Find below the iron ore price table for October 28, 2013:
So it’s all red, finally. Dalian futures are now pricing around $125 benchmark equivalent in six months. The Singapore 12 month swap has proven its false signal. Rebar futures bounced a little on the day.
Spot finally gave way:
The key range is just above $131, which I expect it to break shortly and then we’ll see some decent falls. I’ll stick with a $115-120 bottom before a rise into year end. One reason for no lower is rebar appears to be holding:
Chinese production is weakening with the seasonal pulse but pricing power is not as weak as mid year.
Not much news to report but this is interesting:
UK-based company London Mining has won a 30-year licence to build and operate a giant iron ore mine in Greenland.
According to Greenland’s industry minister, it was the largest commercial project in the history of the autonomous Danish territory.
The company plans to seek investment partners for the multi-billion dollar project.
According to some opponents, the open-cast mine would cause environmental damage; while the plans to bring in around 3,000 Chinese workers have raised concerns in some quarters.
The company said in a statement on its website that the annual production at the mine was expected at 15 million tons of “very high quality iron ore concentrate to the global steel industry”.London Mining, in a report from June 2010, said it had “identified significant economies of scale, and the involvement of Chinese construction groups is anticipated to deliver significant cost savings”.
…Admitting that financing could be challenging, CEO Graeme Hossie said in a statement , “Although new projects in iron ore currently do face funding challenges, we believe Isua’s high quality product segment will become increasingly important to steelmakers to balance the growth in lower quality iron ore supply and the increasing importance of pellets in the evolving iron ore market.”
You call that huge? If it goes ahead then Roy Hill should be a doddle, unless the Chinese deliberately fund alternative supply.
