelerate, it is an indication of the strength of the Indian economy,” Namrata Padhye, a Mumbai-based economist at IDBI Gilts Ltd., a primary dealer of the country’s debt, said in an interview on Jan. 12. “That could spur investors to buy the nation’s bonds.”
Sunny Days
India’s government bonds returned 4.3 percent in the past year, according to indexes compiled by HSBC Holdings Plc. The notes underperformed securities in Indonesia, which returned 21.1 percent, the most in Asia. The 7.8 percent security due May 2020 will yield 8.05 percent by the end of this year, according to the median forecast of six economists in a Bloomberg survey, compared with 8.19 percent on Jan. 14.
The Indian currency fell 0.3 percent to 45.50 per dollar, according to data compiled by Bloomberg. The rupee’s gain last year trailed behind advances in the Malaysian ringgit, the Thai baht, the Taiwanese and Singapore dollars, the Philippine peso and the Indonesian rupiah.
“The export industry will see some sunny days,” said J.K. Agarwal, executive director of Suryavanshi Spinning Mills Ltd., which ships garments to the U.S., Europe, the Middle East and Japan. “Orders from the U.S. have jumped in the last quarter and the return of growth in that economy is giving us reasons to be more optimistic.”
Agarwal predicts the rupee may “test” 44 a dollar by March. “We are bracing for a stronger rupee simply because the economy is not only stable but is accelerating at a high pace.”
Sovereign Spread
The difference in yields between 10-year Indian government notes and U.S. Treasuries due in a decade has widened to 489 basis points from a six-month low of 442 on Dec. 28. India’s three-year government bond yield of 7.70 percent compares with 12.7 percent in Brazil, 3.26 percent in China and 7.2 percent in Russia.
The benchmark yield touched an eight-month high of 8.26 percent on Jan. 10 on concern that rising food and crude oil prices will prompt the central bank to raise interest rates for the seventh time in a year. Wholesale prices rose 8.43 percent in December, compared with 7.48 percent the previous month.
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