With the continuous rising of steel price and the expansion of market demands, the imported ore price also has increased. Presently the spot price of China’s imported ore has broken U.S.$100 per ton, far higher than the long-contract price of Japan, therefore, China Iron & Steel Association (CISA) said it will strictly crack down the disordered import, especially the illegal speculation of traders.

According to the latest data released by CISA, there are 152 importers in China this year, exceeding 112 licenses that CISA issued. Although China has strict iron ore agent system, which regulated that the traders without license can not import iron ore, agent system lost its binding force facing with the huge interest and 40 illegal enterprises are still importing iron ore. In H1 this year, China imported nearly 300mln tons of iron ore from oversea, while 131mln tons of imported ore from traders.

What made Shan more anxious that the excessive imported ore caused sea freight significantly rising. Take the freight from Brazil to China for example, the price was only U.S.$8.85 per ton at the end of last year, while now it has climbed to U.S.$45.6 per ton, increased five times.

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With the continuous rising of steel price and the expansion of market demands, the imported ore price also has increased. Presently the spot price of China’s imported ore has broken U.S.$100 per ton, far higher than the long-contract price of Japan, therefore, China Iron & Steel Association (CISA) said it will strictly crack down the disordered import, especially the illegal speculation of traders.

According to the latest data released by CISA, there are 152 importers in China this year, exceeding 112 licenses that CISA issued. Although China has strict iron ore agent system, which regulated that the traders without license can not import iron ore, agent system lost its binding force facing with the huge interest and 40 illegal enterprises are still importing iron ore. In H1 this year, China imported nearly 300mln tons of iron ore from oversea, while 131mln tons of imported ore from traders.

What made Shan more anxious that the excessive imported ore caused sea freight significantly rising. Take the freight from Brazil to China for example, the price was only U.S.$8.85 per ton at the end of last year, while now it has climbed to U.S.$45.6 per ton, increased five times.

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Data released by Eurostat on August 4 showed that Produce Price Index (PPI) in June in Eurozone has first risen since July 2008, creating a new record high than the decrease degree of the same period last year.

Eurostat stated that June PPI in Eurozone was up 0.3% than May, down 6.6% than the same period of last year, setting the widest yearly range since the data was worked out.

May PPI in Eurozone, after correction, remained the same level of April, down 5.9% than the same period of last year. Eurostat amended the May PPI data, the initial value down 0.2% than last month, down 5.8% than the same period of last year.

The above-mentioned data basically correspond to economists’ expectation. Some economists predicted that June PPI in Eurozone increased 0.1% than May, down 6.6% than the same period of last year.

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Data released by Eurostat on August 4 showed that Produce Price Index (PPI) in June in Eurozone has first risen since July 2008, creating a new record high than the decrease degree of the same period last year.

Eurostat stated that June PPI in Eurozone was up 0.3% than May, down 6.6% than the same period of last year, setting the widest yearly range since the data was worked out.

May PPI in Eurozone, after correction, remained the same level of April, down 5.9% than the same period of last year. Eurostat amended the May PPI data, the initial value down 0.2% than last month, down 5.8% than the same period of last year.

The above-mentioned data basically correspond to economists’ expectation. Some economists predicted that June PPI in Eurozone increased 0.1% than May, down 6.6% than the same period of last year.

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Baosteel’ s recombination of Shaoshan Iron & Steel (Shaogang) and Guangzhou Iron & Steel (Guanggang) has been hanging for many year, but presently it still in right confirmation phase as well as Zhanjiang project, with the slow progress due to the influence of macroeconomic control.

In response to the scandals that Baosteel is intended to fully control Guangdong Steel by purchasing the assets of Guangang and Shaogang, recently the insiders told reporters that Baosteel did not do the responsible investigation to Shaogang and Guanggang.

Wang Chengran, business director, responsible for Baosteel’ investment business, told reporters that “although the due diligence did not carry out, when or whether to do it is no conclusion now”.

Baosteel: the asset to be confirmed the right

"Not a responsible investigation, but a asset evaluation” Yang Yaowei, secretary to president of Guanggang Stocks told reporters, added after Guangdong Steel found last year, it had sent someone to do assets evaluation and audit, but the detailed figure is not known.

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Baosteel’ s recombination of Shaoshan Iron & Steel (Shaogang) and Guangzhou Iron & Steel (Guanggang) has been hanging for many year, but presently it still in right confirmation phase as well as Zhanjiang project, with the slow progress due to the influence of macroeconomic control.

In response to the scandals that Baosteel is intended to fully control Guangdong Steel by purchasing the assets of Guangang and Shaogang, recently the insiders told reporters that Baosteel did not do the responsible investigation to Shaogang and Guanggang.

Wang Chengran, business director, responsible for Baosteel’ investment business, told reporters that “although the due diligence did not carry out, when or whether to do it is no conclusion now”.

Baosteel: the asset to be confirmed the right

"Not a responsible investigation, but a asset evaluation” Yang Yaowei, secretary to president of Guanggang Stocks told reporters, added after Guangdong Steel found last year, it had sent someone to do assets evaluation and audit, but the detailed figure is not known.

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BHP Billiton, the global largest mining group, appealed to eliminate the “minds and anxiety factors” in the iron ore deals and transferred to market pricing just like oil and coal.

Marius Kloppers, CEO of BHP Billiton made the aforesaid appeal on August 12, while China’ s government just arrested four staffs of Rio Tinto, its major opponent, which is the latest progress aroused from the crisis in the iron ore annual price negotiation of Rio Tinto.

When BHP Billiton announced to halve the profits this year, Marius Kloppers pointed out that the traditional system of iron ore price based on the contract will be replaced sooner or later.

"The ball is rolling and will continue to roll down”, Marius Kloppers said. He added that although BHP Billiton was unable to promote the reform, the other participants had begun to agree with this idea.

According to the traditional pricing system, Rio Tinto and BHP Billiton and other major iron ore makers negotiated an annual price with steel manufacturers. Iron ore is the crucial raw material in steel production.

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BHP Billiton, the global largest mining group, appealed to eliminate the “minds and anxiety factors” in the iron ore deals and transferred to market pricing just like oil and coal.

Marius Kloppers, CEO of BHP Billiton made the aforesaid appeal on August 12, while China’ s government just arrested four staffs of Rio Tinto, its major opponent, which is the latest progress aroused from the crisis in the iron ore annual price negotiation of Rio Tinto.

When BHP Billiton announced to halve the profits this year, Marius Kloppers pointed out that the traditional system of iron ore price based on the contract will be replaced sooner or later.

"The ball is rolling and will continue to roll down”, Marius Kloppers said. He added that although BHP Billiton was unable to promote the reform, the other participants had begun to agree with this idea.

According to the traditional pricing system, Rio Tinto and BHP Billiton and other major iron ore makers negotiated an annual price with steel manufacturers. Iron ore is the crucial raw material in steel production.

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Source from the press conference released by China Iron & Steel Association (CISA) on iron ore negotiation result noted that Valin Steel in Hunan province had became the second-largest shareholder of FMG, Australian third-largest mining firm and held the 17% of stocks.

Valin Steel was set up jointly at the end of 1997 by Xianggang, Liangang and Henggang, the three leading steel enterprises in Hunan province, being one of the top-ten steel enterprises in China.

FMG covers 52,000 square kilometers in Pilbara area, the famous iron ore manufacturing place, next to the mining area of iron ore giants—BHP Billiton and Rio Tinto and its ore resource is expected to reach 20bln tons around.

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Source from the press conference released by China Iron & Steel Association (CISA) on iron ore negotiation result noted that Valin Steel in Hunan province had became the second-largest shareholder of FMG, Australian third-largest mining firm and held the 17% of stocks.

Valin Steel was set up jointly at the end of 1997 by Xianggang, Liangang and Henggang, the three leading steel enterprises in Hunan province, being one of the top-ten steel enterprises in China.

FMG covers 52,000 square kilometers in Pilbara area, the famous iron ore manufacturing place, next to the mining area of iron ore giants—BHP Billiton and Rio Tinto and its ore resource is expected to reach 20bln tons around.

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Affected by the new progress of iron ore negotiation and the continuous drops of steel price, most small steel mills adjusted the EXW price of the construction steel. On August 18, the steel price continued to decline and most products’ prices dove up to 150 yuan per ton. This is the nine consecutive days to drop after the hectic increase in the previous times, and the drop extent reached 900 yuan per ton.

On August 18, based on the price of August 11, Yonggang adjusted down the wire rod price by 500 yuan per ton, debar price decreased 500 yuan per ton and spiral price dropped 500 yuan per ton. On the basis of August 17, the EXW price of 12mm-14mm debar from Jingang was down 50 yuan per ton, other specifications’ dropped 100 yuan per ton and the spiral price sank 100 yuan per ton. Based on the price on August 12, the prices of all wire rod from Chenggang was down 150 yuan per ton and all debar price declined 100 yuan per ton.

Recently the news noted that due to the coming of 60-anniversary National Day, the construction field in Beijing area scheduled shutdown in mid-September, the demand in the construction steel will shrink further and the steel price may continue to sink.

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Affected by the new progress of iron ore negotiation and the continuous drops of steel price, most small steel mills adjusted the EXW price of the construction steel. On August 18, the steel price continued to decline and most products’ prices dove up to 150 yuan per ton. This is the nine consecutive days to drop after the hectic increase in the previous times, and the drop extent reached 900 yuan per ton.

On August 18, based on the price of August 11, Yonggang adjusted down the wire rod price by 500 yuan per ton, debar price decreased 500 yuan per ton and spiral price dropped 500 yuan per ton. On the basis of August 17, the EXW price of 12mm-14mm debar from Jingang was down 50 yuan per ton, other specifications’ dropped 100 yuan per ton and the spiral price sank 100 yuan per ton. Based on the price on August 12, the prices of all wire rod from Chenggang was down 150 yuan per ton and all debar price declined 100 yuan per ton.

Recently the news noted that due to the coming of 60-anniversary National Day, the construction field in Beijing area scheduled shutdown in mid-September, the demand in the construction steel will shrink further and the steel price may continue to sink.

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After Baosteel and Ansteel issued the steel policy for September, On August 24, WISCO, one of the three steel giants, also released the final adjustment policy for September. CRC increased 400 yuan per ton, HRC was up 350 yuan per ton and the galvanized plate boosted 500 yuan per ton. Up to now, the steel price for September from the three steel giants all exceeded August’s 600-1,000 yuan per ton.

According to the report from China Securities Journal on August 25, the market participants believed that although the recent steel price significantly dropped, with a 500-900 yuan per ton falling, the top steel mills were not anxious to adjust down the price for September instead maintain the upward tendency, which aimed at keeping the steel price stable. Because the crude steel production in August set a record high again, while the steel social inventories did not fall but rise, which brought much pressure on supporting the steel price for September.

Pressure from high inventory and production to present

Although the large steel mills tried to stabilize the price for September, the social inventories in the domestic 26 cities presented the dramatic rising year on year, while the crude steel production set a record high in early August. The market participants worried that the aforesaid factors brought the pressure on steel price.

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After Baosteel and Ansteel issued the steel policy for September, On August 24, WISCO, one of the three steel giants, also released the final adjustment policy for September. CRC increased 400 yuan per ton, HRC was up 350 yuan per ton and the galvanized plate boosted 500 yuan per ton. Up to now, the steel price for September from the three steel giants all exceeded August’s 600-1,000 yuan per ton.

According to the report from China Securities Journal on August 25, the market participants believed that although the recent steel price significantly dropped, with a 500-900 yuan per ton falling, the top steel mills were not anxious to adjust down the price for September instead maintain the upward tendency, which aimed at keeping the steel price stable. Because the crude steel production in August set a record high again, while the steel social inventories did not fall but rise, which brought much pressure on supporting the steel price for September.

Pressure from high inventory and production to present

Although the large steel mills tried to stabilize the price for September, the social inventories in the domestic 26 cities presented the dramatic rising year on year, while the crude steel production set a record high in early August. The market participants worried that the aforesaid factors brought the pressure on steel price.

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Recently, the dramatic drops of Baltic Dry Index (BDI) captured the market’s attention.

On August 25, BDI dropped for the six consecutive days with 2388 points, accumulatively decreased 41% from the new highest on July 4 this year, a 4291 points. The falling in August reached 28.7%.

BDI can exactly reflect the tendency of the international dry bulk market, involving China’ s imported iron ore, metallic ores, steel, soybeans, and etc. In H1 this year, BDI significantly increased from the 663 points at the end of 2008 to 4291 points, a 547% rising.

Zhao Weiwei, analyst of Tianqi Future said that “BDI significant growth in H1 can be attributed to the following two factors, on one hand, the international hot money speculation, on the other hand, the demand rising in raw material from China.

According to the data from China’ s General Administration of Customs, in the first seven months this year, the country’ s accumulative iron ore import grew 31.8% over the same period of last year, soybean import was up 27.7% year on year, copper and unwrought copper imports boosted 75% and unwrought aluminum and aluminum with a 193.9% increase totally.

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Recently, the dramatic drops of Baltic Dry Index (BDI) captured the market’s attention.

On August 25, BDI dropped for the six consecutive days with 2388 points, accumulatively decreased 41% from the new highest on July 4 this year, a 4291 points. The falling in August reached 28.7%.

BDI can exactly reflect the tendency of the international dry bulk market, involving China’ s imported iron ore, metallic ores, steel, soybeans, and etc. In H1 this year, BDI significantly increased from the 663 points at the end of 2008 to 4291 points, a 547% rising.

Zhao Weiwei, analyst of Tianqi Future said that “BDI significant growth in H1 can be attributed to the following two factors, on one hand, the international hot money speculation, on the other hand, the demand rising in raw material from China.

According to the data from China’ s General Administration of Customs, in the first seven months this year, the country’ s accumulative iron ore import grew 31.8% over the same period of last year, soybean import was up 27.7% year on year, copper and unwrought copper imports boosted 75% and unwrought aluminum and aluminum with a 193.9% increase totally.

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On August 26, Chinese chairman Wen Jiabao, presided the executive meeting of State Coucil, discussing to curb the overcapacity and redundant construction in most regions. Thereinto, the steel industry is listed to the key industry.

The meeting pointed out that under the condition of overcapacity, the steel industry is still blindly expanding. At present, the detailed measures to strength the development of steel industry include the four aspects. Firstly, the strict market access, to enhance the approval and management of the project with overproduction, secondly, to strength the environment regulation, thirdly, to legally supply and use lands, fourthly, to strictly carry out the controllable financial policy, fifthly, to construct the systems for news release.

Zhu Hongren, spokesman of Ministry of Industry and Information Technology (MIIT) said that if the steel industry blindly seeks the production, the coming new round of overcapacity may arouse many serious problems. As for this, the country will issue the relevant policy in the recent days, focusing on guiding steel industry to develop healthily.

Shan Shanghua, secretary of China Iron & Steel Association (CISA) disclosed that the overcapacity in the steel industry directly led the steel price to abnormally fluctuate, further affected the health development of the whole industry. Therefore, CISA is assisting the government departments to formulate a series of policies.

For more information please click: www.chinametalbiz.com ■

On August 26, Chinese chairman Wen Jiabao, presided the executive meeting of State Coucil, discussing to curb the overcapacity and redundant construction in most regions. Thereinto, the steel industry is listed to the key industry.

The meeting pointed out that under the condition of overcapacity, the steel industry is still blindly expanding. At present, the detailed measures to strength the development of steel industry include the four aspects. Firstly, the strict market access, to enhance the approval and management of the project with overproduction, secondly, to strength the environment regulation, thirdly, to legally supply and use lands, fourthly, to strictly carry out the controllable financial policy, fifthly, to construct the systems for news release.

Zhu Hongren, spokesman of Ministry of Industry and Information Technology (MIIT) said that if the steel industry blindly seeks the production, the coming new round of overcapacity may arouse many serious problems. As for this, the country will issue the relevant policy in the recent days, focusing on guiding steel industry to develop healthily.

Shan Shanghua, secretary of China Iron & Steel Association (CISA) disclosed that the overcapacity in the steel industry directly led the steel price to abnormally fluctuate, further affected the health development of the whole industry. Therefore, CISA is assisting the government departments to formulate a series of policies.

For more information please click: www.chinametalbiz.com ■

On September 1, Zhang Xiwu, chairman of China Shenhua attended the press conference on performance in Hong Kong, and showed the satisfaction with the performance of H1.

In H1, the operating revenue of the company was 57.083bln yuan, up 7.801bln yuan year on year with a 15.8% increase. The profit of shareholders reached 16.92bln yuan, up 14.2% year on year.

Zhang Xiwu told reporters that “the company is scheduled for establishing a base for 30mln tons of coal reserve”.



Zhang disclosed that “if the reserve base is approved by the relevant government departments, it can be used as the country’s coal reserve, added that whether National Development and Reform Committee (NDRC) to approve, taking the establishment of sales network and reserve base in the large-consumption area into consideration, it needs to establish the base for coal reserve.

Zhang said that “the coal price is expected to keep the tendency of H1, because 85% of the settled contract was one-year and mid-long term contract, which basically stabilized the coal price of a year.” He pointed out that “in H2, the coal demand and supply will maintain the balance and may be tight in a certain time or regions”.

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On September 1, Zhang Xiwu, chairman of China Shenhua attended the press conference on performance in Hong Kong, and showed the satisfaction with the performance of H1.

In H1, the operating revenue of the company was 57.083bln yuan, up 7.801bln yuan year on year with a 15.8% increase. The profit of shareholders reached 16.92bln yuan, up 14.2% year on year.

Zhang Xiwu told reporters that “the company is scheduled for establishing a base for 30mln tons of coal reserve”.



Zhang disclosed that “if the reserve base is approved by the relevant government departments, it can be used as the country’s coal reserve, added that whether National Development and Reform Committee (NDRC) to approve, taking the establishment of sales network and reserve base in the large-consumption area into consideration, it needs to establish the base for coal reserve.

Zhang said that “the coal price is expected to keep the tendency of H1, because 85% of the settled contract was one-year and mid-long term contract, which basically stabilized the coal price of a year.” He pointed out that “in H2, the coal demand and supply will maintain the balance and may be tight in a certain time or regions”.

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Lasted for nearly a year, the merger between Shandong Steel and Rizhao Steel finally settled. On September 6, Shandong Steel Group Co., Ltd. and Rizhao Steel Holding Group Co., Ltd. signed agreement on asset restructuring and cooperation, which marked the former succeeded in the reorganization.

According to the agreement, both sides jointly reorganized the assets to the JV by the means of capital increasement. Shandong Steel owns 67% stakes by cash, and Rizhao Steel held 33% stocks with the net assets. Additionally, the agreement made a clear on restructuring principles, means, the scope of assets, the evaluation of restructuring assets, the work processes, as well as staff placement etc. After signing the agreement, both sides will immediately start all evaluation works.

The determined agreement between Shandong Steel and Rizaho Steel indicated the both sides made a substantial progress in asset reorganization and cooperation, as well as the strategy of Shandong’ s industry shift from the inland to coast stepped up.

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Lasted for nearly a year, the merger between Shandong Steel and Rizhao Steel finally settled. On September 6, Shandong Steel Group Co., Ltd. and Rizhao Steel Holding Group Co., Ltd. signed agreement on asset restructuring and cooperation, which marked the former succeeded in the reorganization.

According to the agreement, both sides jointly reorganized the assets to the JV by the means of capital increasement. Shandong Steel owns 67% stakes by cash, and Rizhao Steel held 33% stocks with the net assets. Additionally, the agreement made a clear on restructuring principles, means, the scope of assets, the evaluation of restructuring assets, the work processes, as well as staff placement etc. After signing the agreement, both sides will immediately start all evaluation works.

The determined agreement between Shandong Steel and Rizaho Steel indicated the both sides made a substantial progress in asset reorganization and cooperation, as well as the strategy of Shandong’ s industry shift from the inland to coast stepped up.

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On Sep.8, 2009, Rio Tinto announced that the iron ore exported from Australia set a record high with a total of 3bln tons. Since Rio Tinto exported a ship of raw materials used in steel-making from Pilbara in 1996, the export in this area presented an exponential development.

Eleven mines and two ports of Rio Tinto operated in West Australia Pilbara. The export via Cape Lambert and Dampier broke 3bln tons totally on Sep.8. GregLilleyman, chief executive responsible for Pilbara said that “the two mines are more than 300 kilometer apart and the qualities of the ore differ, they are exported by railway to a new port having four berths, and then are shipped”.

He added that “the exponential development of Pilbara can be divided into three phases, that is, to take 25 years to achieve the first 1bln tons, following 12 years for the second 1bln tons, and then 6 years for the third 1bln tons”.

Rio Tinto planed to export 200mln tons of iron ore from Pilbara in 2009, compared with 761,000 tons in 1966, the export presented a significant change.

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On Sep.8, 2009, Rio Tinto announced that the iron ore exported from Australia set a record high with a total of 3bln tons. Since Rio Tinto exported a ship of raw materials used in steel-making from Pilbara in 1996, the export in this area presented an exponential development.

Eleven mines and two ports of Rio Tinto operated in West Australia Pilbara. The export via Cape Lambert and Dampier broke 3bln tons totally on Sep.8. GregLilleyman, chief executive responsible for Pilbara said that “the two mines are more than 300 kilometer apart and the qualities of the ore differ, they are exported by railway to a new port having four berths, and then are shipped”.

He added that “the exponential development of Pilbara can be divided into three phases, that is, to take 25 years to achieve the first 1bln tons, following 12 years for the second 1bln tons, and then 6 years for the third 1bln tons”.

Rio Tinto planed to export 200mln tons of iron ore from Pilbara in 2009, compared with 761,000 tons in 1966, the export presented a significant change.

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Previously Li Yan, production manage from Shougang, visited Shanxi and brought an investment of 19bln yuan for Changzhi Shanxi.

After more than one month of the foundation of Shougang Changzhi Iron & Steel, on Sep.10, 2009, Li Yan as a representative authorized by chairman of Shougang, signed the investment agreement with the government of Changzhi on steel project. According to the agreement, in three years Shougang will invest more than 19bln yuan in Changzhi to optimize the industry structure of Changzhi Group and establish a steel project with the annual capacity of 3mln tons, which also fulfilled the promise when Shougang recombined Changgang.

According to the forecast of domestic steel market in H1 of 2009, after the new project established, the annual sales income could reach 18.683bln yuan, the total profit would be up to 2.616bln yuan and 1.845bln yuan tax.

However, source from Changzhi Iron & Steel noted that when the project completed, the parent company of Shougang would remove some original facilities to Changzhi and recently it would send minority of management personnel to Changzhi to participate the management work of Changzhi Iron & Steel.

For more information please click: www.chinametalbiz.com ■

Previously Li Yan, production manage from Shougang, visited Shanxi and brought an investment of 19bln yuan for Changzhi Shanxi.

After more than one month of the foundation of Shougang Changzhi Iron & Steel, on Sep.10, 2009, Li Yan as a representative authorized by chairman of Shougang, signed the investment agreement with the government of Changzhi on steel project. According to the agreement, in three years Shougang will invest more than 19bln yuan in Changzhi to optimize the industry structure of Changzhi Group and establish a steel project with the annual capacity of 3mln tons, which also fulfilled the promise when Shougang recombined Changgang.

According to the forecast of domestic steel market in H1 of 2009, after the new project established, the annual sales income could reach 18.683bln yuan, the total profit would be up to 2.616bln yuan and 1.845bln yuan tax.

However, source from Changzhi Iron & Steel noted that when the project completed, the parent company of Shougang would remove some original facilities to Changzhi and recently it would send minority of management personnel to Changzhi to participate the management work of Changzhi Iron & Steel.

For more information please click: www.chinametalbiz.com ■

After the price of stainless steel pipe and seamless steel pipe dropped for a consecutive month, the bad news still came out endless. It is believed that to squeeze the price bubble can help the late market of stainless steel pipe operate stably. According to the usual market development, with the traditional off-season-consumption disappear and the demand gradually recover, the stainless steel pipe price began to go up.

However, from the current market, the contradiction of demand and supply is still prominent. In this round of price drop, the inventory increase of mainstream steel mills imposed the negative impact on the market to judge the price tendency and the enthusiasm in purchase weakened constantly. The price rising in the previous days stemmed from the stimulus of the market demand and the speculations of the middleman. Now the stainless steel pipe price tends to go down, so the traders generally take the watch-and-see attitude to the market.

For the current sluggish market, the pipe manufacturing mills were also helpless. Compared the purchasing price of the materials in previous time with the current spot price, the production cost was at the edge of losses. For the worries about the late tendency, it is no doubt that to purchase raw materials now equals to adding risk. Therefore, most manufacturing enterprises adopt the usual practice-“semi-state production” to reduce the risk of operations.

For more information please click: www.chinametalbiz.com ■

After the price of stainless steel pipe and seamless steel pipe dropped for a consecutive month, the bad news still came out endless. It is believed that to squeeze the price bubble can help the late market of stainless steel pipe operate stably. According to the usual market development, with the traditional off-season-consumption disappear and the demand gradually recover, the stainless steel pipe price began to go up.

However, from the current market, the contradiction of demand and supply is still prominent. In this round of price drop, the inventory increase of mainstream steel mills imposed the negative impact on the market to judge the price tendency and the enthusiasm in purchase weakened constantly. The price rising in the previous days stemmed from the stimulus of the market demand and the speculations of the middleman. Now the stainless steel pipe price tends to go down, so the traders generally take the watch-and-see attitude to the market.

For the current sluggish market, the pipe manufacturing mills were also helpless. Compared the purchasing price of the materials in previous time with the current spot price, the production cost was at the edge of losses. For the worries about the late tendency, it is no doubt that to purchase raw materials now equals to adding risk. Therefore, most manufacturing enterprises adopt the usual practice-“semi-state production” to reduce the risk of operations.

For more information please click: www.chinametalbiz.com ■

According to the report from Reuters, AlbertoCalderon, CBO of BHP Billiton, the global largest mining enterprise said that the company owns about U.S.$18bln of cash presently and it will use most of the cash together with most loans to purchase the large-scale opponents. The words of AlbertoCalderon may means that the global mining enterprises may start a new round of acquisition.

AlbertoCalderon said that currently BHP Billiton has locked four-five targets for purchase, which are all large-scaled firms in mining, petroleum and natural gas industries. It is learned that BHP Billiton will take some actions in the future 12 months. AlbertoCalderon disclosed that “the acquisition is not pressing for the company, but the company has done many preliminary works for it”.

Analysts believed that Freeport-McMoRanCopper&Gold (Freeport) as the largest listed company in copper industry located in US will be one of targets of BHP Billiton. The company’s copper cost is low and the gold business is also large-scaled. At present, the total market value of Freeport is U.S. $29bln. Analysts thought that if BHP Billiton decides to buy Freeport, the offer will be bound to be lower than the previous acquisition offer of BHP Billiton, but the specific amount will be very large. Currently Freeport officials rejected to make any comment on this issue.

Analysts believed that Canada’s PotashCorp will be also one of targets of BHP Billiton. The former is a supplier for fertilizer raw materials and has been seeking for the opportunities to develop the new market. The spokesman of PotashCorp said that he had heard the scandals about the takeover of BHP Billiton, but refused to comment. Additionally, analysts forecasted that the potential targets of BHP Billiton also include AngloAmericanPLC and XstrataPLC, but both of them did not make any response to this matter.

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According to the report from Reuters, AlbertoCalderon, CBO of BHP Billiton, the global largest mining enterprise said that the company owns about U.S.$18bln of cash presently and it will use most of the cash together with most loans to purchase the large-scale opponents. The words of AlbertoCalderon may means that the global mining enterprises may start a new round of acquisition.

AlbertoCalderon said that currently BHP Billiton has locked four-five targets for purchase, which are all large-scaled firms in mining, petroleum and natural gas industries. It is learned that BHP Billiton will take some actions in the future 12 months. AlbertoCalderon disclosed that “the acquisition is not pressing for the company, but the company has done many preliminary works for it”.

Analysts believed that Freeport-McMoRanCopper&Gold (Freeport) as the largest listed company in copper industry located in US will be one of targets of BHP Billiton. The company’s copper cost is low and the gold business is also large-scaled. At present, the total market value of Freeport is U.S. $29bln. Analysts thought that if BHP Billiton decides to buy Freeport, the offer will be bound to be lower than the previous acquisition offer of BHP Billiton, but the specific amount will be very large. Currently Freeport officials rejected to make any comment on this issue.

Analysts believed that Canada’s PotashCorp will be also one of targets of BHP Billiton. The former is a supplier for fertilizer raw materials and has been seeking for the opportunities to develop the new market. The spokesman of PotashCorp said that he had heard the scandals about the takeover of BHP Billiton, but refused to comment. Additionally, analysts forecasted that the potential targets of BHP Billiton also include AngloAmericanPLC and XstrataPLC, but both of them did not make any response to this matter.

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Due to the demand shrinkage in coking coal market and domestic overcapacity, insiders of coking industry proposed that the country should adjust export tax properly to expand export volume.

According to the statistics, the coking coal production was 189mln tons accumulatively in the first seven months this year, down 6.3% year on year and the total export was at 283,600 tons, down 96.6%, a negative growth for 11 consecutive months. Except the weak demand in international market, the high export tariff on coking coal in China also led the significant drop of coking coal export.

Huang Jingan disclosed that the overcapacity of coking coal is seasonal and regional, added the export tax adjustment not only can stabilize the domestic market, but also play an important role in making enterprises join the international competition, promote the technical progress and improve the quality of products.

Currently China’ s coking coal market mainly depends on the spur of the growths of domestic fix assets investment, but steel industry constantly reduce or limit production, which will intensify the contradiction of coking coal overcapacity. It is expected that the coking coal market is not positive in H2.

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Due to the demand shrinkage in coking coal market and domestic overcapacity, insiders of coking industry proposed that the country should adjust export tax properly to expand export volume.

According to the statistics, the coking coal production was 189mln tons accumulatively in the first seven months this year, down 6.3% year on year and the total export was at 283,600 tons, down 96.6%, a negative growth for 11 consecutive months. Except the weak demand in international market, the high export tariff on coking coal in China also led the significant drop of coking coal export.

Huang Jingan disclosed that the overcapacity of coking coal is seasonal and regional, added the export tax adjustment not only can stabilize the domestic market, but also play an important role in making enterprises join the international competition, promote the technical progress and improve the quality of products.

Currently China’ s coking coal market mainly depends on the spur of the growths of domestic fix assets investment, but steel industry constantly reduce or limit production, which will intensify the contradiction of coking coal overcapacity. It is expected that the coking coal market is not positive in H2.

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Baosteel issued EXW price policy of some major products for November on October 10, presenting the downward tendency generally. The drops differed from 250 yuan per ton to 500 yuan per ton, at the same time, as for some products, it released preferential policy for the ordering in October. Market participants estimated that under the downward tendency of steel market, Baosteel’ s pricing had to go to the market, but its differentiable brand advantage showed strong resilience. Meanwhile, it can be seen from the market after National Day that the market is difficult to go out of downward situation.

Reporters learned from Baosteel sales department that its pricing for November presented general falling state. Thereinto, heavy and medium plate products such as heavy plate, ship plate, boiler pressure steel decreased 400-500 yuan per ton, general carbon HR products declined 400 yuan per ton, machinery steel reduced 500 yuan per ton, CR products cut 400 yuan per ton generally, pickle products dropped 250 yuan per ton, the falls of hot-dipped galvanized, electricity coat zinc, color-coated and electronic steel ranged from 300 yuan per ton to 400 yuan per ton. Meanwhile, Baosteel issued the preferential policy for CRC and HRC ordered in October, with 100-350 yuan per ton.

According to the observation of some agencies, the domestic steel market continued the sluggish state after National Day, the settled price dropped continuously in downward tendency and social inventory of some steel products presented significant increase. Especially plate products, the social inventory is relatively large and the HR plate inventory has reached more than 1.1mln tons in Shanghai market, which will affect the plate products’ price tendency in later market and the fluctuation of the whole market. At the same time, with the drop of raw material price in upstream industries, the cost pressure on steel mills is weakening gradually. Therefore, even if the steel price presents the continuous falling, the initiative of steel mills in reducing production will not be strong, which is unfavorable for the balance of supply and demand.

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Baosteel issued EXW price policy of some major products for November on October 10, presenting the downward tendency generally. The drops differed from 250 yuan per ton to 500 yuan per ton, at the same time, as for some products, it released preferential policy for the ordering in October. Market participants estimated that under the downward tendency of steel market, Baosteel’ s pricing had to go to the market, but its differentiable brand advantage showed strong resilience. Meanwhile, it can be seen from the market after National Day that the market is difficult to go out of downward situation.

Reporters learned from Baosteel sales department that its pricing for November presented general falling state. Thereinto, heavy and medium plate products such as heavy plate, ship plate, boiler pressure steel decreased 400-500 yuan per ton, general carbon HR products declined 400 yuan per ton, machinery steel reduced 500 yuan per ton, CR products cut 400 yuan per ton generally, pickle products dropped 250 yuan per ton, the falls of hot-dipped galvanized, electricity coat zinc, color-coated and electronic steel ranged from 300 yuan per ton to 400 yuan per ton. Meanwhile, Baosteel issued the preferential policy for CRC and HRC ordered in October, with 100-350 yuan per ton.

According to the observation of some agencies, the domestic steel market continued the sluggish state after National Day, the settled price dropped continuously in downward tendency and social inventory of some steel products presented significant increase. Especially plate products, the social inventory is relatively large and the HR plate inventory has reached more than 1.1mln tons in Shanghai market, which will affect the plate products’ price tendency in later market and the fluctuation of the whole market. At the same time, with the drop of raw material price in upstream industries, the cost pressure on steel mills is weakening gradually. Therefore, even if the steel price presents the continuous falling, the initiative of steel mills in reducing production will not be strong, which is unfavorable for the balance of supply and demand.

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China iron ore import set a high level again. According to the data from General Administration of Customs on October 14, China imported iron ore reached 64..55mln tons in September, up 65% from the same period of last year or by 30% over last month’ s 49.68mln tons, even higher 10% compared with the highest import in July.

China imported 469mln tons of iron ore in the first nine months, up 36% year on year. According to 50mln tons of monthly average import as the first nine months this year, it is no doubt that the import will get to 600mln tons in the whole year. However, the imported ore was only 440mln tons in 2008.

Several senior insiders of industry all can not explain where the large quantity of iron ore came and showed great surprise about the high import.

Analysts told reporters that generally speaking, the iron ore import stemmed from the demand, including the factor of centralized shipment in October.

Analysts pointed out that the amount of imported iron ore usually has something with ore spot price, operation rate of steel mills, future demand and price expectation. The significant import in September mainly resulted from the continuous increase of steel price from June as well as the increasing operation rate of steel mills.

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China iron ore import set a high level again. According to the data from General Administration of Customs on October 14, China imported iron ore reached 64..55mln tons in September, up 65% from the same period of last year or by 30% over last month’ s 49.68mln tons, even higher 10% compared with the highest import in July.

China imported 469mln tons of iron ore in the first nine months, up 36% year on year. According to 50mln tons of monthly average import as the first nine months this year, it is no doubt that the import will get to 600mln tons in the whole year. However, the imported ore was only 440mln tons in 2008.

Several senior insiders of industry all can not explain where the large quantity of iron ore came and showed great surprise about the high import.

Analysts told reporters that generally speaking, the iron ore import stemmed from the demand, including the factor of centralized shipment in October.

Analysts pointed out that the amount of imported iron ore usually has something with ore spot price, operation rate of steel mills, future demand and price expectation. The significant import in September mainly resulted from the continuous increase of steel price from June as well as the increasing operation rate of steel mills.

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Although the source noted that Vale, BHP Billiton and Rio Tinto will require increasing 30%-35% for the iron ore price of 2010-2011, China’s domestic insiders believed that the next year’s ore price will slightly fluctuate based on the current price and not present significant adjustment.

Due to the reverse of buyers and sellers market, market produced differences with the price for next year. In the past several years, the international market usual reach a common ground on the price up or down every year and only exists controversy in decreasing or increasing extent.

Previously Goldman Sachs, Merilyn Securities, UBS, JPMorgan and other international investment banks also predicted successively that the long-term contract price of global iron ore may increase 10%-20% in 2010.

According to the expansion plans of mining enterprises, international mining industry insiders estimated that the global iron ore will oversupply 300-400mln tons in 2010, which is the largest forecasting since 2002.

Shan Shanghua, general secretary of China Iron & Steel Association (CISA) told reporters said “in the following years, the international iron ore market will present the situation of oversupply and the market will be dominated by buyers rather than sellers”.

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Although the source noted that Vale, BHP Billiton and Rio Tinto will require increasing 30%-35% for the iron ore price of 2010-2011, China’s domestic insiders believed that the next year’s ore price will slightly fluctuate based on the current price and not present significant adjustment.

Due to the reverse of buyers and sellers market, market produced differences with the price for next year. In the past several years, the international market usual reach a common ground on the price up or down every year and only exists controversy in decreasing or increasing extent.

Previously Goldman Sachs, Merilyn Securities, UBS, JPMorgan and other international investment banks also predicted successively that the long-term contract price of global iron ore may increase 10%-20% in 2010.

According to the expansion plans of mining enterprises, international mining industry insiders estimated that the global iron ore will oversupply 300-400mln tons in 2010, which is the largest forecasting since 2002.

Shan Shanghua, general secretary of China Iron & Steel Association (CISA) told reporters said “in the following years, the international iron ore market will present the situation of oversupply and the market will be dominated by buyers rather than sellers”.

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TSI index provides a foundation for long-term contract pricing to floating pricing and if index pricing is adopted, the annual iron ore long-term contract negotiation will not be needed.

On October 20, Steven Randall, president of TheSteelIndex, a subsidiary of SteelBusinessBreifing, and his colleagues introduced the company’ s iron ore TSI index enthusiastically to the delegates of steel companies, iron ore trading companies, mining enterprises and investment banks all over the world.

With the start of iron ore negotiation, shareholders who intend to change the traditional iron ore negotiation mechanism begin to be active, nevertheless, there is a long way to make it, because the index pricing is not accepted by China’ s steel enterprises especially China Iron & Steel Association (CISA).

CBN reporters learned that currently there are three relatively influential iron ore index in the international market, that is, Steel Business Briefing’ s TSI index, MetalBulletin’ MBIO index and Platts’ s.

China, as the largest iron ore buyers shows no interest in index pricing and index trading presently. Shan Shanghua, general secretary of CISA restated recently that China hopes to maintain long-term contract trade, even expects to remove spot trade.

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TSI index provides a foundation for long-term contract pricing to floating pricing and if index pricing is adopted, the annual iron ore long-term contract negotiation will not be needed.

On October 20, Steven Randall, president of TheSteelIndex, a subsidiary of SteelBusinessBreifing, and his colleagues introduced the company’ s iron ore TSI index enthusiastically to the delegates of steel companies, iron ore trading companies, mining enterprises and investment banks all over the world.

With the start of iron ore negotiation, shareholders who intend to change the traditional iron ore negotiation mechanism begin to be active, nevertheless, there is a long way to make it, because the index pricing is not accepted by China’ s steel enterprises especially China Iron & Steel Association (CISA).

CBN reporters learned that currently there are three relatively influential iron ore index in the international market, that is, Steel Business Briefing’ s TSI index, MetalBulletin’ MBIO index and Platts’ s.

China, as the largest iron ore buyers shows no interest in index pricing and index trading presently. Shan Shanghua, general secretary of CISA restated recently that China hopes to maintain long-term contract trade, even expects to remove spot trade.

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Driven by the recovery of global steel industry, especially China’s excessive import of iron ore, BHP-Rio released the financial report for Q3 this year successively. Thereinto, BHP iron ore production set a record high in Q3 and Rio Tinto’ s output of iron ore grew 12% year on year. Analysts believed that the current iron ore production of BHP-Rio will affect the coming negotiation on ore price.

The performance reports of BHP-Rio present the strong iron ore demand. According to the report of BHP Billiton, the iron ore output set the record high of 30.10mln tons, up 1% compared with the same period last year. Rio Tinto stated in the performance report that “the company’s iron ore output has peaked 47.5mln tons presently, up 12% year on year”.

On October 15, BHP Billiton and Rio Tinto both claimed that the plan for JV enterprise changed. BHP and Rio Tinto decided not put iron ore sales into JV enterprise and they will independently undertake the latter’s all production, which indicated that China would negotiate with Rio Tinto and BHP Billiton respectively.

The aforesaid insider said that with the reviving of EU and US steel industry, the three ore giants will be emboldened in pricing. He told reporters that the “China price” may be difficult to be recognized. Meanwhile, according to the usual experience, in the progress of iron ore negotiation, the three ore giants will promote the ore price to fluctuate significantly, the market surrounding will be more serious and the operating risks in steel industry will enhanced.

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Driven by the recovery of global steel industry, especially China’s excessive import of iron ore, BHP-Rio released the financial report for Q3 this year successively. Thereinto, BHP iron ore production set a record high in Q3 and Rio Tinto’ s output of iron ore grew 12% year on year. Analysts believed that the current iron ore production of BHP-Rio will affect the coming negotiation on ore price.

The performance reports of BHP-Rio present the strong iron ore demand. According to the report of BHP Billiton, the iron ore output set the record high of 30.10mln tons, up 1% compared with the same period last year. Rio Tinto stated in the performance report that “the company’s iron ore output has peaked 47.5mln tons presently, up 12% year on year”.

On October 15, BHP Billiton and Rio Tinto both claimed that the plan for JV enterprise changed. BHP and Rio Tinto decided not put iron ore sales into JV enterprise and they will independently undertake the latter’s all production, which indicated that China would negotiate with Rio Tinto and BHP Billiton respectively.

The aforesaid insider said that with the reviving of EU and US steel industry, the three ore giants will be emboldened in pricing. He told reporters that the “China price” may be difficult to be recognized. Meanwhile, according to the usual experience, in the progress of iron ore negotiation, the three ore giants will promote the ore price to fluctuate significantly, the market surrounding will be more serious and the operating risks in steel industry will enhanced.

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The iron ore negotiation of 2009 ended in the sigh of steel enterprises. China’ s goal of 40% reduction was helpless, except 36% preference of FMG, the three ore giants did not make a concession, so China’ s steel enterprises had to buy ore from spot market. Recently principal of China Iron & Steel Association (CISA) proposed to establish “China mode” in the new round of iron ore negotiation.

CISA explained “China mode” three important points. Firstly, the settlement time of iron ore trade is shifted from "April 1 every year-March 31 next year" to "Jan.1-Nov. 31", secondly, insist on the long-term contract, quantity-price interaction and preferential price with large quantity, thirdly, unified price, to determine an iron ore price (FOB) in different area, quality and mining enterprises and once settled, the price should be carried out by all enterprises and traders.

Shan Shanghua, secretary of CISA said that “China’ s steel mills do not ask steel enterprises in other countries and regions all over the world to refer to China’ s price, but they will not blindly follow up the inked price by other enterprises”. Shan pointed out that the agent system is required for carrying out the unified price. Industry insiders suggest that in the new iron ore negotiation, China should adjust and determine target based on economic situation and the supply & demand changes in future iron ore market.

The great dependence on imported ore, low concentration of steel industry, deficient competitiveness of steel enterprises and etc are all deep reasons to restrict iron ore negotiation. The related principal of CISA said that although facing with many difficulties, China as the largest iron ore market in the world should make a breakthrough in establishing new negotiation mechanism on the basis of its actual demand.

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The iron ore negotiation of 2009 ended in the sigh of steel enterprises. China’ s goal of 40% reduction was helpless, except 36% preference of FMG, the three ore giants did not make a concession, so China’ s steel enterprises had to buy ore from spot market. Recently principal of China Iron & Steel Association (CISA) proposed to establish “China mode” in the new round of iron ore negotiation.

CISA explained “China mode” three important points. Firstly, the settlement time of iron ore trade is shifted from "April 1 every year-March 31 next year" to "Jan.1-Nov. 31", secondly, insist on the long-term contract, quantity-price interaction and preferential price with large quantity, thirdly, unified price, to determine an iron ore price (FOB) in different area, quality and mining enterprises and once settled, the price should be carried out by all enterprises and traders.

Shan Shanghua, secretary of CISA said that “China’ s steel mills do not ask steel enterprises in other countries and regions all over the world to refer to China’ s price, but they will not blindly follow up the inked price by other enterprises”. Shan pointed out that the agent system is required for carrying out the unified price. Industry insiders suggest that in the new iron ore negotiation, China should adjust and determine target based on economic situation and the supply & demand changes in future iron ore market.

The great dependence on imported ore, low concentration of steel industry, deficient competitiveness of steel enterprises and etc are all deep reasons to restrict iron ore negotiation. The related principal of CISA said that although facing with many difficulties, China as the largest iron ore market in the world should make a breakthrough in establishing new negotiation mechanism on the basis of its actual demand.

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Starting from 2006 to October 2009, Xiamen Inspection and Quarantine checked out 228 batches of unqualified ore, weighed 9.04mln tons and valued U.S.$913mln, the fraction detective is 60.2%, 54.2% and 40.3% correspondingly. Thereinto, the unqualified ore from India accounted for 157 batches, 5.44mln tons and U.S. $540mln, with the rate of 67.9%, 63.6% and 67.8%. The amount and rate of unqualified Indian ore is large and the quality of Indian ore makes people worried.

Xiamen Inspection and Quarantine analyzed that the imported Indian ore has three quality problems currently. First, quality decreased: the ore with the quality of 62%-63% is prevailed and the ore with quality below 60% is increasing gradually. The main indicators such as iron, water, silicon dioxide, granularity, aluminum oxide, Phosphorus and sulfur are not in line with contract requirement. Secondly, sundries contained in ore, thirdly, short in weight, up to 2,000 tons maximum.

In a bid to ensure the quality safety of iron ore and avoid losses, Xiamen Inspection and Quarantine raised suggestions for import and export enterprises. Firstly, choose suppliers with large scale, well credit standing and perfect quality management system as commercial partners. Secondly, acquire the origin of ore and grasp the base situation about mines’ qualities before signing contracts and mark names of mines clear in the contract. Thirdly, cautiously sign payment terms, regulating to pay after inspection to avoid problems in compensation with unqualified ore. Fourthly, set inspection terms before pre-shipment in the contract, asking third party inspection body to supervise shipment.

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Starting from 2006 to October 2009, Xiamen Inspection and Quarantine checked out 228 batches of unqualified ore, weighed 9.04mln tons and valued U.S.$913mln, the fraction detective is 60.2%, 54.2% and 40.3% correspondingly. Thereinto, the unqualified ore from India accounted for 157 batches, 5.44mln tons and U.S. $540mln, with the rate of 67.9%, 63.6% and 67.8%. The amount and rate of unqualified Indian ore is large and the quality of Indian ore makes people worried.

Xiamen Inspection and Quarantine analyzed that the imported Indian ore has three quality problems currently. First, quality decreased: the ore with the quality of 62%-63% is prevailed and the ore with quality below 60% is increasing gradually. The main indicators such as iron, water, silicon dioxide, granularity, aluminum oxide, Phosphorus and sulfur are not in line with contract requirement. Secondly, sundries contained in ore, thirdly, short in weight, up to 2,000 tons maximum.

In a bid to ensure the quality safety of iron ore and avoid losses, Xiamen Inspection and Quarantine raised suggestions for import and export enterprises. Firstly, choose suppliers with large scale, well credit standing and perfect quality management system as commercial partners. Secondly, acquire the origin of ore and grasp the base situation about mines’ qualities before signing contracts and mark names of mines clear in the contract. Thirdly, cautiously sign payment terms, regulating to pay after inspection to avoid problems in compensation with unqualified ore. Fourthly, set inspection terms before pre-shipment in the contract, asking third party inspection body to supervise shipment.

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After the deadline of the financing agreement between FMG and China passed, there are many versions about whether FMG to fulfill the price agreement of 35% reduction inked in August with China Iron & Steel Association (CISA).

Previously, it is reported that Forrest, CEO of FMG said that as China failed in reaching financing agreement before the end of September, the iron ore long-term contract price settled with China had been invalid. Industry insiders regarded the statement as ending agreement unilateral.

However, when the statement was reported widely, FMG corrected itself that it is discussing with China’ s buyers on whether to supply iron ore preferentially, added whether to continue or cancel the preference will be determined after the last batch of iron ore is delivered to China this year.

An anonymous analyst pointed out that the rising iron ore spot price made FMG fell the long-term contract price unfavorable, but it did not offend China with the little things, therefore, its policy seems to be disordered and iterative.

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After the deadline of the financing agreement between FMG and China passed, there are many versions about whether FMG to fulfill the price agreement of 35% reduction inked in August with China Iron & Steel Association (CISA).

Previously, it is reported that Forrest, CEO of FMG said that as China failed in reaching financing agreement before the end of September, the iron ore long-term contract price settled with China had been invalid. Industry insiders regarded the statement as ending agreement unilateral.

However, when the statement was reported widely, FMG corrected itself that it is discussing with China’ s buyers on whether to supply iron ore preferentially, added whether to continue or cancel the preference will be determined after the last batch of iron ore is delivered to China this year.

An anonymous analyst pointed out that the rising iron ore spot price made FMG fell the long-term contract price unfavorable, but it did not offend China with the little things, therefore, its policy seems to be disordered and iterative.

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According to the introduction of Australian officials, during the period that Li Keqiang, vice premier of State Council interviewed Australia, Australian government approved a set of China’s investment projects, including Yanzhou Coal Mining Company Limited to buy Australia Felix Resources Ltd..

It is introduced that Australia Felix Resources Ltd. is a listed company of Australian Stock Exchange, valued AU$3.4bln. At present, the company operates four coal mines, with the production of 9.3mln tons of raw coal in 2008. Two coal mines are being built which are set to output 12mln tons and there are also four exploration projects, with the total amount of coal resource of 2bln tons. Yanzhou Coal Mining plans to buy 100% shares of Felix Resources. The investment project has been approved by Foreign Investment Review Board (FIRB) recently.

Additionally, Baosteel is also approved to share interests with Australian Aquila. Aquila is also a listed company of Australian Stock Exchange, valued AU$1.7bln, including the major assets of five coal mines, three hematite and one manganese ore. Baosteel intends to buy 15% shareholdings of Aquila with AU$286mln, being its second largest shareholder.

Another approved investment project is China Guangdong Nuclear Power Holding Co.,Ltd. (CGNPC) to purchase the equity stake of Australian Energy Metals whose major assets are eight uran ore projects in North and West Australia. According to the agreement, CGNPC is scheduled to buy less than 70% shareholdings of Energy Metals and the investment totaled AU$70mln.

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According to the introduction of Australian officials, during the period that Li Keqiang, vice premier of State Council interviewed Australia, Australian government approved a set of China’s investment projects, including Yanzhou Coal Mining Company Limited to buy Australia Felix Resources Ltd..

It is introduced that Australia Felix Resources Ltd. is a listed company of Australian Stock Exchange, valued AU$3.4bln. At present, the company operates four coal mines, with the production of 9.3mln tons of raw coal in 2008. Two coal mines are being built which are set to output 12mln tons and there are also four exploration projects, with the total amount of coal resource of 2bln tons. Yanzhou Coal Mining plans to buy 100% shares of Felix Resources. The investment project has been approved by Foreign Investment Review Board (FIRB) recently.

Additionally, Baosteel is also approved to share interests with Australian Aquila. Aquila is also a listed company of Australian Stock Exchange, valued AU$1.7bln, including the major assets of five coal mines, three hematite and one manganese ore. Baosteel intends to buy 15% shareholdings of Aquila with AU$286mln, being its second largest shareholder.

Another approved investment project is China Guangdong Nuclear Power Holding Co.,Ltd. (CGNPC) to purchase the equity stake of Australian Energy Metals whose major assets are eight uran ore projects in North and West Australia. According to the agreement, CGNPC is scheduled to buy less than 70% shareholdings of Energy Metals and the investment totaled AU$70mln.

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