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Major Events In January 2005 Over Ferrous Raw Materials (1)
Jan. 6:

<'Response to potential changes': JISF Chairman Mr. Mimura emphasizes in his new year speech>
Akio MIMURA, chairman of The Japan Iron and Steel Federation (JISF), proposed, at a New Year's party held January 5 in Tokyo, four missions to be pursued in the new 2005: (1) harmonious development of international steel trade, (2) engagement with global warming, (3) timely and appropriate response to raw material price increments, and (4) reinforcement of safety and disaster preventive measures. He emphasized it is essential to bravely face up to potential changes so as to bring a sound structure to the iron and steel industry.

<2005 round iron ore price talks to restart Jan. 12>
Negotiations for 2005 round iron ore prices have been scheduled to restart January 12. While no concrete price up figures were dealt with in the preceding talks held in December, there was reportedly an indication of a massive price increase of more than $10 per ton, bringing about a sentiment that heated and tough negotiations would take place on Jan. 12 onward.

<Monthly average LME nickel prices turn down in Nov/Dec>
Monthly average nickel prices on the LME turned down in December 2004. With unit price set on cash dealed nickel at $13,775.71 / ton (or $6.248 / lb.), a price fall took place in two consecutive months of November and December. However, three-month futures maintained the order of $15,000 at $15,195 / ton (or $6.892 / lb.)

Jan. 7:

<Luscar Energy Partnership to expand coal production>
Canada's largest coal producer Luscar Energy Partnership announced it would double coal production at its Coal Valley mine, Alberta, to 4 million tons a year by the second quarter of 2006. Luscar Energy is producing thermal coal at a combined total of 39 million tons from ten coal mines across Alberta and Saskatchewan states.

Jan. 12:

<HR coil market prices turn upward>
Hot-rolled coil prices in the US market have bottomed up. After peaking at $800 / ton in September 2004, HR coil market had been tracing a downward curve before it recovered the level of $700 / ton, up around $20 / ton, upon arrival of new year. Market sources maintain that this trend will gain further momentum. US steel mills such as ISG have been proposing to increase $50 / ton on the coil from January shipments.

<Two new large bulkers completed for "K" Line Group>
Two new Capesize bulkers ordered by Kawasaki Kisen Kaisha group have been successively completed. The Cape Rosa (203,000 dwt) ordered from Universal Shipbuilding was completed January 6. It is the first Setouchi-max type bulker in a series of 200,000-dwt class ones ordered by the company and will engage in the transport of iron ore and coal from Australia to Japan (Nippon Steel Corp). On the following 7th another Capesize vessel "Cape Riviera"(185,000 dwt) ordered from Kawasaki Shipbuilding was completed for "K" Line (Europe) Ltd. This ship will be assigned to the transport of ferrous raw materials for European steel mills.

<Ivanhoe Mines to list common shares on NYSE>
Ivanhoe Mines, a singapore-based resources company advancing pellet businesses in Tasmania, Australia, announced it would list its common shares on the New York Stock Exchange (NYSE) January 18 under the ticker symbol "IVN". The company affirms it will not issue new shares at the listing, but will voluntarily remove its shares from NASDAQ, concurrently.

<Cleveland-Cliffs makes takeover bid to Portman, Australia>
US Cleveland-Cliffs (CLF) launched an off-market cash takeover offer January 12 for all the shares in Portman Limited. Portman's board of directors has declared acceptance of this offer. Purchase value was offered at A$605 million (US$465 million). The TOB action was taken as part of CLF's global business policy. CLF is one of the pioneers in developing iron ore resources in Australia. It withdrew its participation in the management of Australian ore development businesses in 1986. It will be for the first time in 19 years that the company comes back to Australia.

<Arbitration over Hope Downs rules its decision; Kumba to appeal against>
The arbitration between Hancock Prospecting and Kumba Resources over "Hope Downs Project" to develop Marra Mamba iron ore in the Pilbara, Western Australia ruled December 21 in favor of Hancock Prospecting. Its directors are confident that the strong award of the eminent arbitrators will be maintained against the appeal against the ruling by Kumba Resources which was notified South African Stock Exchange January 12.
last modified : Fri 25 Feb, 2005 [10:09]
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