Wed, 30 March 2011, 1:33 PM
New Delhi, Mar 30 (PTI) Continuing its declining trend for the eighth consecutive month, India''s iron ore exports in February has gone down by 18.60 per cent to 10.13 million tonnes (MT).
The outbound shipment of the vital steel-making raw material during April-February period also declined by 17.98 per cent to 85.43 MT, mainly on account of export ban imposed by Karnataka government.
According to the data compiled by industry body Federation of Indian Mineral Industries (FIMI), the country''s shipment declined by 18.60 per cent in February against the same period last year. Exports were recorded at 12.54 MT in February, 2010.
"The industry has been suffering due to the ban on exports imposed by Karnataka in July. Also, the raise in export duty on iron ore to 20 per cent in the Budget has added salt to the exporters'' injury and its impact will be felt in March exports ," FIMI Secretary General R K Sharma told PTI.
In the Budget, duty on fines was hiked four-fold to 20 per cent while on lumps was upped to 20 per cent from 15 per cent earlier. The country had shipped 117.37 MT of iron ore during the last fiscal.
Also, on account of exports ban imposed by Karnataka shipments declined by 17.98 per cent to 85.43 MT during April-February this fiscal.
In July last year, Karnataka government had slapped the ban in the midst of a controversy generated over illegal mining activities in the state. Karnataka is one of the largest iron ore exporter of the country.
India has been exporting iron ore to China, Japan, South Korea, Europe and other countries.
Showing posts with label steel mills. Show all posts
Showing posts with label steel mills. Show all posts
Wednesday, March 30, 2011
Tuesday, March 29, 2011
Coking coal price will fall further: SAIL Chairman
Mar26, 2011, 06.56PM IST,PTI
NEW DELHI: Steel Authority of India Chairman C S Verma today said that the coking coal prices, that have softened in the last two weeks, will fall further on expected rise in production.
"Coking coal prices in spot market have already fallen. I am of the firm opinion that the current coking coal price of $ 235 a tonne cannot be sustainable," Verma told reporters here.
Following flash-floods in Australia's Queensland province, the price of coking coal had skyrocketed to $ 350 a tonne just two weeks back. However, it felled sharply since then to $ 235 a tonne now.
"For the last two weeks, coking coal prices have been softening, especially on Japan fall-out. Japan is importing about 10 million tonnes every month. So, there is more availability in the market," he added.
Verma said the coking coal price would come to normalcy once mining companies in Australia resume full operations.
When asked if SAIL has entered into a contract for supply of coking coal for the April-June quarter, he said that the company was yet to take a final call, but it would soon happen.
"We have reached to a provisional pricing only. I can't share the detail since it is confidential," Verma said.
SAIL requires around 15 million tonnes of coking coal a year. Only 4.5 MT is met through domestic sources and the remaining 10.5 MT comes from imports, around 60 per cent of which comes from Australia. (sourced :Economic Times)
NEW DELHI: Steel Authority of India Chairman C S Verma today said that the coking coal prices, that have softened in the last two weeks, will fall further on expected rise in production.
"Coking coal prices in spot market have already fallen. I am of the firm opinion that the current coking coal price of $ 235 a tonne cannot be sustainable," Verma told reporters here.
Following flash-floods in Australia's Queensland province, the price of coking coal had skyrocketed to $ 350 a tonne just two weeks back. However, it felled sharply since then to $ 235 a tonne now.
"For the last two weeks, coking coal prices have been softening, especially on Japan fall-out. Japan is importing about 10 million tonnes every month. So, there is more availability in the market," he added.
Verma said the coking coal price would come to normalcy once mining companies in Australia resume full operations.
When asked if SAIL has entered into a contract for supply of coking coal for the April-June quarter, he said that the company was yet to take a final call, but it would soon happen.
"We have reached to a provisional pricing only. I can't share the detail since it is confidential," Verma said.
SAIL requires around 15 million tonnes of coking coal a year. Only 4.5 MT is met through domestic sources and the remaining 10.5 MT comes from imports, around 60 per cent of which comes from Australia. (sourced :Economic Times)
Monday, March 28, 2011
Kumba: S.Africa can more double iron ore output
Mon Mar 28, 2011 1:04pm GMT
JOHANNESBURG (Reuters) - South Africa's iron ore industry has the potential to more than double output in the next 10 years under suitable growth conditions, Kumba Iron Ore said in a report issued on Monday.
The report by Kumba, the world's 10th-largest iron ore producer and a unit of Anglo American, cited conditions such as necessary transport logistics and a viable market for the off-take of iron ore and steel products.
The company also said the country would need a suitable regulatory environment that encourages market participants to make the necessary investments.
"These growth projects are capital intensive and will not be economically viable without market-related iron ore prices (at export parity price levels)," the company said.
Kumba's iron ore production rose 3 percent to 43.3 million tonnes in 2010.
Kumba has been at loggerheads with ArcelorMittal South Africa, a unit of the world's biggest steelmaker, over prices for the steel-making ingredient since February last year.
A long-term deal, under which Kumba sold ore to ArcelorMittal SA at a discount, lapsed after the steelmaker failed to convert its rights over a stake in Kumba's Sishen mine into a new right as required by law.
The government now wants at least 21.4 percent of iron ore output from Kumba's Sishen mine to be sold at cost plus 3 percent to help the domestic steel industry.
But Kumba said in the report that discounted iron ore prices were unlikely to lift the local steel sector.
"Iron ore typically contributes less than 1 percent to the costs of these end products and is largely insignificant in its impact on overall costs of downstream products," Kumba said.
It added: "Even if iron ore is discounted significantly, this has an immaterial impact on the cost of most downstream users."
Pending a resolution of the dispute, Kumba and ArcelorMittal SA reached an interim agreement valid until the end of July this year for ArcelorMittal to source iron ore from Kumba at about half of the market price.
ArcelorMittal SA has said it expects the arbitration to be heard early next year and that it will negotiate with Kumba to extend the interim pricing deal until the dispute is resolved.
The government granted Imperial Crown Trading a prospecting right over the stake in Kumba's mine for which ArcelorMittal previously held a mining right, a decision which Kumba is contesting.
JOHANNESBURG (Reuters) - South Africa's iron ore industry has the potential to more than double output in the next 10 years under suitable growth conditions, Kumba Iron Ore said in a report issued on Monday.
The report by Kumba, the world's 10th-largest iron ore producer and a unit of Anglo American, cited conditions such as necessary transport logistics and a viable market for the off-take of iron ore and steel products.
The company also said the country would need a suitable regulatory environment that encourages market participants to make the necessary investments.
"These growth projects are capital intensive and will not be economically viable without market-related iron ore prices (at export parity price levels)," the company said.
Kumba's iron ore production rose 3 percent to 43.3 million tonnes in 2010.
Kumba has been at loggerheads with ArcelorMittal South Africa, a unit of the world's biggest steelmaker, over prices for the steel-making ingredient since February last year.
A long-term deal, under which Kumba sold ore to ArcelorMittal SA at a discount, lapsed after the steelmaker failed to convert its rights over a stake in Kumba's Sishen mine into a new right as required by law.
The government now wants at least 21.4 percent of iron ore output from Kumba's Sishen mine to be sold at cost plus 3 percent to help the domestic steel industry.
But Kumba said in the report that discounted iron ore prices were unlikely to lift the local steel sector.
"Iron ore typically contributes less than 1 percent to the costs of these end products and is largely insignificant in its impact on overall costs of downstream products," Kumba said.
It added: "Even if iron ore is discounted significantly, this has an immaterial impact on the cost of most downstream users."
Pending a resolution of the dispute, Kumba and ArcelorMittal SA reached an interim agreement valid until the end of July this year for ArcelorMittal to source iron ore from Kumba at about half of the market price.
ArcelorMittal SA has said it expects the arbitration to be heard early next year and that it will negotiate with Kumba to extend the interim pricing deal until the dispute is resolved.
The government granted Imperial Crown Trading a prospecting right over the stake in Kumba's mine for which ArcelorMittal previously held a mining right, a decision which Kumba is contesting.
Africa iron ore to hit Australia's trade
March 28, 2011 - 5:54PM By Alison Bell
Australia and Brazil's dominance of global iron ore pricing could be broken by a Pilbara-sized west African mining region that could undermine the nation's terms of trade, says Chicago-based economist Dale Hale.
At least 20 mines would open in the region spanning Liberia, Guinea, Sierra Leone, and the Cameroon by 2015 and their aggregate output could reach 600 million tonnes a year.
That's equivalent to 62 per cent of global production in 2012 and 38 per cent in 2015, the Mr Dale said during a visit to Melbourne.
"If we add this much supply, this could break the Australian-Brazilian cartel in setting iron ore prices," Mr Hale told AAP during an interview.
"This could finally set the stage for iron ore prices to decline in a meaningful way ... in five years."
Mr Hale said China had joined BHP Billiton and Rio Tinto's subsidiary RTZ Mining and Exploration as investors and explorers in the region.
Mr Hale is the founder of Chicago-based Hale Advisors and advises global asset management companies across the world including his role as a global economic adviser to Commonwealth Bank of Australia (CBA).
China was the world's biggest iron ore producer in 2010 according to a US geological survey, mining 900 million tonnes, or 37.5 per cent of global supply, all of which it retained to fuel its economic expansion.
China's iron ore is low-grade, unlike that of Australia and Brazil.
Australia was the biggest iron ore exporter and second biggest producer, supplying 17.5 per cent, while second largest exporter Brazil supplied 15.4 per cent.
Mr Hale warned that the west African supply surge could cut Australia's terms of trade - the quantity of imports that can be purchased by selling Australia's exports - because iron ore comprises over 25 per cent of total exports.
"It could depress your terms of trade after what has been an incredible boom," he said.
China's global sourcing ambition for iron ore was revealed in a speech by the chairman of the China Iron and Steel Association, Wu Xichun, at a Chinese government conference on commodities attended by Mr Hale earlier this month.
"In his speech (Mr Wu said) in the year 2015 China wanted to import half of its iron ore from Chinese-owned mines elsewhere in the world."
"(It will) be a big investor in the west African iron ore mines."
CBA chief economist Michael Blythe on Monday told CBA institutional banking clients in Melbourne that a slowdown in China or lower commodity prices could crimp Australian national income.
The commodity boom and positive China growth story had added $6,000 to Australia's gross domestic product per person over the past 12 years, Mr Blythe said.
"Effectively everybody in Australia has $6,000 worth of extra spending power per person per annum because of that China-driven commodity story over that 12-year period."
He said the Australian dollar was becoming a safe haven currency and was likely to stay strong over the long term,.
In the early hours of Saturday in offshore trading, the local unit set a post-float high of 102.94 US cents.
Brought to you by AAP
Australia and Brazil's dominance of global iron ore pricing could be broken by a Pilbara-sized west African mining region that could undermine the nation's terms of trade, says Chicago-based economist Dale Hale.
At least 20 mines would open in the region spanning Liberia, Guinea, Sierra Leone, and the Cameroon by 2015 and their aggregate output could reach 600 million tonnes a year.
That's equivalent to 62 per cent of global production in 2012 and 38 per cent in 2015, the Mr Dale said during a visit to Melbourne.
"If we add this much supply, this could break the Australian-Brazilian cartel in setting iron ore prices," Mr Hale told AAP during an interview.
"This could finally set the stage for iron ore prices to decline in a meaningful way ... in five years."
Mr Hale said China had joined BHP Billiton and Rio Tinto's subsidiary RTZ Mining and Exploration as investors and explorers in the region.
Mr Hale is the founder of Chicago-based Hale Advisors and advises global asset management companies across the world including his role as a global economic adviser to Commonwealth Bank of Australia (CBA).
China was the world's biggest iron ore producer in 2010 according to a US geological survey, mining 900 million tonnes, or 37.5 per cent of global supply, all of which it retained to fuel its economic expansion.
China's iron ore is low-grade, unlike that of Australia and Brazil.
Australia was the biggest iron ore exporter and second biggest producer, supplying 17.5 per cent, while second largest exporter Brazil supplied 15.4 per cent.
Mr Hale warned that the west African supply surge could cut Australia's terms of trade - the quantity of imports that can be purchased by selling Australia's exports - because iron ore comprises over 25 per cent of total exports.
"It could depress your terms of trade after what has been an incredible boom," he said.
China's global sourcing ambition for iron ore was revealed in a speech by the chairman of the China Iron and Steel Association, Wu Xichun, at a Chinese government conference on commodities attended by Mr Hale earlier this month.
"In his speech (Mr Wu said) in the year 2015 China wanted to import half of its iron ore from Chinese-owned mines elsewhere in the world."
"(It will) be a big investor in the west African iron ore mines."
CBA chief economist Michael Blythe on Monday told CBA institutional banking clients in Melbourne that a slowdown in China or lower commodity prices could crimp Australian national income.
The commodity boom and positive China growth story had added $6,000 to Australia's gross domestic product per person over the past 12 years, Mr Blythe said.
"Effectively everybody in Australia has $6,000 worth of extra spending power per person per annum because of that China-driven commodity story over that 12-year period."
He said the Australian dollar was becoming a safe haven currency and was likely to stay strong over the long term,.
In the early hours of Saturday in offshore trading, the local unit set a post-float high of 102.94 US cents.
Brought to you by AAP
Friday, March 25, 2011
BHP outlines $9.5 bln expansion plans in iron ore, coal
Thu Mar 24, 2011 10:53pm GMT
* $6.6 bln invested in WA iron ore operations
* $2.5 bln invested in Bowen Basin coal site
* $400 mln invested in Hunter Valley coal site (Adds background, details)
* $6.6 bln invested in WA iron ore operations
* $2.5 bln invested in Bowen Basin coal site
* $400 mln invested in Hunter Valley coal site (Adds background, details)
LONDON/MELBOURNE, March 25 (Reuters) - BHP Billiton said it has approved $9.5 billion of capital investments to expand Australian iron ore and coal mining projects, in the first details the global miner has given of a planned $80 billion in investments over five years.
The world's biggest miner has decided to expand its own operations and infrastructure rather than chase ambitious takeovers, after three failed takeover bids, as it scrambles to meet rising demand from Asia.
For a factbox on investments
The top global miner said it would invest $6.6 billion in a total investment of $7.4 billion to continue production growth in the company's western Australian iron ore operations.
Investment will include the development of the Jimblebar mine, rail links and additional berths and ship loaders at its Port Hedland site.
BHP said it had also approved three key metallurgical coal projects at its Bowen Basin site in Queensland.
BHP will put in $2.5 billion of the total $5 billion investment, which will see the new Daunia mine developed, its Broadmeadow mine's life extended by 21 years and the stage three expansion of its Hay Point coal terminal.
In a third statement, the company said it had approved a $400 million investment to expand Hunter Valley Energy Coal in New South Wales with a view to increasing production.
The three announcements are the first in the company's planned $80 billion expansion plans announced last month, as it posted a near doubling of first-half profits to $10.7 billion.
BHP has ditched three major deals in the past three years, including its $39 billion bid for top global fertiliser maker Potash Corp last year, mainly on regulatory concerns.
Shares in the company closed up 1.4 percent in London, before the company's statements were issued.
The world's biggest miner has decided to expand its own operations and infrastructure rather than chase ambitious takeovers, after three failed takeover bids, as it scrambles to meet rising demand from Asia.
For a factbox on investments
The top global miner said it would invest $6.6 billion in a total investment of $7.4 billion to continue production growth in the company's western Australian iron ore operations.
Investment will include the development of the Jimblebar mine, rail links and additional berths and ship loaders at its Port Hedland site.
BHP said it had also approved three key metallurgical coal projects at its Bowen Basin site in Queensland.
BHP will put in $2.5 billion of the total $5 billion investment, which will see the new Daunia mine developed, its Broadmeadow mine's life extended by 21 years and the stage three expansion of its Hay Point coal terminal.
In a third statement, the company said it had approved a $400 million investment to expand Hunter Valley Energy Coal in New South Wales with a view to increasing production.
The three announcements are the first in the company's planned $80 billion expansion plans announced last month, as it posted a near doubling of first-half profits to $10.7 billion.
BHP has ditched three major deals in the past three years, including its $39 billion bid for top global fertiliser maker Potash Corp last year, mainly on regulatory concerns.
Shares in the company closed up 1.4 percent in London, before the company's statements were issued.
Thursday, March 24, 2011
Mining giants eye China's west for future growth
Thu Mar 24, 2011 7:40am GMT
March 24 (Reuters) - The world's biggest iron ore producers are looking to China's undeveloped western regions for future growth as steel output on the country's thriving eastern coast nears its peak.
Speaking at a Metal Bulletin conference in Beijing, mining executives said the industrialisation and urbanisation of western regions like Xinjiang will need soaring volumes of steel and keep Chinese demand for imported ore at high levels.
"Global iron ore demand for the foreseeable future is strongly driven by China," said Sam Walsh, iron ore director with Rio Tinto , the world's second-biggest iron ore producer.
"Steel use in high-intensity export-dominated cities like Shanghai, Tianjin and Beijing is already at the high levels of developed markets like South Korea, but what is truly remarkable is what is yet to come -- inland provinces are just beginning to climb the steel intensity curve," Walsh said.
Government efforts to redress the west-east income gap through intensive infrastructure construction will drive demand, he said, adding that per capita steel consumption in western and central regions was still not even half that of coastal regions.
Luiz Meriz, China president of Brazil's Vale , the world's top iron ore producer, said on Tuesday that rumours of a slowdown in Chinese iron ore demand over the next few years were greatly exaggerated.
"Steel intensity (the amount produced per unit of GDP) varies per region and it is still very low in western China, though it might have peaked in east coastal regions," he said.
He said steel output in the east could peak by 2015, but growth in central and western regions would continue, adding that China's current 46 percent urbanisation rate was expected to grow 1 percent every year until it reaches 70 percent.
Annual seaborne iron ore trade has more than doubled in the last 10 years to around 1 billion tonnes, driven primarily by demand from China's steel industry, by far the world's biggest.
The surge has prompted global mining giants to expand capacity, with Vale aiming to raise output to 522 million tonnes by 2015, up from 311 million tonnes last year and Rio planning an increase of more than 100 million tonnes by investing big in its Pilbara property and its Simandou project in Guinea.
Official figures show that China imported 618.6 million tonnes of iron ore in 2010, down 1.43 percent from the 2009 record, and the industry predicts a 6 percent increase in imports this year.
However, steel industry consultants MEPS said in a research report this week that Chinese demand is being underestimated to the tune of 118 million tonnes over the next two years.
MEPS said analysts have been misled by China's official steel output figures, which could have been under-reported by as much as 47 million tonnes last year as mills tried to evade tough energy restrictions. (sourced:Reuters)
March 24 (Reuters) - The world's biggest iron ore producers are looking to China's undeveloped western regions for future growth as steel output on the country's thriving eastern coast nears its peak.
Speaking at a Metal Bulletin conference in Beijing, mining executives said the industrialisation and urbanisation of western regions like Xinjiang will need soaring volumes of steel and keep Chinese demand for imported ore at high levels.
"Global iron ore demand for the foreseeable future is strongly driven by China," said Sam Walsh, iron ore director with Rio Tinto , the world's second-biggest iron ore producer.
"Steel use in high-intensity export-dominated cities like Shanghai, Tianjin and Beijing is already at the high levels of developed markets like South Korea, but what is truly remarkable is what is yet to come -- inland provinces are just beginning to climb the steel intensity curve," Walsh said.
Government efforts to redress the west-east income gap through intensive infrastructure construction will drive demand, he said, adding that per capita steel consumption in western and central regions was still not even half that of coastal regions.
Luiz Meriz, China president of Brazil's Vale , the world's top iron ore producer, said on Tuesday that rumours of a slowdown in Chinese iron ore demand over the next few years were greatly exaggerated.
"Steel intensity (the amount produced per unit of GDP) varies per region and it is still very low in western China, though it might have peaked in east coastal regions," he said.
He said steel output in the east could peak by 2015, but growth in central and western regions would continue, adding that China's current 46 percent urbanisation rate was expected to grow 1 percent every year until it reaches 70 percent.
Annual seaborne iron ore trade has more than doubled in the last 10 years to around 1 billion tonnes, driven primarily by demand from China's steel industry, by far the world's biggest.
The surge has prompted global mining giants to expand capacity, with Vale aiming to raise output to 522 million tonnes by 2015, up from 311 million tonnes last year and Rio planning an increase of more than 100 million tonnes by investing big in its Pilbara property and its Simandou project in Guinea.
Official figures show that China imported 618.6 million tonnes of iron ore in 2010, down 1.43 percent from the 2009 record, and the industry predicts a 6 percent increase in imports this year.
However, steel industry consultants MEPS said in a research report this week that Chinese demand is being underestimated to the tune of 118 million tonnes over the next two years.
MEPS said analysts have been misled by China's official steel output figures, which could have been under-reported by as much as 47 million tonnes last year as mills tried to evade tough energy restrictions. (sourced:Reuters)
Tuesday, March 22, 2011
Australian cyclones hit Rio Tinto Q1 iron ore output
Tue, Mar22 13:49:04
SYDNEY, March 22 (Xinhua) -- Global miner Rio Tinto Ltd said on Tuesday its first-quarter iron ore production in Western Australia 's Pilbara region would highlight the impact of the tropical cyclones in February.
Speaking at a conference in Perth on Tuesday, Rio Tinto Iron Ore chief executive Sam Walsh said, "We have only just regained momentum and our quarterly production report will highlight the impact."
Rio Tinto's current Pilbara capacity is 225 million tons a year and it is moving to expand output to 333 million tons a year by the end of 2015.
"We do not expect our expansion to stop at 333," Walsh said.
He told reporters that tight equipment supply from Japan after the recent Japanese earthquake and tsunami has affected on the miners' expansion efforts in terms of cost.
He said the company's Canadian iron ore operations were also expanding quickly to meet demand which was already heightened before the Japanese crisis.
Walsh said the magnitude of reconstruction in Japan was only just being realized.
"It is true to say that recovering, developing and developed economies continue to drive demand for iron ore," he said.
The company's Simandou iron ore mine project in Guinea in West Africa would be developed before the official target date of 2015, Walsh said.
"We are keen to produce tons earlier if infrastructure constraints can be removed," he said.
Editor: Xiong Tong
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Monday, March 21, 2011
Hanlong Mining takes 19% stake in Sundance Resources
Monday , 21 Mar 2011
Key Points
* Hanlong Mining becomes largest shareholder in Sundance Resources Ltd
* Hanlong acquires Talbot Group stake
Hanlong Mining Investment Pty Ltd, through its affiliated entities (collectively "Hanlong"), has become the largest shareholder in Sundance Resources Ltd (ASX:SDL).
On Friday 18th March 2011, Hanlong acquired the entire holding of the Talbot Group 433,791,352 shares which added to existing relevant interests gives it 514,984,194 shares, or approximately 19.0% of the company.
Hanlong Mining Chairman and Head of Iron Ore Business, Peter Mansell, said the investment in Sundance was consistent with Hanlong's strategy to be a significant investor in quality projects in the iron ore industry.
"We're a financial investor and will be a supportive shareholder assisting the company to fast-track its infrastructure and mine development plans."
Hanlong Mining is a subsidiary of Sichuan Hanlong Group, a privately owned industrial conglomerate based in Chengdu, China. (by mineweb)
Key Points
* Hanlong Mining becomes largest shareholder in Sundance Resources Ltd
* Hanlong acquires Talbot Group stake
Hanlong Mining Investment Pty Ltd, through its affiliated entities (collectively "Hanlong"), has become the largest shareholder in Sundance Resources Ltd (ASX:SDL).
On Friday 18th March 2011, Hanlong acquired the entire holding of the Talbot Group 433,791,352 shares which added to existing relevant interests gives it 514,984,194 shares, or approximately 19.0% of the company.
Hanlong Mining Chairman and Head of Iron Ore Business, Peter Mansell, said the investment in Sundance was consistent with Hanlong's strategy to be a significant investor in quality projects in the iron ore industry.
"We're a financial investor and will be a supportive shareholder assisting the company to fast-track its infrastructure and mine development plans."
Hanlong Mining is a subsidiary of Sichuan Hanlong Group, a privately owned industrial conglomerate based in Chengdu, China. (by mineweb)
Friday, March 18, 2011
CISA lobbies with Chinese premier to help tackle high ore prices
Friday, 18 Mar 2011
Bloomberg reported that the China Iron and Steel Association has asked Premier Mr Wen Jiabao to take measures to help steelmakers tackle iron ore prices as many of them will likely incur losses this month due to high costs.
Mr Luo Bingsheng special adviser and former executive vice chairman to the association, without specifying what measures the government would take, said that “Mr Wen and Vice Premier Mr Zhang Dejiang ordered the Ministry of Commerce to find solutions.”
Mr Luo said “The ultimate reason for the low profits is high iron ore prices. China should streamline its qualified importers to curb speculative purchases and control the inventory of imports at reasonable levels.”
He said that the government is actively studying the establishment of standards for imported iron ore.
Mr Luo said China iron ore production will rise 8.8% to 660 million tonnes this year, pacing estimates by the Ministry of Industry and Information Technology.
China iron ore imports fell 1.4% to 618.6 million tonnes last year, the first drop since 1998, after the government took measures to curb electricity use, rein in property speculations and as domestic mines increased output. (sourced:bloomberg)
Mr Luo Bingsheng special adviser and former executive vice chairman to the association, without specifying what measures the government would take, said that “Mr Wen and Vice Premier Mr Zhang Dejiang ordered the Ministry of Commerce to find solutions.”
Mr Luo said “The ultimate reason for the low profits is high iron ore prices. China should streamline its qualified importers to curb speculative purchases and control the inventory of imports at reasonable levels.”
He said that the government is actively studying the establishment of standards for imported iron ore.
Mr Luo said China iron ore production will rise 8.8% to 660 million tonnes this year, pacing estimates by the Ministry of Industry and Information Technology.
China iron ore imports fell 1.4% to 618.6 million tonnes last year, the first drop since 1998, after the government took measures to curb electricity use, rein in property speculations and as domestic mines increased output. (sourced:bloomberg)
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Rio Tinto ups holding in $3.9 billion takeover target Riversdale
Thu Mar 17, 2011 11:19pm GMT
SYDNEY, March 18 (Reuters) - Rio Tinto has received acceptances for 33.04 percent of shares in its $3.9 billion takeover target Riversdale , the global miner said on Friday, after raising its offer for the Mozambique-focused coal miner last week.
The offer is conditional on Rio Tinto reaching 50.1 percent control by March 23.
(Created by Ed Davies, Reuters)
SYDNEY, March 18 (Reuters) - Rio Tinto has received acceptances for 33.04 percent of shares in its $3.9 billion takeover target Riversdale , the global miner said on Friday, after raising its offer for the Mozambique-focused coal miner last week.
The offer is conditional on Rio Tinto reaching 50.1 percent control by March 23.
(Created by Ed Davies, Reuters)
Iron Ore-Prices rise for first time in a month as buyers return
Fri Mar 18, 2011 3:34am GMT
* Falling ore stockpiles spur Chinese buying
* Forward swaps extend gains
By Manolo Serapio Jr
* Falling ore stockpiles spur Chinese buying
* Forward swaps extend gains
By Manolo Serapio Jr
SINGAPORE, March 18 (Reuters) - Spot iron ore prices rose for the first time in a month and offers remained firm on Friday as Chinese steel mills returned to the market to replenish
dwindling stockpiles.
Prices for the steelmaking raw material had fallen 15 percent since hitting record highs near $200 a tonne in mid-February as rising raw material cost and slow steel demand turned off top buyer China.
But some Chinese mills are looking at increasing steel exports to the region as production at quake-hit Japan could slow and domestic demand may spike when reconstruction starts.
Japan was Asia's biggest steel exporter last year.
"We had always thought that the dearth of Chinese buying in recent weeks would not last - steel production rates continue to record new highs and iron ore stocks can only sustain production
for perhaps a month or two," Commonwealth Bank of Australia said in a note.
China's daily crude steel output rose 0.5 percent from January to a record high of 1.94 million tonnes in February.
Inventories of imported iron ore at major Chinese ports fell to 80.4 million tonnes last week after climbing above 81 million tonnes towards the end of February.
Iron ore indexes, based on spot transactions in China and which global miners use in determining quarterly contract prices, rose on Thursday, the first uptick since they touched record peaks in mid-February.
The Steel Index's 62 percent benchmark .IO62-CNI=SI rose 30 cents to $163.90 a tonne, including freight, and Platts' 62 percent index IODBZ00-PLT jumped $1.50 to $166.50.
Metal Bulletin's 62 percent gauge.IO62-CNO=MB edged up 60 cents to $163.49.
Those gains may be sustained on Friday as offers from sellers remained firm, with Indian 63.5 percent iron ore quoted at $170-$172 a tonne, according to Chinese consultancy Mysteel.
"Sentiment is improving and there are more inquiries," Mysteel said.
"Iron ore buyers have come back because a lot of Chinese steel mills are very, very low on iron ore inventory and they now need to buy to sustain themselves," said an iron ore trader
in Shanghai.
"But will they come buy and disappear again which would make the price slide further or will they stay for sometime which will help prices rebound? That is still an unanswered question."
Further gains in iron ore forward swap prices on Thursday suggested confidence is slowly returning to the market.
The Singapore Exchange-cleared April contract climbed 3 percent to $157.80 a tonne, May rose 2 percent to $154.80 and June gained 1.8 percent to $152.40.
(Reporting by Manolo Serapio Jr.; Editing by Manash Goswami,sourced:Reuters)
dwindling stockpiles.
Prices for the steelmaking raw material had fallen 15 percent since hitting record highs near $200 a tonne in mid-February as rising raw material cost and slow steel demand turned off top buyer China.
But some Chinese mills are looking at increasing steel exports to the region as production at quake-hit Japan could slow and domestic demand may spike when reconstruction starts.
Japan was Asia's biggest steel exporter last year.
"We had always thought that the dearth of Chinese buying in recent weeks would not last - steel production rates continue to record new highs and iron ore stocks can only sustain production
for perhaps a month or two," Commonwealth Bank of Australia said in a note.
China's daily crude steel output rose 0.5 percent from January to a record high of 1.94 million tonnes in February.
Inventories of imported iron ore at major Chinese ports fell to 80.4 million tonnes last week after climbing above 81 million tonnes towards the end of February.
Iron ore indexes, based on spot transactions in China and which global miners use in determining quarterly contract prices, rose on Thursday, the first uptick since they touched record peaks in mid-February.
The Steel Index's 62 percent benchmark .IO62-CNI=SI rose 30 cents to $163.90 a tonne, including freight, and Platts' 62 percent index IODBZ00-PLT jumped $1.50 to $166.50.
Metal Bulletin's 62 percent gauge.IO62-CNO=MB edged up 60 cents to $163.49.
Those gains may be sustained on Friday as offers from sellers remained firm, with Indian 63.5 percent iron ore quoted at $170-$172 a tonne, according to Chinese consultancy Mysteel.
"Sentiment is improving and there are more inquiries," Mysteel said.
"Iron ore buyers have come back because a lot of Chinese steel mills are very, very low on iron ore inventory and they now need to buy to sustain themselves," said an iron ore trader
in Shanghai.
"But will they come buy and disappear again which would make the price slide further or will they stay for sometime which will help prices rebound? That is still an unanswered question."
Further gains in iron ore forward swap prices on Thursday suggested confidence is slowly returning to the market.
The Singapore Exchange-cleared April contract climbed 3 percent to $157.80 a tonne, May rose 2 percent to $154.80 and June gained 1.8 percent to $152.40.
(Reporting by Manolo Serapio Jr.; Editing by Manash Goswami,sourced:Reuters)
Thursday, March 17, 2011
IT raids offices of JSW Steel, JSW Energy
Thu, Mar17, 2011
Investigators from the income tax (IT) department in Mumbai yesterday conducted searches at the offices of JSW Steel Ltd and JSW Energy Ltd for alleged evasion of income tax.
According to B Gaur, director general, IT investigation, Mumbai, there was a search going on but they could not divulge details. He added that the search operation was expected to continue till evening.
The searches started early in the morning at the Mumbai and
Rajasthan offices of JSW Group.
The companies, according to an official who requested anonymity said the companies had allegedly adjusted accounts to reduce tax liability.
According to JSW group spokesperson Sharmila Banerjee, who confirmed the raid at the company's Lower Parel office in Mumbai, the raids were a routine survey.
''It is part of the usual survey, and apart from that, there are no more details we have,'' she said.(By domain-b)
Wednesday, March 16, 2011
S.Korea KORES says to develop Peru iron ore mines
Wed Mar 16, 2011 4:50am GMT
SEOUL, March 16 (Reuters) - Korea Resource Corp (KORES) said on Wednesday that it had signed an exploration contract to develop mines with 400 million tonnes of iron ore in Peru and secure a total stake of up to 40 percent in the mines.
(Reporting by Cho Mee-young; Editing by Jonathan Hopfner, sourced:Thomson Reuters)
SEOUL, March 16 (Reuters) - Korea Resource Corp (KORES) said on Wednesday that it had signed an exploration contract to develop mines with 400 million tonnes of iron ore in Peru and secure a total stake of up to 40 percent in the mines.
(Reporting by Cho Mee-young; Editing by Jonathan Hopfner, sourced:Thomson Reuters)
Monday, March 14, 2011
Chinese steel price slide has no more room - MOFCOM
Monday, 14 Mar 2011
According to the report revealed by Ministry of Commerce of the People Republic of China, China steel price witnessed straight two weeks’ fallout down 1.6% compared to that of the previous week.
MOFCOM said that three main factors are as follows affecting recent steel price slide
1. Supply is on the rise
Steelmakers progressively resume production and the output rises clearly. As CISA ten day report showed that China average daily crude steel output hit 1.8 million tonnes in the first 20 days of February up by 5.7% from that of 1.7 million tonnes in January.
2. The restocking picks up greatly
The data shows that China construction steel inventory increased by 53.9% from the beginning of February up by 13.3%YoY.
3. The price of raw materials cools down
Iron ore spot market price slide spur steel making costs drop. The data displays that domestic iron ore prices declined by 4.7% in last week from the middle ten days of February.
MOFCOM also noted that slim room is expected for further decline, but the downward margin will be limited, considering that many projects are to resume construction as busy spring sets in and the demand from home appliances and car industries sees further increase.(sourced:mysteel)
MOFCOM said that three main factors are as follows affecting recent steel price slide
1. Supply is on the rise
Steelmakers progressively resume production and the output rises clearly. As CISA ten day report showed that China average daily crude steel output hit 1.8 million tonnes in the first 20 days of February up by 5.7% from that of 1.7 million tonnes in January.
2. The restocking picks up greatly
The data shows that China construction steel inventory increased by 53.9% from the beginning of February up by 13.3%YoY.
3. The price of raw materials cools down
Iron ore spot market price slide spur steel making costs drop. The data displays that domestic iron ore prices declined by 4.7% in last week from the middle ten days of February.
MOFCOM also noted that slim room is expected for further decline, but the downward margin will be limited, considering that many projects are to resume construction as busy spring sets in and the demand from home appliances and car industries sees further increase.(sourced:mysteel)
Sunday, March 13, 2011
US, world coal markets still assessing Japan earthquake impact
Mar13,2011/421 pm EST/2121 GMT
Washington(Platts): International coal markets were mixed on news of Friday's catastrophic earthquake in Japan, even as many participants tried to assess the potential effects of the disaster and resulting tsunamis.
The country imported about 165 million short tons of coal in 2009, making it the largest importer of both steam and metallurgical coal, according to estimates by the International Energy Agency. The quake comes at a time when Pacific coal markets have been particularly sensitive because of flooding and a recent typhoon that has curtailed Australian exports.
Coal market participants in the US and abroad said Friday that it was simply too soon to know how the earthquake might affect the country's coal-importing and coal-burning infrastructure.
The speculation drove up prices as Platts assessed Q2-11 Newcastle coal at $128.25/mt on Friday, up $2.35/mt. (See story, 2023 GMT). Coking coal prices across the Asia-Pacific markets, meanwhile, slipped.
Still, many were keeping an eye on the status of Japan's nuclear power plants, steel mills and import terminals.
"The Japanese are heavily dependent on coal-fired generation," Ted O'Brien, vice president of Doyle Trading Consultants in New York, said. "You could see thermal demand ramp up if there is any structural damage to the nuclear industry, but that is all dependent on their ability to import the coal."
While steel mills could likely continue operating with damage -- or, at least, continue stockpiling coal -- more sensitive nuclear plants had automatically shut down after the 8.9-magnitude quake that hit northeastern Japan at 2:46 p.m. JST (0546 GMT).
All seven units of Tokyo Electric Power's Kashiwazaki-Kariwa 8.2-GW nuclear power plant were shut down after a 2007 quake, the fourth of which was just reopened for commercial operation in February. Eleven of the country's 28 nuclear units had been shut down as of 2:30 p.m. GMT, according to the Nuclear and Industrial Safety Agency of Japan.
Coal accounted for 22% of the country's total energy consumption in 2007, ranking it second behind oil, according to the US Energy Information Administration.
Japanese steel producers, meanwhile, told Platts that at least one plant had been unaffected by the quake; while others had been closed, were operating at reduced rates or could not be reached by telephone. (See story, 1445 GMT)
Lower steel production could mean that coking coal is redirected to other countries, though reconstruction efforts would eventually increase the amount of domestic consumption, market sources said. The country is second only to China in both pig iron and crude steel production.
"That steel production will have to resurface elsewhere around the world and the coking coal demand that would have been taken by Japan would be supplemented by other countries," O'Brien said.
Japan ranked ninth among importers of US coal through the first three quarters of 2010, according to the Energy Information Administration. The 4.1 million short tons it imported from US producers accounted for about 4% of total US coal exports during that time.
--Peter Gartrell, Platts
The country imported about 165 million short tons of coal in 2009, making it the largest importer of both steam and metallurgical coal, according to estimates by the International Energy Agency. The quake comes at a time when Pacific coal markets have been particularly sensitive because of flooding and a recent typhoon that has curtailed Australian exports.
Coal market participants in the US and abroad said Friday that it was simply too soon to know how the earthquake might affect the country's coal-importing and coal-burning infrastructure.
The speculation drove up prices as Platts assessed Q2-11 Newcastle coal at $128.25/mt on Friday, up $2.35/mt. (See story, 2023 GMT). Coking coal prices across the Asia-Pacific markets, meanwhile, slipped.
Still, many were keeping an eye on the status of Japan's nuclear power plants, steel mills and import terminals.
"The Japanese are heavily dependent on coal-fired generation," Ted O'Brien, vice president of Doyle Trading Consultants in New York, said. "You could see thermal demand ramp up if there is any structural damage to the nuclear industry, but that is all dependent on their ability to import the coal."
While steel mills could likely continue operating with damage -- or, at least, continue stockpiling coal -- more sensitive nuclear plants had automatically shut down after the 8.9-magnitude quake that hit northeastern Japan at 2:46 p.m. JST (0546 GMT).
All seven units of Tokyo Electric Power's Kashiwazaki-Kariwa 8.2-GW nuclear power plant were shut down after a 2007 quake, the fourth of which was just reopened for commercial operation in February. Eleven of the country's 28 nuclear units had been shut down as of 2:30 p.m. GMT, according to the Nuclear and Industrial Safety Agency of Japan.
Coal accounted for 22% of the country's total energy consumption in 2007, ranking it second behind oil, according to the US Energy Information Administration.
Japanese steel producers, meanwhile, told Platts that at least one plant had been unaffected by the quake; while others had been closed, were operating at reduced rates or could not be reached by telephone. (See story, 1445 GMT)
Lower steel production could mean that coking coal is redirected to other countries, though reconstruction efforts would eventually increase the amount of domestic consumption, market sources said. The country is second only to China in both pig iron and crude steel production.
"That steel production will have to resurface elsewhere around the world and the coking coal demand that would have been taken by Japan would be supplemented by other countries," O'Brien said.
Japan ranked ninth among importers of US coal through the first three quarters of 2010, according to the Energy Information Administration. The 4.1 million short tons it imported from US producers accounted for about 4% of total US coal exports during that time.
Nippon Steel says resumes shipments at all but one steel plants
Sun Mar 13, 2011 7:54am GMT
TOKYO, March 13 (Reuters) - Nippon Steel said on Sunday that it has resumed shipments from all its steel plants except its Kaimishi facility in northern Japan.
It also said that it has started operations at two of three blast furnaces near Tokyo after an earthquake that hit the country on Friday. (Reporting by Yuko Inoue; Editing by Joseph Radford)
TOKYO, March 13 (Reuters) - Nippon Steel said on Sunday that it has resumed shipments from all its steel plants except its Kaimishi facility in northern Japan.
It also said that it has started operations at two of three blast furnaces near Tokyo after an earthquake that hit the country on Friday. (Reporting by Yuko Inoue; Editing by Joseph Radford)
Friday, March 11, 2011
Unconfirmed reports of USD 110 hike for coking coal for April quarter
Friday, 11 Mar 2011
Nikkei business daily yesterday reported that Japan’s No 4 steelmaker Nippon Steel and British mining giant Anglo American Plc have agreed to increase coking coal prices for the second quarter by around 50% from the current quarter,
The Nikkei, without citing sources, said the coking coal price would be raised to a record USD 330 for the April to June period. Nikkei said that the steelmakers are worried that monthly price revisions would lead to cost volatility and this has led to the agreement with Anglo American which offered to set prices quarterly.
Steel makers across all parts of globe, citing surge in costs of iron ore and coking coal, have hiked steel prices in last 3 months. Now the big question is that weather the hikes are sustainable ie to what extant steel makers would be able to post the higher costs to buyers and what would be the steel price scenario in April to June quarter.
While the miners remain upbeat on prices of iron ore and coking coal in April to June quarter, several factors are weighing heavily on steel prices. Chinese premier has recently emphasized that the government will take all measures to cool down economy. This is being reflected in Chinese domestic prices, which have been sliding every day since February 22nd 2011. Political unrest in Middle East and North Africa has compounded the problem as many of the captive export markets for Black Sea based and Turkish mills have suddenly vanished creating a vacuum, forcing them to find alternate destinations.
Thursday, March 10, 2011
Japan’s January stainless steel exports fall 17.3 percent from December
Thu, 10 March 2011 14:20:09 (GMT+2)
Tags: stainless , stainless , Korea S. , Far East , North America , Southeast Asia , imp/exp statistics , steelmaking , East Asia and Pacific, USA , China , Japan , Thailand , Taiwan
According to the data issued by the Japan Iron and Steel Federation (JISF), in January this year Japan's stainless steel exports amounted to 93,842 mt, registering a decrease of 17.3 percent compared to December 2010, but a 9.2 percent increase compared to January 2010.
Regarding Japan's major stainless steel export markets, in January of the current year the country's stainless steel exports to China totaled 13,268 mt, down 40.2 percent; exports to South Korea rose 17 percent and reached 20,412 mt; the export volume to Taiwan reached 10,803, down 28.2 percent; exports to the US totaled 5,559 mt, decreasing by 18.6 percent; while exports to Thailand came to 10,450 mt, falling by 40.9 percent - all on month-on-month basis.
Meanwhile, Japan's stainless steel imports in January amounted to 13,228 mt - down 12.4 percent month on month and 1.5 percent year on year.
Regarding Japan's major stainless steel export markets, in January of the current year the country's stainless steel exports to China totaled 13,268 mt, down 40.2 percent; exports to South Korea rose 17 percent and reached 20,412 mt; the export volume to Taiwan reached 10,803, down 28.2 percent; exports to the US totaled 5,559 mt, decreasing by 18.6 percent; while exports to Thailand came to 10,450 mt, falling by 40.9 percent - all on month-on-month basis.
Meanwhile, Japan's stainless steel imports in January amounted to 13,228 mt - down 12.4 percent month on month and 1.5 percent year on year.
Tags: stainless , stainless , Korea S. , Far East , North America , Southeast Asia , imp/exp statistics , steelmaking , East Asia and Pacific, USA , China , Japan , Thailand , Taiwan
Wednesday, March 9, 2011
Indian steel majors go for marginal price hike
Wednesday, 09 Mar 2011
BL reported that some of the Indian steel makers have limited the hike in prices to INR 350 to INR 500 a tonne due to uncertainty in demand post budget.
An analyst said that there is uncertainty in the demand from the infrastructure and housing sectors due to rising cost of funds. High inflation and the likelihood of a further rise in key bank rates may force developers to delay projects.
He added that the slowing demand from the automobile and consumer goods sectors appears to have forced them from effecting major price hikes. (sourced from BL)
BL reported that some of the Indian steel makers have limited the hike in prices to INR 350 to INR 500 a tonne due to uncertainty in demand post budget.
An analyst said that there is uncertainty in the demand from the infrastructure and housing sectors due to rising cost of funds. High inflation and the likelihood of a further rise in key bank rates may force developers to delay projects.
He added that the slowing demand from the automobile and consumer goods sectors appears to have forced them from effecting major price hikes. (sourced from BL)
Masteel plans to reduce dependence on imported iron ore
Wednesday, 09 Mar 2011
According to Mr Gu Jianguo chairman of Maanshan, Anhui Province based Chinese steelmaker Maanshan Iron and Steel Company Ltd d that 75% of the iron ore Masteel uses in its production consists of imports with the result that the recent rising ore import prices have significantly increased the company's production costs.
M Gu said Masteel hopes to accelerate the exploration of its own mineral resources and increase the share of its own iron ore resources in its overall ore consumption to 30% by the end of the 12th five-year plan period (2011-2015). In addition, the company is also interested in acquiring overseas mineral resources.
Mr Gu also said that, with profitability in the Chinese steel industry currently at low levels, Masteel will seek to increase its production of high value added products such as steel products applied in high-speed railways. Masteel also hopes to increase the share of its non-steel business revenues in its overall revenues in the 12th five-year plan period.
M Gu said Masteel hopes to accelerate the exploration of its own mineral resources and increase the share of its own iron ore resources in its overall ore consumption to 30% by the end of the 12th five-year plan period (2011-2015). In addition, the company is also interested in acquiring overseas mineral resources.
Mr Gu also said that, with profitability in the Chinese steel industry currently at low levels, Masteel will seek to increase its production of high value added products such as steel products applied in high-speed railways. Masteel also hopes to increase the share of its non-steel business revenues in its overall revenues in the 12th five-year plan period.
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