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coal market 3 Scrap market Turkish mill procures deep-sea scrap cargoes from US 4 East Asian scrap importers pause to assess market 4 Exchanges Iron ore swaps trading subdued, prices drift slightly 6 Other News Tata Steel calls on UK government to act on energy 6 Ferroalloys market Japanese ferromoly prices fall, Chinese FeSi price up 11 Marketplace 12 The McGraw-Hill Companies www.twitter.com/PlattsSBBSteel Platts raw material assessments, March 9 Close/Midpoint Change % Chg
IODEX Iron ore fines 62% Fe ($/dmt) CFR North China 144.75-145.75 145.25 1.25 0.87 Please see Platts complete iron price/netbacks table, p.3 Coking coal, premium low vol ($/mt) FOB Australia 208.50 208.50 +0.00 0.00 CFR China 223.50 223.50 +0.00 0.00 Please see full metallurgical coal price/freight table, p.4 Ferrous scrap ($/mt) HMS FOB Rotterdam 404.00-408.00 406.00 0.00 0.00 A3, FOB Black Sea 414.00-416.00 415.00 -1.00 -0.24 HMS CFR Turkey 439.00-441.00 440.00 0.00 0.00 Ferrous scrap ($/lt) Shredded del Midwest US 440.00-445.00 442.50 0.00 0.00 Shredded del dock East Coast 420.00-425.00 422.50 0.00 0.00 HMS del dock East Coast 395.00-400.00 397.50 0.00 0.00 TSI raw material indices, March 9 Frequency Change % Chg Iron ore fines 62% Fe Chinese imports (CFR North China port), $/dmt 142.60 Daily 0.00 0.00 Please see TSI’s complete iron ore price table, p.2 Ferrous scrap HMS 1&2 80:20, Turkish imports (CFR port), $/mt 442.00 Daily -3.00 -0.67 Shredded, US domestic (del Midwest mill)*, $/lt 443.00 Weekly (Fri) -1.00 -0.23 Shredded, Indian imports (CFR port)*, $/mt 484.00 Weekly (Fri) 1.00 0.21 * Latest index March 9
Singapore—Seaborne iron ore prices destined for Asia rebounded Friday after a two-day losing streak as stronger rebar futures and a revival in market confidence led to higher spot deals. The Platts 62% Fe IODEX assessment was up $1.25 Friday to $145.25/dry mt CFR North China. On Friday, Rio Tinto sold a 165,000 mt cargo of 61% Fe Australian Pilbara Blend fines at $143.50/dmt CFR China main port, loading March 20-29. Earlier in the day Rio was heard to be offering the cargo at $145/dmt CFR China main port, after being absent almost the entire trading week. Most market participants said the settlement suggested the market had indeed recovered ground Friday. A Singapore-based trader said $143.50/ dmt CFR was an acceptable price because “PB fines are well-valued and mills like them for steelmaking. I think they might pay more Iron ore rebounds on improved steel market for it.” Another trader said buying interest and inquiries were increasing for medium grades of iron ore, lending support to prices. A Singapore-based trader said the increased
several dollars lower than the PB fines trade. a London-based spokesman .” Giles Read. The miner was heard to have Coking coal market ArcelorMittal refutes coking coal Q2 settlement report Singapore—ArcelorMittal. a number of traders said they had not received this offer. Vale back in the spot market Brazilian miner Vale was back in the spot market Friday after seven consecutive days of offering iron ore cargoes. said Friday it had not reached an agreement to buy hard coking coal from Anglo American at $210/mt FOB for the April-to-June quarter. the world’s biggest steelmaker. Australian miner BHP Billiton sold a Capesize cargo of 61% Fe Mining Area C fines at $140.50/dmt CFR Shanghai.Rio Tinto tender suggested buyers were getting “buoyant” on demand for iron ore as construction activity picked up due to warmer weather in China. indicating it may have been restricted to mills. However. Meanwhile. “This suggestion of us reaching a settlement at that price of $210 is incorrect.
com To reach Platts E-mail:support@platts. 2012 2 Copyright © 2012 The McGraw-Hill Companies TSI Dai ly Iron Ore Price Indices TSI’s indices reflect average daily iron ore spot prices. together with general information about TSI and its full range of steel indices and subscription services. March 7. Details of TSI’s methodology and product specifications. at that price. can also be found on its website: www.for the company. German Creek. said by e-mail. Full price histories are available to TSI subscribers on its website.thesteelindex. with widespread market chatter pointing to (continued on page 2) (continued on page 3) SBB Steel Markets Daily March 9. Platts reported earlier this week (SBBSMD.com North America Tel:800-PLATTS-8 (toll-free) +1-212-904-3070 (direct) Latin America Tel:+54-11-4804-1890 Europe & Middle East Tel:+44-20-7176-6111 Asia Pacific . page 1) that Anglo American reached an agreement with a European mill for its premium hard coking coal.
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00 116.10 0. Editorial Dan Tanz Platts President Larry Neal ISSN: Advertising Tel: +1-720-548-5508 All rights reserved.5/63% Fe fines. put into a computer system or otherwise redistributed without prior authorization from Platts. CFR Tianjin port 132. Metals Andrew Goodwin The McGraw-Hill Companies TSI daily iron ore indices.00 0.90 183.10 0.60 0.60 63. 2012 Vice President. retransmitted. $/dmt $/dmt Change .10 -0. 3.70 190. CFR Tianjin port 142.70 62% Fe fines.5% Al. reproduced.40 0.Volume 6 / Issue 47 / March 9.5% Al. 3.90 -0.30 58% Fe fines.00 0.90 163. March 9 $/dmt Change % Chg Low* High* 62% Fe fines. CFR Qingdao port 144.08 102. No portion of this publication may be photocopied.00 119. 3. 2% Al.20 186.5% Al. 1935-7354 SBB Steel Markets Daily General Manager.07 122. CFR Qingdao port 146.00 * Past 12 months Per 1% Fe differentials.
000 mt of 63.90 -0.05 Brazil Capesize 122. 5.47% alumina.Australia Capesize 134.79 0.66 sold 220. 3.Range: 61-64% Fe 3.00 0. CFR Tianjin port 133.06 India Supramax 128. This trade was normalized and reflected in the Plat`ts assessments. 3.5% Al fines Origin Vessel Type FOB ($/dmt) Change % Chg W. CFR Tianjin port 142.06 -0.5% moisture.39 144.22% silica. 3.5/63% Fe fines. 0.00 Range: 56-59% Fe 4.02 Rolling Averages.74 58% Fe fines.01 127. . CFR Qingdao port 146.08 0.71 62% Fe fines.77 142. Additionally. market sources who received the tender said.75/dmt CFR China main port.12 133.68 144. 2% Al.97 140.5% Al. CFR Qingdao port 144. The cargo will pass Singapore March 14 and contains 1.02 0.00 FOB netback per route / basis TSI 62% Fe. because sources pointed out that the size of this cargo restricted the number of ports and buyers that could receive it.5% Al. 3. Penalties were factored.88 142.13% Fe Standard Sinter fines Guaiba at $143.52 63.22 0.00 0.30 146.055% phosphorus and 8.5% Al. $/dmt 5-day Monthly Quarterly 62% Fe fines.
“With the worries on inflation easing. among the lower-Fe grades. “Buying mood is gaining traction.5%.” the trader said. Separately.2% in February. sources said the improvement in market sentiment could also be attributed to China’s consumer price index slipping to a 20-month low of 3. Trading company PT Resources was still offering its Panamax cargo of 52/52% Fe fines at $102/dmt CFR North China. Meanwhile.” a Shanghai trader said. but said it had yet to award Iron ore rebounds on improved .there was a penalty due to the cargo’s silica content of over 4.00090. such as lowering interest rates. a Guangdong-based trader sold an 80.000 mt cargo of 54% Fe Indian lump ore Thursday at $109/dmt CFR main China port. that will lower capital costs and the injection of more liquidity into the economy will spur steel consumption and inevitably lift the price of iron ore. It first made the offer Tuesday. markets are getting buoyant that the Chinese government may adopt a more loose monetary policy to spur spending.
25 +0.0% max Per 1% Fe differential (Range 60-63. $/dmt $/dmt Change Range 60-63.25 3.56 * Typical two-port co-loadings from Haldia and Paradip Freight differentials to major import ports.50 8.00 +1. 2012 3 Copyright © 2012 The McGraw-Hill Companies Platts Dai ly Iron Ore Price Assessments Platts daily iron ore assessments.75 0.50-100.75 +1.11 130.50 100.00 122.11 128.80 58% Fe* CFR North China 128.00 FOB netbacks per route / basis IODEX 62% Fe Route Vessel Type Freight rate ($/wmt) Moisture (%) IODEX ($/dmt) Australia Capesize 7.80 8.5% Fe).25-129.50 157..25 8.25 +0.75-145.25 128.steel market .38 India East Handymax* 16.25 +1.00 127.78 52% Fe CFR North China 99.50 South Africa Capesize 14.50-157.5% Fe 3..25 1.77 India West Panamax 13.25 8.83 India West Handymax 15.5/63% Fe CFR North China 148. March 9 $/dmt Midpoint Change % Chg IODEX 62% Fe CFR North China 144. $/wmt .01 *Al = 4. from page 1 SBB Steel Markets Daily March 9.03 136.75 145.75 149.00 +1.70 9.75-149.00 +1.00 130.84 65% Fe CFR North China 156.87 63.00 +0.25 0.59 Brazil Capesize 20.
000 0.77 1.500 0.500 Q4 2012 131. Contacted by Platts SBB. . “If a European steelmaker has agreed a deal at that price.00 1. March 9 switch IODEX 62% $/dmt Change % Chg TSI 62 Apr 12 138.500 -0.500 Q2 2012 137.00 1.00 1.500 1.500 Detailed methodology and specifications are found here: www.25 To South China: Zhanjiang & Fangcheng -0. Tianjin & Xingang 0.pdf ArcelorMittal as the buyer.500 0.36 1.000 0.com/IM.500 0. $/dmt IODEX 62% Fe 144.500 Jun 12 136. it wasn’t us.000 -0.000 0.Content/ MethodologyReferences/MethodologySpecs/ironore.000 0.Platts.500 Q3 2012 133.37 1.39 1.000 0.platts.500 Calendar 2013 127.500 May 12 137. Read would not say whether or not ArcelorMittal had agreed a settlement with Anglo American at another price.57 IODEX 62% Fe CFR North China OTC swaps assessment.500 0.000 0.25 To East China: Beilun -0.” he said over the phone without elaborating further.000 0.From Qingdao on a Free Out basis To North China: Caofeidian.75 Rolling monthly average.
Radiant World was still offering a 75. the tender at a price it found satisfactory.319/mt. The spot price of square billet in Northern Tangshan was up Yuan 10 to Yuan 3.and sell-side indications not alluding to movement in any direction.Both companies were unable to comment at the time of Wednesday’s report. The most active October rebar futures in Shanghai gained traction for the second straight day Friday.760/mt ex-stock. Spot trade remained rather limited.000 mt 52/52% Fe cargo with 8% alumina and 9% silica. Iron ore freight rates were stable at $13-13. The cargo had 8% alumina and 8% silica and was for prompt loading in Goa. with buy. increasing Yuan 38 to Yuan 4. Meanwhile.50/wet mt for a Panamax from . according to mill sources in Hebei. — Keith Tan Impasse emerging in AsiaPacific coking coal market Singapore—The spot market for hard coking coal destined for Asia was steady Friday. from Thursday’s last trade. especially on second-tier hard coking coals.
Outlook pessimistic for Japanese steel While steel prices in China took a positive turn Friday. and more demand for vessels. A Tokyo-based steelmaker said its output levels were being maintained at 70-80%. shipping sources reported. “There has been an increase in demand for coal and this is pushing rates up. adding.” The source added that he was asking suppliers to lower their long-term contract tonnage and some have already agreed.Goa to China. with no immediate plans to ramp up production. Japanese mills were heard to be struggling with poor margins and consequently kept production levels low. “The first quarter of the Japanese fiscal year [April to June] will not see any recovery for the Japanese steel industry.” the mill source said. “I think we can only expect some good news in July.” a shipping source in India said. The slightly firmer numbers seen earlier this week were due to high bunker costs. — Celestyn Wong and Melvin Yeo . so we will aim to go back to higher production between July and September.
then the market could rise briefly.. on top of offers heard this week for Illawara and German Creek. In the premium category. on Friday Xstrata’s Oaky Creek was said to have been offered to China at $210/ mt FOB although this could not be verified.. in London Coking coal market . . “If monetary policy in China improves. Platts premium low-vol coal was assessed at $208. while HCC 64% CSR mid-vol also was unchanged at $186.from page 1 where no cargoes were heard offered. an Indian trader expressed buying interest for a coal such as Vale’s Carborough Downs at $180-185/mt FOB Australia. For non-premium HCCs. All buyers surveyed sensed weakness in the market. but otherwise the overall trend is down.with Annalisa Jeffries.50/mt.” a Chinese trader said. Chinese buy-side interest for top-tier coals could be found in the $215-220/mt CFR North China range.50/mt FOB Australia.
00 226.04 .5% 9.00 +2..7% 500 HCC 64 Mid Vol 64% 25.5% 400 Premium Low Vol 71% 21.00 HCC 64 Mid Vol 186.00 Premium Low Vol 208.5% 9.00 -3.50% 1.50% 0.00 Met Coke .5% 0.50 226.50 201.50% 1.50 223.3% 0.00 +0.030% 9. People have tons to move.” a European SBB Steel Markets Daily March 9.00 HCC Assessed Specifications CSR VM Ash S P TM Fluidity HCC Peak Downs Region 74% 20.50 +0.00 163.00 223.00 .00 -1.00 -1.0% 0..00 -3.50 204.00 +2.“I still think the market is going down.+11.04 Per 1% VM (air dried) 18-28% 0.00 +0.00 +0.60% 0.00 -3.00 +0.5% 1.00 -1.00 Low Vol PCI 145.7% 10.00 142.045% 9.385.60% 0.00 160.700 Penalties & Premia: Differentials ($/mt) Within % of Premium Low Vol FOB Net Value Min-Max Australia assessment price ($/mt) Per 1% CSR 60-74% 0. 2012 4 Copyright © 2012 The McGraw-Hill Companies Platts Daily Metallurgical Coal Assessments.00 +0.00 145. March 9 Coking coal price assessments ($/mt) FOB CFR CFR Change Australia China India Australia China India HCC Peak Downs Region 208.00 +2.00 149.00 +0.50 +0.050% 9.00 Semi Soft 134.00 +0.00 Low Vol 12 Ash PCI 127.00 152.
00 9.25% 2.09 Per 1% Ash (air dried) 7-10.50 Australia-India Panamax 18.3-1% 1.00% 2.com/IM. Dry bulk freight assessments Route Vessel Class Freight rate ($/mt) Moisture (%) Australia-China Panamax 15. but if I did.00% 2.1%S (air dried) 0. Peak Downs® is a registered trade mark of BM Alliance Coal Operations Pty Limited “BMA”. East India: basis Paradip port.50 East Australia: basis Hay Point port.09 The assessed price of HCC Peak Downs® originates with Platts and is based on price information for a range of HCCs with a CSR > 67% normalized to the standard of HCC Peak Downs® (CSR 74%). Detailed methodology and specifications are found here: http://platts.” .Platts. This price assessment is not affiliated with or sponsored by BMA in any way.” he said.61 Per 0.Content/ MethodologyReferences/MethodologySpecs/metcoalmethod.5% 1.” there was “room to go down a little more.pdf Source: Platts steelmaker commented.00 9. I don’t have to buy spot. North China: basis Qingdao port.Per 1% TM (as received) 8-11% 1. A Mediterranean steelmaker added that with the global economy “not getting any better. “Obviously it’s a buyer’s market. I would probably bid below $200/mt FOB [for premium low-vol coal+. A Japanese mill had a similar point of view.
Ukrainian 62% CSR coke was heard offered mid-week at $345/mt CFR India. including high-quality low-vols. was not as valued as Japanese or Australian coke. Highlighting this split. The large differentials between higher and lower-CSR coke also were apparent in . Market participants in India highlighted that because of inconsistent quality. while an Australian 70% CSR cargo was said to have been sold closer to $390/mt CFR in the last week. a mining executive said he foresees some pressure in coming months.Asked to forecast the Asian HCC outlook. Met coke jumps on tight supply There appeared to be a divide in India’s met coke market with strong supply of lowerquality. material from the Black Sea. lower-priced material from the Black Sea. even when of a similar CSR. because traders had recently taken substantial long positions of US coals for resale in Asia. sources reported. but a tightness for higher-quality met coke with over 62% CSR. and a high-quality Asianorigin 62% CSR at $385/mt CFR.
— Julien Hall Scrap market Turkish mill procures deep-sea scrap cargoes from US London—A Turkish mill booked two cargoes from a US supplier containing HMS I/II (80/20). .India’s domestic market. an offer from a major US recycler — not a regular exporter — at $445/mt CFR for the same grade to be loaded in Tampa. This price was confirmed to a number of participants close to the sell side. while 57-60% CSR blast furnace coke was pegged at Rupees 19.000/mt. market participants said Friday. But. Florida attracted demand from Turkish mills at about $435/mt CFR. or $381 CFR India. The Platts daily HMS I/II (80/20 blend) import assessment therefore remained flat at $440/mt CFR Turkish ports Friday. Indian 65% CSR was heard being sold around Rupees 21. One of the bookings is believed to be for March shipment and both were heard at a price of $443/mt CFR Iskenderun by a longrolled steelmaker.000/mt ($419) ex-works East India.
unlike Europe. the Turkish HMS I/II (80/20 blend) assessment basis Platts was between $425-430/mt CFR. did not undergo the same cold snap that limited collection in February. for positional reasons. However. such as CFR Turkey. export offers will have to return to international levels. US contracts being settled for March procurement showed no change on-month and were inked on February 13-14 last month. and is rendering much of the Black Sea A3 supply uncompetitive at current market levels. Market bulls believe it shows the recycler’s desire to push down global benchmark prices. with Turkish mills feeling more strain on their finished product prices now that domestic buyers have filled their stocks. Since then. A French recycler that is rarely heard . which. freight has hardened on many of scrap’s main Handysize routes though.The reason for the unusual entrance of the US recycler offering this cargo was viewed differently by market players. In that period. while bears argue that it indicates there is too much scrap on the ground in the US.
one such cargo was heard at $428/mt CFR Turkish ports for HMS I/II (70/30 blend).” a regional trader told Platts. HMS blends are being offered. 2012 5 Copyright © 2012 The McGraw-Hill Companies SBB-SMD raw materials reference prices $/mt Change % Chg Coke and coal . — Ciaran Roe East Asian scrap importers pause to assess market Singapore—The scrap import market in East Asia was quiet with thin buying activity this week. sources told Platts. “The market may be softening a little but SBB Steel Markets Daily March 9. with the regional rebar markets sluggish. Without much support from rebar prices. “Scrap prices appear to be close to the top.dealing with Turkish mills was also in the market this week with its own HMS cargo on offer. there was not much room for scrap prices to rise further. he added. While shred and other higher-graded scrap is in scarce supply on the continent.
del Utsunomiya .FOB Ponta da Madeira .00 0.85 -65.Brazil export 485.01 HBI .00 -1.88 SBB-SMD ferrous scrap reference prices Price Change % Chg Scrap.del Utsunomiya - .92 0.N.00 10.China export.38 -18.del Okayama Tokyo Steel purchase (list) price 442.00 2.10 H2 .87 0.97 -0.86 -6.Tokyo Steel purchase price.00 0.delivered .China domestic 171.00 0.01 Vale blast furnace pellet 65.06 -18.77 -0.00 5.69 -3.Coke 10.00 HMS 1/2 80:20 CFR .19 2.17 Pig iron . at works gate 417. Europe/Turkey ($/mt) Auto bundles .del Olayama . Asia ($/mt) H2 .37 -0.38 0.50 0.00 2.64 0.02 Scrap. FOB Tianjin 480.East Asia import 467. delivered 412.15 -4.Brazil domestic 238.00 -5.Venezuela export 360. FOB Tubarão ($ cent/mtu) 295.5% ash .02 Pig iron .Tokyo Steel purchase price.S.13 Charcoal . Europe domestic.68 -0.Hebei .China domestic 521.00 0.01 Shredded .Black sea export 470.37 -0.61 -0.00 20.67 0. delivered 432.Shanghai .00 OA (plate & structural) .01 Iron SGX 62% Fe Iron Ore cash-settled swaps (dry mt) .09 Shindachi Bara .7% Fe.20 -37.UK domestic.5-12.05 Heavy .44 -0.00 Shindachi Bara . Europe domestic.48 Iron ore concentrate 66% Fe wet .Turkey domestic.FOB .60 2.China domestic 542.29 -37. at works gate 411. Europe.delivered .10 Pig iron .front month 139. delivered 446.03 Shredded . delivered 430.98 -13.00 10.
00 0.00 Plate & Structural .” another trader noted.00 0.del Utsunomiya Tokyo Steel purchase (list) price 421. However.N.” a local trader said. Americas ($/lt) #1 Busheling .50 0. from $455/mt earlier last week. America domestic. In Taiwan.05 Scrap. America domestic. del Midwest US 427.N.03 -18.del Okayama Tokyo Steel purchase (list) price 427.10 Shredded scrap A (auto) .00 0.87 14. Taiwan’s scrap import market was flat after three weeks of rising prices since mid-February.00 ($/mt) HMS 1/2 . America domestic.98 -18.E.04 Shredded scrap A (auto) .68 -0. “The mills also want to adjust inventories and average .00 HMS 1/2 .55 0. Limited offers for bulk HMS I/II (80/20) were at $470-480/mt CFR East Asia.26 -37. fresh offers for containerized 80/20 fell to $450/mt CFR. Taiwanese importers were largely absent during the week.Brazil S.Tokyo Steel purchase (list) price 435.05 there is still demand among the mills. del.50 0. del Midwest US 397.68 -0. “Many mills are adopting a wait-andsee approach.N. Midwest US 472.50 0. domestic 261.37 -0. Taiwanese mills were trying to book local scrap at lower purchase prices.
was at Yen 32.costs for imported scrap cargoes booked in the last round.410/mt FAS while the last.000 mt each at Yen 32. sources told Platts.400/mt. Offers of containerized 80/20 to Southeast Asia were prevailing at $450-455/mt CFR. — Anna Low Japanese scrap export prices rise in Kanto auction Singapore — Prices of Japanese scrap exported through Tokyo Bay seem set to rise following Friday’s auction for H2 grade material. down from $450-455/mt CFR the week before. Yen 32. Traders reported that a few deals involving small tonnages were booked at $445-450/mt CFR Taiwan. The regular monthly auction held by the Kanto Tetsugen grouping of scrap dealers serving the Chiba-Yokohama-Tokyo areas selected four winning bids for shipments during April.000 mt.800/mt ($22/mt) higher than that last . The winning tender was Yen 1.700/mt ($399/mt) FAS. which secured 10. The winning bids were awarded 5.500/mt FAS and Yen 32.” he added.
000/mt FOB or equivalent to Yen 31. Last Thursday Tokyo Steel Manufacturing cut its scrap purchase prices by Yen 500/mt. and the third by Marubeni Tetsugen. export prices may climb again. Its buying price for H2 material at its Okayama works in western Japan became Yen 34. a Tokyo-based trader said. Another Tokyo-based scrap trader said domestic prices have been weakening but deliveries to mini mills were still smooth despite the recent cuts.500-32. the second and fourth by JFE Shoji Trade. “As the winning (Kanto Tetsugen) bids were higher than current export prices.month for material for export during March.000/mt FAS. But prevailing export prices of Japanese H2 for Korea are around Yen 33.” the trader told Platts.500/mt ($421/mt) for seaborne delivery and Yen . Industry sources said the first bid was submitted by Sangyo Shinko. It is understandable that bids were higher this month than last as prices have risen. the leading mini mill’s first cut since end-January.
34. sources told Platts SBB. scrap collectors will begin accumulating scrap around the Tokyo Bay area in preparation for export. In central China’s Hubei province. However. Japanese scrap exports to Korea were currently quiet but as soon as the Korean mills start booking for April delivery. as reported. Wuxi Xuefeng Iron & Steel — a subsidiary of the Shagang Group — raised its scrap prices by Yuan 50/mt ($8) on Tuesday. leading .” a trader added. “The Japanese mini mills will then have to lift prices again to ensure they get deliveries.000/mt for truck delivery. In eastern China’s Jiangsu province. the buying prices of major mills have fluctuated.270/mt including 17% VAT. steel market shaky Singapore—Domestic scrap prices were generally stable in the majority of China’s regions this week as the finished steel market remained unsettled. This took its buying price for heavy melting scrap to Yuan 3. — Yoko Manabe China’s scrap prices hold stable.
steelmaker Wuhan Iron & Steel lifted its buying price for HMS to Yuan 3.360/mt on Thursday from its previous Yuan 3. “Mills that had been paying relatively low prices are hiking their prices to improve deliveries. Sangang Steel — the region’s largest steelmaker — lifted its scrap prices Yuan 50/ mt to Yuan 3. She added that market prices have not seen obvious change. This was done to catch up with the buying prices of neighboring mills to ensure its supply. reduced its prices by Yuan 30/mt on the same day. Sanbao Iron & Steel. given the uncertain steel market. SBB Steel Markets Daily March 9. Meanwhile. while those that had been paying higher prices are shaving them to avoid possible risks.360/mt including VAT. in southern China’s Fujian province.300/mt with VAT effective Friday. taking its buying price to Yuan 3. a local source told Platts. despite these small fluctuations. 2012 6 Copyright © 2012 The McGraw-Hill Companies However.” a Shanghai-based market observer said. . another major mill in the region.350/mt.
. shredded scrap pricing in the US has remained relatively flat for the past four weeks. early March bookings by US mills of obsolete and shredded grades had been settled at February levels.Market prices for HMS were prevailing at Yuan 3.350/mt in the country’s east regions.250-3. moving up or down in only $1 increments.250-3. is a separate price-specialist unit owned by Platts.430/mt in the central and Yuan 3. The latest price from The Steel Index of $443/lt delivered Midwest mill for the week ending March 9 is down just one dollar from the prior two weeks. Yuan 3.” TSI noted.250-3. TSI.360/mt in the south. — Della Fu US shredded scrap prices maintain month-long stability Pittsburgh—After volatile price swings from October through mid-February. After averaging $463/lt in January. the index has remained in the range of $443444/lt for the prior four weeks. All prices include 17% VAT. As previously reported. “Market direction is still unclear as we move further into March.
50/lt delivered to Midwest mills.50/lt.50/lt — down $5 compared to the prior week. very quiet.“Mills were trying to hold off *the anticipated+ increase.” a US east coast (USEC) scrap yard source said.50/mt while April was done at $136/mt. — Nicholas Tolomeo Exchanges Iron ore swaps trading subdued. prices drift slightly London—Iron ore swaps slipped marginally over the course of the Asian trading day on weaker tender results. The TSI index price fell close Friday to the Platts shredded scrap assessment midpoint price of $442. while the HMS price delivered to USEC docks was at a midpoint of $397. brokers told Platts on Friday. “The market is quiet. “Scrap yards seem pretty full. Q2 traded down to $135. There is not a lot of business taking place. despite a firmer start on the back of rebar futures moving up.” one Midwest scrap dealer said. slightly below .” The Platts assessment for shredded scrap delivered to USEC docks held at a midpoint of $422.
Swaps trade was relatively quiet with people looking to the physical market for direction.33/mt. a common .50/mt — where one counterparty buys the $118/mt put option and sells the $149. CFR North China. a separate specialist price unit owned by Platts.67/mt.92/mt.the SGX daily settlement level for Thursday.000 mt Q3 zero-cost collar at $118-$149. The Steel Index’s reference price for 62% Fe material. adding that everyone seemed “ambivalent” to the rangebound market.50/mt call. One options broker said he did a 150.16/mt at $132. brokers said.17/mt. was unchanged at $142.50/mt. Q4 traded at $130/mt and the Q2/Q3 spread remained unchanged at $3. The SGX daily settlement price for April slipped 33 cents to $136. “It feels like a few people were interpreting tender results as negative. Its settlement price for June was down $1.60/dry mt. while July was off $1. with May down 58 cents to $134. TSI. cited some trades done at higher levels and others at lower marks.50/mt at $133.” one said.
“Unlike what has happened in China in the past. “Q1 is not the bottom. Chinese market in for ‘long winter’ Despite some policies from Beijing.” — Colin Richardson Other News Tata Steel calls on UK government to act on energy London—Tata Steel Europe believes high electricity costs in the UK are eating . offering temporary respite. Fan Jianping. head of economic protection of China’s State Information Center said at the Global Coking Coal Resource & Market Summit 2012 Thursday. such as increasing liquidity. as Beijing will continuously clamp down on real estate.hedging strategy. mills will not be able to get out of trouble when they succeed in destocking. the Chinese steel industry is still in for a “long winter” amid a gloomy macroeconomic environment. Coking coal and scraps swaps markets were quiet.” he said.
head of Tata Steel Europe. said the disadvantage for producing steel in the UK could be calculated at GBP5/mt ($7. the company told Platts Friday. In March 2011. the UK government announced measures on carbon credits. This April the impact on prices is expected to increase further as subsidies for renewable energy will be introduced. such as the Spanish . affecting energy prices. The company wants the UK government to apply a mitigation package for heavy energy users (worth GBP250 million) announced in November 2011 and discuss further measures to mitigate the disadvantage compared with other continental markets. and 25-30% more than its site in Germany. Karl-Ulrich Kohler. Comments from other crude steel producers in the country. It has calculated that its facilities in the UK are paying 50% more for electricity than its site in France. according to local press reports. On Thursday.into its competitiveness.84/mt) of steel.
as of March 8). were not immediately available. the German longs steelmaker Saarstahl announced its intention to acquire a 310 MW coal-fired power plant from RWE as “rising energy costs in Germany represent a real competitive disadvantage. The consortium said the deal would provide its members with “long-term visibility.” German steel manufacturers. including ArcelorMittal.50/MWh. the local Exeltium industrial consortium comprising electricity intensive industrial power users. Celsa. have to pay part of the renewable energy subsidies. In the spring of 2010.” . entered into a 15-year supply contract with state-controlled EDF. UK Year-Ahead at Eur64.electric arc furnace producer. According to Platts data. Last July. on the other hand.64/MWh) vs. French heavy-energy users benefit from generous tariffs.12/MWh ($69. continental European wholesale power prices for delivery next year are around 20% below the comparable UK wholesale power prices (Platts ContiCal 13 at Eur53. according to a market analyst.
as the receivers. has been sold to the country’s state-owned coal producer Solid Energy for an undisclosed sum. John Fisk. the owner of a New Zealand coking coal mine that closed after an underground explosion that killed 29 miners in Nov 2010. “We. receivers for Pike River Coal. 2012 7 Copyright © 2012 The McGraw-Hill Companies .— Andreas Franke and Emanuele Norsa Shuttered Pike River Coal’s mine sold to Solid Energy Perth—Pike River Coal. No further details of the transaction or any related matter can be released until the agreement is unconditional. or the identities and number of potential buyers who had expressed an interest in acquiring the company. in a statement Friday. a receiver appointed to oversee the sale of Pike River Coal. are pleased with this agreement as we consider it the best way forward for all parties. said he was unable to disclose the price paid by Solid Energy. said PricewaterhouseCoopers.” Fisk said in a SBB Steel Markets Daily March 9.
March 9 Close/Midpoint Change % Chg Asia Hot-rolled coil $/mt FOB Shanghai* 630.00 -0.00 0.00 CIF Antwerp 545.00 630. 2012 Europe Hot-rolled coil Eur/mt Ex-works.79 Reinforcing bar $/mt FOB China* 630.00 0.00 0.00 0.00 635.00-625.00-570.00 0.Platts steel industry assessments.00 600.00-680.00 CIF Antwerp 540.50 0.00 675.00 545. NW Eur 550.00 5.00 0.00-640.00 567.74 Billet $/mt FOB Black Sea 600.00 620.00 -5.00 555.00 $/mt FOB Black Sea 625.00 0.00 635.00-635.00 0.00-555.00 Plate Eur/mt Ex-works.00-560.00-550.00 0.25 * Assessed March 08. Ruhr 565.00 3.00 -0.00 0.00 0.00-640.00 20.00 $/mt FOB basis Turkey 670.00 -5.00 550.00 0.83 North America Hot-rolled coil $/st .00 Reinforcing bar Eur/mt Ex-works. Ruhr 615.
00 statement posted on PwC’s New Zealand website on Friday. US SE 730.00 0. US SE 940. Indiana 790. Houston 760.00-640. Houston 650.00-770.00 0.00 0.00 655. Houston 650.00 0.00-600.00 740. Ruhr 635.00 637.00 Reinforcing bar $/st Ex-works.00 0.00-660.00 $/st Ex-works.00 0.00 0.00 CIF Antwerp 595.00 $/mt FOB Black Sea 735.00 0.00 0.00 0.00-670.00-960. .00 0.00 660.00 CIF.00 950. Indiana 690.Ex-works.00 0.00 795.00 Europe and US cold-rolled coil assessments.00 CIF.00 0.00 CIF. and that financial settlement for the deal would likely follow in May. Fisk said the sale of Pike River Coal to Solid Energy was subject to the satisfactory conclusion of due diligence checks by the end of March.00 740.00-745. Houston 850.00 597.00 0.00 CIF. Over the telephone.00-700.00 0.00 765. March 9 Eur/mt Close/Midpoint Change % Chg Ex-works.00 0.00-750.50 0.00 0.00-870.00 0.00 0.50 0.00 0.00 Plate $/st Ex-works.00 860.00-800.00 695.
and some Chinese companies.He said Solid Energy was interested in restarting coking coal mining at Pike River Coal’s mine. Pike River’s receivers PwC would continue with their operation to reclaim the mine’s main tunnel. leading to the mine’s immediate closure. and in the next few weeks it was expected the top end of the mine’s underground drift would be sealed and the tunnel re-ventilated.” he said in the PwC statement. “As part of the agreement. including possibly one of its two Indian shareholders Gujarat NRE Coking Coal with a 7% stake. negotiations will continue with the Crown to establish a trust that will help oversee efforts to enter the main area of the mine and facilitate body recovery if it is safe and technically feasible. Several overseas companies were speculated by market sources to have expressed an interest in acquiring Pike River Coal. Fisk told Platts. which had only been in production for a short time when the underground explosion occurred. .
which owns several mines in New Zealand. adding that the deal was subject to certain undisclosed conditions.4% and was also its biggest creditor being owed NZ$40 million ($33 million). — Mike Cooper Indian iron ore export volumes declined in February . most of which it has recouped in insurance payments. and said the company would be making a fuller statement after it had completed its due diligence of Pike River later this month.A Solid Energy spokesman confirmed Friday the sale of Pike River Coal to the stateowned company. high fluidity hard coking coal of 58. was Pike River’s largest shareholder with a stake of 29.5 million mt. Pike River Coal’s underground mine is located on New Zealand’s South Island and has a coal resource of premium. another stateowned company. The spokesman declined to go into detail about the specifics of the deal including price. New Zealand Oil & Gas. according to the company’s website.
The Paradip port of Odisha (formerly Orissa) state shipped 133. Similarly. Although the market has been sluggish for Indian exporters for several months now.8% drop from 4. Indian market participants said. the Mormugao port .079 million mt of iron ore through major central government-controlled ports in February.000 mt of ore last month. shipments from the Vishakhapatnam port in Andhra Pradesh state totaled 973. transaction levels in January declined further owing to the Chinese Lunar New Year holidays that month.000 mt in February.000 mt in January but down 91% year on year. slightly up from 125.329 million mt exported the previous month. up from 921. Ore export volumes from ports on the east coast remained largely stable last month. according to provisional data from the Indian Ports Association.03 million mt exported in February 2011. a 5.Singapore — India exported some 4. On the west coast.000 mt the previous month but down 52% y-o-y from some 2.
6% y-o-y to 56. February shipment volumes were also down some 47% y-o-y. Hans-Joachim Welsch. So far this fiscal year Indian iron ore exports from major ports have dropped 28.754 million mt exported during April 2011-February 2012.5 million mt by 2015. — Anitha Krishnan Rogesa sees seaborne coking coal demand growing London—Global seaborne coking coal demand will rise by more than a third to over 363.679 million mt in January. “We look set to complete the fiscal year with some 60-62 million mt of ore SBB Steel Markets Daily March 9.in Goa state saw export volumes slipping to 2.” a New Delhibased analyst told Platts. compared to 2011.433 million mt last month from 2. The major ports covered by the data are conduits for 80-90% of India’s total iron ore export shipments.226 million mt from 78. CEO of German . 2012 8 Copyright © 2012 The McGraw-Hill Companies exports (from major ports).
pig iron producer. followed some way behind by India. he noted (see table). the problems of the past might return in the future. slipping to 265 million mt last year.5 million mt. told Platts. The largest growth in demand over the next five years will come from China.5 million mt/y in 2015. he added. Rogesa. “This shows that while there are no particular problems [for EU producers] to secure coking coal at present. and Central and South America. — Victoria Glasson BofA still bearish on China’s . while annual EU-27 demand will also increase by over 2. The biggest issue will be the shortage of particular qualities.” Welsch told Platts. based on figures from banking group Credit Suisse. rising from 5 million mt/y last year to 6. Turkish demand will level off over the next year or so. Welsch was talking at the Handelsblatt Stahlmarkt conference in Düsseldorf. he said. Worldwide seaborne coking coal demand in 2010 was 278 million mt.
down by 1.” The report cited CISA estimates that daily crude steel production declined to 1.68 million mt in late February. BofA-ML noted. February average daily production was 1. The annualized rate of nearly 613 million mt is about 70 million mt less than 2011’s total crude steel output from China of 683.87 million mt/day.7 million mt in late February.3% below average production in 2011 of 1. 9.lagging steel output vs 2011 New York—China’s daily production of crude steel declined to an annualized rate of 612.7 million mt. based on World Steel Association data.3 million mt. which also forecast short-term “price risk for iron ore and coking coal. according to an industry overview published Friday from Bank of America/Merrill Lynch’s Hong Kong research team.22% from the previous 10-day period. research analyst in Hong . “We remain bearish on the steel sector for the following reasons 1) weak steel demand 2) high raw material cost.” wrote Yongtao Shi.
BofA-ML forecast a “V-shape recovery” is likely to occur in the second half of 2012.” Nonetheless. — Joe Innace Perth firm expects iron ore sales from Indian project Melbourne — Perth-based commodity developer. we will expect 582 million mt crude steel production in the next 10 months.Kong. we would expect a V-shape rebound in 2H12. “The ground check has indicated a weak steel demand outlook near-term. “Even assuming flat steel production growth in 2012. expects to .” the analyst added.94 million mt. who added: “We also see downside risk for iron ore and coking coal price in Q2. Hence. on average15% higher than current level. equivalent to daily production of 1.” said Shi. NSL Consolidated. caused by slowing property investment and infrastructure activities. due to a slower than expected steel production recovery. driven by increasing infrastructure investment and social housing kick-off.
so obviously China is a potential market.” the official said. NSL will consider exporting material to China.000 mt/y wet beneficiation plant beginning operations later this year. Subsequently. The Kurnool project is located in southeast . “We have the agreements and infrastructure in place to export. An official from NSL told Platts the focus for phase one output would be to sell into the Indian domestic market. the company said in a statement on Friday All the main structures for the first phase of the project have been erected and commissioning on individual equipment components was underway Friday.make the first sales of iron ore from its Kurnool beneficiation plant in India before the end of June. NSL expects to produce 200. The second phase of the project will see a 200.000 mt/ year of hematite ore in the first phase of the project and remains on track to generate sales revenue from its Kurnool operations in the first half of 2012.
which it says will be the country’s largest underground mine. NSL also has another mine. Hegang said the National Development and Reform Commission granted formal Global seaborne coking coal demand 2010-2015 (million mt) 2010 2011 F 2012 F 2012 F 2014 F 2015 F % change % change . It is also the only foreign company to own and operate iron ore mines in India. which lies adjacent to Kurnool. China’s top steel producer in north China’s Hebei province.India’s Andhra Pradesh state and includes the Mangal mine. has secured approval for a 15 million mt/year iron ore mining project in Tianxing. Rio Tinto could follow suit after it realises plans to invest US$2 billion in India’s iron ore industry as the miner announced last week. Hebei. the Kuja iron ore mine. — Marnie Hobson Hegang’s receives approval for Tianxing iron ore mine Singapore — Hebei Iron & Steel Group (Hegang). In a posting on its website Thursday.
5 7.5 39.8 295 316.8 22.2 30.7 31.7 16% 23% TOTAL 277. Although the steelmaker plans to invest Yuan 4.5 7. Construction on mine projects in China sometimes start before formal approval is given.5 70.8 20.5 7.6 5 6 6.5 6.3 39 40 41 42 4% 7% Asia* 100 95 100 103 106 110 10% 16% India 34 34 36 38 42 50 47% 47% China 49.9 265.2010-2015 2011-2015 EU-27 40.5 6.5 31% 37% *excluding India and China Source: Credit Suisse SBB Steel Markets Daily March 9.3 23 54% 44% Turkey 4.3 25.3 58. 2012 9 Copyright © 2012 The McGraw-Hill Companies approval late last month for mine development to proceed.5 363.5 7.8 89% 114% North America 7.2 82 92.7 28.7 338.1 43.5 0% 0% Central/South America 14.2 billion ($666 million) in the project. Hegang hopes to commission the Tianxing mine by 2015 as the project .2 31.5 7.5 41% 30% Rest of World 27.9 16 19. the present status is unknown as Hegang officials could not be reached for comment.
the mine is said to boast 843 million mt of iron ore resources at an average 30.2 million mt/y of concentrate capacity.1 million mt/y. with 2. Sijiaying. according to its website. the Tianxing mine may dip to 850 metres underground and is being designed to have a concentrate capacity at 66% Fe of 5.8% Fe. is Hegang’s core iron ore mining development region and hosts large mines such as Yanshan and Dajiazhuang. Just 60km from Hegang’s Tangshan steelworks. — Hongmei Li Australia approves second .3 billion mt of resources.has a major role in the steelmaker’s target of lifting its iron ore concentrate capacity to 35 million mt/year within three years. Hegang expects to develop Sijiaying into Asia’s top iron ore mining area supporting 42 million mt/y of mining or 14. Located at the southern part of Hegang’s core Sijiaying iron ore tenement in Luxian County of Tangshan city.
Gloucester said in a stock exchange statement on Friday that meetings with . The other takeover approved by the FIRB last week was Russia’s Magnitogorsk Iron & Steel Works’ (MMK) acquisition of iron ore miner Flinders Mines. The approval of the Gloucester deal comes after the original offer was revised.8 million mt/year of coking. The combined company will operate seven mines producing around 12. to allow Gloucester a smaller stake in Yancoal of 22% down from 23% with Yanzhou retaining 78% in the merged companies. as previously reported. making it the second takeover of an Australian resources company by foreign owners in a week.foreign takeover in a week Melbourne — Australia’s Foreign Investment Review Board (FIRB) has approved the acquisition of Gloucester Coal by China’s Yanzhou Coal subsidiary Yancoal Australia. PCI and thermal coal. Production is planned to increase to 25 million-30 million mt/year by 2016.
“The government aims for domestic mining companies to grow and be able to be as good as foreign companies.” he added. but the announcement was made on . therefore we are increasing the divestment obligation [of foreign companies+ to 51%. which paves the way for domestic mining companies to retain a 51% stake while foreign ownership will be limited to 49%. — Marnie Hobson Indonesian miners to gain from new ownership law Jakarta—Indonesia’s new mining regulation. “What the government does is always to help the public’s welfare. industry sources told Platts. Indonesian President Susilo Bambang Yudhoyono signed the decree on February 21. will boost the growth of local miners and government revenue but may pose an obstacle for foreign investment.shareholders to vote on the merger are scheduled to be held next month.” deputy minister of energy and mines minister Widjojono Partowidagdo told Platts Friday.
Government to renegotiate contracts The director of mineral business development at the energy and mines ministry Dede Ida Suhendra said Friday the new 51% divestment regulation would be discussed with various foreign mining companies . In the previous 2010 regulation. 44% in the ninth year and 51% in the tenth year. regional government. minerals and metals. state enterprise or other domestic investors — by the time it completes 10 years of production. This ruling applies to companies mining for coal. The divestment should reach 20% in the sixth year of production. 30% in seventh year. the government said foreign-controlled mining companies were required to divest at least 20% of shares after five years of operation.Wednesday. The ruling states that a foreigncontrolled mining company has an obligation to divest 51% of its share in a company to Indonesian parties — including the central government. 37% in the eighth year. according to the regulation.
has a 55:45 joint venture covering nickel mining. including the divestment clause and royalty. Shanghai Dingxin Investment Group.” a senior official with Shanghai Tsingshan Mineral Co told Platts SBB. Mixed reaction from China nickel players Those with existing mining interests in Indonesia said it will discourage fresh investments while analysts reckoned it is not a huge deterrent for Chinese nickel investors.” Suhendra said. “With the ban on ore exports and restriction on majority ownership of mines by foreigners. ferro-nickel and stainless production with Indonesia’s . The company is still confirming details of the new rule. foreign companies will be reluctant to invest in mining in the country.under a renegotiation of contracts. he added: the government earlier said it wants to increase the royalty received from the mining contracts. he said. There are seven points that the government will renegotiate. “The negotiations are still going on. Tsingshan’s parent company.
Analysts also argus that Chinese investors mulling mining investments in Indonesia are more likely to consider other existing hurdles to investing there.” he said. — Anita Nugraha and Vivian Teo Tata Steel could sell some . “Building a plant there is not easy as it is. A Beijing-based nickel analyst. however. “China needs the nickel resources.Bintangdelapan Group. Chinese companies do not necessarily have to take a majority share in projects. “We will now need to proceed with more caution with any new investments in Indonesia.” a Shanghai-based nickel analyst said. Another senior official with a Chinese state-owned miner holding nickel mining investments in Indonesia said the latest regulation is a huge departure from existing rules that allow mining projects to be wholly foreign-owned.” he said. such as confusing regulations and conflicting rules followed by central and local governments. believed Chinese investors will continue to invest in nickel resources there.
we may then look at selling some on merchant basis to others. a source within New Millennium said earlier. Tata will have four months to decide whether to invest an estimated $4. . according to a local media report. An initial feasibility study on a project to produce 22 million mt/year of taconite ore products from either its LabMag or KeMag deposits near the Quebec-Labrador border is due within the next few months. “To make a project viable of that nature.M Nerurkar told the Business Standard Thursday. Production could begin by 2016. So. Once the initial feasibility study is completed. we may have to produce 10-15 million *mt+ of iron ore but we can’t use all of that.85 billion in the project.” Tata Steel’s managing director H.Canadian Fe ore to market London—India’s Tata Steel could become a player in the merchant iron ore market if proposed expansions at its New Millennium joint venture in Canada begin production. New Millennium sources have said.
00*** 671.51 0.00 0.25 0.30 35.96 710.52 792.54 28.00% Cold-rolled coil Ex-works.00 0.00 0.44 -1.50*** 835. Ruhr* 620.00% CIF.25 765.17 647.00% CIF Antwerp* 545.71 740.40 722. basis Houston** 554.75 766.79 -1.78 -8. March 9 Prior assessment Eur/mt $/mt $/st $/CWT $/mt $ change % change Hot-rolled coil Ex-works.86 822. basis Houston** 642.00*** 571.50*** 782.40 -9.58 740.00*** 812.45 737. Indiana** 584.19% .19% Ex-works.89 32.20 876.86 37.24 -9.74 752.00% Plate Ex-works.97 -1.00 727. US Gulf states.19% FOB Black Sea* 480.09 695.61 -1.50*** 743.00 0.19% Ex-works.73 727. Ruhr* 567. have indicated a willingness to sell surplus iron ore to other steelmakers in North America.32 0.32 795.09 0.65 674.15 766.00% CIF Antwerp* 597.90 845.00 0. such as ArcelorMittal.62 -8. US Gulf states.00*** 34.00% CIF.05 36.00*** 39.64 33.33 33.00*** 33.00 0.45 -10.51 660.58 630.19% FOB Black Sea* 564.07 -1. Nerurkar also told the newspaper that Tata Steel could work closely with other SBB Steel Markets Daily March 9.00*** 714.75 876. Indiana** 668.00 0.38 757.00*** 38. 2012 10 Copyright © 2012 The McGraw-Hill Companies Platts steel assessments currency and unit comparisons.00 0. Ruhr* 637.Other vertically integrated steel and mining groups.25 843.77 630.98 843.
27 659. US Gulf states. — Nick Edstrom Downpours dampen Brazil’s early 2012 iron ore output Sao Paulo—Brazil’s January deluges that saw mining giant Vale declare force majeure resulted in a 15% reduction in iron ore production versus the year-ago period.00*** 32.00*** 720.00% CIF. .00 815. As previously reported by Platts Steel Business Briefing.00 0. US Southeast** 621.00*** 612.84 32.50 1047.70 729. US Southeast** 798.00*** 37.00 -0. basis Houston** 550.11 675.97 860.41 -8. to source coal.00 -5.77 -1.00 655.53 722.00 0.74% Ex-works. Northwest Europe* 555.19% Ex-works.72 653.00*** 727.18 950.70 740.83 947.00*** 43.00*** 47. Vale blamed heavy rains in three states for hampering operations. according to the Brazilian institute of geography and statistics (IBGE).63 680.00 947.7625.CIF Antwerp* 550.36 30.04 -8. **NY 16:30 $/Eur ex rate = 0.00 0.00 736.00 0.69 -1. such as Tata Power. basis Houston** 722.00% *LN 16:30 Eur/$ ex rate = 1. ***the primary assessments and have not been converted Tata group firms.18 0.75 722.97 815.70 0.78 33.47 1047.97 0. basis Turkey* 515.3104.00% Reinforcing bar Ex-works.00 0. US Gulf states.19% East Mediterranean.00% CIF. Coal deposits frequently contain different qualities of coal suitable for steelmaking and power generation.
See more steel news at www. production had increased throughout 2011.6% in Q3 and Q4. André Macedo.2 million mt. Data from the Brazilian Mining Association (Ibram) shows January iron ore exports fell 20% year-on-year to 22. National iron ore output reached 420 million mt in 2011.6% and 2.resulting in a 2 million mt decline in production. According to IBGE’s industry coordination manager. European rebar „„Anglo American says Minas-Rio output may reach 80 mil mt/y . respectively.7 million mt from 18. of which 330 million mt was sent abroad. “There was a slowdown in the growth dynamic as 2011 progressed because of Villacero takes full control of Coutinho & Ferrostaal Villacero has taken full control of Germany-based trading jv Coutinho & Ferrostaal as the Mexican firm looks to strengthen and consolidate its overseas operations. Platts Steel Business Briefing learned from a well-positioned executive involved in the merger.sbb.com „„Prices rise only slowly as economic doubts continue „„China’s daily output continued to slide in late-February „„Alfa Acciai invests in its scrap yard „„Algeria pays slightly more for S. with output up 5.1% year on year in H1 and 3.
„„Brazil opens AD case on stainless pipe from China, Taiwan „„DOC rescinds AD review on Taiwanese HRC „„China to discuss tower dumping allegations with US „„US flats service center expands into Indiana „„US sheet import prices up in Gulf, buying sluggish „„Chinese lift plate export prices to Korea for May shipment „„East Asian importers baulk at higher Chinese HRC prices „„Flats trade in Turkey picks up on end-user restocking „„US Steel Kosice in talks on future workforce „„Egyptian flats trade remains sluggish, outlook uncertain „„Posco to start building plant in Vietnam from July „„China billet prices flat, market outlook positive „„Rebar prices firming up in northern China „„UK structural steel demand fell in 2011, no recovery in 2012 „„CIS billet’s tentative recovery on pause as buying halts „„Sidor ramps up longs production after latest stoppage „„Syrian traders offer ready-load Black Sea rebar to Lebanon „„Precision Castparts to buy US tubemaker RathGibson „„New power projects lift Chinese welded pipe demand „„China’s OCTG demand forecast to keep rising „„Pipemaker in Turkey delivers spirally welded pipe Steel headlines SBB Steel Markets Daily March 9, 2012 11 Copyright © 2012 The McGraw-Hill Companies Weekly Ferroalloy Prices
Ferrochrome cts/lb change/date assessed US Charge 50-55%/Impt. 117.000 / 118.000 +2.000 / 03-07-12 US 60-65%/Impt. 117.000 / 118.000 +2.000 / 03-07-12 US Low-Carbon 0.05% Imported 233.000 / 235.000 +1.000 / 03-07-12 US Low-Carbon 0.10% Imported 210.000 / 213.000 03-07-12 / 03-07-12 US Low C 0.15% Imported 202.000 / 207.000 03-07-12 / 03-07-12 Charge Chrome 52% DDP NWE 103.000 / 110.000 +3.000 / 03-08-12 65% 6-8% High-Carbon DDP NWE 115.000 / 120.000 03-08-12 / 03-08-12 Low Carbon 0.10% DDP NWE 212.000 / 216.000 03-08-12 / 03-08-12 High Carbon 60% FOB China 100.000 / 104.000 03-08-12 / 03-08-12 50-55% Regular CIF Japan 123.000 03-08-12 60-65% Spot CIF Japan 105.000 / 106.000 03-08-12 / 03-08-12 Ferromanganese $/gt change/date assessed MW 78% Mn/Impt. 1300.000 / 1350.000 +50.000 / +50.000 cts/lb change/date assessed Medium Carbon 93.000 / 95.000 -1.000 / 03-07-12 $/mt change/date assessed High Carbon 75% FOB China 1200.000 / 1210.000 03-08-12 / 03-08-12 Ferromolybdenum $/lb change/date assessed MW US FeMo 16.500 / 17.000 -0.200 / -0.200 $/kg change/date assessed MW Europe FeMo 34.800 / 35.300 -0.700 / -0.500
FOB CHINA FEMO 34.800 / 35.000 -1.000 / -1.200 Spot CIF Japan 34.800 / 35.000 -1.000 / -1.200 Ferrosilicon cts/lb change/date assessed MW 75% Si Imported 96.000 / 97.000 03-07-12 / 03-07-12 $/mt change/date assessed Chinese CIF Japan 1400.000 / 1410.000 -20.000 / -20.000 $/mt change/date assessed 75% FOB China 1390.000 / 1400.000 +10.000 / 03-08-12 Eur/mt change/date assessed 75% Std DDP NWE 1180.000 / 1220.000 03-08-12 / 03-08-12 Ferrovanadium $/lb change/date assessed Free Market V205 5.800 / 6.200 03-08-12 / 03-08-12 US Ferrovanadium 14.250 / 14.750 +0.250 / +0.250 $/kg change/date assessed Europe Ferrovanadium 26.000 / 26.300 03-08-12 / 03-08-12 Manganese $/mt change/date assessed 99.7% FOB China 3100.000 / 3150.000 03-08-12 / 03-08-12 Molybdenum $/lb change/date assessed MW Dealer Oxide 14.250 / 14.550 -0.350 / -0.250 Oxide Trans 14.250 / 14.550 -0.350 / -0.250 Silicomanganese
000 03-08-12 / 03-08-12 Eur/mt change/date assessed 65:16 DDP NWE 970.000 / 1500. But at the start of 2012.000 Same-date references indicate there was no price change. “It was a production problem.80-36.” Macedo said. One trader was selling to his customers at slightly lower than $35/kg and the price had come down due to the moly . Chinese FeSi price up Tokyo—Spot prices of ferromoly imported into Japan softened to $34.80-35/kg CIF Japan from $35. [falling] international demand.000 / +30. tracking overseas moly oxide prices lower.cts/lb change/date assessed MW 2% Free Market 74. citing heavy rains in Minas Gerais as the main culprit.000 +50.000 / 1500. not a demand one.000 +2.” — Jose Guerra Ferroalloys market Japanese ferromoly prices fall.000 $/mt change/date assessed 65% FOB China 1480.000 / 1000.000 / 77.20/kg a week ago. there was a complete inversion of the trend.000 03-08-12 / 03-08-12 Chinese CIF Japan 1400.000 / +2.
The negative momentum in the moly market.400/mt FOB China a week earlier. which was trading at Yen 81 compared to Yen 79 a week ago.35/lb CIF Busan/in-warehouse Rotterdam. Chinese spot ferrosilicon prices increase China’s spot ferrosilicon prices were assessed at $1. as sellers reported more deals and improved demand.380-1. has forced Korean sellers to quote ferromoly as low as $3334/kg CIF main ports Asia. Moly oxide overseas was heard trading at over $14.50/lb inwarehouse Rotterdam last week.oxide price. sources added. up from $1.400/mt FOB China Thursday. Chinese suppliers said they were able to close more deals this week at . but there were deals this week reported at $14. spurred by talk that inventories are inflating in Rotterdam. Spot trade of other ferroalloys was lackluster due to the stronger US dollar.25-14. They rejected the offer as they were “suspicious” of the metal origin. two traders said.390-1. he said.
An Inner Mongoliabased producer sold to several Japanese buyers at $1.400/mt FOB China.lower offer levels.395/mt this week. Prices are unlikely to deviate much from the current range in the near term.430/mt.400/mt to a customer in South America. all to load in April from Tianjin. 2012 12 Copyright © 2012 The McGraw-Hill Companies Posco Specialty Steel issues 40 mt moly oxide tender Tokyo—Buying interest for molybdenum oxide powder picked up in South Korea . to load in April from Tianjin.400-1. Other offer prices were heard in the range of $1.400/mt. A northwest Gansubased trader sold 200 mt at $1. most suppliers predicted. Sellers who did not close any deals this week said trading remained slow.390-1. — Mayumi Watanabe and Vivian Teo SBB Steel Markets Daily March 9. with most surveyed saying they would be amenable to selling at $1. at a discount to the company’s offer price of $1.
Friday with Posco Specialty Steel closing a 40 mt ferromolybdenum buy tender. which typically buy from Chinese traders. adding that they were not rushing to sell. saying the market was too slow. increased.30-14. one Chinese trader said he was keeping his offer at $14. An offer was heard at $14. South Korean ferromoly plants. who keep inventories at bonded warehouses in China. Meanwhile. local sources said.20/lb CIF. excluding moly oxide for tolling arrangements. have told Platts their inventories stand at 40-80 mt. hold moly oxide inventories in a wide range of 40 mt to 200 mt. and a bid at $14. used for ferromoly making. Local traders said the number of inquiries for moly oxide powder. Meanwhile. The ferromoly was for delivery by the end of March to its Changwon plant. Another Chinese trader suspended spot offers. .60/lb CIF/inwarehouse Rotterdam. market sources said.40/lb CIF Busan. Chinese traders. but deals were not reported.
271-1. but said that transactions to consumers were lower.” “I wouldn’t buy material now. Material is tight now.” one Europe-based trader said.000/mt ($1.310) DDP Northwest Europe from Eur920-970/mt the previous week. but not higher than that. it’s too risky. prices are back down. fundamentals weaker London—Silicomanganese prices continued to firm over the week on strong buying interested. Silicomanganese 65:16 was assessed at Eur970-1.380/mt DDP to a mill. “It’s dangerous at the moment.— Mayumi Watanabe with Hongmei Li in Singapore Silicomanganese price firms. “Material is in the hand of traders with positions or producers. but if we see a rush of production. “I’ve heard Eur1.020/mt delivered to a German mill. sources said Friday. everybody is back buying and traders are taking .” he added. A second trader said he had been told of an offer at $1.
” — Jitendra Gill Marketplace „„Iron ore. loading from Mar 18-25. 61% Fe Australian Pilbara Blend fines — Rio Tinto sold at $143.” he said. Singapore-based trader said „„Iron ore. swaps — TSI-basis Apr traded $136/dmt. “It’s a 15% hike in prices. but was offering 65:16 at $1. passing Singapore Mar 14. 80. 63. An Indian producer was booked out of material for March and April. swaps — TSI-basis Q2 traded $135.13%Fe Standard Sinter Feed Guaiba — Vale sold at $143.000 mt.055%. market participants who received the tender said „„Iron ore.47%.positions. loading Mar 20-29 „„Iron ore.22%.” he said.000 mt.50/dmt CFR China Main Port.50/dmt. but was cautious on the recent price increases.300/mt for May shipment.000-90. P . Factories aren’t really buying that much material.” he said. 220.75. 165. Si 7%. Singapore-based trader said „„Iron ore. Si 5. Al 8%.5%. moisture 8. P 0. A second Indian producer said he was also sold out of material until May shipment. 54% Fe Indian lumps — Guangdong trader sold Thursday at $109/dmt CFR Main China port.000 mt. “It’s difficult to understand why and whether these prices are sustainable. “Indians are rushing to buy ore now and produce more alloys because the prices are getting good again. Al 1.
000 mt.03%.1%.1%. either Panamax or Capesize „„Coking coal. Al 8%.5/63% Fe -pegged at $148-149/dmt CFR North China „„Iron ore. March. shipping source said „„Iron ore 63. 61% Fe Australian Pilbara Blend fines — Singapore-based trader pegs at $142-143/mt CFR North China „„Iron ore. HCC—China mill was this week offered Australian “second-tier” HCC at $200/mt CFR. moisture 9% „„Steel. loading from Mar 18-25. steel. premium HCC — Indian trader would bid for Xstrata’s Wollombi at a maximum of $205/mt FOB Australia „„Coking coal. loading Mar 16-25 „„Iron ore freight—$13-13. S 0. 61% Fe Australian Pilbara Blend fines — Henan-based steel mill pegs at $143/mt CFR North China „„Iron ore. 80.5/wmt Panamax Goa to China. mill source in Hebei said „„Steel futures — October Shanghai rebar up Yuan 38/mt at Yuan 4. from last trade on Thursday. Si 7%.000 mt. scrap and freight prices.5/wmt Supramax Goa to China. >45. square billet — Spot price up Yuan 10/mt from Thursday at Yuan 3.319/mt. 61% Fe Australian Mining Area C fines — BHP Billiton sold Friday at $140. They were first .03%. shipping source said „„Iron ore freight—$15/wmt Supramax east coast one port to China.50/dmt CFR Shanghai. 54% Fe Indian lumps — Guangdong trader sold Thursday at $109/dmt CFR Main China port. „„Iron ore.0.760/mt ex-stock Tangshan.000-90. S 0. P 0. shipping source said „„Iron ore freight—$15. moisture 9% „„Coking coal. coking coal. freight—China mill pegs Panamax ECAus to East China at $15/mt (This is a sample of trade and market information gathered by Platts editors as they assessed the daily iron ore.
Clearnet Group. This priority recognizes the importance of providing customers with an efficient and attractive service offering across each stage of the trading value chain.” the statement added. especially in clearing.published on Platts Metals Alert earlier in the day as part of the market-testing process with market participants. “Developing its post-trade capabilities. holding up to 60% of the clearing house’s share capital in a deal worth up to Eur463 million ($608 million). The transaction “meets LSEG’s strategic objectives to continue . please request a trial to Platts Metals Alert or learn more about the product offering by visiting http://www. Regulatory change and customer demand “are creating significant new opportunities for clearing and risk management services globally. For more related information about that process and our realtime news and price services.” the companies said in the statement. is a key priority for the LSEG Group. the companies said Friday.platts.com/Products/metalsalert) News in Brief The London Stock Exchange will take a majority stake in the LCH.
to build upon its existing assets and to seek new opportunities. which is owned by Platts. including iron ore. all of which are settled against reference prices published by The Steel Index. accelerating diversification and growth for the LSEG Group. Completion of the acquisition is expected by the fourth quarter and is subject to regulatory and other approvals.” it said. . but the LME plans to build its own clearinghouse with a launch date currently targeted for the first quarter of 2014. It also clears trades on the London Metal Exchange. LCH clears a variety of ferrous swap contracts. hot-rolled coil and scrap. particularly in the post-trade arena. including anti-trust clearance.
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