Sunday, 29 Jan 2012
According to a report released by the German Federal Statistical Office in December 2011 the import price of iron ore increased by 14.6% YoY in Germany, while it decreased by two percent as compared to November.
In December, the average import price of pig iron, steel and ferroalloys in Germany fell by 2.8% YoY while it decreased by 0.2% compared to November.In 2011, the index of import prices for iron ore was up 34.6% over the previous year's average level, while the import price index for iron and steel and ferroalloys increased 8.8% in 2011 compared to 2010.
(sourced SteelOrbis.com)
Showing posts with label steel prices. Show all posts
Showing posts with label steel prices. Show all posts
Sunday, January 29, 2012
Monday, January 23, 2012
Tokyo Steel keeps Feb prices steady amid import worries
Mon Jan 23, 2012
TOKYO Jan 23 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steelmaker, said on Monday it would keep prices unchanged in February, seeking to stem an inflow of cheaper imports, but added that the market shows signs of improvement on growing reconstruction demand.
Its pricing strategy is closely watched by Asian rivals like Hyundai Steel, POSCO and Baosteel, which have ramped up capacity, aiming to take advantage of their weaker currencies to boost exports to Japan.
"We hope to raise prices but the current yen rate and a potential rise in imports make it difficult to do so," Kiyoshi Imamura, marketing director at Tokyo Steel, told a news conference.
The company is hoping that China will ease its lending policy after the Lunar New Year break, stimulating steel demand.
In Japan, demand for construction steel has picked up since late last month on rebuilding of Japan's northeast that was devastated by massive earthquake and tsunami last March, Imamura said.
TOKYO Jan 23 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steelmaker, said on Monday it would keep prices unchanged in February, seeking to stem an inflow of cheaper imports, but added that the market shows signs of improvement on growing reconstruction demand.
Its pricing strategy is closely watched by Asian rivals like Hyundai Steel, POSCO and Baosteel, which have ramped up capacity, aiming to take advantage of their weaker currencies to boost exports to Japan.
"We hope to raise prices but the current yen rate and a potential rise in imports make it difficult to do so," Kiyoshi Imamura, marketing director at Tokyo Steel, told a news conference.
The company is hoping that China will ease its lending policy after the Lunar New Year break, stimulating steel demand.
In Japan, demand for construction steel has picked up since late last month on rebuilding of Japan's northeast that was devastated by massive earthquake and tsunami last March, Imamura said.
Thursday, November 17, 2011
Iron Ore-Spot at near 1-mth top as gains extend to Day 12
Thursday, 17 November 2011
Iron ore rose to its highest in nearly a month as spot prices gained for a 12th day in a row, with firmer steel prices in top consumer China encouraging more buying of the raw material and helping it recover from last month's slu
Iron ore with 62 percent iron content climbed nearly 6 percent to $146.30 a tonne on Tuesday, the highest since Oct. 19, according to the Steel Index .IO62-CNI=SI.
It has now gained 25 percent in the past 12 trading days, after sliding nearly 31 percent in October when Chinese mills cut purchases of iron ore as lower steel prices reflected weaker demand.
Steel prices in China's spot market rose last week, with rebar rising 0.7 percent to average 4,364 yuan ($688) a tonne and hot-rolled coil increasing 0.2 percent to 4,230 yuan, based on estimates by Bank of America-Merrill Lynch.
Profit margins at Chinese steel mills have similarly improved, with the industry average margin for rebar rising to 162 yuan a tonne from 135 yuan the previous week and 61 yuan in late October, according to the BoA-Merrill Lynch data.
"As long as steel mills' margins are positive, it makes economic sense for them to continue to produce and if they're eating into their iron ore inventories that means they need to keep buying ore, even if it's only hand to mouth," said an iron ore physical trader in Singapore.
"Based on current steel prices and with margins staying positive, we believe iron ore can go beyond $150."
Offer prices in China rose further on Wednesday, with cargoes from No. 1 producer Australia up $2-$3 a tonne, according to Chinese consultancy Umetal.
Australian Newman iron ore fines increased $3 to $148-$150 a tonne and Pilbara fines were also quoted $3 higher at $144-$147, Umetal said. The prices include freight cost.
BHP Billiton sold Newman fines at $149.20 a tonne at a tender on Tuesday, while Rio Tinto sold Pilbara fines at $144.50, also at a tender, traders said.
Limited availability of spot cargoes has also been supporting the current run-up in iron ore prices, with Indian exports restrained by logistical problems and higher production costs.
The cost of producing higher grade iron ore in India, the world's No. 3 iron ore exporter, stands at around $120 a tonne, free on board basis, more than double the cost in Australia and Brazil, the two biggest producers.
"But traders and mills have been very keen to buy for some time, and the sharply improved levels achieved on cargoes offered is a reflection of that pent-up demand," said Oscar Tarneberg, senior iron ore analyst at Steel Index in Shanghai.
Steep gains in prices of iron ore forward swaps investor optimism spot rates will move higher further in the near term.
The Singapore Exchange-cleared December contract rose the most on Tuesday, up $5.37 to $143.37 a tonne. The January contract gained $3.87 to $142.87 and February climbed $4.08 to $142.25.
Source: Reuters via hellenicshippingnews
Iron ore rose to its highest in nearly a month as spot prices gained for a 12th day in a row, with firmer steel prices in top consumer China encouraging more buying of the raw material and helping it recover from last month's slu
Iron ore with 62 percent iron content climbed nearly 6 percent to $146.30 a tonne on Tuesday, the highest since Oct. 19, according to the Steel Index .IO62-CNI=SI.
It has now gained 25 percent in the past 12 trading days, after sliding nearly 31 percent in October when Chinese mills cut purchases of iron ore as lower steel prices reflected weaker demand.
Steel prices in China's spot market rose last week, with rebar rising 0.7 percent to average 4,364 yuan ($688) a tonne and hot-rolled coil increasing 0.2 percent to 4,230 yuan, based on estimates by Bank of America-Merrill Lynch.
Profit margins at Chinese steel mills have similarly improved, with the industry average margin for rebar rising to 162 yuan a tonne from 135 yuan the previous week and 61 yuan in late October, according to the BoA-Merrill Lynch data.
"As long as steel mills' margins are positive, it makes economic sense for them to continue to produce and if they're eating into their iron ore inventories that means they need to keep buying ore, even if it's only hand to mouth," said an iron ore physical trader in Singapore.
"Based on current steel prices and with margins staying positive, we believe iron ore can go beyond $150."
Offer prices in China rose further on Wednesday, with cargoes from No. 1 producer Australia up $2-$3 a tonne, according to Chinese consultancy Umetal.
Australian Newman iron ore fines increased $3 to $148-$150 a tonne and Pilbara fines were also quoted $3 higher at $144-$147, Umetal said. The prices include freight cost.
BHP Billiton sold Newman fines at $149.20 a tonne at a tender on Tuesday, while Rio Tinto sold Pilbara fines at $144.50, also at a tender, traders said.
Limited availability of spot cargoes has also been supporting the current run-up in iron ore prices, with Indian exports restrained by logistical problems and higher production costs.
The cost of producing higher grade iron ore in India, the world's No. 3 iron ore exporter, stands at around $120 a tonne, free on board basis, more than double the cost in Australia and Brazil, the two biggest producers.
"But traders and mills have been very keen to buy for some time, and the sharply improved levels achieved on cargoes offered is a reflection of that pent-up demand," said Oscar Tarneberg, senior iron ore analyst at Steel Index in Shanghai.
Steep gains in prices of iron ore forward swaps investor optimism spot rates will move higher further in the near term.
The Singapore Exchange-cleared December contract rose the most on Tuesday, up $5.37 to $143.37 a tonne. The January contract gained $3.87 to $142.87 and February climbed $4.08 to $142.25.
Source: Reuters via hellenicshippingnews
Saturday, October 15, 2011
No recent iron ore shipment to China cancelled - Mr Marcus Randolph
Saturday, 15 Oct 2011
Reuters quoted Mr Marcus Randolph CEO of Ferrous and Coal of BHP said global miner BHP Billiton has not had any iron ore shipment to China cancelled or renegotiated in the last few weeks.
He said that "We haven't had any shipment to China cancelled or renegotiated."
Traders said concern had risen in markets that Chinese steel mills were seeking to postpone shipments or renegotiate fourth quarter iron ore contracts as spot prices fell to their lowest since November 2010.
Global steel prices and production have weakened amid growing uncertainty about economic growth and financial markets in the second half.
Rival global mining group Rio Tinto reported on Thursday record iron ore sales for its third quarter, saying demand was holding up.
Mr Randolph said the iron ore sector was marked by insufficient supply, with BHP Billiton producing "as fast as we can", but that a pipeline of mining projects delayed by the 2008 financial crisis should outpace demand growth this decade.
He said that "We're expecting to see slower growth in iron ore as Chinese growth starts to tail off, adding his personal view was that Chinese steel use could overshoot its current growth trend before falling back and hitting iron ore and steel prices in coming years.”
He also said "If all of the projects come online and there are USD 430 billion of projects we will exceed the requirements of the steel industry in our forecast."
(Sourced from Reuters)
Reuters quoted Mr Marcus Randolph CEO of Ferrous and Coal of BHP said global miner BHP Billiton has not had any iron ore shipment to China cancelled or renegotiated in the last few weeks.
He said that "We haven't had any shipment to China cancelled or renegotiated."
Traders said concern had risen in markets that Chinese steel mills were seeking to postpone shipments or renegotiate fourth quarter iron ore contracts as spot prices fell to their lowest since November 2010.
Global steel prices and production have weakened amid growing uncertainty about economic growth and financial markets in the second half.
Rival global mining group Rio Tinto reported on Thursday record iron ore sales for its third quarter, saying demand was holding up.
Mr Randolph said the iron ore sector was marked by insufficient supply, with BHP Billiton producing "as fast as we can", but that a pipeline of mining projects delayed by the 2008 financial crisis should outpace demand growth this decade.
He said that "We're expecting to see slower growth in iron ore as Chinese growth starts to tail off, adding his personal view was that Chinese steel use could overshoot its current growth trend before falling back and hitting iron ore and steel prices in coming years.”
He also said "If all of the projects come online and there are USD 430 billion of projects we will exceed the requirements of the steel industry in our forecast."
(Sourced from Reuters)
Monday, August 22, 2011
Tokyo Steel prices cut,H-beam down Y2,000/T
Mon Aug 22, 2011
* Second price cut this year to fend off imports
* Price cut slightly smaller than market expected
TOKYO Aug 22 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steel maker, said on Monday it will cut product prices for the second time this year as the yen's rise has opened up a big price gap between domestic products and imports.
The company will cut prices by 2,000-4,000 yen ($26-52) per tonne for September, or 2 to 5 percent, its second across-the-board price cut in three months.
The price cut was slightly smaller than the market expectations of around 3,000-5,000 yen.
"There are signs of a pickup in demand as carmakers are ramping up production and large development projects in the Tokyo area are about to start," Tokyo Steel director Naoto Ohori told a news conference. "We need to head off imports to tap this demand."
The company cut its price for H-beams, a key product used in construction, by 2.6 percent to 74,000 yen ($971) per tonne from 76,000 yen, after keeping prices unchanged for three months.
Japan's imports of steel products, mostly hot- and cold-rolled coils, rose in June to an almost six-year high of 420,000 tonnes. China's steel exports exceeded 4 million tonnes for the fourth straight month in June as domestic demand slowed, causing an oversupply in Asian markets. South Korea is also boosting exports.
Tokyo Steel's move is in contrast with Asia' other big exporters, which are beginning to raise prices to offset high input costs.
Baoshan Iron & Steel Co Ltd , China's top listed steelmaker, said this month it will raise prices of its main products for September bookings, in anticipation that demand will pick up in the peak consumption season.
Nippon Steel Corp , Japan's top maker of H-beams, is currently operating at 30 percent of its H-beam capacity in an attempt to tighten the market.
The company this month said its inventories of H-beam steel for spot customers fell 4.2 percent to 206,300 tonnes at the end of July, the first decrease in seven months but still at a high level. ($1 = 76.245 Japanese Yen)
(sourced Reuters)
* Second price cut this year to fend off imports
* Price cut slightly smaller than market expected
TOKYO Aug 22 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steel maker, said on Monday it will cut product prices for the second time this year as the yen's rise has opened up a big price gap between domestic products and imports.
The company will cut prices by 2,000-4,000 yen ($26-52) per tonne for September, or 2 to 5 percent, its second across-the-board price cut in three months.
The price cut was slightly smaller than the market expectations of around 3,000-5,000 yen.
"There are signs of a pickup in demand as carmakers are ramping up production and large development projects in the Tokyo area are about to start," Tokyo Steel director Naoto Ohori told a news conference. "We need to head off imports to tap this demand."
The company cut its price for H-beams, a key product used in construction, by 2.6 percent to 74,000 yen ($971) per tonne from 76,000 yen, after keeping prices unchanged for three months.
Japan's imports of steel products, mostly hot- and cold-rolled coils, rose in June to an almost six-year high of 420,000 tonnes. China's steel exports exceeded 4 million tonnes for the fourth straight month in June as domestic demand slowed, causing an oversupply in Asian markets. South Korea is also boosting exports.
Tokyo Steel's move is in contrast with Asia' other big exporters, which are beginning to raise prices to offset high input costs.
Baoshan Iron & Steel Co Ltd , China's top listed steelmaker, said this month it will raise prices of its main products for September bookings, in anticipation that demand will pick up in the peak consumption season.
Nippon Steel Corp , Japan's top maker of H-beams, is currently operating at 30 percent of its H-beam capacity in an attempt to tighten the market.
The company this month said its inventories of H-beam steel for spot customers fell 4.2 percent to 206,300 tonnes at the end of July, the first decrease in seven months but still at a high level. ($1 = 76.245 Japanese Yen)
(sourced Reuters)
Thursday, July 21, 2011
North European steel coil prices close to bottom
Wed,July21, 2011 |By MEPS
Prices for steel flat products in northern Europe continued to slide in July, although further substantial reductions are not anticipated. Most buyers have been operating on a hand-to-mouth
basis as the summer shutdowns approached, not wanting to carry excess inventory into the break. Distributors and end-users alike, though, are expected to carry out some restocking after the vacation period. This may enable producers to go ahead with price hikes.
Demand for coated sheet and coil in the region continues to be significantly supported by the robust state of car manufacturing in Sweden and Germany, and the supply chains servicing these industries.
Sales of hot rolled plate have been holding up better than those for coil products, with healthy demand from several sectors, including line pipe, yellow goods and construction. However, there has been downward pressure on selling values due to the low prices available from southern and eastern European suppliers.
Selling values for long products showed signs of improving before those for flat products, although figures for wire rod and medium sections and beams slipped gain this month, in most of the countries surveyed. Several mills have announced increased size extras for rebars and merchant bars in recent weeks but these have not been universally accepted. Indeed, effective prices for merchant bars were largely unchanged in July, while transaction values for rebars increased by less than the proposed hike in dimensional extras.
Prices for steel flat products in northern Europe continued to slide in July, although further substantial reductions are not anticipated. Most buyers have been operating on a hand-to-mouth
basis as the summer shutdowns approached, not wanting to carry excess inventory into the break. Distributors and end-users alike, though, are expected to carry out some restocking after the vacation period. This may enable producers to go ahead with price hikes.
Demand for coated sheet and coil in the region continues to be significantly supported by the robust state of car manufacturing in Sweden and Germany, and the supply chains servicing these industries.
Sales of hot rolled plate have been holding up better than those for coil products, with healthy demand from several sectors, including line pipe, yellow goods and construction. However, there has been downward pressure on selling values due to the low prices available from southern and eastern European suppliers.
Selling values for long products showed signs of improving before those for flat products, although figures for wire rod and medium sections and beams slipped gain this month, in most of the countries surveyed. Several mills have announced increased size extras for rebars and merchant bars in recent weeks but these have not been universally accepted. Indeed, effective prices for merchant bars were largely unchanged in July, while transaction values for rebars increased by less than the proposed hike in dimensional extras.
Friday, May 27, 2011
POSCO to lower stainless steel prices for June
Fri May 27, 2011 9:31am GMT
SEOUL May 27 (Reuters) - POSCO , the world's third-biggest steelmaker, will lower prices of its major stainless steel products by 300,000 won ($275.36) a tonne for June, a company spokesman said on Friday, reflecting a recent fall in nickel prices.
Its June prices of hot-rolled and cold-rolled stainless steel products would be cut to 3.6 million won and 3.87 million won per tonne, respectively. ($1 = 1089.500 Korean Won) (Reporting by Ju-min Park; Editing by Jacqueline Wong, Thomson Reuters)
SEOUL May 27 (Reuters) - POSCO , the world's third-biggest steelmaker, will lower prices of its major stainless steel products by 300,000 won ($275.36) a tonne for June, a company spokesman said on Friday, reflecting a recent fall in nickel prices.
Its June prices of hot-rolled and cold-rolled stainless steel products would be cut to 3.6 million won and 3.87 million won per tonne, respectively. ($1 = 1089.500 Korean Won) (Reporting by Ju-min Park; Editing by Jacqueline Wong, Thomson Reuters)
Thursday, March 31, 2011
Iron Ore-ShFE rebar ends flat; spot ore up on freight hike
Thu Mar 31, 2011 7:41am GMT
By Nick Trevethan
SINGAPORE, March 31 (Reuters) - Shanghai steel rebar futures rose 0.4 percent on Thursday, on course for a loss of around 1.5 percent on the quarter, while iron ore indexes gained on the prospect of costlier freight charges for Indian ores.
The most active rebar contract on the Shanghai Futures Exchange, October, rose 19 yuan to 4,813 yuan a tonne by 0140 GMT, reversing the previous session's losses.
The contract remains near an eight-session high, having hit a four-month low of 4,627 on March 22, but is down 1.5 percent this quarter.
Late Wednesday, Baoshan Iron & Steel , China's top listed steelmaker, posted an 8.3 percent rise in quarterly profit, and said it expected growth in global steel demand to slow this year. [ID:nB9E7EP00X]
"The important thing to note is that it's growing, not slowing. Maybe it's not growing as quickly as before but the rates we saw in 2009 and 2010 were unsustainable, built on all that stimulus money," said a trading source in Sydney.
"It looks like demand growth will moderate. We still have a bit of an inventory hump to get over, which in the short term may cap steel prices, in particular in China and even cause a lull in iron ore demand in the next three to six months, but it's temporary."
Key iron ore indexes, based on spot transactions in China, rose sharply on Wednesday.
India's iron ore exports fell for the eighth straight month in February because of a continuing ban on shipments by its key Karnataka state and exports are likely to face further pressure as the country hikes freight rates again.
Exports from the world's No. 3 iron ore supplier dropped 18.6 percent from a year ago to 10.137 million tonnes in February, data from the Federation of Indian Mineral Industries showed on Wednesday.
In addition, Indian Railways said it will impose a "busy season" charge of 7 percent on iron ore freight rates from April 1 to June 30 and from Oct. 1 to March 31.
Platts 62 percent iron ore index IODBZ00-PLT jumped $5.50 cents to $175 a tonne, including freight, and the Steel Index's 62 percent benchmark .IO62-CNI=SI gained $2 to $170.50.
Metal Bulletin's 62 percent gauge .IO62-CNO=MB rose $1.74 to $169.71. (Editing by Himani Sarkar)
Tags : steel plant, steelmaking, Chinese iron ore market, raw material, busy season charge, levy on coal and coke
Thursday, March 17, 2011
Iron Ore-Spot stabilises after falls as steel prices gain
Thu Mar 17, 2011 7:19am GMT
* Hopes of increased steel demand after Japan quake
* Indian 63.5 pct ore quoted at $170-$172/tonne
* Iron ore unlikely to hit $192 again this year-analyst
* China 2011 iron ore imports seen up 6 pct (Updates Shanghai rebar prices)
By Manolo Serapio Jr
SINGAPORE, March 17 (Reuters) - Spot iron ore prices stabilised on Thursday as steel prices in top producer China bounced back after recent losses, backed by hopes Beijing can export more overseas when quake-hit Japan begins reconstruction.
Japan overtook China as Asia's biggest steel exporter last year. But shipments from Tokyo may slow when the country focuses its output on rebuilding, opening a gap that may be filled by China as well as South Korea, Japan's biggest customer.
"Sentiment is slightly getting better because steel prices are moving up. We have more inquiries from the steel mills although purchases have not picked up yet," said an iron ore trader in Shanghai.
"Chinese mills are thinking they might have a good chance to sell their products and people are anticipating steel demand to pick up after the Japan disaster."
Power outages in Japan following last Friday's ferocious earthquake and tsunami will hit output of the world's second-largest producer and boost demand for China's steel products, a former official of the China Iron and Steel Association said on Thursday.
Spot steel prices have been slowly rising after dropping for two weeks, with steel billet in Tangshan up more than 80 yuan per tonne this week, said the Shanghai trader.
Shanghai steel rebar futures have rebounded 3.8 percent since hitting four-month lows on Monday. The most active October contract on the Shanghai Futures Exchange closed at 4,817 yuan a tonne on Thursday, down a modest 0.3 percent.
"Steel has pushed up in the last few days and these levels give the mills a very healthy margin," said an iron ore trader in Singapore.
Iron ore imports by top buyer China are forecast to rise 6 percent this year from nearly 619 million tonnes in 2010 on higher steel output, said an official from China's mining association.
MORE DOWNSIDE SEEN
Offers for Indian ore with 63.5 percent iron content were steady at $170-$172 a tonne on Thursday, including freight, traders and Chinese consultancy Mysteel said.
But some analysts say iron ore prices could drop further in the near term on weaker demand from Japanese mills before a rebound that may be capped.
"Japanese steel mills will reduce their purchases in the short term which poses further downside risk in the seaborne market," said Henry Liu, regional head of commodity research at Mirae Asset Securities in Hong Kong.
"We expect iron ore prices to rebound once steel demand recovers. However, it is unlikely to hit $192 per tonne again this year."
Spot iron ore prices had been falling since hitting a record high near $200 a tonne in mid-February as top buyer China slowed purchases after steel prices dropped.
Key iron ore indexes, which global miners use in setting quarterly contract rates, were steady to lower on Wednesday, while forward swaps jumped after a recent selloff.
Platts' 62 percent iron ore index IODBZ00-PLT was unchanged at $165 a tonne. That was previously the lowest for the index since Nov. 25.
Steel Index's 62 percent benchmark .IO62-CNI=SI slipped $1.10 to $163.60, a level not seen since Nov. 19. Metal Bulletin's 62 percent gauge .IO62-CNO=MB eased a dollar to $162.89, its weakest since Dec. 6.
Singapore Exchange-cleared forward swap prices rebounded although they remained at steep discount to spot prices. The April contract rose more than 4 percent to $153.33 a tonne and May climbed 3.6 percent to $151.58. (Additional reporting by Ruby Lian in Shanghai Editing by Ed Lane,sourced:Reuters)
* Indian 63.5 pct ore quoted at $170-$172/tonne
* Iron ore unlikely to hit $192 again this year-analyst
* China 2011 iron ore imports seen up 6 pct (Updates Shanghai rebar prices)
By Manolo Serapio Jr
SINGAPORE, March 17 (Reuters) - Spot iron ore prices stabilised on Thursday as steel prices in top producer China bounced back after recent losses, backed by hopes Beijing can export more overseas when quake-hit Japan begins reconstruction.
Japan overtook China as Asia's biggest steel exporter last year. But shipments from Tokyo may slow when the country focuses its output on rebuilding, opening a gap that may be filled by China as well as South Korea, Japan's biggest customer.
"Sentiment is slightly getting better because steel prices are moving up. We have more inquiries from the steel mills although purchases have not picked up yet," said an iron ore trader in Shanghai.
"Chinese mills are thinking they might have a good chance to sell their products and people are anticipating steel demand to pick up after the Japan disaster."
Power outages in Japan following last Friday's ferocious earthquake and tsunami will hit output of the world's second-largest producer and boost demand for China's steel products, a former official of the China Iron and Steel Association said on Thursday.
Spot steel prices have been slowly rising after dropping for two weeks, with steel billet in Tangshan up more than 80 yuan per tonne this week, said the Shanghai trader.
Shanghai steel rebar futures have rebounded 3.8 percent since hitting four-month lows on Monday. The most active October contract on the Shanghai Futures Exchange closed at 4,817 yuan a tonne on Thursday, down a modest 0.3 percent.
"Steel has pushed up in the last few days and these levels give the mills a very healthy margin," said an iron ore trader in Singapore.
Iron ore imports by top buyer China are forecast to rise 6 percent this year from nearly 619 million tonnes in 2010 on higher steel output, said an official from China's mining association.
MORE DOWNSIDE SEEN
Offers for Indian ore with 63.5 percent iron content were steady at $170-$172 a tonne on Thursday, including freight, traders and Chinese consultancy Mysteel said.
But some analysts say iron ore prices could drop further in the near term on weaker demand from Japanese mills before a rebound that may be capped.
"Japanese steel mills will reduce their purchases in the short term which poses further downside risk in the seaborne market," said Henry Liu, regional head of commodity research at Mirae Asset Securities in Hong Kong.
"We expect iron ore prices to rebound once steel demand recovers. However, it is unlikely to hit $192 per tonne again this year."
Spot iron ore prices had been falling since hitting a record high near $200 a tonne in mid-February as top buyer China slowed purchases after steel prices dropped.
Key iron ore indexes, which global miners use in setting quarterly contract rates, were steady to lower on Wednesday, while forward swaps jumped after a recent selloff.
Platts' 62 percent iron ore index IODBZ00-PLT was unchanged at $165 a tonne. That was previously the lowest for the index since Nov. 25.
Steel Index's 62 percent benchmark .IO62-CNI=SI slipped $1.10 to $163.60, a level not seen since Nov. 19. Metal Bulletin's 62 percent gauge .IO62-CNO=MB eased a dollar to $162.89, its weakest since Dec. 6.
Singapore Exchange-cleared forward swap prices rebounded although they remained at steep discount to spot prices. The April contract rose more than 4 percent to $153.33 a tonne and May climbed 3.6 percent to $151.58. (Additional reporting by Ruby Lian in Shanghai Editing by Ed Lane,sourced:Reuters)
Tuesday, March 8, 2011
Iron Ore-Spot extends losses as China sits out
Tue Mar 8, 2011 4:22am GMT
SINGAPORE, March 8 (Reuters) - Spot iron ore prices extended losses on Tuesday, with Chinese buyers still shunning the market waiting for further falls or a recovery in steel prices, but supply disruptions from Western Australia could limit the downside, traders said.
Indian ore with 63.5 percent iron content was quoted in China at $181-$183 a tonne, including freight, on Tuesday, down from $182-$184 on Monday, said Chinese consultancy Mysteel.
The 62 percent March iron ore futures on the Indian Commodity Exchange (ICEX) traded flat on Monday at 8,098 rupees per tonne.
Markets may see some support after Australian miner Fortescue Metals Group trimmed its March quarter production guidance to a range of 8.5-9.0 million tonnes, down 0.5 million tonnes, after heavy rains hit its mining operations in the Pilbara area of Western Australia.
Rio Tinto , which also mines iron ore in the region, said its operations had been impacted by adverse weather conditions during the first quarter, but that it will announce any impact in its quarterly report. Other smaller miners in the area may also have been affected, traders said.
"We have seen some slowing of shipments from the northern Pilbara due to the wet. It hasn't really shown up in China port stocks yet, but we could see some erosion from the current high levels," said a Sydney-based commodities trader.
Port stocks in China, above 80 million tonnes, are around record highs as Chinese consumer hold back from buying, hoping for prices to continue to fall and a pick up in steel demand.
The most active rebar contract for October delivery on the Shanghai Futures Exchange was slightly lower at 4,821 yuan per tonne by the midday break, after having slid to 4,770 yuan last week, its weakest since Dec. 1.
Key iron ore indexes, which global miners use in setting quarterly contract prices, extended losses on Monday.
Platts 62 percent iron ore benchmark IODBZ00-PLT fell $1 to $177 a tonne. It has lost 8.3 percent in the past 13 sessions since hitting a record high of $193 in mid-February.
The Steel Index's 62 percent gauge .IO62-CNI=SI slipped $3.80 to $172.80 and Metal Bulletin's index .IO62-CNO=MB dropped $1.86 to $174.97. (Reporting by Nick Trevethan; Editing by Himani Sarkar,sourced:Thomson Reuters)
Tags :Chinese steel mills, Chinese steelmakers, rebar contract for Oct delivery, Shanghai Futures Exchange, Platts, Rio Tinto, Australia's Fortescue Metals Group
Indian ore with 63.5 percent iron content was quoted in China at $181-$183 a tonne, including freight, on Tuesday, down from $182-$184 on Monday, said Chinese consultancy Mysteel.
The 62 percent March iron ore futures on the Indian Commodity Exchange (ICEX) traded flat on Monday at 8,098 rupees per tonne.
Markets may see some support after Australian miner Fortescue Metals Group trimmed its March quarter production guidance to a range of 8.5-9.0 million tonnes, down 0.5 million tonnes, after heavy rains hit its mining operations in the Pilbara area of Western Australia.
Rio Tinto , which also mines iron ore in the region, said its operations had been impacted by adverse weather conditions during the first quarter, but that it will announce any impact in its quarterly report. Other smaller miners in the area may also have been affected, traders said.
"We have seen some slowing of shipments from the northern Pilbara due to the wet. It hasn't really shown up in China port stocks yet, but we could see some erosion from the current high levels," said a Sydney-based commodities trader.
Port stocks in China, above 80 million tonnes, are around record highs as Chinese consumer hold back from buying, hoping for prices to continue to fall and a pick up in steel demand.
The most active rebar contract for October delivery on the Shanghai Futures Exchange was slightly lower at 4,821 yuan per tonne by the midday break, after having slid to 4,770 yuan last week, its weakest since Dec. 1.
Key iron ore indexes, which global miners use in setting quarterly contract prices, extended losses on Monday.
Platts 62 percent iron ore benchmark IODBZ00-PLT fell $1 to $177 a tonne. It has lost 8.3 percent in the past 13 sessions since hitting a record high of $193 in mid-February.
The Steel Index's 62 percent gauge .IO62-CNI=SI slipped $3.80 to $172.80 and Metal Bulletin's index .IO62-CNO=MB dropped $1.86 to $174.97. (Reporting by Nick Trevethan; Editing by Himani Sarkar,sourced:Thomson Reuters)
Tags :Chinese steel mills, Chinese steelmakers, rebar contract for Oct delivery, Shanghai Futures Exchange, Platts, Rio Tinto, Australia's Fortescue Metals Group
Monday, February 28, 2011
Russia ministry nixes steel export duty plans
Mon Feb 28, 2011 10:17am GMT
MOSCOW Feb28(Reuters)- Russia's Ministry for Economic Development has abandoned plans to put an export duty on steel and iron ore to protect domestic automakers, deputy minister Andrei Slepnyov said on Monday according to Interfax.
"Automakers reached an agreement with the metals and mining companies about the current issue (of steel pricing), therefore it is no longer necessary to impose an export duty," the agency quoted Slepnyov as saying.
Car makers including AvtoVAZ (AVAZ.MM: Quote) voiced complaints over rising steel prices at the end of last year. (Reporting by Alfred Kueppers, sourced:Thomson Reuters)
Tags:steel mills, Russian steelmakers,
Thursday, February 24, 2011
Davies says discounted iron-ore prices should benefit downstream customers
24th February 2011
By: Loni Prinsloo
Trade and Industry Minister Rob Davies said on Thursday that companies that benefited from discounted iron-ore prices would have to pass on the discount to customers.
He said that at least 21,4% of iron-ore output from Kumba Iron Ore’s (Kumba) Sishen mine should be made available at cost plus 3% to support a cost effective steel manufacturing industry in the country.
The Minister added that excessive steel pricing in South Africa in the past had disadvantaged the downstream manufacturing industries. This comes at a time when government has made its mandate of job creation and increasing local production capacity clear.
South Africa’s largest steelmaker, ArcelorMittal South Africa (Mittal), had been receiving the benefit of discounted iron-ore prices for years, but had not been passing on this advantage to downstream consumers.
This bruised the relationship between the Department of Trade and Industry (DTI) and the steel company as the group's access to South African-mined iron-ore on favourable terms had been effectively secured for it by government in 2001, on the provison that the company extended a so-called "developmental" price to South African consumers.
The iron-ore arrangement and the pricing promise had been central to the unbundling deal that led to the creation of separate steel and mining companies from what had previously been the Iscor group.
But the steel group clung to its policy of pricing steel on an import parity basis, later converting to a benchmarked pricing model, which led to a breakdown of trust between the DTI and Mittal.
Last year, Mittal lost its 21,4% Sishen mining right after failing to convert its stake into a new-order mining right as required by South African law.
Kumba’s Sishen Iron Ore Company applied for the mining right, but instead, a prospecting right was granted to Imperial Crown Trading (ICT). However, Kumba has now taken the matter to court as it believed that the granting of ICT’s prospecting licence was unlawful.
Nevertheless, Davies said that whoever took hold of South African resources in the future, had to take on the responsibility of looking after the country’s economical interests.
He said that at least 21,4% of iron-ore output from Kumba Iron Ore’s (Kumba) Sishen mine should be made available at cost plus 3% to support a cost effective steel manufacturing industry in the country.
The Minister added that excessive steel pricing in South Africa in the past had disadvantaged the downstream manufacturing industries. This comes at a time when government has made its mandate of job creation and increasing local production capacity clear.
South Africa’s largest steelmaker, ArcelorMittal South Africa (Mittal), had been receiving the benefit of discounted iron-ore prices for years, but had not been passing on this advantage to downstream consumers.
This bruised the relationship between the Department of Trade and Industry (DTI) and the steel company as the group's access to South African-mined iron-ore on favourable terms had been effectively secured for it by government in 2001, on the provison that the company extended a so-called "developmental" price to South African consumers.
The iron-ore arrangement and the pricing promise had been central to the unbundling deal that led to the creation of separate steel and mining companies from what had previously been the Iscor group.
But the steel group clung to its policy of pricing steel on an import parity basis, later converting to a benchmarked pricing model, which led to a breakdown of trust between the DTI and Mittal.
Last year, Mittal lost its 21,4% Sishen mining right after failing to convert its stake into a new-order mining right as required by South African law.
Kumba’s Sishen Iron Ore Company applied for the mining right, but instead, a prospecting right was granted to Imperial Crown Trading (ICT). However, Kumba has now taken the matter to court as it believed that the granting of ICT’s prospecting licence was unlawful.
Nevertheless, Davies said that whoever took hold of South African resources in the future, had to take on the responsibility of looking after the country’s economical interests.
Edited by: Mariaan Webb Tags :Sishen's mining rights, South African law,
Wednesday, February 23, 2011
Steel prices remain flat in thin trade
By Press Trust of India
New Delhi Feb 23, 2011, 15:57
Quiet conditions prevailed in the local steel and iron market today as prices continued to move in a limited range on restricted buying and settled around previous levels.
Traders said restricted buying activity against adequate stocks kept steel prices steady.
Following are today's quotations in Rs per tonne:
CTD saria (Kamdhenu) 8-mm 41,700, 10-mm 43,400, 12-mm 42,100, 16-25 mm 39,950
Saria Jai Bharat (ISO 9002) 8-mm 39,150, 10 mm 38,350, 12-mm 37,550, 16-25 mm 37,550
Amba saria (ISO-9002) 8-mm 38,000, 10-mm 37,300, 12-mm 36,700, 16-25-mm 36,500
Amba shakti: (TMT) 8-mm 37,000, 10 mm 36,000, 12 mm 35,400, 16 to 25 mm 35,200
M S Angle: (50x5) (50x6) 33,000, (40x5) (40x6) 33,500
Angle capital (ISI) (40X5) (40x6) 36,900, (35X5) (65X6) 33,900
Garder (joist) (150x75) 33,500 (175x85) 32,500 (200x100) 33,300 (125x70) 33,600
T-IRON (40X5)(40X6)(50X6) 33,500
(sourced:business standard)
New Delhi Feb 23, 2011, 15:57
Quiet conditions prevailed in the local steel and iron market today as prices continued to move in a limited range on restricted buying and settled around previous levels.
Traders said restricted buying activity against adequate stocks kept steel prices steady.
Following are today's quotations in Rs per tonne:
CTD saria (Kamdhenu) 8-mm 41,700, 10-mm 43,400, 12-mm 42,100, 16-25 mm 39,950
Saria Jai Bharat (ISO 9002) 8-mm 39,150, 10 mm 38,350, 12-mm 37,550, 16-25 mm 37,550
Amba saria (ISO-9002) 8-mm 38,000, 10-mm 37,300, 12-mm 36,700, 16-25-mm 36,500
Amba shakti: (TMT) 8-mm 37,000, 10 mm 36,000, 12 mm 35,400, 16 to 25 mm 35,200
M S Angle: (50x5) (50x6) 33,000, (40x5) (40x6) 33,500
Angle capital (ISI) (40X5) (40x6) 36,900, (35X5) (65X6) 33,900
Garder (joist) (150x75) 33,500 (175x85) 32,500 (200x100) 33,300 (125x70) 33,600
T-IRON (40X5)(40X6)(50X6) 33,500
(sourced:business standard)
Monday, February 21, 2011
Australia's Bluescope Steel says H1 net loss A$55 mln
Feb 21, 2011
MELBOURNE Feb 21 (Reuters) - Australia's biggest steel maker, BlueScope Steel , posted a loss in first-half profit on Monday as its attempts to cut costs and lift Asian earnings was not enough to counter higher input costs, stagnant steel prices and softer demand.
Bluescope, which said conditions remained tough, posted a net profit of A$55 million in the six months to December, compared with a loss of A$28 million a year ago.
Bluescope said in November it expected to break even in the first half, or post a small loss on inventory adjustments, as it cut costs in the face of stagnant steel prices, high raw material costs, a strong Australian dollar and softer demand pinching profit margins.
Shares in Bluescope closed Friday at A$2.37, up from lows below A$2 in November but off highs above A$3 in April 2010. (Reporting by Miranda Maxwell; Editing by Balazs Koranyi, sourced:Thomson Reuters)
Saturday, February 19, 2011
Egypt unrest hit steel prices - Metalloinvest
Saturday, 19 Feb 2011
(Sourced from Reuters)
Reuters reported that unrest in Egypt has hit construction steel prices with spot rebar in Saudi Arabia's Jeddah now at USD 640 per tonne to USD 650 per tonne as Black Sea mills seek new markets away from the turmoil.
Mr Shukhrat Nishanov GD of Hamriyah said that “It is influencing the market. If that market was traditionally supplied by our colleagues in Turkey and Ukraine, well, they can't sell there so they are going to the Saudi market and this is disrupting our business."
Mr Nishanov said that Metalloinvest's Hamriyah, the only Russian owned steel plant in the United Arab Emirates sold its January rebar production for USD 700 per tonne roughly 8% above the current spot range.
He said that the company, which is also Russia's largest iron miner, opened its steel plant in the UAE last year to tap into the Middle Eastern construction boom. It currently produces 80,000 tonnes of rebar per month or 1 million tonnes per year. This can be ramped up slightly to about 1.2 million tonnes if demand increases.
Metalloinvest, controlled by billionaire Mr Alisher Usmanov may also add a second mill later in the decade, though it has yet to take a final decision. It already operates two major steel plants in Russia.
Mr Nishanov said that Hamriyah does not sell any steel directly to Egyptian buyers. He said “We export 30% to Saudi Arabia, 20% to Iraq and our trading partners sell to other buyers in the Persian Gulf and 10% to 15% is sold to local firms.”
He does not expect the Egyptian market to revive until there is more certainty about the country's future political course.
Mr Shukhrat Nishanov GD of Hamriyah said that “It is influencing the market. If that market was traditionally supplied by our colleagues in Turkey and Ukraine, well, they can't sell there so they are going to the Saudi market and this is disrupting our business."
Mr Nishanov said that Metalloinvest's Hamriyah, the only Russian owned steel plant in the United Arab Emirates sold its January rebar production for USD 700 per tonne roughly 8% above the current spot range.
He said that the company, which is also Russia's largest iron miner, opened its steel plant in the UAE last year to tap into the Middle Eastern construction boom. It currently produces 80,000 tonnes of rebar per month or 1 million tonnes per year. This can be ramped up slightly to about 1.2 million tonnes if demand increases.
Metalloinvest, controlled by billionaire Mr Alisher Usmanov may also add a second mill later in the decade, though it has yet to take a final decision. It already operates two major steel plants in Russia.
Mr Nishanov said that Hamriyah does not sell any steel directly to Egyptian buyers. He said “We export 30% to Saudi Arabia, 20% to Iraq and our trading partners sell to other buyers in the Persian Gulf and 10% to 15% is sold to local firms.”
He does not expect the Egyptian market to revive until there is more certainty about the country's future political course.
(Sourced from Reuters)
TATA Steel expects steel prices to rise in near terms
Saturday, 19 Feb 2011
TATA Steel sees a sure in steel prices on surging prices of raw materials.
Mr B Muthuraman VC of TATA Steel said that global steel prices will likely rise in the near term, driven by both higher costs and a steady improvement in global demand.
He added that "It is difficult to predict steel prices, but the way raw material prices are rising, steel prices are bound to follow."
(Sourced:dowjones)
Tuesday, February 15, 2011
Japanese steels major eying USD 1000 FOB for HR export - JMB
Tuesday, 15 Feb 2011
JMB reported that Japanese major steel makers start sheet steel export price talk in the week for April to June 2011 period.
The makers already realized USD 750 per tonne to USD 800 per tonne FOB for hot rolled coil for March 2011 shipment while some of the makers offer USD 900 for spot transaction for March 2011 shipment.
They eye USD 1,000 level in and after April 2011.
The makers now prepare for higher offer for domestic sheet steel price and now the price hike range is considered at JPY 15,000 to JPY 20,000 per tonne level.
(sourced:japanmetalbulletin)
Tags: JMB, Japan steelmakers, steel prices, March2011 shipment, spot transaction, higher prices, raw materials
JMB reported that Japanese major steel makers start sheet steel export price talk in the week for April to June 2011 period.
The makers already realized USD 750 per tonne to USD 800 per tonne FOB for hot rolled coil for March 2011 shipment while some of the makers offer USD 900 for spot transaction for March 2011 shipment.
They eye USD 1,000 level in and after April 2011.
The makers now prepare for higher offer for domestic sheet steel price and now the price hike range is considered at JPY 15,000 to JPY 20,000 per tonne level.
(sourced:japanmetalbulletin)
Tags: JMB, Japan steelmakers, steel prices, March2011 shipment, spot transaction, higher prices, raw materials
Sunday, February 13, 2011
Nucor raises steel prices as demand gains and raw materials climb
Sunday, 13 Feb 2011
It is reported that Nucor Corporation has raised prices for some of its products amid demand gains and increasing raw material costs.
Charlotte North Carolina based Nucor boosted prices for plate steel for March delivery by a minimum of USD 80 a tonne.
Nucor said that plate steel sold by contract was increased by USD 65 a tonne. AK Steel Holding Corporation, the fourth biggest US based steelmaker by 2010 sales, said it is raising prices for new orders of flat rolled carbon steel products by USD 50 a tonne.
Mr Patrick McFadden a Nucor spokesman said that Nucor sees rising raw materials and incremental demand. He added that "Some level of demand occurred to allow for the increases to be implemented."
US steelmakers have raised prices and brought more production back on line as they recovered from the plunge in demand following the 2008-09 recession.
(sourced:bloomberg)
It is reported that Nucor Corporation has raised prices for some of its products amid demand gains and increasing raw material costs.
Charlotte North Carolina based Nucor boosted prices for plate steel for March delivery by a minimum of USD 80 a tonne.
Nucor said that plate steel sold by contract was increased by USD 65 a tonne. AK Steel Holding Corporation, the fourth biggest US based steelmaker by 2010 sales, said it is raising prices for new orders of flat rolled carbon steel products by USD 50 a tonne.
Mr Patrick McFadden a Nucor spokesman said that Nucor sees rising raw materials and incremental demand. He added that "Some level of demand occurred to allow for the increases to be implemented."
US steelmakers have raised prices and brought more production back on line as they recovered from the plunge in demand following the 2008-09 recession.
(sourced:bloomberg)
Friday, February 4, 2011
Qatar Steel raises steel prices - Report
Friday, 04 Feb 2011
The Peninsula reported that steel is the latest product to be costlier in Qatar, deepening fears of a general price rise.
Qatar Steel raised the prices of its steel in line with the global trend. This was the second time this year that the country's largest and reputable steel maker resorted to a price hike.
The silver lining, though, is that Qatar Steel was among the last steel makers in the region and the rest of the world to effect a price escalation, pressured by the rising rates of key raw materials worldwide.
Current steel prices range up to QAR 2,955 a tonne locally, while the rate was as recently as until the end of last year around QAR 2,600 a tonne, so the price rise works out to more than 10%.
The first time the steel maker raised the rates of its products was a little more than a month ago when the prices were jacked up to QAR 2,780 a tonne. But with the latest raise the rate has reached QAR 2,955 per tonne.
Al Sharq quoted a local authorized dealer of Qatar Steel as saying yesterday that local steel was still cheaper than in other Arab and even GCC states.
And the raise was attributed to rising prices of pellets and scrap. Pellets were available for as much as USD 730 a tonne in the international markets from an earlier USD 580 to USD 600. Similarly, scarp rates have increased up to USD 430 a tonne in the global markets. (sourced:thepeninsulaqatar.com)
The Peninsula reported that steel is the latest product to be costlier in Qatar, deepening fears of a general price rise.
Qatar Steel raised the prices of its steel in line with the global trend. This was the second time this year that the country's largest and reputable steel maker resorted to a price hike.
The silver lining, though, is that Qatar Steel was among the last steel makers in the region and the rest of the world to effect a price escalation, pressured by the rising rates of key raw materials worldwide.
Current steel prices range up to QAR 2,955 a tonne locally, while the rate was as recently as until the end of last year around QAR 2,600 a tonne, so the price rise works out to more than 10%.
The first time the steel maker raised the rates of its products was a little more than a month ago when the prices were jacked up to QAR 2,780 a tonne. But with the latest raise the rate has reached QAR 2,955 per tonne.
Al Sharq quoted a local authorized dealer of Qatar Steel as saying yesterday that local steel was still cheaper than in other Arab and even GCC states.
And the raise was attributed to rising prices of pellets and scrap. Pellets were available for as much as USD 730 a tonne in the international markets from an earlier USD 580 to USD 600. Similarly, scarp rates have increased up to USD 430 a tonne in the global markets. (sourced:thepeninsulaqatar.com)
Tuesday, February 1, 2011
EU steel market - Divide increases between North and South
January 31, 2011
European price movements can be dissected into North and South.
While Northern Europe viz., Germany and neighbouring countries price movements is reminiscent of the peaks of 2007 & 2008, in South Europe the increases have been subdued.
Domestic mills in Spain and Italy have increased HRC basis parity price up to EUR 640 per tonne and EUR 620 per tonne, respectively. However, customers are quite reluctant to book at new levels, bidding EUR 20 per tonne to EUR 30 per tonne less.
Import others are not attractive as prime mills are quoting above EUR 600 per tonne CFR FO at sight. Only Ukrainian mills are offering around EUR 560 per tonne to EUR 570 per tonne CFR FO at sight. However poor quality and low coil weight make this material unattractive.
HRP and HRC prices in Germany have taken a big jump during past week. The HRC prices are well above EUR 600 per tonne CFR FO Antwerp with peaks touching EUR 650 per tonne CFR FO.
HRP are offered by the domestic mills at prices beyond EUR 700 per tonne basis parity with imports reaching EUR 620 per tonne CFR FO Antwerp and even more.
Mills are deliberately maintaining low quantities to justify further increases.
The recent correction in scrap prices had negligible impact as mills have taken advantage with prices jumping depending on category and product by EUR 20 per tonne to EUR 50 per tonne.
Debars and wire rod are offered in the domestic market at prices around EUR 550 per tonne to EUR 600 per tonne in both Spain and Italy while in Germany these levels have been surpassed.
Exports from Spain and Italy are at levels of EUR 530 per tonne to EUR 500 per tonne FOB ST for debars and wire rod respectively.
Imports are not unattractive for the time being. Turkish offers have receded to levels lower than USD 700 per tonne for debars and wire rod.
The trend seems quite sell settled and prices are most probably remaining under pressure for the weeks to come. That should be quite sure for North Europe market where general economy situation has definitely jumped beyond the last crisis hurdles and is running at best levels of the last 5 years.
In South Europe the situation is still critic as both Spain and Italy are still fighting with a general economy situation still far from a complete recovery. Unemployment levels are still quite high, especially in Spain where still almost 20% of the working force is without a fixed employment, GDP perspectives are indicating an economy that is increasing by mere 1% or even, investments are lacking and bank financing is still short and erratic. In this scenario, the consumption is obviously not fully supporting the price trend demonstrated by the price difference with North Europe as indicated above. So for South Europe the positive present trend might be short lived.
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