Iron ore market is warming trend - iron ore, steel - iron and steel industry

China Suppliers


Complex as China's steel production enterprises, Iron ore Renewed warming trend in the market.





2009 1 8 , FMG (FortescueMetalsGroup, the Australian Stock Exchange code: FMG) announced in December 2008 iron ore sales hit a new record: in December to reach 2.6 million tons of iron ore output for So far the highest single-month sales of iron ore. Since May 2008 the first ship FMG iron ore sales to China since the company has accumulated now exported 14.8 million tons of high quality iron ore.
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FMG is Australia's emerging iron ore producer, currently 100% of iron ore sold to China.





Another iron ore producer Murchison Metals Ltd (MurchisonMetalLimited, the Australian Stock Exchange code: MMX) are January 7, 2009 that, due to the dramatic fall in iron ore stocks and spot prices from the low point gradually rose, the company's order book to its customers in Asia there is a clear improvement.





Previously, the world's third largest mining company Rio Tinto (RioTinto) has fully restored its Australian Pilbara (Pilbara) region of the iron ore production and operations.





2008 11 months, iron ore demand from China decreased gave its major iron ore producers should cut rush. The world's second largest mining company CVRD (Vale) and Rio Tinto were cut 30 million tons and 17 million tons, and massive layoffs. Some small-scale mining companies have much less than the price of cheap long co-disposal of the backlog of mining iron ore in exchange for cash flow.





Advisory body under the iron and steel, "the joint metal" of statistical data, to the end of December 2008, 19 coastal ports in China's iron ore stockpiles close to 74 million tons by the early November had fallen to a high 60.9 million tons, down nearly 18 %, iron ore port pressure pressure reduced significantly.





The same time, the Indian spot ore prices have also firmed nearly two months and gradually. "Joint metal" DU Wei told analysts, "Finance" press, the Indian spot ore prices in May 2008 to nearly 200 U.S. dollars once higher / t, but then in October 2008 from 150 U.S. dollars / ton dropped to less than 70 U.S. dollars / ton. Since November 2008 the Indian spot ore prices began to rebound, the current price of nearly 85 U.S. dollars / ton, basic and Brazilian ore prices were flat, but still lower than the price of Australian ore a long association.





Iron ore market rebound makes ongoing Iron ore talks More difficult. In the second half of 2008 the Chinese steel industry faced the "winter", the future Iron ore price Decline has become the industry consensus. China Steel Association, said the public can not accept a long association mining prices dropped only 20% or 30%.





"Iron ore talks still depends on the outcome of negotiations. At present, China stressed that China's crude steel output in 2009 will maintain the previous year's level, which means that no new iron ore demand. At the same time present a long association mining stock prices are still higher than mine. This will be China's iron ore negotiations, the two chips. "DU Wei to" financial, "told reporters.





Research institutions "My steel net" that China's crude steel output in 2002 to 2007 has maintained an average annual growth of 21.8%. But the financial crisis and economic downturn of the double drag, the high growth ceased suddenly in 2008. Estimated annual crude steel production in 2008 was 500 million tons, only 2.2% more than last year, while in 2009 China's steel industry will show high productivity, low demand, low production, low boom.