Imported iron ore price high in China
Beijing (Asian Metal) 16 Feb 11 -
At present, the market price of imported iron ore fines runs high in China. The futures price of Indian iron ore fines 63.5% stays at USD200-201/t on CIF basis, the same as the highest level in 2008. Meanwhile, domestic traders quote USD 197/t on the same basis. Players predicted the market price will keep firm in coming days.
A source from Sinosteel Shanghai Cooperation told Asian Metal that the price of imported iron ore fines runs rather high. The quotation of Indian iron ore fines 63.5% stays at around RMB1,430/t on DDP basis, while the price before the Spring Festival holiday was around RMB1,340/t on the same basis.
Now the high price of steel products encourages the price hike of imported iron ore. The price of steel billet Q235 150mm*150mm in Tangshan, the major steel market, runs at RMB4,420/t Ex works VAT included, up by around RMB100/t from that early last week. However, viewing the high price of imported iron ore, downstream mills hold a wait-and-see attitude towards the market and purchase inactively. To avoid losses, the source will not import iron ore futures until downstream mills place orders. "Now the price of imported iron ore fines reaches the record high," the source said, predicting the price will keep firm in the near future.
A source from Yuhua Steel confirmed the high price of imported iron ore. Now the mainstream quotation of Australian iron ore 61.5% stays at RMB1,360-1,370/t on DDP basis, about RMB40/t higher than that early last week.
The company still holds a normal stock to support the production of around half one month and prefers to watch the market at the moment. As the source said, he purchased no imported iron ore in past two weeks and will resume the purchase after the Lantern Festival. "I will purchase in a small quantity to control the production cost," the source said.
BEIJING (Asian Metal) 16 Feb 11 -
At present, most mines and plants do not resume the production, and will start after the Lantern Festival. Some even begin in April. Local mills keep the bid stable for iron ore fines. For example, Bayi Steel bids RMB820/t delivered VAT included by D/P payment for iron ore fines 65%. Due to the price increase of steel products, sources predicted the price of iron ore will go up in the near future.
A source from Jintehe Steel told Asian Metal that the mill keeps the price stable compared with that before the Spring Festival holiday. The bid of iron ore fines 65% is RMB870/t VAT included delivered.
The company runs with three furnaces (1080m3, 300m3, 588m3) and uses 170,000tpm of domestic iron ore. Except for iron ore from its own mine, the mill needs to purchase around 100,000tpm from outside. Now the mill only holds a low stock of around 30,000t in hand. After the Lantern Festival, many mines will start the normal production, and the mill will expand the stock then. "The demand will support the price increase of the raw material," the source said.
A source from Chufeng Iron Mine based in Aletai with an output of 30,000tpm said he will start the iron ore business after April because of the cold weather there and predicted the market will get warm in coming days.
The mine mainly supplies iron ore to Bayi Steel and the mill now keeps the bid of iron ore fines 65% at RMB820/t delivered VAT included by D/P payment, the same as that before the Spring Festival holiday. The source predicted the price of iron ore will go up due to the increase price of steel products. In the past week, steel products increased by around RMB100/t in general.
JISCO strives to exceed steel production capacity of 13 million tons in Twelfth Five-Year Plan
Benjing (Asian Metal) 15 Feb 11 -
According to the official news from Jiuquan Iron and Steel (Group) Corporation (JISCO), in 2010, the production value, output, revenue and profit growth of the group had reached the highest level. The annual industrial output value achieved 45.555 billion Yuan while outputs of iron, steel and materials were 6.554 million tons, 856.7 million tons and 8.8602 million tons respectively. The operation income reached 56.345 billion Yauan, the profit was 1.203 billion Yuan; the total profit and tax was 3.267 billion Yuan, and the per capita income of employees reached 50,200 Yuan, increasing by 20% on year.
At the end of the Eleventh Five-Year Plan, productions of iron, steel and materials were 1.26 times, 1,52 times, and 1.65 times higher than those of at end of the Tenth Five-Year Plan. The industrial output, operation income and the per capita income of employees increased by 260%, 325% and 190% compared with those of the Tenth Five-Year Plan.
It is reported that in 2010, the total output of pig iron from JISCO Hongxing was 6.5537 million tons, thereinto, the
headquarters produced 4.6114 million tons, in addition, YuSteel and YiSteel, both numbers of JISCO, produced 937,000 tons and 1.0053 million tons. The output of steel reached 7.7249 million tons, of which the headquarters, YuSteel and YiSteel products 4.7187 million tons, 1.0613 million tons and 1.9449 million tons respectively. The output of materials was
8.0701 million tons, of which the headquarters, YuSteel and YiSteel produced 4.7529 million tons, 1.262 million tons and
2.0552 million tons separately. Productions of iron, steel and materials made 100.98%, 108.80% and 111.47% of the annual plan.
The group announced overall plans in 2011. It strives to make the production of iron reach 8 million tons, and the steel as well as material both exceed 10 million tons, including 1.1 million tons of stainless steel. The total industrial output value
reach 53.325 billion Yuan, the operation income achieve 67 billion Yuan, the profit attain 1.55 billion Yuan, the fixed investment amount to 10.138 billion Yuan and the income of employees increase by 15%. By 2015, the group's production capacity of steel exceed 13 million tons, including 3 million tons of stainless steel. The total assets reach 1,400 billion Yuan, the industrial added value achieve above 18 billion Yuan, the operation income attain 140 billion Yuan or more, per capita income of employees rise by 100% compared with that of the Eleventh Five-Year Plan and the group enter the top 100 in the China's top 500.
