the price os steels will be increased by iron ore

source: China Trade Remedy Information
publisher: Daniel
time: 2014-01-07
Summary: Our cost of production will have to increase, so the intention of customers to place orders as soon as possible

According to the Nihon Keizai Shimbun reported that the large resource companies began to increase iron ore again. Taking into account the expected increase in demand for the country's largest export volume in China, the Anglo-Australian Rio Tinto's Australian-British joint venture of BHP Billiton and other large enterprises plan to increase capacity. Resources giant order in case of falling prices can also be profitable, make an inventory of existing equipment by positive measures to control production costs, adjust the production system.

Rio Tinto plans before the 2017 annual iron ore in Western Australia's Pilbara region to improve from the current 237 million tons to 3.5 million tons. Iron ore production capacity increased by 50% than in 2012. BHP will also take rubbings fiscal year iron ore production in Western Australia increased to 212 million tons from the 2012 fiscal year (ending June 2013) of 187 million tons. Australia's major iron ore company FMG Group plan before March 2014, the annual export volume of iron ore increased from fiscal year 2012 (ending June 2013) of 80.9 million tons to 155 million tons. The world's largest iron ore company CVRD plans to raise output in 2014 from 2013's 306 million tons to 312 million tons.

Affected by factors such as economic slowdown in China , in September 2012 iron ore prices have fallen below $ 90 / t , but now has been restored to 135 U.S. dollars / ton. Rio Tinto and BHP Billiton in 2013 in the third quarter ( July to September ) yields hit a single quarter record.

Rio Tinto CEO Sam Walsh said, "will achieve low-cost strategy to expand production capacity ." The company is to improve the supply capacity through a variety of initiatives . For example, truck transport iron ore per weight 0.8 tons , in order to improve transport efficiency. Rio Tinto's expansion plans will be available as a pillar mines . silver grass mine development plans postponed to the third quarter of 2014 . On the other hand , investment in equipment in 2014 will amount from 2013 's $ 14 billion down to $ 11 billion , in 2015 further reduced to $ 8 billion .

Increase development costs incurred , the Rio Tinto at $ 120-130 per tonne , BHP Billiton will seek reduced to less than $ 100 . Industry -related parties, when the rise of resource development boom a few years ago , the development costs of up to $ 300 / ton. In the future, large-scale resources to enhance the competitiveness of enterprises , while Chinese demand trends observed increase while constructing the system .

Our cost of production will have to increase, so the intention of customers to place orders as soon as possible.

The SINO EAST STEEL welcome to you at anytime.

Previous:The steel industry market will recovery in this year

Next:Australia to terminate galvanized sheet and galvanized aluminum mid-term review of anti-dumping and anti-subsidy investigations to China