Monthly Archives: December 2010

India: Essel Mining and Rungta Mines increase Iron Ore prices by 4-5%

 Jan 1, 2011

SteeMint Exclusive

 

Essel Mining and Rungta mines , Orissa based miners increase Iron Ore prices by 4-5%, i.e. Rs 300/MT. These miners are known to be price setter in the sector, having one of the best quality of Iron Ore.

 

In our previous report we have mentioned that Iron Ore prices will move in the month of Jan by 5%. Previously NMDC announced a hike of 5% on its ore now its private miners which have increased their prices. We can see price hike by other miners as well.

 

Presently Iron Ore (5-18mm) of 65% Fe is quoted at Rs 7300/Mt ($163) on ex mines basis.

 

Reported by Richa Sharma (richa@steelmint.com)

 

India: NMDC To Increase Iron Ore Prices By 5.22% w.e.f. Jan 1 2011

 Iron ore major National Mineral Development Corporation Ltd., or NMDC, is planning to raise iron ore prices by 5.22% in the domestic market, following increase in iron ore prices in the international market by 7.6%, say reports.

 

Director (Finance) S. Tyagarajan said the price increase would be effective from January 1, 2011.

 

For fine ore, the increase will be to Rs.3,366 per tonne from Rs.3,199 a tonne, while for lump, it would be to Rs.4,353 per tonne from Rs.4,137 per tonne, he said.

 

Chairman and Managing Director Rana Som earlier assured that the entire burden would not be passed on to the consumer, and a part of it would be absorbed by NMDC.

 

NMDC’s current iron ore capacity is around 30 million tonne per annum from three fully mechanized mines, which are Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A in Chhattisgarh and Donimalai iron ore mines in Karnataka. The company’s total iron ore reserves stands at around 1.25 billion tonne

 

India: Expect Domestic Iron Ore prices to go up in the month of Jan: Sources

Thursday, December 30,

SteelMint Exclusive

 

According to sources, Iron Ore lumps prices, which is used by sponge manufacturers to make sponge iron is likely to go up in the month of January 2011 as steel prices have been recovering after a quite long time.

 

Demand for Iron Ore has improved from last two-three weeks and most of the mines based in Orissa remains booked for next month. If steel prices keep on hovering at these level then market participants expect to see a jump in ore prices very soon.

 

” Demand has been good, number of queries have gone up and so is the bookings. We might close our booking soon” said one of the mines marketing manager based in Orissa. Supply still remains tight as few major mines are not yet operational on violating forest laws. Other major problem is stricter norms by local mining authorities, which further constrains the supply.

 

Demand is majorly seen from Sponge iron plants based in Orissa, Bengal and Maharastra.  However, bookings from manufacturers based in Chattisgarh are also decent, added one of the mines owner based in Orissa.

 

Reported by Richa Sharma(richa@steelmint.com)

 

 

China: Spot Iron ore fines prices remain unchanged; steel production likely to revamp in Jan, 2011

Thursday, December 30,

 

 

Offers of Indian ore with 63.5 percent iron content were unchanged at $177-178/MT. Prices have remained within the same range for almost two weeks.     

    

“Steel mills are short of money at the end of the year, so what should we expect? I don’t think any big movements will happen in the remaining two days before the new year,” said an iron ore trader in the eastern Chinese port city of Rizhao.              

 

“It seems many steel mills are not holding high inventories, but they will come back to replenish their stocks when the credit crunch eases,” said an official in charge of iron ore at a medium-sized steel mill.   

 

The most active rebar futures contract (SRBK1) on the Shanghai Futures Exchange reached 4,774 yuan ($721.1) per tonne at the morning close on Thursday, almost flat from the end of Wednesday.        

     

China steel production has recovered steadily since the middle of October, when electricity supply restrictions, particularly in Hebei, reduced output to just 1.563 million tonnes a day.

 

But those mills are expected to ramp up output in January as power restrictions are lifted.         

 

 

 

 

Brazil: Vale to raise Q1 Iron Ore prices by 8.8% to $149 per tonne

Thursday, December 30,

 

Brazilian mining giant Vale SA is expected to raise quarterly iron ore contract prices by 8.8 percent to $149.20 per tonne in January, according to market calculations.

 

 

A Chinese steel mill source confirmed to Reuters that Vale had decided first-quarter prices by calculating the average Platts’ daily CFR price for North China from Sept. 1 to Nov. 30.

 

 

Vale switched to quarterly pricing in April 2009, abandoning a decades-old annual benchmark system in which prices are settled once a year following an increasingly fraught period of negotiations by buyers and sellers.

 

 

According to the Chinese source, contracts with Vale stipulated that prices for each quarter were set according to an average price “for those days within the period of three consecutive calendar months beginning on the first day of the fourth calendar month prior to the start of the relevant quarter.

 

Source: Reuters

 

Scrap prices across US and Europe at a two-year high

 

Thursday, December 29,

 

 

Scrap – US prices rise by $28; European prices rise by $35 and European shredded scrap prices rose 8% to reach a two-year high of $441.

Prices have risen $70 or 19% over the past month. US prices also rose, by $28 or 7% to reach a two-year high of $431.

Should current prices remain unchanged for the remaining of Q4, the QoQ price increase for Europe in Q4 would be $24, or 7%.

 

 

 

 

 

 

India: While the rising price of iron ore augurs well for NMDC, steel makers continue to bear the brunt

Wednesday, December 29,

 

 

For the fifth consecutive month, iron ore exports witnessed a decline in November — falling 30.59% year-on-year (y-o-y) to 8.07 million tonnes (MT) — on the back of an export ban in Karnataka. While exports dipped 15.69 per cent to 54.58 mt between April and November, iron ore prices, which were hovering $110-120 a tonne, surged to $150 a tonne.

 

The Karnataka ban has impacted major players such as Sesa Goa. The Vedanta group company saw its stock plummet from Rs 376 in August on concerns over investment in unrelated assets (Cain India). It continued to dip in December on concerns over iron ore production. Sesa Goa has more than six mt per annum (mtpa) capacity in Karnataka, where it is only being able to sell in the spot market. The Goa assets, with 15 MTPA capacity, are contributing to exports.

 

Some respite, however, is expected from the improving price realization on iron ore. During the second quarter, average realization surged 43 per cent y-o-y to Rs 3,528 a tonne, due to a 56 per cent increase in spot prices. On the other hand, NMDC, with domestic steel players as customers, is benefiting from higher demand and firm prices iron ore. It increased prices by 90% y-o-y to $120-135 a tonne in the first quarter and to $145 a tonne in the second quarter. Reports indicate that a three per cent rise may come during the next week’s pricing review.

 

But the good news for NMDC may be bad for steel prices. With spiralling iron ore costs, domestic steel makers will be forced to increase prices. Steel companies are contemplating a price rise of Rs 1,100-1,200 /MT.

 

Source: Business Standard

 

 

 

Australia: Heavy rains disrupt Australian coal exports

Wednesday, December 28,

 

 

Downpours over Australia’s coal-producing Queensland state over the last several weeks have forced several mining companies to declare force majeures as coal production and transportation have suffered.  

      

Companies typically declare force majeure when they cannot honour legal contracts due to unforeseen acts beyond their control.          

     

Queensland produces mostly coking coal which is exported to be used in steel-making, but some minres also produce thermal coal used in power generation. Queensland’s ports currently have an annual coal export capacity of 225 million tonnes per annum.       

 

The wet weather has pushed up long-term pricing for coking coal, and also pulled up prices for thermal coal.

 

Despite the rains, Australian Bureau of Agricultural and Resource Economics and Sciences forecast that Australia’s metallurgical coal exports will climb 2 percent for 2010/11.

 

However, the bureau cut its production forecast for coking coal by 7.3 million tonnes.

 

Australia has recorded its wettest spring on record, said Australia’s weather bureau, and the downpours will continue with rainfall expected to exceed the median level from  December through February in southeast Queensland and  northeastern New South Wales, where coal production is concentrated.

 

Source: Reuters

 

 

 

India: NMDC halts iron ore shipments after rail damage

Tuesday, December 28,

 

 

NMDC stopped iron ore shipments from mines in Chhattisgarh after Maoists damaged rail tracks and an engine derailed, said an official at the country’s largest state-owned producer.

 

Iron ore transportation has been stopped since the early hours of Monday as tracks have been damaged by Maoists.

 

The damage to the tracks is some 25 kilometres from the Bailadila hills where NMDC has five mines, the official said.

 

An engine and six wagons of a train loaded with iron ore came off the rails, local police official Gaur Gopal said.

 

NMDC cut down transport of its iron ore to about 36,000 tonnes per day compared with normal quantities of about 56,000 tonnes recently as Maoists called for a shutdown from Dec. 2.

 

The railway stopped services in the night as a preventive move fearing attacks on its facilities.

 

Source: Money control

 

 

Orissa Mining Corporation fetches higher bid for its Iron Ore; up by almost Rs 200-400/MT

28 Dec , 2010

SteelMint Exclusive

 

Orissa Mining Corporation , an PSU mining company based in Orissa having one of the best quality Iron Ore in the sector, recently tendered its 40000MT (approx) Iron Ore for the month of January to March 2011.

 

It fetched higher prices for its ore looking at higher sponge prices and tight supply in the market. According to market participants manufacturers are bullish and are ready to pay higher prices for the ore.

 

This time prices went up by almost Rs 300-500/MT for its lumpy high grade ore. Sources said companies alloted ore are Necco, Monnet , Adhunik and few more.

 

OMC Iron Ore Prices 

Gandmardhan 

10-40mm (62% Fe) = Rs 4335/MT

10-180mm (64% Fe) = Rs 4155/MT

5-18mm(64% Fe) = Rs 5502/MT

 

Koira Sector

10-40mm=Rs 4801/MT

10-180mm= Rs 4059/MT

 

Reported by Richa Sharma (richa@steelmint.com)