Korea Zinc plans 10-for-1 stock split
Rival Young Poong and private equity firm MBK Partners have been trying to take over the world's biggest zinc refiner.
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.
Reuters quotes a Shanghai trader who sells Indian cargoes to Chinese mills as saying that there’s absolutely no weakening in the market, especially for low grade ore and that higher grade Indian material is likely to cross $190 a tonne soon.
India is curbing iron ore exports to stimulate its own steel industry. Monsoon rains have virtually halted iron ore shipments from India’s west coast and eastern areas are suffering from congested ports and other logistics problems, traders said. High grade iron ore – 62% iron content – rose 25 cents to $180.50 a tonne on Monday, the highest since May 16, according to Platts data.
China Daily reports tight monetary policy, as well as the weak demand from downstream industries such as real estate and autos, will add to the financial pressure of the steel industry, analysts said.
Bloomberg reports China’s auto sales have slowed this year after surging 32% in 2010 to a record, as the government phased out incentives and imposed purchase restrictions to curb traffic.
MINING.com reported last week New York brokerage GFI’s announcement that it now offers on-screen iron ore swap trading is the latest indication that the economics of the world’s foremost dry bulk commodity are being changed fundamentally. Started in 2008, derivatives trading in iron ore is up fourfold this year after setting a record in July as investment banks enter the massive market in numbers.
2 Comments
Dinleymines
I have stock piles of low grade iron ores sitting at the mine in the Philippines, 45-60% I heard china ports now refuse entry for lower grades of 60% fe. f their are mill with import license for lower than 60% please let me know. [email protected]
GUILLERMO BASUALTO
We have a mine in Chile. Around 15 million tons, good quality. Close to port.
We are looking for capital partnership