1. Bloomberg.com: China’s iron ore import growth may ‘soften,’ Dahlman Rose says
What goes up, must come down. Chinese steelmakers struggle with decreasing margins as steel prices continue to fall. Domestic steel prices have fallen 9.7% since July with export prices down 5.3%. The price decrease is expected to curb China’s iron ore appetite as imports are expected to soften in response.
2. Reuters Africa: Transnet to boost iron ore line capacity
South Africa’s Transnet announces expansion plan for South Africa’s main iron ore export line. The company plans to boost capacity to 47 million tonnes per year by 2010 or 2011. Capacity will be further ramped to 60 million tonnes in 2012 through an agreement with Kumba Iron Ore to provide financial assistance.
3. Reuters Africa: Demand, dollar sap copper market confidence
Dark shadows continue to loom over copper market. While copper prices have risen slightly, confidence is still shaky. Weaker Chinese demand has set off alarms questioning the pace of global growth, especially as the dollar strength regains.
4. Australian Broadcasting Corporation: Uranium mining, nuclear power, and ‘ethical’ investment
Citing the possible role of nuclear power as a solution to climate change, managers of so-called ethical investment funds are rationalizing investment in uranium mining. A Corporate Watch Australia report revealed many ethical investment funds include uranium miners. Uranium inclusion is a growing trend after BHP Billiton acquired the Olympic Dam uranium mine in 2005.
5. The Australian: BHP diversity offsets a slump in aluminum and nickel
BHP Billiton aces diversification test. Copper, iron ore, and manganese sustain the miner while aluminum and nickel stumble. BHP chief Marius Klopper touts the company’s ability to smooth volatility through diversification, gives itself a gold star.
6. Reuters India: JSW Steel urges higher iron ore export tax
Indian steelmakers look to Chinese playbook and propose raising the iron ore export to stabilize domestic prices. Last week China announced an export tax raise for coking coal. China’s decision will cause steel’s input costs to rise.
7. Reuters: Russia to demand Mechel cut coal prices 15%
Russia hands down punishment; Mechel to lower coal prices 15% on September 1 and is fined 5% of last year’s coking coal revenue. The new prices will likely affect other Russian coal producers as the government attempts to reign in inflation and have better control over the mining industry. The punishment is less than some expected.
8. The Australian: BlueScope Steel soars despite China fears
Australia’s BlueScope Steel forges through rising input costs and speculative talks of a weakening Chinese demand for steel. The producer posted a 27% increase in full-year earnings. The company predicts similar success for 2009.
9. AFP: BHP Billiton posts record $15.4 billion profit
BHP Billiton announced annual report earnings yesterday. The miner came in with a whopping $15.39 billion net profits, beating last year’s $13.42 billion profit by 14.7%. With a population of around 21 million, BHP’s profits would provide about $733 (AU $840) to every man, woman, and joey in the company’s homeland of Australia.
10. Belleville News-Democrat: U.S. Steel, union reach tentative contract
Steelworkers celebrate new contract proposal with U.S. Steel. While the details of the contract were not released, many workers are saying it is the best proposal they’ve seen in a long time. The contract would affect 16,000 U.S. Steel employees at its 12 plants.
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