The Chinese steel industry is struggling to meet soaring demand from infrastructure and social housing projects, and is turning to high cost, previously shuttered, steel mills to make up the difference.
China Mining News
HONG KONG, CHINA--(Marketwire - Sept. 6, 2011) - Alexander Molyneux, President and CEO of SouthGobi Resources Ltd. (TSX:SGQ)(SEHK:1878) is pleased to announce today that the company has set a new monthly record of 441,665 tonnes of coal shipped in August, representing a substantial increase over shipping levels in the second quarter of 2011. "We have seen a continual increase this quarter in capacity being allocated by customers to collect our coal", said Mr. Molyneux. "We are pleased to see our shipping rate reach a level of approximately 5.3 million tonnes of coal per year on an annualized basis so soon, which is on track to meet our targets."
Brazilian mining giant Vale (VALE5.SA) is in talks with Chinese and other ship owners to sell or lease its planned fleet of giant bulk carriers, a Vale official told Reuters on Monday.
China's coal imports this year are expected to pull back from the record level in 2010 despite strong domestic demand, as growth in local production and transportation capacity help meet overall demand, an industry official said on Tuesday. Dong Yueying, secretary-general of China Coal Transport and Distribution Association (CCTD), told a coal conference in Beijing that he expected about 150 million tonnes of coal will be imported this year. The volume would be lower than the record 164.8 million tonnes China imported in 2010.
U.S. crude futures declined in early Asian trade on Tuesday as recession worries continue to weigh down the market, after the Chinese services sector posted its worst ever growth reading and concerns about European debt lingered.
Copper supplies are getting tighter on higher Chinese imports and copper mine strikes around the world. Decreased availability of high quality ore is also expected to support copper prices. ?Copper is getting tighter and tighter due to supply problems.
Fed up with paying high prices for iron ore, China is seeking out new supplies of the crucial steelmaking ingredient. The Australian reports that China is increasing iron ore imports from countries outside the major producing regions of Australia and Brazil to diversify supply away from the players that dominate the sector: The economic powerhouse has reported that iron ore imports from countries other than Australia, Brazil, India and South Africa had increased by up to 4 per cent in the first half of this year, compared with the same period last year.
Vale SA, the world's biggest exporter of iron ore, said that it has been in talks to engage Chinese shipping companies to haul the steelmaking material to China on its very large ore carriers under long-term contracts.
Increased bonded warehousing space in China, the largest consumer of copper and aluminum, may facilitate larger trade volumes as importers benefit from lower costs. Increased bonded warehousing space in China, the largest consumer of copper and aluminum,
Ten miners are confirmed dead in a coal mine flooding in Southwest China's Sichuan province, with two others still missing, local authorities said Saturday.
Another wave of Chinese acquisitions is expected soon as the Asian superpower seeks to diversify investments beyond the underperforming greenback, and as share price falls translate to cheaper purchases. Mergers and acquisitions consultant Andrew Thomson, a former Howard government minister, said that there had been a change of sentiment in Beijing lately and Chinese investment was expected to step up very soon.
China Shenhua Energy would install the world's biggest coal winning machine in one of its coal mines located in Shaanxi province, sources reported.
The Globe and Mail reports on Friday that MEG Energy, a small oil sands developer partly owned by China's CNOOC, has ponied up $100 million to join another Chinese state-owned firm Sinopec as financial backers of a planned pipeline from the oil sands to the northern British Columbia coast. Slowing demand in the US is adding pressure for a go-ahead on the Northern Gateway pipeline that will stretch for more than 1,100km at a cost of $5.5 billion affording Canada world prices for its oil, currently priced against heavily discounted US crude. Regulatory hearings are scheduled to start in January.
Silvercorp Metals was forced on Friday to react to an anonymous letter also sent to the Ontario Securities Commission, presumably from a shorter of the company's stock that alleges a “potential $1.3 billion accounting fraud” at the company. The firm with projects in China and Canada closed down just shy of 10% after five times the usual number of shares changed hands. It had lost as much as 14% of its value earlier in the day after the company also said someone had built up a short position of some 23 million shares over the last two months. The Vancouver company has 175 million shares outstanding and is worth $1.3 billion. Silvercorp is the latest in a string of Canadian companies with Chinese backing and operations being accused of fraud.
By Chuin-Wei Yap BEIJING -(MarketWatch)- Iron ore imports from sources outside China's four largest suppliers accounted for about a fifth of total ore imports in the first half of 2011, up 4% compared with the same period last year--challenging Australia
The increased investor interest and rebound in prices for Silver have made it the new favorites in Asian commodity exchanges. In China's Hunan Province, a new precious metals exchange focussed on silver began trading from late June while the Hong Kong Mercantile Exchange has started offering a new silver futures contract from July 22.
Delayed for several years owing to the discovery of historical artefacts at the project site, Metallurgical Corporation of China expects to start production at its Aynak copper mine by the end of 2014 Metallurgical Corp of China Ltd (MCC) , China's major
Iron ore could soon become a leading economic indicator in emerging markets such as China, since the absence of speculative froth makes the sandy steelmaking raw material a better gauge of demand than industrial metals like copper.
Every booming economy could be handicapped by one vita resource – cheap energy. It’s no different for China whose economic juggernaut is entailing a high cost in terms of energy. Coal power plants are shutting down and causing massive outages.
The Diamond Federation of Hong Kong, China Limited has announced its Executive Committee for 2011 through 2013, naming LEUNG, Sik Wah as honorary life president, MA, Y.Y. Lawrence as president and CHOW, W.S. Winston as Chairman. Other appointments
Most people don't know or care about cobalt. But, as with a number of metals we seldom hear about, we would certainly miss cobalt if it were not available for use in many cutting-edge applications. In this exclusive interview with The Critical Metals Report, Rick Mills, editor of Ahead of the Herd, talks about the supply and demand for critical metals and tells us why cobalt is the "King of Critical Metals."
The capital city will cap its annual coal consumption at 20 million tons by 2015, as part of its plan to release less carbon and further reduce air pollution, the municipal commission of development and reform said on Monday.
Chinese steel major Wuhan Iron & Steel (WISCO) and Centrex Metals have boosted the total mineral resource for their Eyre Peninsula joint venture iron operation by 200% after posting an initial resource estimate of 319.4 million tonnes.
Chinese companies and investors are stepping up commodity buys such as copper. The show of confidence stands in contrast to the turmoil in western markets.
China's 27 largest steel companies saw a 15.7% decrease in the first-half profits from a year earlier for a combined profit of $1.6 billion, according to the Shanghai-based researcher Wind Info, as soaring iron ore costs squeezed margins. The woes of China's steelmakers, which have been switching to cheaper low grade ore to cut costs as prices top $180/tonne, are in stark contrast to profits at miners. Last week results for BHP Billiton showed its iron ore division accounted for the bulk of its record $22 billion in profits. BHP, Vale and Rio Tinto – control nearly 70% of the 1 billion tonne annual iron ore seaborne trade and dominate price talks.