Click here for more information on our Iron Ore research |
Belinga, an Iron Ore Mine owned by China National Machinery and Equipment Import and Export Corporation (CMEC), and Governments, is located 500km east of Libreville and 110km from Makokou in Gabon. Iron Ore Production Cost Reports & DatabasesWeakening global demand is providing some small advantage in that it is relieving supply tensions and removing shortages of skilled labour, goods and services within the industry. Combined with declines in energy costs, the industry is now faced with a reduction in production costs for the first time for many years. Average world iron ore cash costs had been rising systematically in recent years. The average FOB cash cost of international non-agglomerated iron ore production covered by this report has increased by over 82% between 2003 and 2007, with an estimated 24% increase over 2008. China is the key driver of the global iron ore industry, and will remain this way for the foreseeable future.
Freight rates are a key component of the profitability of iron ore operations this year. Freight rates collapsed at the end of 2008, to levels below the cost of operating ships in some cases. A mild recovery is occurring, but not to the levels seen in 2007/2008. Freight cost increases will tend to benefit Australian iron ore producers exporting to Asia, while iron ore producers in the Americas will have a CIF cost advantage servicing the European market. Our Iron Ore Mine Cost Report covers operational data over a 10-year time span, representing the majority of production for the seaborne trade. This multi-volume analysis estimates production costs in 16 countries, including many of the major facilities around the world. Detailed cost estimates, covering the production process from raw materials to either concentrate or delivered ore are provided. Iron Ore Mining Cost Breakdown We benchmark all major operations to highlight changes, assess profitability and identify opportunities. This research provides:
The database ensures access to accurate and timely information for most of the world’s operations. Our analysts conduct thorough examinations of well-sourced data to provide valuable answers, saving you time and effort. Specifically, our work is based on detailed analysis of flow sheets, exhaustive company research, and ongoing revisions supplemented by mine visits and technical contact with individual operations.
Iron Ore Strategic Market ReportsMarket fundamentals will be determined by the speed and size of the recovery from the global recession. At this stage, 2009 will be a tough year for global consumer demand, and deflationary conditions will remain until 2010. Planned fiscal stimulus plans in China, USA and a host of lesser economies will assist with demand and consumer confidence, and this is likely to effect an improvement on commodity demand in 2010. Longer term the economy will revive, driven by the planned Keynesian government expenditure, continued urbanisation in Asia and progressive industrialisation in the wider developing world. However, global growth will be at more modest levels in comparison to the last ten years. Thus spectacular growth was driven by four principal factors, a combination unlikely to be replicated any time too soon:
Global GDP growth rates will recover after the recession is over, but will be somewhat more modest at around 2% per annum below the rates experienced in the last five years. Iron ore prices will reduce substantially this year, but are likely to remain at historically high prices - a decline of 44% would still only push prices back to 2007 levels, itself a record-setting year for the industry. In the longer-term, iron ore prices will be maintained by the marginal high-cost production in China, which will support above-normal industry profitability for low-cost Brazilian and Australian producers. Global Demand for Iron Ore by Region Additional support will also come from the abandonment of new projects and expansion plans. AME forecasts that China will soon account for over 50% of traded world seaborne iron ore imports. China is also pursuing strategic targets overseas, acquiring significant overseas equity and encouraging the development of overseas projects. 2008 was initially a glorious year for iron ore exporters, with record prices and volumes.
Spot producers reveled in prices approaching US$200/tonne at the peak in March 2008, but it was short-lived as steel and spot ore prices collapsed from August 2008. The "day in the sun" is over for the time being. With over three decades of experience in market analysis, AME appreciates the old adage "the devil is in the detail" is a fundamental truth. To this end, we concentrate our investigation on end-users, particularly the construction, transport, equipment and consumer durable sectors. We provide, usually quarterly, strategic supply/demand and price analysis to generate our long-term view. We offer:
Iron Ore Prices Iron Ore OutlooksOur monthly Outlook offers short-term analysis on developments, operations, consumption, production and trade and export in the Iron Ore Industry. A tactical, topical and thought-provoking tool; the service includes:
ConsultingWe are frequently commissioned to provide:
Critical Mass in People and Resources – Our structured methodology allows us to rapidly undertake assignments and offer consistently rigorous work. This is possible as we employ a considerable team of engineers, geologists, metallurgists, economists, computer programmers and market experts. For nearly 40 years we have built widespread recognition among major mining companies, banks and trading houses, reflected in our increasing market share. Close Industry Connections – Our analysts offer practical intelligence and advice due to years of experience in the mining industry. Consequently, our integrity and credibility is unrivalled when it comes to evaluations of mines, beneficiation projects and end-user plants. A Comprehensive Global View – Our technical associations and international contacts allow us to provide you with broad, in-depth and forward-thinking research. We are a leading independent research firm. For nearly 40 years we have served most major corporations active in the metals, mining and energy sectors. The heart of our organisation is based around the talents of industry-experienced engineers, metallurgists, geologists, scientists, software developers, market experts, accountants and mineral economists with decades of experience, intellectual maturity and consulting expertise. We offer
AME DirectAME Direct is a secure and powerful delivery system on your PC. You can automatically search and download just the data needed as opposed to pages of information. AME Direct offers:
|
|
