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chinese steel export ban could cut the iron ore price and hurt australia

chinese steel export ban could cut the iron ore price and hurt australia

UBS published its commodity-price control proposals after last weeks spectacular rise and fall in the price of iron ore which hit an all-time record high of $233 a ton on Wednesday before dropping back to $205/t.

Australia, which supplies an estimated 60% of Chinas imported iron ore has been the major beneficiary of the price rise despite an intensifying war of words and trade bans applied by China on a range of agricultural products such as barley and seafood.

A shortfall in Brazilian iron ore exports has applied extra pressure on the price which had been expected to fall this year but has surged higher, partly because Chinese steel mills have been building stockpiles of the material in case they are ordered to reduce purchases from Australia.

Another investment bank, Morgan Stanley said the catalyst for last weeks record high iron ore price was an announcement that China had suspended indefinitely all activities under the framework of the China-Australian Strategic Economic Dialogue.

China steel demand is strong and inventories are following seasonal patterns but in our view China steel prices are being pulled up by record international steel prices and export premiums, UBS said.

The bank said that in April, Chinese finished steel exports rose to the highest level since 2016, adding that high steel prices had incentivized record steel output despite restrictions in Tangshan and, in turn, strong demand for iron ore.

The bank did not name Australia in its suggestions for steel exports and reduced iron ore demand but it didnt have to because of the dominant position Australia has an iron ore supplier and the potential appeal of ratcheting up pressure on its trade target.

I studied geology in the 1960s and worked for a small mining company before getting a start in journalism during the 1969 nickel boom. Since then I've covered repeated booms and busts in the commodities sector for a passing parade of newspapers, magazines and website. I am also a regular contributor to radio and television news services in Australia.

I studied geology in the 1960s and worked for a small mining company before getting a start in journalism during the 1969 nickel boom. Since then I've covered repeated booms and busts in the commodities sector for a passing parade of newspapers, magazines and website. I am also a regular contributor to radio and television news services in Australia.

iron-ore prices may have peaked. sell rio tinto stock, ubs says. | barron's

iron-ore prices may have peaked. sell rio tinto stock, ubs says. | barron's

Iron-ore prices have surged from $80 a metric ton in 2019 to $220, but analysts led by Myles Allsop said prices could fall 50%. The supply disruption in Brazil, first caused by the Brumadinho dam disaster and then exacerbated by the Covid-19 pandemic, is being unwound, they said. China is looking to deflate commodity prices, including steel, by selling domestic reserves and by pressing commodity players not to drive up prices. Furthermore, the analysts said, iron-ore inventories in China are climbing.

Longer term, the analysts said latent capacity from the majors including Vale, Rio Tinto, FMG and BHP will further boost supplies. China also is proposing using more steep scrap, and the development of a trans-Guinean rail line is set to make Guinea a major exporter of iron ore by the end of the decade.

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energy insider: iron ore futures tumble after regulatory probe - caixin global

energy insider: iron ore futures tumble after regulatory probe - caixin global

In todays Caixin energy news wrap: Chinese regulators announce probe of iron ore spot market in crackdown on hoarding and speculation; Tianqi Lithium completes sale of stake in worlds largest hard-rock lithium mine; Ganfeng Lithium raises $631 million in Hong Kong private placement.

Benchmark iron ore futures in China tumbled for a second straight session Tuesday after regulators launched a spot market probe and pledged to crack down on hoarding and speculation. The National Development and Reform Commission (NDRC) said Monday that it joined the state market watchdog to inspect the spot market at the Beijing Iron Ore Trading Center. The regulators vowed to closely monitor prices and investigate malicious speculation. The most-traded iron ore contract on the Dalian Commodity Exchange dropped as much as 5.2% to 1,110 yuan ($171.75) a ton Tuesday, following a 9% decline Monday.

Syngenta Group Co., the agriculture giant owned by China National Chemical Corp., took a step toward a possible initial public offering on the Shanghai Stock Exchanges Nasdaq-like STAR Market. Swiss-based Syngenta started the so-called tutoring process with investment banks for the planned offering, the company said Monday in a statement. Syngenta could be valued at as much as $60 billion, Bloomberg reported.

Chinas Tianqi Lithium Corp. said the sale of part of its stake in the worlds largest hard-rock lithium mine to Australias IGO Ltd. will be completed by the end of June. The Australian nickel and gold miner in December agreed to buy 49% of Tianqi Lithium Energy Australia, a wholly owned subsidiary of Tianqi Lithium, for $1.4 billion. The deal will give IGO 24.99% ownership in the Greenbushes lithium mine and a 49% holding in Tianqis Kwinana lithium processing plant, both in Western Australia.

China Railway Construction Heavy Industry Co. Ltd. (688425.SH) debuted on the Nasdaq-like STAR Market in Shanghai Tuesday in a 3.7 billion yuan ($572 million) initial public offering. A spin-off of China Railway Construction Corp. Ltd. (601186.SH), the company is mainly engaged in design, R&D, manufacturing, sales, leasing and services of roadheader, rail transit and other specialized equipment.

Ganfeng Lithium Co., Ltd. (002460.SZ) said it completed a private share placement of 480.44 million H-shares to at least six investors at a price of HK$101.35 ($13.10) per share. The company raised about HK$4.854 billion ($631 million) in the offering, 80% of which is planned for use in overseas capacity expansion of lithium projects in the next one to two years. Potential investments in lithium resources may involve ore, brine and lithium clay.

The No. 14 generating unit of Baihetan Hydropower Station in China, known as the world's first 1 million kilowatt capacity hydro-generator unit, started operation Monday. Baihetan, in southwest Chinas Yunnan province, is the world's second-largest after the Three Gorges Dam. The station, with a total installed capacity of 16 million kilowatts, is expected to generate more than 62 billion kilowatt-hours of electricity per year when all of its 16 generating units start operation in mid-2022.

Sinochem International (Holding) Co., Ltd. (600500.SH) said it met all the preconditions to sell its stake in Jiangsu Yangnong Chemical Co. Ltd. (600486.SH) to Syngenta Group. The transaction is part of an asset reshuffle to consolidate the agrochemical business to Syngenta after the mega merger of Sinochem and ChemChina.

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