Iron Ore
Beijing’s pressure on iron ore prices runs in parallel with moves to build financial infrastructure capable of supporting non-dollar settlement.
The record Q1 production was mainly on the back of higher hematite shipments.
Iron soared from around $90/tonne in 2020 to a record $220/tonne in mid-2021, as COVID stimulus, supply bottlenecks, and restocking collided.
A surge in iron ore shipments, especially from Brazil, is putting pressure on prices just as China’s steel demand pulls back in the second half of the year.
The tax rate stands well below the usual 35% rate and also less than half of the 30% paid by major firms.
Iron ore’s recent rally has more to do with forecasts and short-term sentiment than with solid growth in steel demand.
The underlying EBITDA dropped 26% to $7.9-billion, with an EBITDA margin of 51%.
The contract hit its highest since August 14 at 788 yuan earlier in the session.
The notice issued to the union states that it now proposes to discuss with the unions the potential closure of the mine.
Westpac also believes rising inventories of steel products and extreme weather conditions will continue to dampen construction activity and demand for iron ore.
According to statistics, the export volumes were up by 4.7% upon comparison with the prior month.
According to presenters at the briefing, runoff from the mines has destroyed downstream farmland and contaminated streams that communities use for drinking and bathing.
The year-to-date iron ore trade stands at 16.6m lt, a decrease of 16.1% compared to the same period last year.
The Three Gorges Dam is currently the world's largest capacity hydroelectric power station.
That beat a Visible Alpha consensus estimate of 75.90 Mt.
Among other things, increased demand from the Chinese construction sector is likely to have contributed to these iron ore price increases.
The copper equivalent production rose 13% in Q2 over the corresponding quarter a year before.
The second phase of the project, which will expand export capacity to 30 million tons per annum, could require up to $900 million in additional infrastructure investment.
The overall picture that emerges for the seaborne iron ore market is that the stability of recent months is built around China's appetite for imports dropping only slightly.
Gelado’s output is set to reach around 5 million tons next year and 6 million tons in 2027, according to the firm.
Ore mined at the two sites will be transported to Hope Downs 1 for processing, with first ore from the deposits and associated infrastructure scheduled for 2027.
In January-May, imports of raw materials decreased by 5.2% year-on-year – to 486.41 million tons.
China's crude steel output slid 6.9% from a year earlier to 86.55 million tons in May, data from the National Bureau of Statistics (NBS) showed.
Stausholm emphasized that partnerships with Chinese companies, universities, governments and industries are fundamental to the existence of global mining companies.
The mine, a 54:46 joint venture between Rio and Baowu, will add up to 25-million tonnes a year of new capacity and is part of a portfolio of replacement projects.