Posted: October 21st, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Iron ore, Metals, Steel, Transportation | Tags: baltic dry index, coal, iron ore, shipping, shipping rate, steel | No Comments »
In spite of the delivery of new bulk carriers ordered during the shipping golden age, dry shippers bulk freight rates are rising due to Chinese iron ore purchases. The shipowners are back on the bulk carriers spot market to meet the increase in Chinese steel production, the highest in three years, which is driving the biggest jump in shipping rates since 2009.
This increase in steel output has reduced the iron ore stock which fell to its lowest level since 2007. The number of Capesize vessels in service, the largest bulk carriers, increased by 51% in September to 124 from August according to a study by Morgan Stanley. More than 90% were intended for China.
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Posted: September 10th, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Iron ore, Transportation | Tags: baltic dry index, dry bulk, iron ore, iron ore china | 1 Comment »
The Baltic Dry Index, a benchmark of commodity shipping rates, jumped 9.3 percent to 1,478 on Monday, the biggest gain since June 2009, according to the Baltic Exchange, the London-based publisher of freight rates on more than 50 trade routes.
The measure is now at the highest since January 2012, after collapsing from as high as 11,793 in 2008 because of a record shipbuilding program.
The surge in the Baltic Dry Index has primarily been tied to day rates for Capesize Ships and the increase in demand for Iron Ore.
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Posted: July 23rd, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Iron ore, Metals, Steel | Tags: iron ore, iron ore china, iron ore giant, iron ore miner, iron ore price, iron ore production | 1 Comment »
Iron ore giants are digging more for less to tighten their stranglehold on the world’s second-biggest commodity market, as competitors struggle. By doing so, they appear to defy logic, with demand for the steel-making raw material cooling in top customer China and a price-eroding supply glut looming.
While the looming end to US central bank stimulus sent precious and base metals prices plummeting last week, the iron ore price is primarily driven by events in China. Analysts believe that the companies are ramping up production, despite fears of a supply glut, to build economies of scale into their operations that will keep costs low and squeeze smaller competitors margins.
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Posted: January 21st, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Iron ore | Tags: china, iron ore, iron ore china, iron ore price, iron ore stock, steel, steel china, steel price | No Comments »
At $80 in September 2012, the iron ore price was at its lowest for the past 3 years. In 3 months, it surged to a current price around $150 a tonne, a 80% increase! But will it last? As it is often the case, China is the reason for the soaring price of the metal required to produce steel.
Chinese steelmakers absorb 60% of the global iron ore and are doing all they can to put their hands on any available cargo. It is true that at this time of year, China needs to import more since Chinese iron refining factories are typically idling in winter. China also imports more at the beginning of the year in order not suffer from supply disruptions in case the iron ore mines in Australia and Brazil get flooded as it is the beginning of the rainy season in these two countries. However, the current rush exceeds the usual seasonal increase.
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Posted: September 27th, 2012 | Author: Pascal Blanc | Filed under: China, Iron ore | Tags: iron ore | No Comments »
Iron ore prices hit a three-year low of $86.70 per ton earlier this month on fears of a slowdown in Chinese demand. So far iron ore is down 25% this year and its by product steel dropped 10 percent in 2012. Iron ore has struggled to sustain price gains since rebounding, with the outlook for Chinese steel demand staying blurry despite a recent increase in spot steel and futures prices.
“There’s not going to be a recovery in steel in the next six months,” says Craig Bouchard, who founded Schiller Park, Illinois- based Shale-Inland in 2010, a diversified steel services company. “You can’t expect a recovery in iron-ore prices until we see a recovery in the world economy.”
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Posted: September 5th, 2012 | Author: Rod Sherkin | Filed under: China, Iron ore, Steel | Tags: china, iron, steel | No Comments »
China steel futures fell to an all-time low on Wednesday as poor demand in the world’s top steel market kept the pressure on prices, sending iron ore further below $90 a tonne to its weakest since October 2009.
The most-traded rebar for January delivery on the Shanghai Futures Exchange fell to as low as 3,218 yuan ($510) a tonne, its weakest level since the bourse launched rebar futures in 2009.
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Posted: July 5th, 2012 | Author: Pascal Blanc | Filed under: Aluminum, Commodities, Copper, Iron ore, Metals | Tags: indonesia, mining | No Comments »
As we were mentioning in Aluminum: China is running out of bauxite, in May, Indonesia asked all mining companies to either build their own processing capabilities locally or partner with companies able to do so, knowing that by 2014, exports of raw minerals, including bauxite, would be forbidden. Indonesia‘s goal is to derive more revenue from its mining sector.
As of late June, only 13 firms had been approved which triggered panic buying by customers in Japan and China.
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Posted: May 25th, 2012 | Author: Pascal Blanc | Filed under: China, Commodities, Iron ore, Metals | Tags: china, iron | 1 Comment »
In the last few days, Chinese customers started to either require deliveries to be postponed, or they simply refused shipments of iron or coal, mainly for the steel industry. For example, a large Chinese company postponed delivery of 6 million tons of iron.
This is the kind of Information that has a chilling effect for the three major iron exporters as China absorbs more than half of the world production. This is not the first time such a blip occurs and it could become self-sustaining. Seeing lower prices on the spot market, Chinese buyers, being savvy traders, are in no hurry to receive orders placed at a much higher price.
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Posted: May 15th, 2012 | Author: Rod Sherkin | Filed under: Iron ore, Steel | Tags: iron ore, steel | No Comments »
Shanghai rebar fell to its lowest level in more than five months on Tuesday, stretching its losses into a third straight session, amid thin Chinese demand that could prompt producers in the world’s biggest steel market to curb output.
The most briskly traded rebar contract for October delivery on the Shanghai Futures Exchange touched a session low of 4,055 yuan ($640) a tonne, last seen on Nov. 30, before closing at 4,090 yuan, down 1.1 percent.
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Posted: March 13th, 2012 | Author: Brian Berry | Filed under: Greening the Supply Chain, Iron ore, Steel | Tags: environment, iron ore, labor, steel | No Comments »
Three U.S. companies that are leaders in their fields–Nucor in steel, Cargill in agriculture, and ThyssenKrupp Waupaca in iron castings–are three of the leading U.S. purchasers of Brazilian pig iron. What are these American leaders doing to ensure that the supply chains of their Brazilian pig suppliers–particularly the camps of men who chop or chain-saw down eucalyptus trees and smolder them for eight days to make the charcoal feedstock for pig–are upholding Brazil’s environmental and labor laws?
As one surveys the Brazilian scene for companies that are recalcitrant in meeting their responsibilities to uphold environmental and labor laws in the supply chain, Brazilian pig producer Cosipar sticks out like a sore thumb. Cosipar has been expelled from Brazil’s National Pact for the Eradication of Slave Labor; it is not a member of the Instituto Carvão Cidadão (Citizens Charcoal Institute), the other Brazilian organization that ensures that its members are observing labor laws throughout their entire supply chain.
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