Saturday, November 14, 2009

India’s Cash Iron-Ore Price for China May Rise as Supplies Fall


IRONORE price hike may benefit SESAGOA but many Indian STEEL producers may face pressure on margin due to high ORE price and closure of 69Mines in Orissa.

Nov. 13 (Bloomberg) -- India’s iron-ore price for cash sales to China may rise about 4 percent this month as supplies shrink from one of India’s biggest producing states following a government directive to mines to halt work.

Prices may climb to $110 a metric ton by the end of November from $106 a ton at present, R.K. Sharma, secretary general of the Federation of Indian Mineral Industries, said today. The government of Orissa, which exports about 13 percent of India’s ore, issued notices to 69 companies, including ore mines, because of environment concerns, Ashok Mohadeo Rao Dalwai, the state government’s steel and mines secretary, said today.

Total iron ore imports by China, the world’s biggest buyer, rose 37 percent to 514.8 million tons in the first 10 months of 2009 from a year earlier, the customs office said on Nov. 11.

Cash prices for Indian 63.5 percent benchmark iron ore exported to China rose above $100 a ton this week on higher freight costs, increased Chinese demand and disruptions to Indian supply, Commonwealth Bank of Australia said yesterday.

“Imported fines prices could hold these levels or increase further in the short term if India’s authorities continue their clampdown on licenses and permits in the iron ore export sector,” Commonwealth Bank analysts David Moore and Lachlan Shaw said in a report.

The Orissa government is inspecting all the mining companies in the state for forest and environment violations, Dalwai said. More iron ore miners in Orissa may lower production following the scrutiny, Sharma said today.

Steel Plant Information

Plant capacity data and analysis from James King

World's Largest Iron Ore Producers, early 2009
Company
Base
Capacity
mt/yr

CVRD Group
Brazil
323.8
Rio Tinto Group
UK
209.3
BHP Billiton Group
Australia
151.6
Mittal Arcelor
UK
74.6
Privat Intertrading
Ukraine
46.0
Metalloinvest
Russia
44.1
Metinvest Holding
Ukraine
38.6
Anshan Iron & Steel
China
37.0
Evrazholding
Russia
36.5
Cleveland Cliffs
USA
34.8
LKAB
Sweden
32.0
CVG Group
Venezuela
30.7
Anglo American
South Africa
30.6
Imidro Group
Iran
29.4
CSN Group
Brazil
27.6
Shougang Beijing Group
China
25.5
NMDC Group
India
24.6
US Steel
USA
20.7
ENRC - Eurasian Natural Resources
Kazakhstan
19.4
Severstal
Russia
17.3
Total capacity

1615.5





World's Largest Flat Product Producers, early 2009

Company
Base
Capacity
mt/yr

Mittal Arcelor
UK
103.1
US Steel Group
USA
31.6
Nippon Steel
Japan
29.9
JFE Steel Group
Japan
29.7
Posco Group
Korea
25.6
Shanghai Baosteel Group
China
20.1
Thyssen Krupp Stahl
Germany
18.2
Tata Corus Group
India
16.6
China Steel Group
Taiwan
12.7
Riva Group
Italy
12.0
Magnitogorsk (MMK)
Russia
11.6
Nucor Group
USA
10.1
Severstal
Russia
9.8
Wuhan
China
9.6
AK Steel
USA
9.0
Anshan Iron & Steel
China
8.5
NLMK
Russia
8.5
Usiminas Group
Brazil
7.9
Ternium
Mexico
7.8
SAIL
India
7.5
Total
World
620.0



World's Largest Steel Long Product Producers, early 2009

Company
Base
Capacity
mt/yr

Mittal Arcelor
UK
47.3
Gerdau Group
Brazil
19.5
Evrazholding
Russia
14.7
Tata Corus
India
10.7
Nippon Steel
Japan
10.5
Industrial Union of Donbass
Ukraine
10.1
JFE Steel Group
Japan
9.5
Nucor Group
USA
8.9
Riva Group
Italy
8.6
Celsa Group
Spain
8.2
Tangshan
China
7.0
Hyundai Group
Korea
6.7
Severstal Group
Russia
6.6
Shougang Beijing
China
6.5
Sumitomo Group
Japan
5.8
Imidro Group
Iran
5.6
Shanghai Baosteel
China
5.5
Pingxiang
China
4.6
Techint Group
Italy
4.4
Baotou Iron and Steel
China
4.4
Total
World
595.8







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