Your Source for Iron Ore
Archive for May, 2010
What Next for China Iron Ore Prices?
May 11th
What next for China iron ore prices?
The latest research weekly from Macquarie suggest that iron ore contract prices for China(cnmining) in 2009 will be around 20 percent lower than in 2008, copper TC/RC costs are rising and aluminium imports and exports continue to fall.
The 2009 annual iron ore negotiations are approaching, and once again, news headlines are teeming with all kinds of arguments from different iron ore stakeholders. We believe that iron ore contract prices will fall next year, but will not collapse (we are expecting a 20% decline for 2009). Spot business will also be more important in the next year.
Over the past week, steel prices have lost their uptrend momentum. Hot rolled coil prices were unchanged from last week at $456/t ex-Vat, and cold rolled coil prices were down by a slight 0.5% WoW to $543/t ex-Vat. Also, rebar suffered a 0.4% WoW decline to $440/t ex-Vat, and galvanised steel was $548/t ex-Vat, down by 0.8% WoW.
Local spot iron ore prices were unchanged from last week. 66% Hebei iron ore fine stayed at $102/t ex-Vat, while the Indian 63.5% iron ore fine prices increased by $5/t to $80/t cif.
Copper treatment and refining charges (TC/RCs) have strengthened in the spot market along with smelter production cuts in China and collapsing copper prices. We heard the average benchmark TC/RC is sealed at US$80/t and US8.0¢/lb (US20.5¢/lb combined) in the spot market compared with US$45/t and US4.5¢/lb ((US11.5¢/lb combined) quoted in October.
According to the preliminary trade data from China customs, China imported 217,214t of unwrought copper and semi-finished copper products in November, down 6% from October and a 3% drop from the same period in 2007. The October number was the highest since April. For the first 11 months of 2008, total imports were down by 8.0% YoY to 2.35mt.
Chinese unwrought aluminium exports, including aluminium alloy, kept falling in November to 30,396t (lowest level in 2008), a 36% fall MoM and a 32% drop from the same period in 2007. The combination of lower prices and the introduction of a 15% customs duty on aluminium alloy exports, effective 20 August, has severely affected Chinese aluminium exports.
Chinese aluminium imports also declined. The provisional data from China are for imports of aluminium, alloys and semi-fabricated products combined, and thus are not directly comparable with the export figures. These data show imports falling from 66,000t in October to 54,500t in November. Allowing for an estimated 40,000t of semis imports (down from 45,400t in October), this would imply imports of aluminium and alloys of around 14,500t in November.
http://www.cnmining.org/news/?id=769
History Of Iron Ore
May 11th
Our science books are full of successful inventions of Thomas Edison like electricity, phonograph and many others, but there is hardly any mention about his failures. One of his most peculiar failures was his lack of ability to find an effective way to excavate iron ore.
If he had been successful in excavating iron ore, he would have been a billionaire at that time and the possibilities that would have been generated after excavation like creation of millions of jobs, and many other inventions.
Iron is the most economical of all the metals available for mining, and yet at the same time is of no use in its pure form. Pure Iron is very delicate and cannot be used to manufacture any products. It is silver in color in its pure form. Its gets its gray color after it is combined with oxygen. Iron can not be put any practical application in its pure form.
Hence it was important that an effective extraction process was discovered. For ten years, from 1880 to 1890, Edison carried out many experiments, hired the services of scientists, to find a novel way to extract iron ore. He was doing this to extract iron ore for the Pennsylvania steel mills.
He shifted from his comfortable office to work in the old iron mines to look for an economical way to meet with the growing demand of steel . His experiments of testing and processing were getting very expensive and he had to sell all his stock in General Electric to fund his invention. His heirs must be regretting his decision even today.
Edison could not succeed to extract the iron from unusable, low grade ores. He had to finally abandon this project. He could never recover his money that he had put in this project. Later on however, he a earned lot of money after he continued his work on the phonograph and motion pictures etc.
It was a challenging task for both Edison and the American economy to find an economic way to produce steel at cheaper rates. After 1840 the American iron industry was going thru a resurgence as American was not one of the major steel producer in the world.
In 1844, government surveyors traced huge deposits of iron ore of anthracite in the Great Lakes area. After this Pennsylvania became known as America’s largest supplier of iron and steel.
A British engineer named Henry Bessemer invented a process for steel extraction process. He accomplished the incomplete task of Thomas Edison. He devised an iron smelting process thur which it was feasible to produce large quantities of steel. This process is still used by some manufacturers even today.
His invention was quite inexpensive and provided an efficient process to produce steel from iron ore. But still a refined process was invented by Abram S. Hewitt who even improved on Bessemer process of Andrew Carnegie. He soon became a steel tycoon that by his improved process of developing the open-hearth converter and his process was preferred over that of Bessemer by American steel manufacturers.
The American steel industry was revolutionized with the invention of low cost steel production. American Industry was now the leader in the world in steel production. In 1873 alone, America produced nearly 115,000 tons of steel. It was now possible to use steel in many industries because of fall in its prices.
Automotive industry in America is the major (nearly 70%) user of finished steel in America.
Andrew Caxton is the author of many resources on home decoration related topics.
Annual Global Iron Ore & Steel Forecast 2010
May 11th
The 13th Annual Global Iron Ore & Steel Forecast 2010 attracted almost 400 delegates and over 20 exhibitors this year, with a spectacular line-up of speakers – both local and international. Local highlights include Sam Walsh, CEO from Rio Tinto Iron Ore, Ian Ashby, President of BHP Billiton Iron Ore and Andrew Forrest, CEO of Fortescue Metals Group Ltd. International highlights include Eric Li, Senior Vice President from CBI China, Kobus van der Wath, Founder and Group Managing Director, The Beijing Axis, and CEO of Bateman Beijing Axis, and Hadi Hami, Middle East Steel Specialist, UAE. Website: www.globalironore.com.au Contact +61 2 9080 4307