Iron ore prices shot up to their highest levels in seven months, and Vale SA (NYSE:VALE), Rio Tinto Group (NYSE:RTP) and BHP Billiton Ltd (NYSE:BHP) are hoping it's a pattern that will continue, being the three largest suppliers of iron ore in the world.
The increase is being attributed to China buying up iron ore again, with the thinking being that drew from their stockpiles while hoping for prices to drop.
That can't be confirmed yet though, and it remains to be seen if they're really back in the market or traders drove the iron ore prices up.
Spot price for iron ore increased to $133.40 a metric ton, a gain of 5 percent.
China, the largest producer of steel in the world, acquires the iron ore for steel production.
Showing posts with label Iron Ore Supply. Show all posts
Showing posts with label Iron Ore Supply. Show all posts
Monday, July 26, 2010
Thursday, July 15, 2010
Rio Tinto (NYSE:RTP) Production Drops in Second Quarter
Production for Rio Tinto (NYSE:RTP) for the second quarter was down for several key raw materials, including iron ore, copper, gold and molybdenum.
Rio CEO Tom Albanese attempted to shrug off the lower production, saying this, “2010 continues to shape up well for Rio Tinto and we are driving our operations at close to capacity. Markets for most of our products are strong and the overall long-term demand outlook is positive.”
Albanese did admit though that it probably will be very volatile going forward, and that pattern should continue.
Iron ore production dropped from 44.6 million tons in the second quarter of 2009 to 43.6 million metric tons this year. Last in iron ore accounted for about 28 percent of Rio's overall revenue.
Copper production was down 19 percent from last year, while gold production plunged 34 percent.
Rio CEO Tom Albanese attempted to shrug off the lower production, saying this, “2010 continues to shape up well for Rio Tinto and we are driving our operations at close to capacity. Markets for most of our products are strong and the overall long-term demand outlook is positive.”
Albanese did admit though that it probably will be very volatile going forward, and that pattern should continue.
Iron ore production dropped from 44.6 million tons in the second quarter of 2009 to 43.6 million metric tons this year. Last in iron ore accounted for about 28 percent of Rio's overall revenue.
Copper production was down 19 percent from last year, while gold production plunged 34 percent.
Thursday, June 10, 2010
ArcelorMittal (NYSE:MT) Starts Up West African Iron Ore Mines Again
After closing down operations at two iron ore projects in West Africa, ArcelorMittal (NYSE:MT) has now restarted them again.
Located at Faleme in Senegal and Mount Nimba in Liberia, the two iron ore mines had operations suspended in 2009 in response to iron ore prices falling in response to decreasing demand.
Production for the Mount Nimbi project in Liberia is scheduled to resume sometime in the middle of 2011. No specifics on reopening Faleme were given by the company, although original estimates were to have it producing by 2011.
After delaying the projects in 2009, the company is cautiously moving forward in what appears to be a mild rebound in demand, although recent events in Europe with their sovereign debt crisis and slowdown in China, along with the U.S. economy going nowhere, has generated concerns in all companies supplying raw materials as whether or not demand in the near- and mid-term is going to grow.
Located at Faleme in Senegal and Mount Nimba in Liberia, the two iron ore mines had operations suspended in 2009 in response to iron ore prices falling in response to decreasing demand.
Production for the Mount Nimbi project in Liberia is scheduled to resume sometime in the middle of 2011. No specifics on reopening Faleme were given by the company, although original estimates were to have it producing by 2011.
After delaying the projects in 2009, the company is cautiously moving forward in what appears to be a mild rebound in demand, although recent events in Europe with their sovereign debt crisis and slowdown in China, along with the U.S. economy going nowhere, has generated concerns in all companies supplying raw materials as whether or not demand in the near- and mid-term is going to grow.
Thursday, May 27, 2010
Citigroup (NYSE:C): BHP (NYSE:BHP), Rio Tinto (NYSE:RTP) Projects May be Delayed because of Australia Super Tax
Citigroup (NYSE:C) says the proposed super tax on mining companies in Australia could result in mining projects of BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RTP) being delayed for about a year, countering the purpose of the destructive tax in the first place.
“The iron ore market is in deficit until 2012, but tips into growing surpluses in 2013 onwards as supply growth accelerates,” Citigroup analysts Clarke Wilkins, Craig Sainsbury and Daniel Seeney said in a note to clients. "Delaying Australian unapproved projects by 12 months would dramatically reduce the surplus in 2013-14.”
Also affected would be Fortescue Metals Group (ASE:FMG), which is the third-largest iron ore exporter in Australia.
All of this could also have a negative impact on the global steel market, where steelmakers would bear the brunt of the tax, and whatever they end up passing on to the enduser will result in inflation.
I have a better idea, like all governments, the Australian government needs to become smaller, and that way they don't have to have such a negative impact on the rest of the world, as all governments do.
The oppressive tax is scheduled to start in 2012.
“The iron ore market is in deficit until 2012, but tips into growing surpluses in 2013 onwards as supply growth accelerates,” Citigroup analysts Clarke Wilkins, Craig Sainsbury and Daniel Seeney said in a note to clients. "Delaying Australian unapproved projects by 12 months would dramatically reduce the surplus in 2013-14.”
Also affected would be Fortescue Metals Group (ASE:FMG), which is the third-largest iron ore exporter in Australia.
All of this could also have a negative impact on the global steel market, where steelmakers would bear the brunt of the tax, and whatever they end up passing on to the enduser will result in inflation.
I have a better idea, like all governments, the Australian government needs to become smaller, and that way they don't have to have such a negative impact on the rest of the world, as all governments do.
The oppressive tax is scheduled to start in 2012.
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