Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
This morning:


Chinese warned of record rise in ore price

Rio Tinto and BHP Billiton have asked their Chinese steelmaker customers to accept the largest ever increase in iron ore prices or risk the interruption of supplies from Australia.

Traders and industry officials said the mining companies have demanded price increases for their annual iron ore contracts in excess of the record 71.5 per cent rise of 2005 and were fighting for increases of 85-95 per cent.

Rio and BHP have warned their Chinese clients some annual contracts will expire next Monday and they would cease supply under the old terms. They have told them the ore would instead be sold into the spot market, where prices are higher.

The bold step indicates that the heated annual price negotiations, already well beyond their traditional conclusion date, are set to move into a hostile phase.

(...)

If Rio and BHP carry out their threat of diverting shipments into the spot market, analysts said the steelmakers would be likely to retaliate by stopping buying for as long as possible. Although China has record high iron ore inventories, the country depended heavily on imports, they said, and it would not be long before it had to cave in and buy into the spot market.

Morgan Stanley said in a report the ore market was under "unprecedented" pricing developments and . . . "remains very tight and in significant deficit".

and this afternoon:


Rio Gets at Least 80% More for Iron Ore From China's Baosteel

June 23 (Bloomberg) -- Rio Tinto Group, fending off a $171 billion hostile bid from BHP Billiton Ltd., said China's largest steelmaker will pay at least 80 percent more for iron ore, reflecting freight costs from Australia.

Rio and BHP have demanded for the first time in the Asian market a bigger gain than Brazil's Cia. Vale do Rio Doce, the world's largest exporter of the raw material, because their Australian ore costs less to ship. Chinese mills have failed to arrest six years of price increases that drove up costs.

Baosteel Group Corp. agreed to pay Rio $144.66 a metric ton for so-called Pilbara blend fines for the year started April 1, London-based Rio said today in a statement. The Shanghai-based steelmaker will also pay Rio $201.69 a ton for Pilbara blend lump, 97 percent more than a year ago.



In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Mon Jun 23rd, 2008 at 10:41:47 AM EST
The price of nickel has been a major factor in wild fluctuations in stainless steel prices.

You can't be me, I'm taken
by Sven Triloqvist on Mon Jun 23rd, 2008 at 01:48:32 PM EST
[ Parent ]
However, he [Tremonti] warned of dire political consequences unless initiatives are taken to curb the price of food and oil.

"The impoverishment of the middle classes in Europe can have only one outcome: fascism," he said.

Considering that Tremonti is a member of Forza Italia but pretty close to Lega Nord, and the fact that we're actually talking about Italy, the follow-up question is: would he disapprove of that?

Now now, yes de Gondi, I won't bash Italy anymore. Instead, I'll quote an SMS I got today from a close friend.

Arvid! Am in Bologna, never want to leave this place. The sky is light blue, the food, coffee and wine is divine, everyone is fantastically handsome, nice, and well dressed. And also leftists. We have to move here, the entire city is centered around the oldest University in the world and none of the houses inside the city wall are built after the turn of the century!


Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Jun 23rd, 2008 at 03:16:51 PM EST
[ Parent ]
Was supposed to be headlined as "Quote of the day", but whatever. Stupid me. :p

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Jun 23rd, 2008 at 03:17:43 PM EST
[ Parent ]
Is this on top of the 65 % rise in the price of iron ore that was negotioated this February? That would be impossible!

Japanese and South Korean steel mills have agreed to a 65 percent increase in iron ore prices from Brazil in the industry's first major deal for this year, which will set a benchmark for prices at a level painful for steel makers.

I guess it might be an idea to buy some more shares in that local iron mine, it's down 4 % today...

PS. Oh my God it is!

Nippon Steel said that it and Posco of South Korea had agreed to pay the Brazilian mining giant Vale $78.90 a ton for Itabira fine ore in the year starting April 1, a rise of 65 percent and the sixth annual increase in a row.
vs.
Baosteel Group Corp. agreed to pay Rio $144.66 a metric ton for so-called Pilbara blend fines for the year started April 1, London-based Rio said today in a statement. The Shanghai-based steelmaker will also pay Rio $201.69 a ton for Pilbara blend lump, 97 percent more than a year ago.

Gaaaaah!!!!! If these prices hold up, that iron mine is a veritable, eh, gold mine!

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Jun 23rd, 2008 at 03:26:17 PM EST
[ Parent ]

Display:

Occasional Series