Iron Ore Pricing

rffrydr · Posted: Mon May 22, 2006 2:49 pm Post subject: Iron Ore Pricing

Steel: inflation upon inflation: 2004 redux

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060517:MTFH76984_2006-05-17_19-56-27_N17296216&symbol=RIO.N&rpc=44

Has gone from 350/ton 600/ton since january.

rffrydr · Posted: Sun Jun 14, 2009 12:02 pm Post subject:

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rffrydr · Posted: Mon May 04, 2009 12:39 pm Post subject:

China Steel said its sales fell 22% y/y in Q1. Post a 3.3 bln yuan loss.
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rffrydr · Posted: Tue Mar 24, 2009 11:59 am Post subject:

Nothing "free" about this market then or now:

Iron ore negotiations

Published: March 24 2009 09:16 | Last updated: March 24 2009 11:16

Ask any banker about to watch a bonus vanish from his bank account: the financial crisis has not been kind on contracts. Some within the mining community want to tear them up, too.

For decades, the international trade in iron ore revolved around annual contracts negotiated between producers and steel mills, originally in war-ravaged Europe. As the focus of consumption switched to Japan (bringing an April year-end) and then China, the convention stuck. But as this year’s talks intensify, some – led by BHP Billiton – are pushing for more flexible structures, such as the one signed with Australia’s BlueScope last year, allowing them to chase higher prices in spot markets. Brokers and exchange operators, keen to lift the spot market above about 10 per cent of total volumes, are talking down contracts, too. With precious little visibility on demand, why tie yourself down?

It seems unlikely to catch on. Fixed deals, with a small degree of wiggle room on volumes, still suit most participants. The mills get security and consistency of supply; the miners get certainty on pricing. Coolness on contracts is a symptom of last year’s feverish round of negotiations, when suppliers finally netted average increases around 75 per cent – then watched as spot prices doubled those long-term benchmarks. But for much of the history of the industry, price action was nothing like as spectacular. Most mills and miners simply accepted whatever settlement was reached first. Now, as many marginal suppliers to the spot markets fall away, unable to produce above breakeven, it looks like a good time for a reversion to that mean.

This year, with most of the world’s top steel consumers mired in recession, there should be plenty more brinkmanship. Last year, Rio Tinto and BHP, locked in a takeover battle, left it until the last week of June. Amid predictions of a steep fall in prices, the big three may take as long this time. But the basic building block of the industry, the annual contract, should live on.
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rffrydr · Posted: Mon Jan 26, 2009 8:05 am Post subject:

Already well underway where miners did their utmost to restructure into last year, the spot market. China's

HenryTo · Posted: Sun Jan 25, 2009 10:07 pm Post subject:

One of the more important/exciting events to keep an eye on this year, as steelmakers try to negotiate lower steel prices this year:

http://online.wsj.com/article/SB123292095920513549.html?mod=

rffrydr · Posted: Wed Nov 19, 2008 8:17 am Post subject:

Graph of Chinese steel production:

http://seekingalpha.com/article/106770-can-central-bankers-prevent-a-great-depression?source=feed
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rffrydr · Posted: Wed Nov 05, 2008 7:53 pm Post subject:

Mittal (probably not the one to know) puts the lid on Chinese growth in earnings report.

http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article5093778.ece

rffrydr · Posted: Mon Sep 29, 2008 7:34 am Post subject:

Molten Iron is more liquid than the hard-assets thought. The line was drawn last spring with the freeze on cash purchases; now DRYS feeling the full effect:

http://www.ft.com/cms/s/0/6fa59546-8be5-11dd-8a4c-0000779fd18c.html

rffrydr · Posted: Mon Aug 04, 2008 12:52 pm Post subject:

Look how seriously China takes its steel industry:

http://www.ft.com/cms/s/0/1cfefa6c-6188-11dd-af94-000077b07658.html

SWF paranoia has it's roots.
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rffrydr · Posted: Thu Jun 26, 2008 11:05 pm Post subject:

China gets behind Brazilian sweetheart and threatens divorce with its greedy Aussie wife.

http://www.marketwatch.com/news/story/china-considering-boycott-iron-ore/story.aspx?guid=%7B16358045-BF6E-411C-889C-295F2C7FE33A%7D&dist=msr_3

Behold the iron-ore wars:

http://www.resourceinvestor.com/pebble.asp?relid=43925

Chinese confidence born of size...or need (lack of)?
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chestnutstime · Senior Poster Joined: 24 Oct 2007 Posts: 89

one of leading indicators says cautions.

HenryTo · Posted: Tue Mar 18, 2008 8:32 am Post subject:

China retaliates - pushing BHP and Rio Tinto out of the iron ore spot markets:

http://business.smh.com.au/china-locks-out-bhp-and-rio-ore/20080317-1zzz.html

rffrydr · Posted: Wed Aug 16, 2006 8:25 am Post subject:

Over capacity begins to kick in. First fall in five:

http://news.xinhuanet.com/english/2006-08/15/content_4964295.htm

rffrydr · Posted: Sun Jul 30, 2006 2:50 pm Post subject:

Going for the "high-hanging" fruit.

http://www.bloomberg.com/apps/news?pid=20601080&sid=a6v73nsgKaKQ&refer=asia
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rffrydr · Posted: Fri Jul 14, 2006 3:53 pm Post subject:

But not high enough for some.

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20060713:MTFH16745_2006-07-13_17-55-49_N13451050&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage3

It's about the "environment"!