"Crude-steel demand in Japan, Asia's largest economy,
will probably rise to an almost 35-year high this quarter, the government said yesterday.
Nippon Steel last month raised contract prices of steel plate for domestic shipbuilders and machinery makers by about 40 percent to a record."
Japan imports 20% of IO from Brazil, and the rest from
India and Australia.
Demand is more than supply.
have fun!
-------bloomberg--------
Rio Wins 97% Ore Price Increase From Asia Steel Mills (Update4)
By Rebecca Keenan and Sungwoo Park
Enlarge Image/Details
July 1 (Bloomberg) -- Rio Tinto Group, the world's second- largest iron ore exporter, won price increases of as much
as 97 percent from Asian steelmakers, fueling inflation concern and adding pressure on BHP Billiton Ltd. to settle contracts.
The agreements for the 12 months that began April 1 match prices agreed on June 23 with Baosteel Group Corp., China's biggest mill, the London-based company said today in a statement.
Iron ore prices have gained almost fourfold since 2001 to a record, raising costs for mills such as South Korea's Posco and stoking inflation in Asia. BHP Billiton Ltd., the third-largest exporter of the ore, hasn't concluded price talks.
``BHP are holding out for an even higher price,'' said Peter Rudd, a Melbourne-based analyst at Carrol, Pike & Piercy Pty. ``I'd be looking for something a bit better for BHP.''
Rio dropped 245 pence, or 4.1 percent, to close at 5,764 pence on the London Stock Exchange. BHP declined 4.1 percent to 1,841 pence. Both stocks close higher in Sydney earlier.
BHP hasn't yet settled iron ore prices, spokeswoman Samantha Evans said today by phone from Melbourne. Posco, Asia's third-biggest steelmaker, agreed to pay Rio as much as 97 percent more for iron ore this year, spokeswoman Ko Min Jin said today.
Posco closed unchanged at 544,000 won in Seoul trading today.
Nippon Steel Corp., the world's second-biggest steelmaker, fell 2.4 percent to close at 561 yen on the Tokyo Stock Exchange. JFE dropped 3 percent to 5,190 yen and Sumitomo Metal Industries Ltd., Japan's third-biggest mill, gained 0.4 percent to 469 yen.
Japan Demand
Crude-steel demand in Japan, Asia's largest economy, will probably rise to an almost 35-year high this quarter, the government said yesterday. Nippon Steel last month raised contract prices of steel plate for domestic shipbuilders
and machinery makers by about 40 percent to a record.
``These agreements are a strong endorsement of the settlement reached last week and reflect the very strong demand for our products across the world's fastest-growing markets,'' Sam Walsh, Rio's iron ore chief executive, said in the statement.
Rio is increasing production from its Pilbara operations in Western Australia to 320 million metric tons a year by 2012 and has a target beyond that of 420 million tons a year, the company said. It produced 145 million tons last year from the mines.
Vale Return?
BHP, the world's largest mining company, said June 24 that the prices agreed by Rio are too small to cover extra shipping costs. Chinese mills, the world's largest consumers of the ore, will resist any attempt by BHP to win a larger price than agreed to with Rio, an official familiar with the talks said June 25.
The price rise won by Rio is higher than the 65 percent to 71 percent increase agreed to in February by Cia. Vale do Rio Doce, the world's biggest iron-ore producer.
``Given Rio and BHP are both Australian suppliers, BHP is also likely to settle its iron ore deals at a similar level to Rio's,'' Lee Won Jae, a steel analyst with SK Securities Co., said from Seoul by phone. ``Of more concern to steelmakers is whether Vale comes back to ask for more.''
Central banks in Asia are battling to control price pressures, with Indonesia, India, Taiwan and the Philippines all raising interest rates in the past month.
Energy and raw- material prices have risen too fast and inflation pressures were continuing to build, China's central bank said last month.
Inflation Concern
``Rising raw material prices including iron ore are directly fuelling concerns about inflation,'' said SK Securities' Lee, who couldn't rule out further increases by Posco in product prices. ``The impact is significant, with gains in steel prices pushing up costs for builders, automakers and other industries.''
Inflation in Korea will accelerate to the fastest pace in a decade, propelled by record fuel and food prices, the Bank of Korea said today. Slower growth is likely to prevent the Bank of Japan from raising its key interest rate from 0.5 percent this year, even as inflation runs at the fastest pace in a decade, according to economists surveyed by Bloomberg News.
Inflation is being fueled in part by higher prices for steel.
To contact the reporters on this story: Rebecca Keenan in Melbourne at [email protected]; Sungwoo Park in Seoul at [email protected]
Last Updated: July 1, 2008 12:31 EDT
http://www.bloomberg.com/apps/news?pid=20601081&sid=amL7NXgRktwk&refer=australia
- Forums
- ASX - By Stock
- japan and korea plus china demands
"Crude-steel demand in Japan, Asia's largest economy, will...
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add RHK (ASX) to my watchlist
|
|||||
Last
87.0¢ |
Change
0.020(2.35%) |
Mkt cap ! $173.8M |
Open | High | Low | Value | Volume |
86.5¢ | 87.0¢ | 86.5¢ | $1.924K | 2.224K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 1316 | 76.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
87.0¢ | 6412 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 1316 | 0.760 |
1 | 25 | 0.740 |
1 | 20000 | 0.660 |
1 | 10000 | 0.650 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.870 | 6412 | 1 |
0.885 | 3999 | 1 |
0.890 | 9868 | 2 |
0.910 | 20000 | 1 |
0.950 | 915 | 1 |
Last trade - 12.52pm 12/09/2024 (20 minute delay) ? |
Featured News
RHK (ASX) Chart |