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Brazil’s Vale sees iron ore price above $80/tonne in 2017

Brazilian miner Vale SA expects the global price of iron ore to average above $80 per tonne in 2017, on the back of increasing steel demand and a smaller rise in new production entering the market, the company’s executive director of ferrous minerals said. “2017 will be a strong year, the demand for steel is higher than 2016 and the new supply entering the market is less than in 2016,” Peter Poppinga said on a call to discuss fourth-quarter results for the world’s largest iron ore producer. Poppinga said Vale ...

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Iron Ore Hit With Reality Check as RBA Says $90s Won’t Last

Iron ore’s having a reality check on rising doubt that the exuberance that lifted prices to the highest since 2014 is entirely rational given the outlook for additional supply, the record stockpiles in China and statements of caution from some of the world’s biggest miners. Futures in China fell on Friday, with Australia’s central bank saying it expected commodity prices to weaken again, highlighting prospects for additional iron output. On the Dalian Commodity Exchange, the most-active contract retreated as much as 4.8 percent to 674 yuan ($98) a metric ton, ...

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Iron ore: from rust to riches

Iron ore prices are a few dollars short of the $100/tonne-mark, with the price of 62% iron ore grade at Qingdao port in China closing at $94/tonne on 22 February. Prices are now a fifth higher than at the start of 2017, and 83% higher than a year ago. January’s World Steel Association steel output data gives an idea why. Global crude steel production rose by 7% over a year ago, a little short of China’s growth of 7.4%. Global steel output rose by 1.7% sequentially. Click here for enlarge ...

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How Freeport’s row over its Indonesian mining contract has escalated

U.S. mining giant Freeport-McMoRan Inc warned this week that it could take the Indonesian government to arbitration and seek damages over a contractual dispute that has halted operations at the world’s second-biggest copper mine. Marking a sharp escalation in the row, the government also said it would go to arbitration if no resolution was reached. Here are some questions and answers on the contract dispute: WHAT IS AT STAKE FOR FREEPORT AND INDONESIA? Freeport’s 2016 copper sales from Indonesia were worth about $2.4 billion, up 130 percent since 1996. This ...

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Argentina lifts wheat crop to record high – but cuts corn, soy area hopes

Argentine officials hiked their estimate for the newly-finished wheat harvest to a record high, even as they warned over the loss of some soybean crops to floods – although market expectations for the harvest are recovering. Argentina’s farm ministry lifted by 1.89m tonnes to 18.39m tonnes its estimate for wheat production – a rise of more than 7.0m tonnes year on year – citing survey results which showed sowings had reached 6.36m hectares. That was far higher than the previous estimate of 5.34m hectares, and returned sowings to levels that ...

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Coking Coal Futures On Fire!

Coking coal futures have reached an inflection point and investors and physical market trad− ers alike are waking up to the potential for hedging and trading in a market that contin− ues to show impressive growth. The 5bn tonnes of futures traded on the Da− lian Exchange’s coking coal contract in 2016 have already had far−reaching effects on do− mestic physical trade. More and more players are now recognizing the need to pay atten− tion to coking coal futures and apply a more technical approach to analysing price action in ...

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China iron ore tumbles 5 pct after speedy rally, steel falls too

China’s iron ore futures slid nearly 5 percent on Friday and were headed for a weekly loss after a rapid rally underpinned by expectations that strong infrastructure spending would spur steel demand in the world’s top consumer. The fall pulled iron ore futures further away from a record high reached earlier in the week, and should similarly drag down spot prices, which have climbed to multi-year highs near $100 a tonne. The most-traded iron ore on the Dalian Commodity Exchange was down 4.9 percent at 681 yuan ($99) a tonne, ...

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Latin America: Annual finished steel production and consumption drop 5% and 8% during 2016

The figures of production, consumption and trade from 2016 closed with a downgrade, which is a picture from the Latin American steel industry. The finished steel consumption decreased 8% and the production of crude and finished steel fell 10% and 5% y-o-y., respectively, vs 2015. On the other hand, 2017 should be a year of recovery. Meanwhile, regional steel imports represents 32% of Latin-American consumption, 2 points lower than in 2015 (34%). The trade balance of the region remains negative, despite that in 2016 the deficit in tons decreased 23% ...

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China iron ore concentrates price rises 11.5% on week, hit 30-month high

The Chinese domestic price of iron ore concentrates surged over the week by Yuan 85/dry mt ($12.40/dmt), or 11.5%, to a 30-month high, mirroring fresh highs for domestic billet and imported iron ore, market sources said Friday. Domestic 66%-Fe ore concentrate delivered to steel mills in Tangshan in the northern Hebei province reached Yuan 820-830/dmt Friday from Yuan 730-750/dmt a week ago, both inclusive of 17% VAT. “We raised our sales price to Yuan 820/mt this week on noting that both domestic billet and imported iron ore prices hit multi-month ...

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Nickel demand exceeded supply by around 100,000 mt in 2016: Glencore

Global nickel consumption exceeded supply by around 100,000 mt in 2016, Glencore said in its preliminary annual results statement. “Nickel supply continued to fall in 2016 with further shutdowns (BCL, Tati, Votorantim, Mirabella), and lower nickel unit exports (in ore) from the Philippines all driving a fall in projected nickel output to approximately 1.95 million mt of nickel, down 2% versus 2015,” the Switzerland-based commodities group said. “Overall we estimate primary nickel demand in 2016 of 2.05 million mt,” representing an increase of around 8% versus 2015, the company added. ...

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Australia’s GrainCorp expects profit to double on back of bumper crop

Australia’s largest listed bulk grain handler, GrainCorp Ltd, said on Friday it expects profits to more than double in 2017 due to a bumper wheat crop. The company, which had previously forecast growth without giving details, said in a statement it expected underlying net profit for 2017 of A$130 million to A$160 million ($100-123 million) compared with A$53 million for 2016. The 2016/17 season, just harvested, marks Australia’s largest-ever wheat crop, with output of 35.13 million tonnes surpassing a previous record in the 2011/12 season and helping to push benchmark ...

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Coal India’s Australian shopping to cost over $1 billion; why does it want to spend so much?

India’s near monopoly coal producer state-run Coal India Ltd is learned to be considering buying coal assets in Australia for over $1 billion. It will raise debt to fund the acquisition, BTVi reported. Inter Ministerial Group, inter ministerial panel, Tilaiya UMPP, UMPP, Reliance power, PFC, bank guarantee Coal India Ltd has been scouting coal reserves, particularly coking coal reserves abroad in order to secure supplies to meet domestic demand. (Image: Reuters) Coal India is learned to be considering buying coal assets in Australia for over $1 billion, BTVi news reported ...

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Soybeans rebound from 6-week low, set for 2nd weekly loss

U.S. soybeans edged higher on Friday after earlier hitting a six-week low as ample global supplies pushed the oilseed towards two-week losses of nearly 5 percent. Wheat edged lower but was set to finish the week up 2.5 percent, while corn was flat. The most active soybean futures on the Chicago Board Of Trade rose 0.1 percent to $10.12-1/2 per bushel, after hitting a six-week low of $10.09-1/2 a bushel earlier in the session. “The news flow of late has turned decidedly more bearish. The U.S. will end season 2016 ...

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Manganese ore prices to China remain sickly despite healthier steel margins

While steel prices have been healthy, market sources say manganese ore prices to China will continue to be sickly until steel production increases. S&P Global Platts assessed 44% ores flat from last week at $4.60/dmtu CIF Tianjin Friday, as buyers awaited new offers from high grade ore producers. 37% manganese ores slipped to $3.20/dmtu CIF China Friday from $3.50/dmtu CIF China last week as new offers emerged. Chinese traders and end users said they heard a range of offers for South African 37% ore at $3-$3.30/dmtu CIF China. Two traders ...

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IGC forecasts record grains output in 2016-17

The International Grains Council (IGC) on Feb. 23 raised its forecast for total grains production to 2.102 billion tonnes, up from 2.094 billion tonnes in January, and up from 2.006 billion in 2015-16. If realized, it would be the first time output has exceeded 2.1 billion tonnes, the IGC said. Total consumption was raised to 2.069 billion tonnes from 2.062 billion tonnes. “Australia accounts for much of this month’s adjustment, including record harvests of wheat and barley, while prospects for maize (corn) improved in South America,” the IGC noted in ...

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