More speculation on Thursday that the benchmark iron ore price may rise by much more than the 30 per cent that has been mooted this far. Vale SA, the world’s largest iron ore miner, has suggested that the benchmark price will have to reflect soaring spot prices as Chinese demand for its iron ore has increased greatly.
Vale’s Ferrous Minerals Director Jose Carlos Martins told analysts on Thursday that it expects “a new price reality” from its customers. “If our customers want to stick to benchmark prices, they will have to accept something close to the level of spot prices.”
Mr Martins’ comments have led analysts to predict that the benchmark price may be as high as 40 to 50 per cent more than at present. Earlier this week Australian analysts Goldman Sachs JBWere predicted a rise of as much as 90 per cent following comments by BHP Billiton that current spot prices were that much more than contract prices.
Mr Martins said that iron ore is trading for about $130 a metric ton on the Chinese spot market whereas Vale’s average price last year was $55.99.
Meanwhile, Vale also said late yesterday in a regulatory filing that fourth-quarter net income increased 11 percent to $1.52 billion, or 28 cents a share, from $1.37 billion, or 26 cents, in the year-earlier period results which disappointed analysts who, on average, expected profits of around 31 cents a share.
Showing posts with label iron. Show all posts
Showing posts with label iron. Show all posts
Friday, February 12, 2010
Thursday, February 11, 2010
Concentrate Output Up 15 Per Cent At Iran Central Iron Ore
Figures released by the Iran Central Iron Ore Company say that it has produced 1.62 million tonnes of iron ore concentrate in the 10 months from 21 March 2009 to 20 January 2010, a rise of 15 percent year on year.
The company produced 4.35 million tonnes of iron ore of which 1.25 million tonnes were exported, an increase of 16 per cent.
The company produced 4.35 million tonnes of iron ore of which 1.25 million tonnes were exported, an increase of 16 per cent.
Wednesday, February 10, 2010
China's Iron Ore Imports Fall 25 Per Cent In January
China’s iron ore imports fell by 25 per cent in January as the country suffered its harshest winter for some years. Steel exports also fell.
China’s General Administration of Customs said iron ore imports were at 46.62 million tonnes – down from 62.16 million tonnes in December, though the December figure was the second-highest ever recorded. Bad weather caused bottlenecks in some major ports as sea ice disrupted shipping.
Net exports of steel fell to 1.54 million tonnes.
China’s General Administration of Customs said iron ore imports were at 46.62 million tonnes – down from 62.16 million tonnes in December, though the December figure was the second-highest ever recorded. Bad weather caused bottlenecks in some major ports as sea ice disrupted shipping.
Net exports of steel fell to 1.54 million tonnes.
India Unlikely To Profit From Brazil Iron Ore Export Tax
The secretary-general of the Federation of Indian Mineral Industries, R K Sharma, has said that he doesn’t expect India to profit should Brazil impose export tax on iron ore export as has been suggested.
Mr Sharma said that India does not have an adequate infrastructure to handle the larger ships that would be needed for any increase in exports. However he also said that supplies from India are usually made to fill any gap in supplies from Brazil and Australia. Any shortage in supplies from Brazil will probably be met through Australia. Mr Sharma added that India’s exports are unlikely to exceed 110 million tonnes – not much more than at present.
India tends to supply the smaller steel mills in China with the larger mills buying in much bigger quantities from Brazil and Australia.
Indian iron ore mining companies pay a five per cent duty on exports, which is expected to rise to 20 per cent in the forthcoming Union Budget. This will make iron ore costlier. The average price of ore with 63 per cent of iron content at Chinese ports from India has risen recently to $124.50 a tonne from $122.50 a tonne.
Mr Sharma said that India does not have an adequate infrastructure to handle the larger ships that would be needed for any increase in exports. However he also said that supplies from India are usually made to fill any gap in supplies from Brazil and Australia. Any shortage in supplies from Brazil will probably be met through Australia. Mr Sharma added that India’s exports are unlikely to exceed 110 million tonnes – not much more than at present.
India tends to supply the smaller steel mills in China with the larger mills buying in much bigger quantities from Brazil and Australia.
Indian iron ore mining companies pay a five per cent duty on exports, which is expected to rise to 20 per cent in the forthcoming Union Budget. This will make iron ore costlier. The average price of ore with 63 per cent of iron content at Chinese ports from India has risen recently to $124.50 a tonne from $122.50 a tonne.
Sunday, July 5, 2009
South African Trade Team To Visit Pakistan
A high level mission from South Africa will visit Pakistan by the end of current month to interact with the Pakistani exporters, the Daily Times learnt on Saturday.
The buying mission of South African will be comprised of top importers and decision markers dealing in different major products. This mission will visit export-houses in Karachi, Lahore, Faisalabad and Sialkot to consider the business deals with the their local counterparts.
South African market – with foreign exchange reserves of $33.59 billion and total import volume $87.3 billion in year 2008 - offers tremendous opportunities for Pakistani export sector.
Keeping in view the vastness of South African market and huge import volume, Trade Development Authority of Pakistan (TDAP) had invited the business community of that country to visit Pakistan. The top importers and decisions making authorities related to business sector have planned to visit country during July 20-24. Apart from meeting with the higher government functionaries, delegation will meet the exporters of food and related goods (rice, confectionary, biscuits, candies, fruit juices, ready to eat food, convenience food, snacks, pies etc), textile and clothing and home textile exporters.
The meeting is also scheduled with the sports goods, pharmaceuticals, building materials and related items, leather upholstery, footwear, polysterfibers and yarn.
Exporters said that products like surgical equipments, textile products, rice, spices and sports goods have good market in South Africa because South Africa is the main shopping centre of seven neighboring countries.
South Africa’s main exports to Pakistan include synthetic staple fibre, hot rolled & flat rolled steel products, stainless steel, iron, chemicals, newsprint and uncoated craft paper, pig iron, ferro-alloys, scrap metal and preservatives. Pakistan’s main exports to South Africa include woollen fabrics, synthetic staple fibres and cotton, leather goods, bed and table linen, footwear, cotton yarn and fish.
Officials said that visit of South Africa, buying mission signifies greatly in the current situation when buying houses in its traditional USA and EU markets are reluctant to visit Pakistan due to bad security situation. “It will send a positive signal to the entire world that circumstances are no so worse as is being portrayed about the country in the world”, officials said.
Source: Daily Times, Lahore
The buying mission of South African will be comprised of top importers and decision markers dealing in different major products. This mission will visit export-houses in Karachi, Lahore, Faisalabad and Sialkot to consider the business deals with the their local counterparts.
South African market – with foreign exchange reserves of $33.59 billion and total import volume $87.3 billion in year 2008 - offers tremendous opportunities for Pakistani export sector.
Keeping in view the vastness of South African market and huge import volume, Trade Development Authority of Pakistan (TDAP) had invited the business community of that country to visit Pakistan. The top importers and decisions making authorities related to business sector have planned to visit country during July 20-24. Apart from meeting with the higher government functionaries, delegation will meet the exporters of food and related goods (rice, confectionary, biscuits, candies, fruit juices, ready to eat food, convenience food, snacks, pies etc), textile and clothing and home textile exporters.
The meeting is also scheduled with the sports goods, pharmaceuticals, building materials and related items, leather upholstery, footwear, polysterfibers and yarn.
Exporters said that products like surgical equipments, textile products, rice, spices and sports goods have good market in South Africa because South Africa is the main shopping centre of seven neighboring countries.
South Africa’s main exports to Pakistan include synthetic staple fibre, hot rolled & flat rolled steel products, stainless steel, iron, chemicals, newsprint and uncoated craft paper, pig iron, ferro-alloys, scrap metal and preservatives. Pakistan’s main exports to South Africa include woollen fabrics, synthetic staple fibres and cotton, leather goods, bed and table linen, footwear, cotton yarn and fish.
Officials said that visit of South Africa, buying mission signifies greatly in the current situation when buying houses in its traditional USA and EU markets are reluctant to visit Pakistan due to bad security situation. “It will send a positive signal to the entire world that circumstances are no so worse as is being portrayed about the country in the world”, officials said.
Source: Daily Times, Lahore
Monday, June 22, 2009
Sul Americana Announces Brazil Iron Ore Project
Sul Americana de Metais SA is to develop an integrated iron ore project in Brazil which will produce 25 million tonnes per annum of 65% Fe pellet feed, with initial production expected in 2013.
Sul Americana has sufficient JORC-compliant resources in its two principal properties in the state of Minas Gerais to support a mine life in excess of 20 years. In addition, it has potential resources that would significantly increase the mine life. It has developed an integrated mine pipeline port project, the principal elements of which have been reviewed by independent experts.
The estimated capital expenditure to develop the project is approximately USD 2.6 billion, to be incurred between 2010 and 2012. Given the magnitude of the investment, Sul Americana is analysing financing options and considering strategic alternatives to take the project into production.
Mr Haroldo Fleischfresser CEO of Sul Americana said that "We have developed a cost efficient process route tailored to the specific characteristics of our ore. This process, together with an efficient logistics system, contributes to an expected FOB cost for pellet feed of less than USD20 per tonne."
Source: Steel Guru
Sul Americana has sufficient JORC-compliant resources in its two principal properties in the state of Minas Gerais to support a mine life in excess of 20 years. In addition, it has potential resources that would significantly increase the mine life. It has developed an integrated mine pipeline port project, the principal elements of which have been reviewed by independent experts.
The estimated capital expenditure to develop the project is approximately USD 2.6 billion, to be incurred between 2010 and 2012. Given the magnitude of the investment, Sul Americana is analysing financing options and considering strategic alternatives to take the project into production.
Mr Haroldo Fleischfresser CEO of Sul Americana said that "We have developed a cost efficient process route tailored to the specific characteristics of our ore. This process, together with an efficient logistics system, contributes to an expected FOB cost for pellet feed of less than USD20 per tonne."
Source: Steel Guru
Wednesday, February 25, 2009
Monnet Ispat Heads Consortium To Buy 20 Percent of Sponge Iron Firm
Monnet Ispat have formed a consortium with the Torsteel Research Foundation, TRFI Investment Private, and others to acquire 20% of the equity capital of Orissa Sponge Iron and Steel, an Indian coal miner manufacturer of sponge iron, ingots and ferroalloys.
Monnet Ispat and PAC proposes to acquire up to 6,100,000 equity shares of Rs 10 each at a price of Rs 310 a share shares payable in cash, subject to terms and conditions.
The specified date for the offer is Feb. 27, 2008. The offer opens on Apr 4, 2009 and closes on Apr. 23, 2009.
Monnet Ispat and PAC proposes to acquire up to 6,100,000 equity shares of Rs 10 each at a price of Rs 310 a share shares payable in cash, subject to terms and conditions.
The specified date for the offer is Feb. 27, 2008. The offer opens on Apr 4, 2009 and closes on Apr. 23, 2009.
Tuesday, February 3, 2009
Ferroexpo Confident About 2009
Ferrexpo Plc, the Swiss-based company that manufactures iron ore pellets in the Ukraine, has issued trading update as well as Production Report for the fourth quarter of 2008.
The company said that 2008 ended well giving a full year operating financial performance ahead of management expectations. This benefits from a sharp reduction in costs in December as a result of a weaker local currency, continued falling oil prices and lower costs for grinding media.
In response to a sharp reduction in demand in October, the group made modest planned reductions in output, which has resulted in full year production at 2007 levels.
Iron ore production in the fourth quarter declined to 6,162,300 tonnes from 7,182,800 tonnes last year.
Management remains confident about trading in 2009 because of the group's unique competitive advantages, most notably its advantageous location opposite its customers, its strong customer relationships and falling cost base. Moving ahead, the Board believes that the group is well placed to increase market share and continue to trade profitably.
Source: RTT News
The company said that 2008 ended well giving a full year operating financial performance ahead of management expectations. This benefits from a sharp reduction in costs in December as a result of a weaker local currency, continued falling oil prices and lower costs for grinding media.
In response to a sharp reduction in demand in October, the group made modest planned reductions in output, which has resulted in full year production at 2007 levels.
Iron ore production in the fourth quarter declined to 6,162,300 tonnes from 7,182,800 tonnes last year.
Management remains confident about trading in 2009 because of the group's unique competitive advantages, most notably its advantageous location opposite its customers, its strong customer relationships and falling cost base. Moving ahead, the Board believes that the group is well placed to increase market share and continue to trade profitably.
Source: RTT News
Saturday, January 17, 2009
Fortescue Joins China Iron Ore Talks
Reports from China suggest that Fortescue, the Australian iron ore miner, has for the first time joined iron ore negotiations in China with the 'big three' iron ore miners.
Mr Xu Xiangchun Mysteel information director of the China Iron and Steel Association noted that Fortecue's planned delivery to China of 50 million tons of iron ore in 2009 puts it in second place behind BHP Billiton and therefore its participation would loosen the duopoly in iron ore supply to China.
Fortescue now owns a prospecting area of 40,000 square meters in the Pilbara region of West Australia with an estimated total resource of 4.2 billion tonnes. It expects to produce 12 million tonnes of iron ore this year, and aims to lift output to 100 million tonnes in 2010, becoming the fourth largest iron ore supplier in the world.
Meanwhile Mr Shan Shanghua, the secretary-general of China Iron and Steel Association, stressed that China's steelmakers will insist on a price decrease and that the settlement should apply from January 1st 2009 for new term supply.
He said that China normally followed Japan to close the account on 31 March but it would be more beneficial as China's buyers viewed the new term price would doubtlessly belower than last year.
Source: Steel Guru
Update 19 January 2009: Fortescue rejects iron ore talks invitation
Mr Xu Xiangchun Mysteel information director of the China Iron and Steel Association noted that Fortecue's planned delivery to China of 50 million tons of iron ore in 2009 puts it in second place behind BHP Billiton and therefore its participation would loosen the duopoly in iron ore supply to China.
Fortescue now owns a prospecting area of 40,000 square meters in the Pilbara region of West Australia with an estimated total resource of 4.2 billion tonnes. It expects to produce 12 million tonnes of iron ore this year, and aims to lift output to 100 million tonnes in 2010, becoming the fourth largest iron ore supplier in the world.
Meanwhile Mr Shan Shanghua, the secretary-general of China Iron and Steel Association, stressed that China's steelmakers will insist on a price decrease and that the settlement should apply from January 1st 2009 for new term supply.
He said that China normally followed Japan to close the account on 31 March but it would be more beneficial as China's buyers viewed the new term price would doubtlessly belower than last year.
Source: Steel Guru
Update 19 January 2009: Fortescue rejects iron ore talks invitation
Thursday, January 8, 2009
Indian Iron Ore Exports Fall 13 Percent
India’s iron ore exports declined 13.31 per cent as economic recession affected global demand for the ore as demand for steel fell.
Total exports plunged to 55.8 million tonnes during April 1 - December 15 of the current fiscal compared to 64.38 million tonnes during the corresponding period last year. Shipments, however, witnessed a marginal decline of 3.81 per cent to 5 million tonnes during the first fortnight of December from 5.2 million tonnes seen during the same period last year, according to data collated by the Federation of Indian Minerals Industries (FIMI).
Indian iron ore exports rose slowly in late October but orders rose as steel mills in China that were closed last year for the Olympic Games began their operations gradually. "It will be difficult to achieve last year’s level", said Glenn Kalavampara, secretary of Goa Mineral Ore Exporters’ Association (GMOEA).
Total shipments from Mormugao port in Goa during the first fortnight of December dipped 27.18 per cent to 20.84 million tonnes over that seen during the corresponding period last year. Goan exporters ship mainly low grade iron ore from Karnataka and Goa to Chinese steel mills.
Indian Iron Ore exports (in units of 100,000 tonnes [1 lakh])
Month 2007-08 2008-09 %Chg
Apr 83.77 114.90 37.16
May 94.15 84.95 -9.77
Jun 59.41 56.32 -5.20
Jul 51.62 50.74 -1.70
Aug 53.88 41.55 -22.88
Sept 54.99 30.78 -44.03
Oct 83.68 41.39 -50.54
Nov 101.25 87.40 -13.68
Dec (1-15)52.02 50.04 -3.81
Total 643.77 558.07 -13.31
Haresh Melwani, CEO, H L Nathurmal & Co, a leading iron ore miner and exporter from Goa attributed the decline in exports to three major factors: frequent changes in exports levy on fines and lumps (the two grades of iron ore below and above 64 per cent of iron content respectively), slowdown in Chinese demand and buyers lenience towards Australia and Brazil because of a favourable government policy.
Melwani also forecast a 25 per cent decline in exports of iron ore from Goa to 20 millions last year. Similarly, both Karnataka and Goan-origin iron ore exports may also fall to 30 million tonnes compared to 40 million tonnes last financial year, Melwani added.
Last year, the government levied exports levy by Rs 300 per tonne which was later restricted to lumps only. Again, fines was brought under tax net and withdrawn after severe resistance from mining industry.
According to initial indications, the public sector National Minerals Development Corporation has posted 35 per cent decline in sales in December after 65 per cent and 40 per cent fall in November and October respectively.
Source: Business Standard
Total exports plunged to 55.8 million tonnes during April 1 - December 15 of the current fiscal compared to 64.38 million tonnes during the corresponding period last year. Shipments, however, witnessed a marginal decline of 3.81 per cent to 5 million tonnes during the first fortnight of December from 5.2 million tonnes seen during the same period last year, according to data collated by the Federation of Indian Minerals Industries (FIMI).
Indian iron ore exports rose slowly in late October but orders rose as steel mills in China that were closed last year for the Olympic Games began their operations gradually. "It will be difficult to achieve last year’s level", said Glenn Kalavampara, secretary of Goa Mineral Ore Exporters’ Association (GMOEA).
Total shipments from Mormugao port in Goa during the first fortnight of December dipped 27.18 per cent to 20.84 million tonnes over that seen during the corresponding period last year. Goan exporters ship mainly low grade iron ore from Karnataka and Goa to Chinese steel mills.
Indian Iron Ore exports (in units of 100,000 tonnes [1 lakh])
Month 2007-08 2008-09 %Chg
Apr 83.77 114.90 37.16
May 94.15 84.95 -9.77
Jun 59.41 56.32 -5.20
Jul 51.62 50.74 -1.70
Aug 53.88 41.55 -22.88
Sept 54.99 30.78 -44.03
Oct 83.68 41.39 -50.54
Nov 101.25 87.40 -13.68
Dec (1-15)52.02 50.04 -3.81
Total 643.77 558.07 -13.31
Haresh Melwani, CEO, H L Nathurmal & Co, a leading iron ore miner and exporter from Goa attributed the decline in exports to three major factors: frequent changes in exports levy on fines and lumps (the two grades of iron ore below and above 64 per cent of iron content respectively), slowdown in Chinese demand and buyers lenience towards Australia and Brazil because of a favourable government policy.
Melwani also forecast a 25 per cent decline in exports of iron ore from Goa to 20 millions last year. Similarly, both Karnataka and Goan-origin iron ore exports may also fall to 30 million tonnes compared to 40 million tonnes last financial year, Melwani added.
Last year, the government levied exports levy by Rs 300 per tonne which was later restricted to lumps only. Again, fines was brought under tax net and withdrawn after severe resistance from mining industry.
According to initial indications, the public sector National Minerals Development Corporation has posted 35 per cent decline in sales in December after 65 per cent and 40 per cent fall in November and October respectively.
Source: Business Standard
Tuesday, July 8, 2008
Construction To Commence At Thai Steel Smelter
Sahaviriya Iron and Steel Co (SIS), the operator of a 500-billion-baht smelting plant, expects to start construction by the fourth quarter of this year once it receives the green light on environmental assessment, financing and investment privileges, says acting president Win Viriyaprapaikit.
The subsidiary of the Sahaviriya Group is now waiting for the approval of its environmental impact assessment (EIA) report and plans to submit an application for investment privileges to the Board of Investment (BoI) soon.
''I hope we will wrap up all legal documents within the third quarter. Once we get all the papers done, the construction will begin immediately,'' said Mr Win, also the president of SET-listed Sahaviriya Steel Industry Plc, the country's largest hot-rolled steel coil manufacturer.
The smelting project has been delayed by two years due to strong opposition by activists and local communities who fear the project's impact on their neighbourhoods.
While appeasing local communities and stakeholders, SIS has made a big stride by securing an equipment and procurement contract (EPC) for the project with Sino-International Heavy Industry Technology (Sino-HIT), which leads a consortium of Chinese equipment and technology suppliers.
The contract was signed on July 1 in a ceremony attended by Prime Minister Samak Sundaravej during his Beijing visit, which was viewed by the company as a gesture of full government support.
The contract, valued at 10 billion renminbi, covers the project's first phase with a total production capacity of five million tonnes per year.
The contract also allows the same Chinese suppliers to work on the remaining phases.
The five-phase project aims to produce 33 million tonnes of steel and is scheduled to be fully completed in 15 years. The strong baht, however, might help lower the cost of the project from the original 500 billion baht.
The Chinese consortium is responsible for providing turnkey services, from plant construction and equipment procurement to production preparation. The entire process is expected to be completed within 24 months.
SIS's contract with the Chinese has helped improve its chances of securing more loans from Chinese state and private financial institutions.
''We expect to gain a syndicated loan covering the total cost of 10 billion renminbi and a seven-year repayment term,'' Mr Win said.
For its part, SIS has spent several billion baht over the last three years on engineering and ground work at the site in Bang Saphan, Prachuap Khiri Khan.
SIS hopes to soon conclude financing deals, along with purchasing contracts for ore with world exporters. World ore prices have risen by 65-80% over the past year on average in line with oil and other commodity goods.
For its initial production capacity of five million tonnes, SIS would need around eight million tonnes of ore.
Due to the high costs of raw materials, steel prices doubled in the first half of 2008. SSI expects to record sales of nearly 50 billion baht this year, up from 30 billion baht a year earlier, on the back of higher prices.
Its sales rise would also come from a higher utilisation rate, which increased slightly to half of its full capacity of four million tonnes from below two million last year.
Mr Win, however, declined to discuss margins but said he planned to run at full capacity when the smelter started operation. The smelter would help reduce SSI's costs by 35% as it would no longer need to import materials such as slab, scrap and billet.
Source: Bangkok Post
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The subsidiary of the Sahaviriya Group is now waiting for the approval of its environmental impact assessment (EIA) report and plans to submit an application for investment privileges to the Board of Investment (BoI) soon.
''I hope we will wrap up all legal documents within the third quarter. Once we get all the papers done, the construction will begin immediately,'' said Mr Win, also the president of SET-listed Sahaviriya Steel Industry Plc, the country's largest hot-rolled steel coil manufacturer.
The smelting project has been delayed by two years due to strong opposition by activists and local communities who fear the project's impact on their neighbourhoods.
While appeasing local communities and stakeholders, SIS has made a big stride by securing an equipment and procurement contract (EPC) for the project with Sino-International Heavy Industry Technology (Sino-HIT), which leads a consortium of Chinese equipment and technology suppliers.
The contract was signed on July 1 in a ceremony attended by Prime Minister Samak Sundaravej during his Beijing visit, which was viewed by the company as a gesture of full government support.
The contract, valued at 10 billion renminbi, covers the project's first phase with a total production capacity of five million tonnes per year.
The contract also allows the same Chinese suppliers to work on the remaining phases.
The five-phase project aims to produce 33 million tonnes of steel and is scheduled to be fully completed in 15 years. The strong baht, however, might help lower the cost of the project from the original 500 billion baht.
The Chinese consortium is responsible for providing turnkey services, from plant construction and equipment procurement to production preparation. The entire process is expected to be completed within 24 months.
SIS's contract with the Chinese has helped improve its chances of securing more loans from Chinese state and private financial institutions.
''We expect to gain a syndicated loan covering the total cost of 10 billion renminbi and a seven-year repayment term,'' Mr Win said.
For its part, SIS has spent several billion baht over the last three years on engineering and ground work at the site in Bang Saphan, Prachuap Khiri Khan.
SIS hopes to soon conclude financing deals, along with purchasing contracts for ore with world exporters. World ore prices have risen by 65-80% over the past year on average in line with oil and other commodity goods.
For its initial production capacity of five million tonnes, SIS would need around eight million tonnes of ore.
Due to the high costs of raw materials, steel prices doubled in the first half of 2008. SSI expects to record sales of nearly 50 billion baht this year, up from 30 billion baht a year earlier, on the back of higher prices.
Its sales rise would also come from a higher utilisation rate, which increased slightly to half of its full capacity of four million tonnes from below two million last year.
Mr Win, however, declined to discuss margins but said he planned to run at full capacity when the smelter started operation. The smelter would help reduce SSI's costs by 35% as it would no longer need to import materials such as slab, scrap and billet.
Source: Bangkok Post
See Also
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