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deleted
81 Posts |
 Posted - 08/05/2008 : 04:12:43
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NEW DELHI: The Centre is considering a proposal to bring iron ore under price control in an attempt to check steel prices. In a move aimed at checking volatility in the spot market, the government is planning to make it mandatory for miners to sign long-term supply contracts with steel companies instead of selling at high spot prices.
The move follows the sharp rise in ore prices, which has pushed up the cost of steel-making. The government has got steel manufacturers to announce a voluntary moratorium on price hikes. It has, however, failed to get a similar commitment from miners.
¡°The committee of secretaries (CoS) reviewing prices of essential commodities has decided that high-grade ore, especially lumps, would be provided at reasonable prices to steel producers to check metal price escalation. Ministries of steel, mines and commerce will now take action to arrange meetings between iron ore miners and independent steel producers to facilitate preferential pricing formula and enforce long-term contracts,¡± an official source said.
The CoS decision is based on a steel ministry proposal which says that all efforts to contain steel prices would go waste if iron ore lump prices continue to rise. This would increase the price of sponge iron and pig iron and, in turn, impact steel prices.
Lump prices have gone up between Rs 500 and Rs 1,000 per tonne in the last two months. The CoS may also ask the mining ministry to seek a voluntary moratorium on price hikes from mining companies on a temporary basis, similar to the one followed by steel companies.
¡°The moratorium plan is completely absurd. There is already a 15% ad valorem duty on ore exports and any further control would just kill the industry,¡± said a mining company executive who did not wish to be named. He added that prices have moved up only in the case of lumps, which are consumed to the extent of just over 13 million tonne by sponge iron units whose requirements are not regular.
Out of the total domestic ore production of 190 million tonne, 85 million tonne is consumed by the domestic industry. Out of the total domestic consumption, 56% is bought from open market by steel companies. While state-owned NMDC is the largest ore supplier accounting for almost 28% of domestic sales, the remaining is supplied by private miners who sell ore at higher spot prices.
Iron ore is the basic raw material for producing steel and accounts for almost 25% of the cost of steel-making. Any increase in ore prices affects the cost structure of steel companies and generally leads to higher steel prices.
Higher ore prices, coupled with a 200% increase in coking coal prices are among the reasons cited by steel manufacturers to raise steel prices. In May, the companies had agreed to reduce steel prices by Rs 4,000 per tonne and have been holding prices ever since then.
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 08/05/2008 : 19:14:15
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| This summer I was walking along some of the railroad tracks that come up from the docks inwhich the iron ore boats unload at. The tracks are loaded with iron ore that has fallen off of the railroad cars over the years on their way to the steel mills. There is a fortune in iron ore just laying on those tracks! |
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Nickelless
Administrator
USA
5580 Posts |
Posted - 08/05/2008 : 19:55:24
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quote:
Originally posted by Ardent Listener
This summer I was walking along some of the railroad tracks that come up from the docks inwhich the iron ore boats unload at. The tracks are loaded with iron ore that has fallen off of the railroad cars over the years on their way to the steel mills. There is a fortune in iron ore just laying on those tracks!
Other than a bit of heavy equipment and permission from the right people, how hard would it be to scrap rails on lines that have long been out of use? There are a number of rails in my area that are barely visible from brush growth and in some places paving that has occurred over the part of the rail that crosses roads. What would it take for something like this to be economically viable? |
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Edited by - Nickelless on 08/05/2008 20:01:59 |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 08/05/2008 : 20:16:20
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quote:
Originally posted by Nickelless
quote:
Originally posted by Ardent Listener
This summer I was walking along some of the railroad tracks that come up from the docks inwhich the iron ore boats unload at. The tracks are loaded with iron ore that has fallen off of the railroad cars over the years on their way to the steel mills. There is a fortune in iron ore just laying on those tracks!
Other than a bit of heavy equipment and permission from the right people, how hard would it be to scrap rails on lines that have long been out of use? There are a number of rails in my area that are barely visible from brush growth and in some places paving that has occurred over the part of the rail that crosses roads. What would it take for something like this to be economically viable?
They are still in use. More of the stuff every day. This is what they look like ..........  A huge vaccume cleaner on a railroad car would do the trick. |
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NiBullionCu
Penny Pincher Member
USA
168 Posts |
Posted - 08/06/2008 : 13:49:05
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Those are processed iron ore taconite pellets.
As kids we coveted those as slingshot ammo...
From wikipedia:
To process taconite, the ore is ground into a fine powder, the iron is separated from the waste rock by using strong magnets, and then the powdered iron concentrate is combined with bentonite clay and limestone as a flux and rolled into pellets about one centimeter in diameter that are approximately 65% iron.
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Price curbs on iron ore likely
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