Raw Materials
ArcelorMittal expects 20% rise in ore despatches this year
07 February 2013
Steel Business Briefing
ArcelorMittal expects a 20% increase for iron ore shipments in 2013 as new projects complete in Canada, after shipments rose 5.4% to 54.4 million metric tons in 2012. Its mining operations shipped 28.8 million mt of iron ore at market prices in 2012, 2.6% up on year, the Luxembourg-based company said in an earnings statement. Projects in Canada to boost iron ore mining and concentrator capacity are set for completion in first half of this year. In Liberia, the phase 2 expansion project at its iron ore mines is earmarked for completion in 2015; this will raise production capacity to 15 million mt/year of concentrate and replace the first phase’s 4 million mt/y direct shipping operation. A new iron ore product of 66% Fe will command a premium to reference prices versus discounts on the DSO sold to date, it commented.
Coal demand-supply in balance, prices to stabilise - S&P
07 February 2013
Steel Business Briefing
The Asia Pacific region's coal market, including thermal and coking coal, is expected to stabilize in 2013 because of a more favorable demand-supply balance, ratings agency Standard & Poor's said in a report Wednesday. S&P, like Platts, is a division of The McGraw-Hill Companies. "We believe China is showing early signs of more stable steel demand, which could limit any further material downside in coking coal prices in 2013," S&P said. The steel market was weak in 2012 due to falling prices and overcapacity, S&P said. Given the overcapacity in the steel market, the upside to 2013 coking coal prices will be limited, barring significant supply disruptions due to weather-related issues, it added. S&P sees coking coal prices stabilizing in 2013 at $160-180/mt FOB Australia, and believes prices bottomed out at $140/mt in October 2012. Coking coal prices are currently around $165/mt, S&P said. "We expect the...