Most Active Articles 2009-11-24T14:32:54.143-05:00 Business Exchange Business_Exchange@businessweek.com urn:com:businessweek:bx:topic:most-active:iron-ore-market Paul Maguire pmaguire845 urn:com:businessweek:bx:article:11028583997332807762-acc26a2f3a5656512622a8dec7e1ff15 2009-11-12T12:42:08.081-05:00

In this podcast, European steel editors, Maya Thatcher and Julien Hall, discuss whether European steelmakers might implement production cuts in light of the recent decrease in spot prices for various steel products; and assess currents trends in the long products market.

In this podcast, European steel editors, Maya Thatcher and Julien Hall, discuss whether European steelmakers might implement production cuts in light of the recent decrease in spot prices for various steel products; and assess currents trends in the long products market. http://www.platts.com/PodcastsDetail.aspx?xmlPath=Metals/index.xml Paul Maguire pmaguire845 2 2 0 0 urn:com:businessweek:bx:article:5563850939605188376-5afbfb64c532faab9022435fc811ae06 2009-10-29T07:11:09.144-04:00

In this podcast, Steel Director for Platts, Francis Browne and European steel editor, Maya Thatcher, discuss events at the recent China International Steel and Raw Materials conference held by the China International Steel Association (CISA); focusing on proposals for a change in the accounting period, fixed iron ore pricing and the notion that there will be no difference between spot prices and negotiated prices.

In this podcast, Steel Director for Platts, Francis Browne and European steel editor, Maya Thatcher, discuss events at the recent China International Steel and Raw Materials conference held by the China International Steel Association (CISA); focusing on proposals for a change in the accounting period, fixed iron ore pricing and the notion that there will be no difference between spot prices and negotiated prices. http://www.platts.com/elqNow/elqRedir.htm?ref=/IM.Platts.Content/InsightAnalysis/Podcasts/Metals/Archive/2009/oct/steelmover102809.mp3 Paul Maguire pmaguire845 5 5 0 0 urn:com:businessweek:bx:article:5420115622261698965-3345142f314d14eadad204fee2d21a9f 2009-10-12T08:12:20.802-04:00

Platts' US managing editor, Joe Innace, and Steel Markets Daily US markets editor, Matthew Lerner, discuss the US ferrous scrap market, in which the balance of power has swung to the buyers' side and the export market has all but disappeared in October

Platts' US managing editor, Joe Innace, and Steel Markets Daily US markets editor, Matthew Lerner, discuss the US ferrous scrap market, in which the balance of power has swung to the buyers' side and the export market has all but disappeared in October https://www.platts.com/IM.Platts.Content/InsightAnalysis/Podcasts/Metals/Archive/2009/oct/steel1008.mp3 Paul Maguire pmaguire845 2 2 0 0 urn:com:businessweek:bx:article:14328515087549924843-21f349a67486d3640bcd4f53bccf5f21 2009-10-15T05:15:43.556-04:00

In this podcast, Platts' European steel markets editors, Maya Thatcher and Julien Hall, discuss how continued low demand and low-priced imported alternatives have recently contributed to a considerable drop in the spot price of European commodity-grade steel plate; and analyze developments in the Turkish rebar market.

In this podcast, Platts' European steel markets editors, Maya Thatcher and Julien Hall, discuss how continued low demand and low-priced imported alternatives have recently contributed to a considerable drop in the spot price of European commodity-grade steel plate; and analyze developments in the Turkish rebar market. http://www.platts.com/IM.Platts.Content/InsightAnalysis/Podcasts/Metals/Archive/2009/oct/steelmover101409.mp3 Paul Maguire pmaguire845 1 1 0 0 urn:com:businessweek:bx:article:208090820465093367-55d58cb68ff260cc6db56e3433d4d3a0 2009-10-10T20:12:32.444-04:00

You wouldn't think the men who run the oil-rich country of Nigeria would have much spring in their step these days. The nation is plagued by a never-ending guerrilla war, one that has trimmed the country's oil production to...

You wouldn't think the men who run the oil-rich country of Nigeria would have much spring in their step these days. The nation is plagued by a never-ending guerrilla war, one that has trimmed the country's oil production to... http://twurl.nl/126urm Ray Kwong rkwong113 3 3 0 0 urn:com:businessweek:bx:article:18284425161947170984-b293fe5fbea0c0c41fac696283106031 2009-09-17T10:11:21.264-04:00

Platts' managing editor, Francis Browne, and Steel Markets Daily editor, Julien Hall, discuss a record low in August for European steel import license applications, despite steel prices rising in the region; and analyze developments in the global iron ore market, including Chinese mills buying 2008 carryover iron ore at the old benchmark, with delivery to be spread over the coming 12 months.

Platts' managing editor, Francis Browne, and Steel Markets Daily editor, Julien Hall, discuss a record low in August for European steel import license applications, despite steel prices rising in the region; and analyze developments in the global iron ore market, including Chinese mills buying 2008 carryover iron ore at the old benchmark, with delivery to be spread over the coming 12 months. http://www.platts.com/IM.Platts.Content/InsightAnalysis/Podcasts/Metals/Archive/2009/sep/steel091609.mp3 Paul Maguire pmaguire845 3 3 0 0 urn:com:businessweek:bx:article:4891088792150312799-0524a0c47942f9435c987da1edb3c269 2009-09-17T12:19:47.594-04:00

Though its money is welcome, we should have no illusions that China is a normal investor that plays by our rules...

Though its money is welcome, we should have no illusions that China is a normal investor that plays by our rules... http://twurl.nl/uk04dm Ray Kwong rkwong113 1 1 0 0 urn:com:businessweek:bx:article:6096672182127600311-89d8637f63da7a6cf19c9263a88ee0b7 2009-09-13T22:52:27.617-04:00

WASHINGTON, Sept 9 (Reuters) - The U.S. Commerce Department said on Wednesday it had imposed preliminary duties ranging from 10.90 percent to 30.69 percent on $2.6 billion of steel pipe from China used to transport oil. The case is one of the...

WASHINGTON, Sept 9 (Reuters) - The U.S. Commerce Department said on Wednesday it had imposed preliminary duties ranging from 10.90 percent to 30.69 percent on $2.6 billion of steel pipe from China used to transport oil. The case is one of the... http://twurl.nl/eb44h6 Ray Kwong rkwong113 0 0 0 0 urn:com:businessweek:bx:article:5735798641599358010-fde896721d2671294d355733c7239c41 2009-08-22T22:07:55.125-04:00

China also imported 460,000 tons more copper than it needed in the first half of this year, according to CRU Analysis, a London metals forecasting firm. Lead, tin and aluminum are piling up in warehouses and storage lots across the country, while...

China also imported 460,000 tons more copper than it needed in the first half of this year, according to CRU Analysis, a London metals forecasting firm. Lead, tin and aluminum are piling up in warehouses and storage lots across the country, while... http://twurl.nl/1tejtd Ray Kwong rkwong113 1 1 0 0 urn:com:businessweek:bx:article:17057354223731236598-9dd66c9f991dfe609730b676c26d2510 2009-04-23T19:16:14.428-04:00

Nearly half of major Chinese steel mills were mired in the red in March, official newspapers quoted a senior industry executive as saying on Thursday, as oversupply in the country weighed on product prices.

Nearly half of major Chinese steel mills were mired in the red in March, official newspapers quoted a senior industry executive as saying on Thursday, as oversupply in the country weighed on product prices. http://www.chinadaily.com.cn/bizchina/2009-04/23/content_7708336.htm Ray Kwong rkwong113 7 7 0 0 urn:com:businessweek:bx:article:487307613434671560-ec445943d3d8bc55d0e9fadfe60f2c2d 2009-01-13T01:25:39.708-05:00

Jan. 13 (Bloomberg) -- Baosteel Group Corp., China’s biggest steelmaker, started annual iron ore contract talks with Rio Tinto Group yesterday amid expectations prices may plunge, two company executives said.

Jan. 13 (Bloomberg) -- Baosteel Group Corp., China’s biggest steelmaker, started annual iron ore contract talks with Rio Tinto Group yesterday amid expectations prices may plunge, two company executives said. http://www.bloomberg.com/apps/news?pid=20601081&sid=aNxxTv_.d0j0&refer=australia Ray Kwong rkwong113 15 15 0 0 urn:com:businessweek:bx:article:8306919748231596996-4661731e2e1c1048dac6a523e1ec994a 2009-02-03T23:02:00.000-05:00

SYDNEY, Feb 4 (Reuters) - A massive stockpile of iron ore in China that caused suppliers to defer millions of tonnes in shipments last year had all but disappeared, pushing spot market prices higher, BHP Billiton Ltd/Plc (BHP.AX Iron

SYDNEY, Feb 4 (Reuters) - A massive stockpile of iron ore in China that caused suppliers to defer millions of tonnes in shipments last year had all but disappeared, pushing spot market prices higher, BHP Billiton Ltd/Plc (BHP.AX Iron http://c.moreover.com/click/here.pl?r1803222154&f=9791 15 15 0 0 urn:com:businessweek:bx:article:5562269384083678845-813f0d78f1b144bfa5a97c61107673f0 2009-08-10T11:27:43.730-04:00

By MarketWatch HONG KONG (MarketWatch) -- London-listed shares of Rio Tinto traded lower Monday but less so than an earlier retreat seen in Sydney, as investors digested reports that a blistering attack on the miner that appeared on a Chinese...

By MarketWatch HONG KONG (MarketWatch) -- London-listed shares of Rio Tinto traded lower Monday but less so than an earlier retreat seen in Sydney, as investors digested reports that a blistering attack on the miner that appeared on a Chinese... http://twurl.nl/or0o4g Ray Kwong rkwong113 1 1 0 0 urn:com:businessweek:bx:article:8989897322407583618-789713a4c670aa2cc25164cccb5c9314 2009-08-10T06:18:02.747-04:00

Steel Market Daily's US editors Joe Innace and Matthew Lerner break down what's behind the latest ferrous scrap price move, the supply situation, and collection outlook.

Steel Market Daily's US editors Joe Innace and Matthew Lerner break down what's behind the latest ferrous scrap price move, the supply situation, and collection outlook. http://bit.ly/scrap087 Paul Maguire pmaguire845 1 1 0 0 urn:com:businessweek:bx:article:16862684646531876888-f1bdba495645d50fd7ba09a80e69bc67 2009-07-31T11:07:16.316-04:00

Global Managing Editor for Iron & Steel, Francis Browne, and European Markets Editor, Julien Hall, discuss recent announcements by BHP Billiton and Vale about iron ore volumes sold spot versus sold on benchmark contract terms; as well as asking what the reasons are behind the latest run-up in spot iron ore prices into China.

Global Managing Editor for Iron & Steel, Francis Browne, and European Markets Editor, Julien Hall, discuss recent announcements by BHP Billiton and Vale about iron ore volumes sold spot versus sold on benchmark contract terms; as well as asking what the reasons are behind the latest run-up in spot iron ore prices into China. http://www.platts.com/Metals/steel/podcasts/archive/2009/jul/steelmover073109.mp3 Paul Maguire pmaguire845 1 1 0 0 urn:com:businessweek:bx:article:14573272421925571224-3ed30d1f12d2ead55085db27016d81b4 2009-06-09T10:43:03.291-04:00

Joe Innace, managing editor, Steel Markets Daily, discusses the one-year anniversary of Platts iron ore price assessment, the price hikes for US flat-rolled steel the week ended June 5 that may bring stability to the market, and a joint venture between two Australian iron ore mining companies.

Joe Innace, managing editor, Steel Markets Daily, discusses the one-year anniversary of Platts iron ore price assessment, the price hikes for US flat-rolled steel the week ended June 5 that may bring stability to the market, and a joint venture between two Australian iron ore mining companies. http://www.platts.com/Metals/steel/podcasts/archive/2009/jun/steel0605.mp3 Paul Maguire pmaguire845 4 4 0 0 urn:com:businessweek:bx:article:10914709717771348024-e7147f4c697054e51e3bacbe409bb16f 2009-04-03T11:30:51.620-04:00

Platts Steel Markets Daily editors, Julien Hall and Maya Thatcher, discuss reaction to the launch of the Shanghai Futures Exchange trading futures contracts on steel reinforcing bar and wire rod; examine the sudden rise in demand and prices for Turkish rebar; and analyze the erosion of European hot-rolled coil (HRC) spot prices.

Platts Steel Markets Daily editors, Julien Hall and Maya Thatcher, discuss reaction to the launch of the Shanghai Futures Exchange trading futures contracts on steel reinforcing bar and wire rod; examine the sudden rise in demand and prices for Turkish rebar; and analyze the erosion of European hot-rolled coil (HRC) spot prices. http://www.platts.com/Metals/steel/podcasts/archive/2009/apr/steelmover040309.mp3 Paul Maguire pmaguire845 6 6 0 0 urn:com:businessweek:bx:article:1886843174580408410-66603212045b289bfed555fc719c431a 2008-12-24T05:05:00.000-05:00

NEW DELHI: Exports of iron ore from India has again picked up momentum, mainly on the Chinese demand. Low prices of Indian iron ore in the spot market have attracted Chinese steel makers to source

NEW DELHI: Exports of iron ore from India has again picked up momentum, mainly on the Chinese demand. Low prices of Indian iron ore in the spot market have attracted Chinese steel makers to source http://c.moreover.com/click/here.pl?r1745541221&f=9791 14 13 1 0 urn:com:businessweek:bx:article:4720746285344042162-fe8ac4f63137b32dccb150d73e4ea3ab 2009-07-21T11:52:22.037-04:00

Looking at the roller-coaster fortunes of the steel industry over the last year, it comes as no surprise to those supplying steelmakers with raw materials that their own destinies have been turned upside down by the financial turmoil of the last eight months.

Looking at the roller-coaster fortunes of the steel industry over the last year, it comes as no surprise to those supplying steelmakers with raw materials that their own destinies have been turned upside down by the financial turmoil of the last eight months. http://www.platts.com/Metals/Resources/News%20Features/alloys09/index.xml Paul Maguire pmaguire845 0 0 0 0 urn:com:businessweek:bx:article:1579500161925401146-1ac0c4d0c70a9eb69718abd8f62f0685 2009-01-05T13:00:41.898-05:00

BHP Billiton Ltd.’s Pilbara iron ore exports may have fallen less than expected in 2008, the Australian newspaper reported, without citing anyone.

BHP Billiton Ltd.’s Pilbara iron ore exports may have fallen less than expected in 2008, the Australian newspaper reported, without citing anyone. http://www.bloomberg.com/apps/news?pid=20601081&sid=axN3Jc9wv0LM&refer=australia Michelle Lockett mlockett714 9 9 0 0 urn:com:businessweek:bx:article:8942309521167056320-3330aae0a1f332ad27bd4e491161edf0 2009-07-18T16:09:45.817-04:00

Published: July 17, 2009 One has to be suspicious when China detains an Australian executive on charges of stealing state secrets without providing further details or evidence and waits three days to inform the Australian government.

Published: July 17, 2009 One has to be suspicious when China detains an Australian executive on charges of stealing state secrets without providing further details or evidence and waits three days to inform the Australian government. http://twurl.nl/twch0b Ray Kwong rkwong113 0 0 0 0 urn:com:businessweek:bx:article:8083443290614155583-deabfaddf9973f6f307c24af96a93daf 2009-01-23T10:43:42.048-05:00

Last week’s Top 5 Categories to Source Now webinar (view the replay here) had a HUGE attendance, which I’ll take to mean that buyers are hungry to capitalize on the opportunities the current market provides. But the intention to seek costs savings and actually executing on those good intentions are two different things, especially when it comes to revisiting existing contracts with current suppliers. And that delicate issue was the crux of two great follow-up questions from one of the attendees: * How are suppliers reacting to re-opening contract rates half way through the contract life? * Any tips on how to engage and encourage vendors to re-open contracts to re-negotiate rates? Excellent questions about a challenging issue many of your are likely facing. So, I’m posting my response in it’s entirety below: Supplier Reactions As expected, suppliers are somewhat reluctant to participate in conversations with buyers about reducing prices considering the sharp increases they were forced to endure during 2008. Given the unprecedented volatility we’ve seen in the last couple years with commodity pricing, most suppliers are willing to at least participate in those conversations more than they would if pricing were flat in previous quarters. In fact, many buyers I am talking to have established a regularly scheduled review or “touch-base” with suppliers on a monthly or quarterly basis to discuss issues in such a turbulent market. I have not heard of suppliers that are outright refusing to discuss pre-existing contracts. Tips to Re-Open or Re-Negotiate Contracts Different strategies should be utilized depending on the specifics of the buyer/supplier relationship. For example, an aggressive strategy may work if the buying company represents a large % of a supplier’s business versus a small one. That being said, the following are some of the strategies that I’ve heard buyers utilize in the recent market shift: * First and foremost, come to the discussions well armed with raw material and market data. Being able to quantify the appropriate price reductions being requested to the suppliers is the only way the suppliers will consider a change at all. Showing the specific data and the calculated new price request justifies your request and gives you a fighting chance. * Approach the conversations from the angle that the buyer is trying to build a lasting relationship rather than simply save costs. The argument here is that you are trying to allow for a longer term relationship rather than just move business to the lowest bidder. * Some buyers are resorting to the “survival argument”, in saying that sharing any cost savings would ultimately result in better financial health and more likelihood for mutual growth in orders in the future. This is obviously used by buyers in companies that are currently under financial distress. * Make the argument that prices have typically been increasing more gradually than this most recent decline, so there has been time for suppliers to adjust their prices upward over the last year or two. Again, it is key to document the history of recent price changes (likely upward) and to be able to quantify the difference between current contract prices and the current true market price. * If dealing with a longer-term fixed price contract that is currently unfavorable, some buyers are re-negotiating to a lower price in exchange for an increased contract length (for example, extending it from a 1 year to a 2 year deal in exchange for a 15% drop in price). This also is a good chance to add in a price adjustment clause if one does not exist presently. * In addition to just discussing price decreases, some buyers are using this as an opportunity for the supplier to suggest some changes the buyer can make to help the supplier costs. For example, making a minor change to a specification, release quantities, packaging, etc. may not be a significant change for the buyer, but it may allow the supplier to cut costs. This can also be used as a good bargaining chip to offer in exchange for a re-negotiated contract price. Again, you do need to approach each supplier relationship differently, but hopefully some of these ideas will fit with your situations. Mike Petro is the Senior Category Manager for Metals in Ariba’s Global Services Organization. Previously, Mike analyzed supply chain options and competitive pricing for US Steel and Timken Latrobe Steel.

Last week’s Top 5 Categories to Source Now webinar (view the replay here) had a HUGE attendance, which I’ll take to mean that buyers are hungry to capitalize on the opportunities the current market provides. But the intention to seek costs savings and actually executing on those good intentions are two different things, especially when it comes to revisiting existing contracts with current suppliers. And that delicate issue was the crux of two great follow-up questions from one of the attendees: * How are suppliers reacting to re-opening contract rates half way through the contract life? * Any tips on how to engage and encourage vendors to re-open contracts to re-negotiate rates? Excellent questions about a challenging issue many of your are likely facing. So, I’m posting my response in it’s entirety below: Supplier Reactions As expected, suppliers are somewhat reluctant to participate in conversations with buyers about reducing prices considering the sharp increases they were forced to endure during 2008. Given the unprecedented volatility we’ve seen in the last couple years with commodity pricing, most suppliers are willing to at least participate in those conversations more than they would if pricing were flat in previous quarters. In fact, many buyers I am talking to have established a regularly scheduled review or “touch-base” with suppliers on a monthly or quarterly basis to discuss issues in such a turbulent market. I have not heard of suppliers that are outright refusing to discuss pre-existing contracts. Tips to Re-Open or Re-Negotiate Contracts Different strategies should be utilized depending on the specifics of the buyer/supplier relationship. For example, an aggressive strategy may work if the buying company represents a large % of a supplier’s business versus a small one. That being said, the following are some of the strategies that I’ve heard buyers utilize in the recent market shift: * First and foremost, come to the discussions well armed with raw material and market data. Being able to quantify the appropriate price reductions being requested to the suppliers is the only way the suppliers will consider a change at all. Showing the specific data and the calculated new price request justifies your request and gives you a fighting chance. * Approach the conversations from the angle that the buyer is trying to build a lasting relationship rather than simply save costs. The argument here is that you are trying to allow for a longer term relationship rather than just move business to the lowest bidder. * Some buyers are resorting to the “survival argument”, in saying that sharing any cost savings would ultimately result in better financial health and more likelihood for mutual growth in orders in the future. This is obviously used by buyers in companies that are currently under financial distress. * Make the argument that prices have typically been increasing more gradually than this most recent decline, so there has been time for suppliers to adjust their prices upward over the last year or two. Again, it is key to document the history of recent price changes (likely upward) and to be able to quantify the difference between current contract prices and the current true market price. * If dealing with a longer-term fixed price contract that is currently unfavorable, some buyers are re-negotiating to a lower price in exchange for an increased contract length (for example, extending it from a 1 year to a 2 year deal in exchange for a 15% drop in price). This also is a good chance to add in a price adjustment clause if one does not exist presently. * In addition to just discussing price decreases, some buyers are using this as an opportunity for the supplier to suggest some changes the buyer can make to help the supplier costs. For example, making a minor change to a specification, release quantities, packaging, etc. may not be a significant change for the buyer, but it may allow the supplier to cut costs. This can also be used as a good bargaining chip to offer in exchange for a re-negotiated contract price. Again, you do need to approach each supplier relationship differently, but hopefully some of these ideas will fit with your situations. Mike Petro is the Senior Category Manager for Metals in Ariba’s Global Services Organization. Previously, Mike analyzed supply chain options and competitive pricing for US Steel and Timken Latrobe Steel. http://www.supplyexcellence.com/blog/2009/01/23/strategies-for-renegotiating-contracts-in-a-buyers-market/ Justin Fogarty jfogarty134 7 7 0 0 urn:com:businessweek:bx:article:7546635313034638115-f3251453ddd81d994398537e1122c2a0 2009-06-22T18:32:15.235-04:00

Editor's Note: This is an updated version of the original posting on June 22. This year is shaping up as the toughest in recent memory for the global mining industry. The recession has sapped demand from India and China for resources such as copper...

Editor's Note: This is an updated version of the original posting on June 22. This year is shaping up as the toughest in recent memory for the global mining industry. The recession has sapped demand from India and China for resources such as copper... http://www.businessweek.com/globalbiz/content/jun2009/gb20090622_117914.htm Andy Reinhardt areinhardt626 1 1 0 0 urn:com:businessweek:bx:article:278185999568440573-6c17f7736785fa6d8242488d12646ae4 2009-03-27T23:15:22.548-04:00

BEIJING - Four Chinese banks, including the Bank of China (BOC), have signed agreements to provide US$21 billion worth syndicated loans to the Aluminum Corporation of China (Chinalco) to support its bid for Rio Tinto, the BOC announced Friday.

BEIJING - Four Chinese banks, including the Bank of China (BOC), have signed agreements to provide US$21 billion worth syndicated loans to the Aluminum Corporation of China (Chinalco) to support its bid for Rio Tinto, the BOC announced Friday. http://www.chinadaily.com.cn/china/2009-03/27/content_7625229.htm Ray Kwong rkwong113 3 3 0 0 urn:com:businessweek:bx:article:5574789482739153571-bdf466d6382394270a3e76ed9e09a3e6 2009-01-07T09:40:21.036-05:00

As commodity prices have continued to fall, the questions my colleagues and I are most frequently asked is, “should we lock in prices while they are low?” And “if so, when will we hit rock bottom?” Obviously, I have no qualms with buyers wanting to get the best prices for their direct materials and indirect services, but trying to time the market and lock in prices based on the bottom of the market can actually be short sighted, and not necessarily the lowest total cost option in the mid-to-long term (and much like stock market timing, can burn you in the long run). Indexed pricing, on the other hand, can be much more predictable and fair (in terms of buyer/supplier risk), and therefore more conducive to long term strategic vendor relationships AND cost savings. As an example...

As commodity prices have continued to fall, the questions my colleagues and I are most frequently asked is, “should we lock in prices while they are low?” And “if so, when will we hit rock bottom?” Obviously, I have no qualms with buyers wanting to get the best prices for their direct materials and indirect services, but trying to time the market and lock in prices based on the bottom of the market can actually be short sighted, and not necessarily the lowest total cost option in the mid-to-long term (and much like stock market timing, can burn you in the long run). Indexed pricing, on the other hand, can be much more predictable and fair (in terms of buyer/supplier risk), and therefore more conducive to long term strategic vendor relationships AND cost savings. As an example... http://www.supplyexcellence.com/blog/2009/01/07/indexed-vs-fixed-price-contracts/ Justin Fogarty jfogarty134 6 6 0 0