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The drop deepened amid sluggishness among the Chinese mills responsible for producing more than half the worldâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s steel, and concerns over future demand



world's steel production has been about 30% over supplied every year for many years by now. as housing boom nearly ended around world-----hmmm!!! have to reduce steel production i guess.

we see the ore price diving even without vale on line. am not bullish on ore going forward.




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Iron ore

Undermined by signs of a recovery in seaborne supply and news of stricter industrial curbs in northern Chinese regions during winter, iron ore prices were hit hard on Wednesday with all major grades tumbling more than 5 per cent.



David Scutt @Scutty

Replying to @Scutty

Iron ore. Oof.


MBIOI-5.5% to $87.86, the lowest level since Aug 30. Similar declines across lower and higher grades. Dalian iron ore skidded to Ãâہ¡ÃƒÆ’‚ÂÂ¥611.5 o/n.



âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Rio Tinto reported a 5 per cent rise in production for the September quarter to 86.1 million tonnes. This follows on from Vale earlier in the week, who reported a 35 per cent jump in Q3 output as it brought back closed mines following the deadly dam disaster earlier this year,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ said ANZ Bankâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s senior commodity strategist Daniel Hynes in a note.


Separately, Tangshan, China's top steelmaking city, issued a second-level smog alert requiring steel mills to further limit operations, according to Reuters.


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Thereâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s No Shortage of Iron Ore âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€šÃ‚ Thereâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s a Shortage of it at the Right Cost


But documents filed with the Australian Securities and Investments Commission last week show two Sinosteel subsidiaries are the buyers, the article reports. The documents suggest the two subsidiaries paid the just $3 each for their respective 50% stakes in Oakajee Port and Rail, the company that owns the studies and intellectual property for the Oakajee railway network and deep-water port.


One of the Sinosteel subsidiaries was also said to have been transferred all shares in Crosslands Resources, the company that holds the nearby Jack Hills iron ore project. Crosslands is reliant on Oakajee Port and Rail building the port and rail infrastructure to get its product economically to market; so, without the port, the assets is essentially a dead duck.


Maybe not surprisingly, ASIC documents say Crosslands was sold for nothing.


On the face of it, itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s a huge loss for Mitsubishi, which had spent hundreds of millions buying into the related projects and investing in Jack Hills. Meanwhile, itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s a zero cost gain for Sinosteel, but it now leaves the Chinese with the need to invest the best part of A$10 billion to develop the port, rail infrastructure and mines.


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BHP and Valeâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s Samarco licensed to restart operations

Samarco Mineração, a joint venture between Vale and BHP received on Friday its Corrective Operation License (LOC) for its operating activities in the Germano Complex, located in the state of Minas Gerais, Brazil.


The license was approved by the Mining Activities Chamber (CMI) of the State Council for Environmental Policy (COPAM). Samarco has now obtained all environmental licenses required to restart its operations.


The news comes four years after a tailings dam burst at Germano in November 2015, killing 19. A torrent of mud and debris was unleashed, polluting local rivers and reaching the Atlantic ocean. The incident has been called the worst environmental disaster in Brazilâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s history.


Vale has previously said that it expected production at the joint venture, which is trying to restructure $3.8 billion in debt it defaulted on about a year after the accident, to resume in the second half of 2020.


The mine, which once produced nearly 25 million tonnes of iron ore a year, will restart at an annual rate of less than a third of that, Vale said, with a potential increase to 14 to 16 million within another six years.


(With files from Reuters)


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Iron ore prices at 9-month low

By David Scutt

Iron ore prices continued to slide on Monday with all major grades hitting fresh 9-month lows, according to data from Fastmarkets MB, continuing the steep reversal from multi-year peaks struck earlier in the year. This has sent the materials sector down 0.9 per cent, the worst performer on the market this morning. BHP is down 1.2 per cent to $36.72, Fortescue is down 3.5 per cent to $8.73, and South32 is down 2.2 per cent to $2.69.


The spot price for benchmark 62 per cent iron ore fines fell 1.4 per cent to $US78.98 a tonne, leaving it at the lowest level since late January. 58 per cent fines fell by a similar margin while 65 per cent Brazilian fines slipped by a smaller 1 per cent. Vivek Dhar, mining and energy commodities analyst at the Commonwealth Bank, put the recent weakness down to weak demand in China.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Steel mills in China and traders were reluctant to buy iron ore ahead of announcements on winter production cuts,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ he told the bankâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s clients on Monday. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Winter production cuts usually extend from mid November to mid March as policymakers look to reduce industrial output in northern China to combat seasonally higher air pollution.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ


While analysts at Westpac Bank donâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢t expect the recent weakness to last, forecasting the benchmark iron ore price will finish this year at $US90 a tonne, itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s less optimistic about the longer-term outlook, predicting the benchmark will ease to $US65 a tonne by the end of 2020 as increased supply and softer Chinese demand collide.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“We expect prices to continue to decline in 2020 as supply recovers post Brazilian disasters, while demand subsides as Chinese property investment moderates,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ Westpac senior economist Justin Smirk told clients. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Environmental goals are also seeing improved Chinese steel production efficiency and the higher use of scrap [steel].âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ


Thanks to a combination of supply disruptions from Australia and Brazil, most notably from the latter as a failure at a tailings dam at an iron ore facility operated by Vale in late January curtailed production on safety grounds, along with record Chinese steel production, prices for all major iron ore grades soared to fresh five-year highs earlier this year.


With evidence building that Brazilian supply is recovering, as seen in recent trade and Chinese iron ore port inventory data, much of the price spike has now been entirely unwound.

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The IO price roller coaster continues


Iron ore futures looking perky

Iron ore futures are soaring in Asia, pointing to the likelihood of a rebound in spot markets after prices slumped to fresh 9-month lows on Monday.


The January 2020 contract on the Dalian Commodities Exchange has jumped to Ãâہ¡ÃƒÆ’‚ÂÂ¥607.5 a tonne ($US86.70), up 2.5 per cent for the session. Iron ore futures in Singapore have gained a larger 3.5 per cent to $US79.21 a tonne.


The gains coincide with similar strength in Chinese steel futures in Shanghai on Tuesday. Rebar and hot-rolled coil contracts for January delivery have risen 1.8 and 1.4 per cent respectively for the session.

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Iron ore price: World steel production shrinking

Frik Els | November 27, 2019


World Steel Association data on Wednesday showed a 2.8% decline in global steel output in October to 151.5 million tonnes with production down across all regions.


The 50-year old industry body estimates that crude steel production in China, which is responsible for more than half the global total declined 0.6% year on year in October. The decline came on the back of capacity cuts during the countryâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s 70th anniversary celebrations.


China also places curbs on production during the winter months through March, but thanks to surging output earlier in 2019, year to date steel production is still up 7.6% to 746m tonnes.




US output also fell during October, declining 2% in year on year terms to 7.4m tonnes. Given the nearly 40% drop in steel prices in the country over the past year as the effect of anti-dumping measures against China fade, production declines have been modest.


The US has also imposed imposed tariffs of 25% on steel exports coming from the EU, Canada and Mexico.


The decline in Europe was significant, registering an 8.7% drop. Profitability at steelmakers on the continent have eroded as excess capacity elsewhere ends up in the region which unlike the US has not taken any anti-dumping measures. Year to date EU crude steel output is down 3.6% to 122m tonnes.


World number three producer India which overtook Japan last year recorded a drop of 3.4% at 9.1m tonnes for October, reducing year to date gains to 3% at 84.2m tonnes.


Japanese production fell nearly 5% in October in part due to typhoons and year to date the countryâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s output is down 3.9% to 75.6m tonnes.


A new report by Fitch Solutions suggest the weak conditions may be temporary.


The macro economic research company in the Fitch ratings agency stable reports global steel production and consumption growth will accelerate in 2019-2020 compared to 2018.

read more - https://www.mining.com/iron-ore-price-world...tion-shrinking/

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Buying iron ore is getting more like shopping on Amazon

Bloomberg News | December 4, 201

The worldâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s biggest iron ore miners are looking for novel ways of satisfying their customers and protecting market share in the $150 billion global industry.


From selling through a mobile app to portside sales, the likes of BHP Group, Rio Tinto Group and Vale SA are looking for an edge with buyers of the steelmaking raw material in China, the top customer. The need to retain their business is becoming ever more critical amid forecasts that the market is around its peak.


READ MORE - https://www.mining.com/web/buying-iron-ore-...ping-on-amazon/

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