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Iron Ore, The Iron Ore Industry
theflasherman
post Posted: Apr 26 2007, 07:48 PM
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Looks like very good times for those in the iron ore game...

http://www.bloomberg.com/apps/news?pid=206...fer=commodities

Capesize Ship Rates Rise to Record on China's Iron Ore Demand

By Will Kennedy

April 26 (Bloomberg) -- The cost of hiring Capesize bulkers, the largest type of ship that carries iron ore and coal, rose to a record on China's demand for raw materials.

The Baltic Capesize Index, a measure of rates on routes around the world, rose 1.8 percent yesterday to 8,953, passing the high of 8,911 reached on Dec. 7, 2004. The index has surged 50 percent this year. Capesize vessels carry as much as 175,000 tons of coal or iron ore.

China's imports of iron ore, the most shipped bulk commodity, rose 24 percent in the first quarter, RBC Capital Markets said on April 23. The country's steel mills have boosted output to meet demand from carmakers and builders as the economy grew at a faster-than-expected 11.1 percent in the first quarter.

``Rates for most trades now stand at an all-time high,'' Oslo-based shipbroker Fearnleys said in its weekly note to clients yesterday. ``The Pacific, in particular, has been extremely active.''

The average daily rate to hire a Capesize ship rose to $104,035, the Baltic Exchange said. OceanFreight Inc., a dry-bulk shipping company seeking to sell shares in New York, said in its April 24 prospectus that the daily operating cost of its Capesize bulker was $7,900 a day.

A delay in the shipments of some iron ore cargoes from Brazil, home to Cia. Vale do Rio Doce, the world's largest iron ore exporter, may cause rates to fall over the next week, Fearnleys said.

``The market may seem due for a correction after last week's strong performance,'' the note said.

The cost of shipping a ton of iron ore from Tubarao in Brazil to China stands at $49.73, according to the London-based Baltic Exchange.

Ship rates have risen this year after India introduced a new tax on iron-ore exports, prompting China, the world's largest steelmaker, to travel longer distances to source the material, cutting the number of vessels available for hire.

The Baltic Dry Index, which measures shipping rates across different ship sizes, rose 1.5 percent yesterday to 6,122. The index reached a record 6,208 on Dec. 6, 2004.





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[b]Later, Flash[/b]
 
theflasherman
post Posted: Dec 22 2006, 08:54 AM
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BRAZIL CVRD
SAO PAULO, Dec 21 Reuters - Brazilian mining giant CVRD said on Thursday it had agreed to a modest iron ore price increase for 2007 with Baosteel, reflecting China's growing clout in the global mining and steel industries.
CVRD, the world's largest producer and exporter of iron ore, said the two companies had agreed to a 9.5 percent price rise for next year. The increase was in line with market expectations and compared with a 19 percent rise in 2006 and a 71.5 percent hike in 2005.
The agreement marked the first time that a Chinese steelmaker has led the way in annual price negotiations with global mining heavyweights, the result of China's emergence as the world's largest consumer of iron ore.
It also contrasted sharply with last year's talks, which dragged on for almost eight months as Chinese steelmakers held out for a smaller price increase.
The unusually speedy end to the negotiations prompted some analysts to predict that Chinese steel producers will raise prices soon.
"Baosteel had an incentive to settle prices soon," Rodrigo Barros, a steel analyst at Unibanco in Sao Paulo, said in a research note. "The increase is likely to increase iron ore spot prices further and put more pressure on profitability of the small Chinese steel producers."
Iron ore is a heavily consolidated industry, with CVRD, BHP Billiton Ltd. and Rio Tinto Ltd. accounting for more than 70 percent of the world's seaborne trade in ore -- the main ingredient in steel.
Because iron ore isn't a pure commodity -- it occurs in different sizes and chemical compositions -- it isn't traded on metal exchanges. Instead, prices are set through a long-standing system under which the first company to strike a deal with a major client is followed by all others.
In the past, European and Japanese steelmakers led the way in price negotiations. But last year China took a more aggressive role in the talks, forcing the negotiations to drag on for several months.
The deadline for the talks is normally April 1, which is when the new prices go into effect.
The price agreement was announced as China is reportedly preparing to limit the number of companies allowed to import iron ore, according to an official at the country's Iron and Steel Association.
CVRD's shares were up 1.05 percent at 53.68 reais in early trading in Sao Paulo after the announcement, outperforming the broader market.
REUTERS
22-12 0928




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[b]Later, Flash[/b]
 
theflasherman
post Posted: Nov 23 2006, 01:42 AM
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Looks like iron ore is stronger than most commentators think. This really favours this juniors but also suggests BHP/RIO could be in for broker revaluations. Many also thinking copper may have bottomed and zinc stocks in LME warehouse could run out by Christmas.

http://www.mineweb.net/co_releases/454303.htm



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[b]Later, Flash[/b]
 
balance
post Posted: Jul 6 2006, 06:34 PM
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In reply to: theflasherman on Thursday 06/07/06 06:38pm

read somewhere today chinese iron ore imports to rise 18% this coming year.



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theflasherman
post Posted: Jul 6 2006, 05:38 PM
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More to come in future years... perhaps...

http://metalsplace.com/metalsnews/?a=5921



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datum
post Posted: Jun 18 2006, 06:26 PM
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this post is probably 2 years early , so somebody will have to remind me to re-post on the
18 june 2008.

If graft & corruption was an offically recognized component of a country"s GDP ,
then china & these african states would have productivity in the 1000"s%.
These countries would have an economy worth $20 trillion GDP.
I have been doing a bit of googling on the newswires about this iron ore resource
that china now has exclusive rights to. The CVRD consortium (as per article) has been given the arse. As per article , it is a billion tonnes @ 60% , & has been described in other articles i have read as being one of the last known high grade deposits anywhere in the world. The logistical diffculties of the project are covered in the article & shows how
desperate the chinese are to avoid buying iron ore off the CVRD/BHP/RIO cartel.
China is expected to import 300-320 mill tonnes this yr. So the billion tonne resource is equal to only a 3 year import supply.
I assume they would want to extract 50-100 miil tonnes a yr , & more than likely increase their reserve base thru exploration.
Delivering ore before 2010 is their plan & i think they will work at a frantic pace to get it
into production.

http://www.industryweek.com/ReadArticle.aspx?ArticleID=12088

So thats why this post is 2 years too early. Iron ore prices should hold up next year or even into the 2008 year , but after that contract prices will plummet i believe.
The chinese have such a hatred of the CVRD/BHP/RIO cartel that if they discovered a mineral resource at the bottom of the pacific ocean they would work out a way to mine it.
They might even raise the Titanic for its iron ore scrap value.



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theflasherman
post Posted: Jun 12 2006, 09:05 PM
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Interesting interview with a chap from CVRD....


http://metalsplace.com/metalsnews/?a=5516



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neutron
post Posted: Jun 12 2006, 09:36 AM
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BRAZILIAN iron ore giant Companhia Vale do Rio Doce is looking at expanding its mining and exploration operations in Australia, which will increase its head-to-head competition with BHP Billiton and Rio Tinto....

http://www.theage.com.au/news/business/bra...9964410584.html



 
early birds
post Posted: Jun 11 2006, 12:58 PM
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ugly resalts of this battle. my fear become to reality.

http://www.dailytimes.com.pk/default.asp?p...1-6-2006_pg5_29



 
theflasherman
post Posted: May 31 2006, 12:54 AM
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Iron-ore market to remain tight into 2007, but oversupply risk real – report

http://metalsplace.com/metalsnews/?a=5319



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[b]Later, Flash[/b]
 
 


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