vol. 1 no. 97 umetal iron ore weekly apr 6-apr 8, 2011...

Vol. 1 No. 97 UMETAL IRON ORE WEEKLY Apr 6-Apr 8, 2011

Copy 2002-2009 Umetal.net, All Rights Reserved.

Weekly Port Stocks (Apr 8) Total Stocks at 19 ports (Mt) 7-day Change (t)

84.52 -1,560,000

Note: Iron ore stockpiles at Chinese ports decreased this week.

That is because traders and steelmakers were consuming stocks.

India-China Route Rate (Apr 8) Vizag Port - Qingdao Port

Ocean Freight (US$/t) 7-day Change

17.79 -0.01

CCCMC Reference Prices

Date Indian Ores High Low Unit

2011-3-28 FOB 154 152 $/t

2011-3-28 CIF 174 172 $/t

Vol. 1 No. 97 Apr 6-Apr 8, 2011

Weekly Publication for Your Trade Exploration

Published each Monday except National Holidays

TOP HEADLINES

Indian Karnataka's Iron Ore Export Ban Lifted

Vale's Iron Ore Output Hit 320 mln Tonnes this

Year

China's Spot Price May Rise Further in the Short

Run

NMDC Iron Ore Sales Up 9.3% in FY2010/11

Iron Ore Shipment from Great Lakes Slides 11.2%

YoY in March

Karnataka Lifting Ban Won't Drive the Price to Fall

Sharply

Ukrainian Iron Ore Output Up 13.7% MoM in Mar

High Raw Materials Cost Makes MMK Build up

Vertical Integration

WISCO Moves One Step Further on Madagascar's

Iron Ore

Oversupply Capacity Squeezes Rates

More…

Reference Prices for Indian IOF Contracts on Offer

Grade (Indian

Iron Ore Fines)

CFR ($/T) Port of Loading Remark

Apr 1 Apr 2 Apr 6 Apr 7 Apr 8

63.5/63 178-180 178-180 180-182 183-185 185-187 Chennai/Paradip Moisture: 8%; To be loaded at one Indian port

63/62 172-174 172-174 174-176 177-179 179-181 Chennai/Paradip Moisture: 8%; To be loaded at one Indian port



60/59 153-156 153-156 155-157 158-160 160-162 Goa/Mangalore Moisture: 8%; To be loaded at one Indian port

59/58 145-147 145-147 147-149 150-152 152-154 Goa/Mangalore Moisture: 8%; To be loaded at one Indian port; To be unloaded at Chinese Northern ports

Vol. 1 No. 97 UMETAL IRON ORE WEEKLY Apr 6-8, 2011

Copyright 2002-2011 Umetal.net, All Rights Reserved.

Vale CEO Adjustment

Vale SA, the world's largest iron ore producer, said its

controlling shareholders named Murilo Pinto de

Oliveira Ferreira as chief executive officer, replacing

Roger Agnelli after the Brazilian government criticized

the company's strategy for the past two years.

Ferreira, who was president of Vale's Canadian

operations until 2008, will take over as head of Vale on

May 22 after Angelli's current mandate expires, the

Rio de Janeiro-based company said in a regulatory

filing today. Ferreira's nomination by the controlling

shareholders of Valepar SA, which controls 53.5

percent of Vale, will be submitted to the company's

board in a meeting yet to be announced, Vale said.

Vale, which denied as recently as January that its

Valepar controlling shareholders were discussing a

replacement for Agnelli, 51, said March 31 that the

group was hiring an international recruitment

consultant to help draw up a list of three possible

candidates to replace Agnelli. The Brazilian

government repeatedly criticized the company for not

investing more in the domestic steel and fertilizer

industries. (Editing by Mike Lei)

Ban on Karnataka Iron Ore Exports

to be Lifted

The Supreme Court has ordered to lift ban on the

export and transportation of iron ore in Karnataka from

April 20 this month.

The apex court bench of Justice RV Ravindran and

Justice AK Pattnaik passed the interim order after it

was told that the rules for regulating iron ore mining

and transportation have been notified April 1, 2011.

The court gave the Karnataka government 15 days

that it had sought to put in place the infrastructure to

enforce the new rules to prevent the illegal mining of

iron ore and its transportation, reports IANS.

The Karnataka government, by its notifications on July

26 and 28 last year, had banned the export of iron ore.

Indian Karnataka's Iron Ore Export

Ban Lifted

Mining firms in Karnataka will be able to recommence

exports of iron ore from April 20, with the state

government slated to lift a ban imposed on overseas

shipment of the commodity, as directed by the

Supreme Court.

"The court ordered that after April 20 the state

government order on the ban will be null and void,"

said Ankur Kulkarni, a lawyer for S. B. Minerals, one of

the petitioners.

Yesterday, senior advocate K V Vishwanathan,

appearing for the state government, had requested the

Supreme Court to grant 15 days time' to set up various

check posts and install Radio Frequency Identification

Devices on miners' trucks to track their movement.

India's top court lifted a ban on iron ore shipments

from the southern state of Karnataka on Tuesday,

lawyers in the court said.

Exporters and miners from the state challenged the

ban in Karnataka high court, but lost the case,

Top Industry Stories



following which they petitioned the Supreme Court in

November. (Editing by Mike Lei)

Australian Grange Changes Pricing

Basis with Its Customers

Australian iron ore pellet producer Grange Resources

Ltd said on Monday it has agreed with its major

customers, Bluescope Steel and Jiangsu Shagang

International Trade, to price iron ore pellets using

Platts' benchmark.

The pricing mechanism, which will cover the sale of

Grange's Savage River pellets, will be based on Platts

62% index for iron ore fines, to be adjusted for the

higher 65% iron content of the pellets, Grange said.

Grange managing director and chief executive Russell

Clark said in a statement that the agreed pricing

mechanism will be applied retrospectively to all

shipments from April 1, 2010 which was covered by

interim prices.

"The result is that Grange will receive US$70 million in

cash to reflect the differences between the interim

pricing and the pricing mechanism now agreed," Clark

said.

With the current Platts index price for iron ore pellets

at more than US$200/tonne, free on board basis,

Clark said Grange is planning to produce around 2

million tonnes of pellets in 2011. (Editing by Mike Lei)

Vale's Iron Ore Output Hit 320 mln

Tonnes this Year

Brazil's Vale expects total iron ore output of 320

million tonnes this year, slightly up from a year ago, an

executive at the mining giant said on Wednesday.

Vale, the world's biggest iron ore producer, had earlier

said it planned to raise annual output of the

steelmaking raw material to 522 million tonnes by

2015, up from 311 million tonnes in 2010.

Production in the first quarter was hit by the rainy

season, but the company expects to catch up in the

following three quarters, Michael Zhu, global director

of sales for Vale, said at a mining conference in

Singapore.

Zhu said that iron ore supply in the global market

would be tight in at least the next 12 months, with no

signs of shrinking demand.

"Our concern is how we can catch up with the

demand."

China's daily crude steel output rose to a record 1.945

million tonnes in mid-March, as steel mills banked on a

pickup in demand when construction activity becomes

brisk from April.

Zhu said the first Chinamax vessel that the company

had commissioned, which is capable of shipping

400,000 tonnes of ore at one go, was delivered last

week, and that many clients had approached the

company about shipment with the vessel.

Spot iron ore prices touched record levels near

US$200/tonne in February, have prompted miners

including BHP Billiton to advocate a monthly pricing

scheme.

But Zhu said Vale was still comfortable with the

quarterly pricing scheme for iron ore.

Vale expects to ship 120 million tonnes to 130 million

tonnes of the ore to China this year, flat from a year

ago. (Editing by Mike Lei)



China's Spot Price May Rise

Further in the Short Run

Chinese iron-ore prices may rise further as buyers

look to build up inventories of the steelmaking

ingredient, shipbroker Lorentzen & Stemoco AS said.

The price of ore with 63.5 percent iron content shipped

to Caofeidian port has gained 2.2% to

RMB1,320/tonne compared to last Wednesday,

according to Umetal data.

"Spot iron-ore prices are likely to build on last week's"

gain, Thomas Zwick, an Oslo-based analyst with

Lorentzen & Stemoco, wrote in a note e-mailed today.

"Chinese buyers continue to replenish stocks."

The price of iron ore will likely fall in the next few years

as the global production of steel is likely to lose the

"growth momentum" experienced in the last five years,

NMDC Ltd. (NMDC) said today. (Editing by Mike Lei)

NMDC Iron Ore Sales Up 9.3% in

FY2010/11

UMETAL-CHINA, Indian Miner NMDC announced the

company's total iron ore sales increased 9.3% YoY in

FY2010/11 ending Mar 31, 2011.

Thanks to the growing demand from China and better

transportation condition, NMDC's iron ore sales

volume increased from 24.09 million tones to 26.33

million tones and total production hit 25.19 million

tones, increasing 6% YoY.

NMDC increased the price for lump ore by 10% and

maintained the price for fines unchanged.

NMDC's manager director Mr. Rana Som said

February that the company was expected to yield 30

million tones of iron ore in FY2011/12. (Source:

Umetal; Compiling by Mike Lei)

Iron Ore Shipment from Great

Lakes Slides 11.2% YoY in March

The tonnage of iron ore shipped on the Great Lakes in

March was less than a year ago but more than the

month's five-year average.

According to the Lake Carrier's Association, 1.9 million

tonnes of iron ore were shipped between Seaway and

Great Lakes ports in March. That's a decrease of

11.2% from the 2.2 million tonnes shipped in March

2010, but nearly 6.8% more than the March five-year

average of 1.8 million tonnes.

For the calendar year, iron ore shipments totaled 4.8

million tonnes at the end of March, a 17.2% increase

from the 4.1 million tonnes at the same time last year

and 9.4% ahead of the five-year average of 4.4 million

tonnes. (Editing by Mike Lei)

Karnataka Lifting Ban Won't Drive

the Price to Fall Sharply

The Supreme Court on Tuesday moved to lift an

eight-month-long ban on iron ore shipments from its

key Karnataka state, a decision likely to weigh on

prices of the steelmaking ingredient as it frees more

cargoes from the world's No. 3 supplier.

The action shows India, which has quadrupled taxes

on iron ore exports and raised freight rates in bid to



curb overseas sales, may not be ready to let go of

millions of dollars in export revenue.

But analysts say iron ore prices are unlikely to

collapse following the court ruling with demand from

top buyer China remaining strong and new additional

capacity in the global seaborne market unlikely to

come through until 2013 or 2014.

"With more Indian material finding its way to the

market, it may be tough for prices to even get close to

last year's more than 40 percent gain, but it may not

fall sharply either. "

India's steel sector is years away from even getting

close to the status of top producer China, which last

year produced 100 million tonnes more than the

combined output of the rest of the top 10 producers,

which include India at No. 5, data from the World Steel

Association showed.

The move also weakens plans by India's top iron ore

producing state, Orissa, and another exporting state,

Chhattisgarh, to impose export bans.

Karnataka is the second biggest iron ore producer in

India. The southern state, in a crackdown on illegal

mining, has banned shipments since July 26 last year.

Around a quarter of India's annual exports of around

100 million tonnes comes from Karnataka. Because of

the ban India's iron ore exports fell for an eighth

straight month in February.

Tight supply from India, largely courtesy of the ban in

Karnataka, helped spot iron ore prices leap to record

highs near US$200 a tonne in mid-February until

demand from top importer China slowed amid a murky

outlook for steel demand. But prices began to bounce

back late last month as Chinese steelmakers

replenished run-down inventories. (Editing by Mike

Lei)

BC Iron's Regent Acquisition Back

on Foot

Australian iron ore producer BC Iron Ltd said on

Wednesday that the decision of the local takeovers

regulator against Regent Pacific Group Ltd's has in

effect reinstated the bid.

Australia's Takeovers Panel earlier said that the Hong

Kong-listed resources investor could not rely upon a

separate provision within the agreement enabling it to

walk away if Regent Pacific's board decided against

the deal.

"In light of the Takeovers Panel's orders, BC Iron

considers that the scheme implementation agreement

is back on foot and will continue to comply with its

obligations under that agreement," BC Iron said in a

statement. (Editing by Mike Lei)

Ukrainian Iron Ore Output Up

13.7% MoM in Mar

Ukraine's production of iron ore and iron ore

concentrate rose 13.7% month-on-month to 6.79

million tonnes in March from 5.97 million tonnes in

February, UkrRudProm, an association uniting major

metal producers, said Thursday.

In March, Ukraine's production of iron ore rose 20.7%

MoM to 1.2 million tonnes, from 994,000 tonnes in

February. Ukraine also produced 5.59 million tonnes

of iron ore concentrate, including sinter and pellets, up

12.5% from 4.97 million tonnes in February.

Sinter output in March rose 12.3% on the month to

3.53 million tonnes and production of pellets increased

14.7% to 1.89 million tonnes, UkrRudProm said.



In January through March, Ukraine increased

production of iron ore and iron ore concentrate by

3.5% year-on-year to 19.27 million tonnes, from 18.61

million tonnes in the first quarter of 2010.

Production of iron ore concentrate rose 4.9% to 16

million tonnes in the first quarter, while output of iron

ore fell 2.7% to 3.26 million tonnes.

Ukraine increased sinter output by 2.4% year-on-year

to 10.18 million tonnes in January-March, while

production of pellets fell 3.6% to 5.25 million tonnes.

In 2010, Ukraine raised production of iron ore and iron

ore concentrate by 17.7% year-on-year to 78.15

million tonnes from 66.39 million tonnes in 2009.

(Editing by Mike Lei)

High Raw Materials Cost Makes

MMK Build up Vertical Integration

Magnitogorsk Iron & Steel Works (MMK), Russia's

third-largest steelmaker, became the latest producer

to forecast rising demand in the domestic market in

2011 amid concerns about higher raw material costs.

The company said on Thursday net profit reached

US$42 million in the fourth quarter, down 81% from

last year.

"Everyone knows that MMK lacks vertical integration

in coking coal and iron ore, and rising prices impacted

their results," Morgan Stanley analyst Timur Salikhov

said, adding that profit margins nonetheless improved

quarter-on-quarter.

MMK Chief Financial Officer Oleg Fedonin said on a

conference call iron ore prices rose 20% in the first

quarter while coking coal prices climbed 14%.

"While we did face increasing costs, we are confident

in our ability to pass on the increasing costs and thus

we expect about the same level of profitability in Q1 as

we saw in Q4," he said.

MMK said overall steel product output would rise by

20% in 2011, as its domestic and Turkish operations

boost production, "including growth of output in Russia

at 15%".

MMK's fourth-quarter sales reached US$1.94 billion,

up from US$1.67 billion and compared with a US$2.09

billion forecast.

"Raw material prices may have peaked, but we expect

prices to remain high this year and next year".

MMK acquired a majority stake in Russian steam and

coking coal producer Belon in 2009 and production

increases there will meet 80% of its coking coal needs

in four to five years.

"We plan to continue to build up our vertical integration

for raw materials in 2011," Fedonin said. He did not

name any specific acquisition targets. (Editing by Mike

Lei)

Sundance Mbalam Project to Cost

US$4.6 bln

Sundance Resources announced that developing its

Mbalam iron ore project would cost US$4.6 billion to

develop. The project in central West Africa needs

infrastructure and the completion of a definitive

feasibility study for the initial stage of the project.

The Australian company is developing the Mbalan

Project in the Republic of Cameroon. The company

hopes to begin operations by 2012 on the 35 million

tonnes a year hematite mine. The company is hoping

to generate strong cash margins in the project.



The Net Present Value is estimated at over US$4

billion for the full project. There is an estimated

Internal Rate of Return of 27% on an un-geared basis.

The project is still subject to obtaining government

approval and securing project financing but Sundance

Resources is looking forward to progressing the

project to production in a short while.

Giulio Casello, managing director said that the project

would bring to fruition more than 3 years of hard work

and positions Sundance Resources to realize its vision

of becoming a world class iron ore producer. He

added that they were now all focused on moving

ahead as rapidly as possible to secure the final

approvals and obtain project funding to enable them to

commence construction later this year. (Editing by

Mike Lei)

Cliffs to Challenge Three Iron Ore

Behemoth's Monopoly

UMETAL-CHINA, Cliffs Natural Resources, the largest

iron ore producer in North America, announced

Thursday it would reach an agreement with China

regarding exporting iron ore to China. According to the

report, this transaction aims to challenge the

monopoly of the three mining giants Vale, Rio and

BHP. (Editing by Mike Lei)

WISCO Moves One Step Further on

Madagascar's Iron Ore

Wuhan Iron & Steel Co (WISCO), China's third-largest

steelmaker, plans to start exploratory drilling for iron

ore in Madagascar's Soalala region at the end of May,

officials said.

WISCO Madagascar -- one of many foreign firms keen

to develop the Indian Ocean Island's mineral

resources -- paid US$100 million for exploration

permits in 2010.

"Our investments are made in stages, depending on

the results of the survey. The investment decision is

expected in six to eight months, then will come the

construction phase, which will last four years," said

WISCO Madagascar's chief executive, Jun Yuan Lou.

"The actual operation should start in five years," he

added. (Editing by Mike Lei)

Huanan Investment Extends Bid for

Australian Miner

UMETAL-CHINA, China Huanan Investment Corp has

extended its bid for takeover Australian iron ore miner

BRM and FRS until May 16, 2011.

BRM mainly focuses on developing Marillana Iron Ore

Project in West Australia covering 96 square

kilometers. While FRM's key spot is FerrAus Pilbara

Project with around 316 million tonnes of iron ore

reserves. (Source: Umetal; Compiling by Mike Lei)

HISG's Yanshan Project Moves

One Step Further

UMETAL-CHINA, China Hebei Iron and Steel Group's

(HISG) Yanshan iron ore infrastructure construction

project successfully saw its trial run on Mar 31,

symbolizing the completion of this project and the next

step would be adjustment and operation.



This project was commenced in October, 2009 and

after 18 months' work, the main part was finished.

(Source: Umetal; Editing by Mike Lei)

Newbuilding Stays High level,

below 2010

The latest reports from shipbrokers and analysts

suggest that ship owners have started to moderate

their pace of newbuilding ordering, as a result of a

hefty orderbook for most ship types, combined with

the uncertain state of most freight markets.

According to the latest weekly report from Clarksons,

''as we move into into the second quarter of the year

the newbuilding market continues to remain active

with further reports of new business being concluded.

As has been the pattern of late, it is the container

sector that continues to generate the majority of this

activity with the tanker and dry bulk markets

continuing to remain relatively quiet.

The price of steel plating and its effect on the

newbuilding market has been a hot topic of

conversation of late, with price increases being

announced by the major steel mills. Korea's largest

Steel producer POSCO is said to be increasing its

pricing of steel plates by approximately US$120 per

tonne and rumours emanating from Japan suggest we

will see price increases of perhaps as much as

US$300 per tonne. In Japan in particular there is much

talk of the expected additional steel demand to be

placed on the mills with the rebuilding efforts due to

start following the earthquake last month and this too

is expected to further increases pressures on supply

and generate further cost increases.

These factors along with the continuing currency

appreciation in the Far East will again highlight the

challenges being faced by the yards today to remain

competitive on pricing.

In terms of reported business; In Dry, Zhejiang

Wugang Shipping have ordered a pair of 47,500dwt

Bulk carriers for delivery in 2013 at Zhejiang Tai Tong

Shipyard. Wenzhou Shipping have ordered a similar

pair of 47,500dwt Bulk carriers at CSC Jinling with

deliveries scheduled for 2H 2012 though we

understand this was signed earlier this year'' said

Clarksons.

In an earlier report, London-based Gibson had argued

that tanker owners have effectively abandoned the

newbuilding market. ''Months of low earnings coupled

with a bearish sentiment in the tanker spot market has

finally slowed down the shopping spree for tanker

newbuildings" said the latest weekly report from the

London-based firm.

"Things do change. The first three months of 2011

have seen no new VLCC orders, which has not

happened in any quarter during the past five years.

Even in the first two quarters of 2009, which followed

the free fall of the world economy, owners still

managed four VLCC newbuildings.

Now owners have had a sudden change of heart.

Albeit the price of new VLCCs remains low, there are

a number of unpleasant facts that make further fleet

expansion seem like a bad idea. The pickings for

owners are slim, even though there has been a

moderate rise in earnings to an average of

$24,000/day in the first quarter of 2011. Considering

that total running costs of a VLCC (including fixed

operating costs and capital expenses), bought for a

current price of $103 million are about $39,000/day,

the newly delivered vessels would not be economically

viable in today's market. The heavy ordering in the

"good years"is continually making the situation look

worse. There are currently 173 VLCCs on the

orderbook and 69 of those are scheduled to hit the

water in 2011. This would expand the existing fleet by

Freight News



further 12%, putting more downward pressure on rates.

High bunker prices and less availability of bank

finance all stand in the list of risks for tanker

investment. The story is almost the same for all tanker

size groups. There have been only seven tanker

orders so far in 2011, which compares with an

average of 55 per quarter in 2010. However, it is not

all that shabby. The expected rise in OPEC production,

unrest in the Middle East/North Africa and the growth

of optimism in the world economy will prove to be

strong supporting factors for a new ordering

renaissance. Timing is still the critical element in this

game and at the moment biding time seems like the

best investment strategy" concluded Gibson.

Meanwhile, during the previous week, Tsakos Energy

Navigation was reported to have have signed a pair of

157,000dwt Shuttle tankers at Sungdong with delivery

of the vessels scheduled for 2013. In containers

meanwhile, Evalend Shipping are reported to have

ordered 2 + 2 x 4,800TEU container carriers at

Zhejiang Ouhua with initial deliveries scheduled from

1Q 2014 onwards and at a reported price of circa USD

58 Mill per vessel. Finally, Sungdong are reported to

have contracted a pair of 3,600TEU vessels with

owners NSC Schiffahrt with these vessels set to

deliver in 2013. (Compiling by Nick Zhang)

Oversupply Capacity Squeezes

Rates

Making forecasts about dry bulk ocean freight rates

have always been a tricky business. This is because

forecasters have to consider diverse factors.

Among other things, how the economies in different

parts of the world would behave, and the expected

growth in seaborne trade of coal and iron ore,

constituting nearly 60 per cent of dry bulk cargoes and

also global movement in food articles.

Nobody will claim precise knowledge of any of these.

Therefore, most such forecasts are loosely structured

and they come with a number of caveats.

Even then, when Moody's Investors Services talks on

the subject, ship owners and shippers take note.

There is no question of contesting the credit rating

agency's underlying point that the oversupply of dry

bulk tonnage would keep rates under pressure over

the next couple of years.

In fact, the behavior of the Baltic Exchange Dry Index

(BDI), which tracks rates to ship dry commodities), in

the past several months is a pointer to the world

economy being unable to absorb the commissioning of

a growing number of vessels. One prediction is that

the bulk fleet will grow between 11 and 13 per cent this

year, to top an unprecedented 600 million deadweight

ton (DWT), leaving the demand for shipping space far

behind.

TURBULENCE

Moody's report also says as a large number of new

vessels take to the water in the midst of slowing of the

growth rate of dry bulk shipping: "We expect freight

rates to fall substantially in 2011. The agency sees the

spate in supply of shipping space constraining the BDI

between 1,000 and 2,000 points."

It goes without saying that the less efficient shipping

groups will find the going extremely difficult with the

BDI moving in that range. The report says the

operators whose charter policies are based

predominantly on long-term contracts would, however,

come under less pressure.

The shipping world is in a situation where there will be

occasional upticks in rates, only to be followed by falls.

The BDI hit a two-year low in mid-February. There has

been recovery since. But the Index and also daily

earnings of cape-size vessels have remained volatile.

Freight rates are, perforce, sensitive to unforeseen

developments like the near-Biblical December floods

in Australia and the ruinous combination of quake and



tsunami that hit Japan last month. Gujarat NRE Coke

managing director Arun Jagatramka says coking coal

exports from flood-ravaged Queensland in the

January-March quarter took a hit of up to 15 million

tonnes.

The rare act of Queensland-based coal producers

invoking the force majeure clause for their inability to

honour supply commitments did hurt capesize activity

and was responsible for freight market disruptions in

January-February. Then came the Japanese disaster,

bringing in its wake bad tidings for the shipping

industry, already reeling under over-capacity.

But Japan may not prove as bad as was initially feared.

The country has enough unaffected port capacity and

the transport ministry there has given assurances that

radiation at the larger ports is at a safe level.

The shipping fraternity is hopeful that, sooner than

later, shipments of coal, both thermal and

metallurgical, and also iron ore to Japan, will pick up

with restoration of power supply and the steel industry

resuming production at full throttle.

AFTER EXCESS

In times of excess shipping capacity, scrapping of old

tonnage and postponement or cancellation of orders

for new ships are time-tested safety valves. But

Moody's report says such traditional action might not

be enough to mitigate all the excess capacity.

This year is very likely to see record scrapping, as

about a fifth of ships are over 20 years old, having

lived their useful life. More, ships sent to the scrap

yard are fetching attractive prices. Are not all steel

intermediate raw materials like iron ore, coking coal

and steel scrap fetching well prices, too?

Scrap yard owners in the Indian sub-continent say the

ageing vessels should come to them at a rapid pace

for the rest of 2011 as new vessels for which orders

were placed ahead of the 2008 economic downturn

get delivered in growing numbers. It will not be a

surprise if up to 20 million tonnes are scrapped this

year, to make it a record.

In the near term, BDI will stay on turbulent waters and

at levels not bringing a cheer to ship owners. The

long-term prospects for dry bulk shipping, however,

appears more favorable to Moody's, in the context of

emerging markets using more and more commodities.

At the same time, there is concern that given the

industry's high degree of fragmentation and the innate

speculative nature of its players, the industry will be

found wanting in exercising restraint in creating

excess capacity. (Compiling by Nick Zhang)

International Talks on Shipping

Emissions Stall

The International Maritime Organisation (IMO) failed

to reach agreement on global action to address

greenhouse gas emissions from international shipping

at a meeting in London last week.

Environmental groups have repeated calls for EU

action in the absence of progress on global measures.

The objective of last week's meeting was to first

assess and then progress the work of an IMO expert

group on market-based measures such as

emissions-trading schemes that completed its work

last summer.

But a clear split was evident between some

developing countries who saw no compelling need for

such a measure and those developed countries which

proposed a number of options including emissions

trading, a global levy on shipping and trading of fuel

efficiency credits. A handful of developing countries

continued to insist that the IMO must follow a principle

of global climate talks that developing countries should

have less responsibility for cutting emissions than



developed ones. This issue continues to be a

stumbling block to further progress.

The stalemate demonstrates that an IMO market

based measure to reduce emissions from the maritime

sector is still years away.

The EU has previously said that the IMO should take

action on shipping emissions by the end of 2011 or it

would take regional action. This latest setback means

that deadline almost certainly cannot be met. In the

meantime the EU has set a target for reducing ship

emissions by 40% by 2050 (2). Environmental groups

SAR, T&E and EDF believe the EU now needs to get

on with the job of introducing a regional measure that

can be extended globally if and when the IMO acts.

On a positive note, the meeting made progress on

ways to ensure developing counties are not harmed

economically by climate measures for shipping

(known technically as "no net incidence''). There was

also a useful discussion on the need for revenues from

measures to flow to developing countries. But any

consensus on a way forward would appear to remain

years away. (Source: Seas At Risk (SAR), Transport &

Environment (T&E) and Environmental Defence Fund

(EDF); Compiling by Nick Zhang)

BDI Declines to Month's Low,

Faces Long-Term Downturn

UMETAL-CHINA, The Baltic Exchange's main sea

freight index, which tracks rates to ship dry

commodities, fell on Wednesday to the lowest in

recent month as slow cargo business as well as

newships' delivery continued to weigh on sentiment.

The index fell by 2.19% or 32 points to 1,430 points,

the lowest since Mar 8.

Broker said panamax market also ran in weak,

increased pessimistic expectations as it underpinned

the market in a very soft way for last two weeks.

BDI had declined over 10% as ship supply grew faster

than demand for commodities.

The March 11 earthquake and tsunami in Japan, a

major importer of dry bulk commodities including iron

ore and coal, have hit freight activity.

The Baltic's capesize index .BCI dropped 3.13 percent,

with average daily earnings inching lower to

US$ 8,894. It had fallen for six sessions prior to the

move higher. Capesizes typically haul 150,000 tonne

cargoes such as iron ore and coal.

The Baltic's panamax index .BPI declined 2.77

percent, with average daily earnings inching to

US$ 14,355. Panamax vessels usually transport

60,000-70,000 tonne cargoes of coal or grains.

(Compiling by Nick Zhang)

Dry bulk Market Plunging Even

Further on Low Cargo Demand

The dry bulk market has continued its falling pattern

this week, with every day proving to be painful for ship

owners, especially those of the larger ship types.

Yesterday, the industry's benchmark, the Baltic Dry

Index (BDI) fell to 1,430 points, down by 2.19% on the

day, with Capesizes leading the fall. The Capesize

Index retreated by another 3.13 percent to just 1,674

points and as a result daily rates are again closely

flirting with break-even levels. The Panamax segment

also lost further ground ending the session down by

2.77% to 1,788 points, still well above the larger

Capesize ships, in a market’s paradox that lately has

proven to be the norm.



According to ICAP Shipping's first quarter review of

the dry bulk market, on the demand side most notable

was the massive change in China’s imports of iron ore

between January and February which collapsed from

68 Mt to 48 Mt and when this was combined with the

10 Mt fall in the country’s coal imports also in February

the resulting 30 Mt drop exceeds anything that was

seen even at the time of the freight market collapse in

2009. "Despite this string of exceptional events the

freight market has responded calmly and efficiently

and will no doubt continue to do so throughout the

next three months" ICAP Shipping said.

Indeed, the BDI has lost over 10 percent from the start

of the year, which could have been worse, given the

circumstances, like the ever so increasing ship supply

and the natural disasters in Australia and more

recently in Japan. "At the moment the volumes out of

Australia and Brazil are disappointing," said Georgi

Slavov, head of dry research and structured products

at ICAP Shipping, in a quote from Reuters. He went on

to say that the volumes of exported (Australian) coal

are still 30 to 40 percent below where they should be

at this time of year. As a result, the coal price is

obviously going up and therefore the Chinese are not

buying -- it's a chain reaction that is hitting the market,

Slavov mentioned. According to him, Japanese coal

imports won’t pick up until May.

In a separate weekly report released from Fearnley's,

it said that in the Capesize market, it's been a quiet

start to the week with holidays in India and China,

resulting in a wait and see attitude among owners and

charters. West Australia/China rates were in the high

7s, presently usd 7.50 pmt. Of period fixtures in the

east, a couple were done at usd 16k levels for 11-13

months, with profit sharing. The fronthaul activity

remains inactive.

Regarding the Panamax segment, "activity remained

slow in the Atlantic basin, rates still sliding downwards

with limited new business and more open tonnage

around. Limited trade for the Pacific, mostly due to

Chinese holidays Monday and Tuesday. T/A rounds

dropped to 14-14.5k this week. In the Pacific, very little

reported, though some rounds done at around

14.5-level as well. Fronthaul still fairly healthy at 25k

level. With grain season coming to an end,

expectations for next month are rather weak. Although

forward market flat to slowly down, perhaps more

activity for iron export from India after release of export

ban and from Brazil in 3Q will stabilize the market.

Period market hardly viable this week; 2 years done at

15500 and short period even less" said the shipbroker.

As for the smaller ship types, it argued about slowly

softening rates as more tonnage is accumulating in

the Atlantic basin ." The trans-Atlantic round is around

$15k pd with trips to the Far East at around $30k pd.

USG/NCSA are active (mainly petcoke) whilst the

Continent/E.Med/B.Sea lack volume and rates are

under pressure. Outlook: softer. In the Pacific, quiet

market due to holidays in China. For Indo-India,

charterers holding on unless have spot cargo. Rates

sliding now and Supras in North China are getting

close to 14k for trips via Indonesia to India. Iron ore

from India has been quiet on WCI but rates stable at

USD 17k for trips from WCI to China and from ECI

close to 16k. On Richards Bay rounds

Supras now seeing around 15k basis WCI dely. Red

Sea, frets on Handymax/Supras are fixed at very

mid-high 20´s pmt on voyage bss to WC India. Not too

much activity on short period as market bit volatile but

hear some index type vessels fixed at mid-teens"

concluded the report. (Compiling by Nick Zhang)

Dry Bulk Review- Q1, 2011

To say that the 1st quarter of this year has been

eventful is something of an understatement. From

floods in Australia, South Africa and Brazil to a tropical

cyclone hitting Queensland and then to the nuclear

disaster in Japan whilst at the same time not forgetting

the radical political changes in north Africa the three

months have been full of daily events none of which



were predictable at the start of the year. On the freight

market we have seen average Capesize rates below

all other sizes for the whole quarter (Cape average

US$ 8,391 pd, Panamax US$ 14,640, Supramax

US$ 14,373 and Handysize US$ 10,706) while on the

specific Cape route Far East to Continent the rate has

been continuously negative since the second week in

January- again an unprecedented event. On the

demand side most notable was the massive change in

China's imports of iron ore between January and

February which collapsed from 68 Mt to 48 Mt and

when this was combined with the 10 Mt fall in the

country's coal imports also in February the resulting 30

Mt drop exceeds anything that was seen even at the

time of the freight market collapse in 2009. Despite

this string of exceptional events the freight market has

responded calmly and efficiently and will no doubt

continue to do so throughout the next three months.


BDI Falls for Eight Days, Seeing

New Earthquake in Japan

UMETAL-CHINA, The Baltic Exchange's main sea

freight index, which tracks rates to ship dry

commodities, fell for eighth day on Thursday as slow

cargo business as well as newships’delivery continued

to weigh on sentiment.

Broker said they were focusing on new earthquake

happened in Japan on April 6.

The index fell by 2.03% or 29 points to 1,401 points,

the lowest since Mar 7.

Too many ships, said Petter Rishovd from Pareto

Securities, freight futures had been dumping since

Monday.

Broker said panamax market also ran in weak,

increased pessimistic expectations as it underpinned

the market in a very soft way for last two weeks.

The index had been declined over 17% as ship supply

grew faster than increase of commodities demands.

Another 7.4 magnitude quake happened in Japan on

Thursday, hitting global stock markets.

The Baltic's capesize index .BCI dropped 2.15 percent,

with average daily earnings inching lower to

US$ 8,381. Capesizes typically haul 150,000 tonne

cargoes such as iron ore and coal.

The Baltic's panamax index .BPI declined 2.85

percent, with average daily earnings inching to

US$ 13,937. Panamax vessels usually transport

60,000-70,000 tonne cargoes of coal or grains.


Lloyds to Sell US$ 10 Bln Shipping

Loan

Part-nationalized British bank Lloyds is in talks about

selling a US$ 10 billion portfolio of shipping industry

loans, Sky News said on Thursday. Lloyds is due to

receive offers for the portfolio imminently, with interest

likely to come from a number of Japanese and other

Asian banks, the broadcaster said.

The sale process does not include the leases on ships

owned by Lloyds, it added.

A Lloyds spokesman declined to comment on the

report.

The British government owns around 41 percent of

Lloyds and 83 percent of rival Royal Bank of Scotland

after bailing out both banks with billions of pounds of

taxpayers' money during the credit crisis.



As a result of the bailout, RBS and Lloyds were

ordered by regulators to sell off some assets and trim

their balance sheets. (Compiling by Nick Zhang)

Shipping Rates for Coal Cargoes to

Japan Seen Rising 55%

Rates for panamaxes, the largest coal and iron-ore

carriers to pass through the Panama Canal, may jump

about 55 percent as Japan buys more raw materials to

generate power and rebuild after its worst-ever

earthquake.

Forward freight agreements, traded by brokers and

used to hedge or bet on future transport costs, will rise

to $22,000 a day for the fourth quarter, from $14,175

yesterday, said Philippe van den Abeele, the

managing director of Castalia Fund Management

(U.K.) Ltd., a London-based adviser to a hedge fund

trading shipping derivatives. His forecast in February

for a rally in rates was followed by an almost doubling

in charges.

Japan, the biggest importer of coal and second-largest

buyer of iron ore after China, estimates that the

temblor and 23-foot tsunami on March 11 caused as

much as $309 billion of damage. The reconstruction

will mean more cargoes, Wei Jiafu, chairman of China

Cosco (Holdings) Co., which operates the most

panamaxes, told reporters in Hong Kong on March 30.

Importers will favor the vessels over ships with extra

capacity because they can call at more ports, Van den

Abeele said.

"It takes time and resources to rebuild the amount of

infrastructure, buildings and cities that have been

lost,"said Erik Folkeson Jensen, an analyst at First

Securities AS in Oslo, whose recommendation on the

shares of shipping lines made 36 percent in six

months, according to data compiled by Bloomberg.

Returns in the spot, or single-voyage, market fell 2.4

percent this year to $14,355, according to the

London-based Baltic Exchange, which publishes costs

for more than 50 maritime routes. Rates are volatile,

moving 34 percent or more in 10 of the last 11 years.

Companies usually have vessels on long-term

contracts at fixed prices and in the spot market.

Morgan Stanley

Nippon Yusen K.K., the second-biggest panamax

operator, has 62 out of 80 such ships on longer

charters and about 800 vessels in its fleet, according

to Ryota Himeno, a senior analyst at Mitsubishi UFJ

Morgan Stanley Securities Co. in Tokyo. Kawasaki

Kisen Kaisha Ltd. (9107), the third-largest operator,

has 52 of its 60 panamaxes chartered out and a total

fleet of about 500, he said.

Japan may need to buy an extra 6 million metric tons

of coal after the disaster crippled nuclear plants, Credit

Suisse Group AG estimates. That’s enough to fill

about 90 panamaxes. About 90 percent of global trade

moves by sea, according to the Round Table of

International Shipping Associations.

The country will increase coal purchases 5.2 percent

this year to 209 million tons, according to the research

unit of Clarkson Plc, the world’s biggest shipbroker,

which had forecast a gain of 1.6 percent before the

temblor and tsunami.

Nuclear Disaster

Factories, homes and businesses are facing power

shortages after the disaster knocked out plants

including Fukushima Dai- Ichi, the worst nuclear

disaster since Chernobyl a quarter century ago. The

total number of dead and missing from the disaster

was 27,559 as of 10 a.m. Tokyo time yesterday.

Japan generated about 34 percent of its electricity

from nuclear plants in 2009, according to Credit

Suisse. Utility companies will replace about 20 percent



of the lost capacity with coal, with the rest coming from

liquefied natural gas, crude and fuel oil, the bank said.

The anticipated surge in imports may not happen

immediately because repairs are still being made to

roads and ports and the disaster also knocked out

coal-fired power plants. Coal exported from Newcastle,

Australia, an Asian benchmark, fell 6.8 percent since

March 11, according to IHS McCloskey, a research

company based in Petersfield, England.

Steel production also may be disrupted, curbing

demand for iron ore and coking coal. Scheduled

blackouts to cope with power shortages will affect

smelters, Japan Iron and Steel Federation Chairman

Eiji Hayashida told reporters March 29.

Honda Motor

Demand from manufacturers may also weaken.

Canon Inc., Daihatsu Motor Co., Honda Motor Co. and

Mitsubishi Motors Corp. were among companies that

had plants shut as of April 6, according to data

compiled by Bloomberg.

"In the long term, we would view it as a bullish tone,"

said Guy Campbell, head of dry-bulk shipbroking at

Clarkson in London. "It has to be bullish for commodity

prices and most of what they import has to be shipped

in."

Cosco, based in Tianjin, China, will report earnings

per share of 0.56 yuan this year, compared with 0.67

yuan last year, according to the mean estimate of 15

analysts’ estimates compiled by Bloomberg. Nippon

Yusen, based in Tokyo, will make 38.32 yen a share in

its fiscal year that began this month, compared with

42.85 yen, and Kawasaki Kisen Kaisha, based in the

same city, will report EPS of 34.61 yen this fiscal year,

compared with 42.80 yen a year earlier, the estimates

show.

Supertanker Earnings

The three companies also operate other types of ships.

Profit on capesizes, which can carry about twice as

much cargo, slumped 56 percent to $8,894 a day this

year, Baltic Exchange data show. Panamaxes have

been more profitable than capesizes since Jan. 6, the

longest stretch in a decade. Supertanker earnings

slumped 77 percent this year and the cost of putting

boxes on container ships rose 29 percent.

Of the five biggest panamax operators, Athens-based

Excel Maritime Carriers Ltd. (EXM) has the highest

proportion relative to fleet size, according to data from

Clarkson. Fourth-quarter rates of $22,000 would mean

its full-year earnings before interest, taxes,

depreciation and amortization rising 10 percent above

the current estimate of Nordea Securities, said Anders

Karlsen, an analyst at the bank in Oslo. Karlsen’s

earnings estimate is based on a rate of $15,000.

Capesize Rates

Panamaxes normally haul 50,000 to 80,000 tons of

cargo, according to Rob Lomas, secretary general of

Intercargo, a London-based trade group representing

owners of the vessels. There are 1,790 of the

750-foot-long vessels, compared with 1,081 capesizes,

according to data from IHS Fairplay. The panamax

fleet will expand 11 percent this year, 6 percentage

points less than for capesizes, Clarkson estimates.

Panamax rates will also increase by the fourth quarter

because global demand is expanding, said Van den

Abeele, who correctly forecast that capesize rates

were bottoming at the beginning of February. Trade in

dry bulk commodities, which include grains and sugar,

will expand 6 percent to a record 3.5 billion tons this

year, Clarkson estimates.

Japan, the world's second-biggest steelmaker after

China, will import 3 percent more iron ore this year,

Clarkson estimates. The country's steel plants are

mostly back to pre- disaster levels, the Brussels-based

World Steel Association, whose members account for

about 85 percent of global production, said in a

statement March 25.



Grain Marketing

The country imported 5.5 million tons of wheat in the

marketing year that ended in June 2010, making it the

third- largest importer, according to data from the U.S.

Department of Agriculture. The country is still buying

and cargoes aren't being delayed, Tom Puddy, head

of grain marketing at CBH Group, Australia's largest

grains shipper, said March 31.

Japan bought 23,220 tons of feed wheat and 63,715

tons of feed barley in a tender yesterday, according to

the Ministry of Agriculture, Forestry and Fisheries.

"You're talking about grain products, you're talking

about iron ore, steam coal and coking coal," said Van

den Abeele. "There's going to be a big increase in

cargo bound for Japan later this year." (Compiling by

Nick Zhang)

Star Bulk Enters Into New Time

Charter Agreements for Star

Cosmo and Star Ypsilon

Star Bulk Carriers Corp., yesterday announced the

following vessel chartering activities:

Star Cosmo

The Company entered into a time charter agreement

with SK Shipping for the vessel Star Cosmo for a

period of 11-13 months, at a gross daily rate of

$16,500. The new contract will contribute minimum

$5.5 million to maximum $6.8 million in gross revenue.

The Star Cosmo is a Supramax vessel of 52,247 dwt

built in 2005.

Star Ypsilon

The Company entered into a time charter agreement

with STX Pan Ocean for the vessel Star Ypsilon for a

period of 7-9 months, at a gross daily rate of $13,000.

The new contract will contribute minimum $2.7 million

to maximum $3.8 million in gross revenue. The Star

Ypsilon is a Capesize vessel of 150,940 dwt built in

1991.

Star Bulk is a ship owning and ship operating

company providing worldwide seaborne transportation

solutions in the dry bulk sector. Star Bulk's vessels

transport major bulks, which include iron ore, coal and

grain and minor bulks such as bauxite, fertilizers and

steel products. Star Bulk was incorporated in the

Marshall Islands on December 13, 2006 and maintains

executive offices in Athens, Greece. Its common stock

trades on the Nasdaq Global Market under the symbol

"SBLK". Currently, Star Bulk has an operating fleet of

eleven dry bulk carriers, comprised of three Capesize

and eight Supramax vessels, with a further two

Capesize vessels currently under construction.


Australia Ports Face Crippling

Strike

Traffic at Australia's ports could be crippled by as

much as half as the nation's dock workers threaten a

sweeping five-day strike over pay and conditions,

officials said Thursday.

The Maritime Union of Australia has vowed a national

walk-out from Saturday of 2,000 wharf staff if top

freight company Patrick do not come back with a

"serious offer" on wages and improved working

conditions.

Dock workers want a six percent pay rise, 13 percent

pension contribution, a sign-on bonus and introduction

of a safety officer for each shift following four deaths

on the wharves in five years.



They won permission to strike from the industrial

tribunal earlier this year if the stalemate could not be

resolved.

Patrick, a subsidiary of the listed Asciano group, says

the strike will bruise the economy as it tries to recover

from massive flooding and cyclones and

trade-exposed industries struggle with the surging

Australian dollar.

"The cumulative effect of the nationwide stoppages

the union plans is 33 vessels ... that's approximately

35,000 containers," a Patrick spokeswoman told the

AAP newswire.

"It will effectively shut down 50 percent of Australia's

containerized freight capacity for a five-day period."

The MUA said it would consider exempting Brisbane

port, gateway to the disaster-struck northeast, from

the strike action in order to minimize disruption to

recovery operations.

"If there's a clear demonstration our action will affect

Queensland, we'll discuss that with the Queensland

government," said MUA deputy national secretary

Mick Doleman.

Patrick has offered a four percent pay rise and said

the strike decision, which follows seven months of

talks, had come as a "bit of a shock".

But the spokeswoman said the union had effectively

logged demands worth Aus$40 million (US$41.8

million) -- a 30 percent increase on benefits currently

received by workers -- and the company "simply

cannot agree".

The MUA and Patrick have a long history of clashes,

the most famous of which -- a seven-week waterfront

strike of 1998 -- was among the biggest and

best-known industrial stand-offs in Australian history.

The action comes as national airline, Qantas, faces a

walkout of some 9,000 pilots, engineers and ground

staff, also over workplace contracts. (Compiling by

Nick Zhang)

Richards Bay Coal Terminal

Shipments Fell 5.2% in March From

Year Earlier

Richards Bay Coal Terminal, Africa's largest export

terminal for the fuel, shipped 5.2 percent less coal in

March than it did a year earlier as derailments

hindered deliveries to the port.

The terminal, on South Africa's eastern coast,

exported 5.36 million metric tons during the month,

compared with 5.66 million tons a year ago, RBCT

said in a report posted on its website today.

The terminal's owners, which include Anglo American

Plc (AAL), BHP Billiton Ltd. (BHP), Xstrata Plc (XTA)

and Total SA (FP) among others, are trying to boost

exports to take advantage of rising prices for the fuel.

Shipments to the terminal, which can export 91 million

tons a year, have been constrained by freight rail

accidents.

Rail operator Transnet Ltd. last week said that two

coal lines to the terminal were shut after a derailment.

One of the lines remains closed, Sandile Simelane,

spokesman for the company's freight-rail unit, said by

mobile phone today.

Coal shipped through RBCT rose 46 percent to an

average of $121.40 a ton in March, up from $83 a year

earlier, according to data from Hampshire-based IHS

McCloskey on Bloomberg.

The terminal received 5.62 million tons of coal during

the month, 5.2 percent less than a year earlier, RBCT

said. Stockpiles rose 9.8 percent to 3.08 million tons at



the end of March from the previous month, it said.


Imported Iron Ore Prices See

Upward Trend amid Stability

UMETAL-CHINA, Spot market prices for imported iron

ore show upward trend amid stability today. Real

transactions remain unfavorable and spot market sees

no large changes. Steelmakers' enquiries increase

and foreign quotes rise by a small margin. High-grade

iron ore resources stay tight at present and steel mills

lift their quotations gradually.

Specifically, billet prices have risen by RMB50/tonne

in Hebei area, signaling market demand has

recovered. Some traders are optimistic in local area

and have the intention to raise their offers.

(Contributing by Liu Danyang; Editing by Susan Chen)

Spot Price Stalls, Foreign Quotes

Keep Surging

UMETAL-CHINA, Most traders and steelmakers were

not back to market, leaving stable spot price at ports

and bare transactions. While foreign quotes kept

surging trend for Indian fines (63.5%) were priced at

US$ 181-184/tonne; some traders even quoted at

US$ 188/tonne. According to Umetal's research, some

middle-sized middle were also holding the stock for

over a month's consumption, not to mention big

steelmakers. Moreover, the second time interest rate

rise this year had been taken into action since Mar 6.

Thus, both steelmakers and traders should pay 200%

of caution in purchase on current high iron ore price,

especially when there were no great underpins.

(Reporting by Nick Zhang)

Sales Prices of Imported Iron Ore at Chinese Ports

on Apr 6, 2011

Port Iron Ore Grades RMB/WMT(17%

VAT included)

Price

Change

Tianjin Indian fines 63.5% 1,300 +10

PB fines 62% 1,240 +10

Qingdao

Indian fines 59% 1,030 +20


Robe River

fines 56-57% 1,060 +10

Brazilian fines 65% 1,360 +20

PB fines 62% 1,230 +10

Brazilian

concentrate 67% 1,390 +20

Rizhao



Yandi fines 58% 1,130 +10

Australian

lump 62% 1,330 +10

Price Goes Further on Increasing

Transactions on Apr 7

UMETAL-CHINA, Spot iron ore prices increased on

Apr 7 and foreign quotes went further. More enquiries

boost the market activities; however, transactions

remained in low in high-grade resources. Middle and

small sized steelmakers were aiming at purchasing

small amount of spot low-grade resources. The foreign

quotes of Indian fines (63.5%) were

US$ 187-190/tonne. (Reporting by Nick Zhang)

URC Comment and Analysis




on Apr 7, 2011

Port Iron Ore Grades RMB/WMT(17%

VAT included)

Price

Change

Tianjin Indian fines 63.5% 1,330-1,350 +10

PB fines 62% 1,280 +10

Qingdao



Robe River

fines 56-57% 1,090 +10

Brazilian fines 65% 1,380 +10

PB fines 62% 1,270 +10

Brazilian

concentrate 67% 1,410 +10

Rizhao



Yandi fines 58% 1,160 +10

Australian

lump 62% 1,370 +10

Imported Iron Ore Prices Maintain

Upward Trend

UMETAL-CHINA, Imported iron ore prices continue to

rise today, with decreased market enquiries and flat

transactions. It's said that steel mills' shipments have

increased recently. However, only some traders

accept offers and steelmakers mainly take a

wait-and-see attitude.

Spot market prices also show upward tide promoted

by increasing foreign quotes. Nevertheless, most

steelmakers have replenished their stocks and

therefore market transactions see a decline.

Most traders expressed that the prices grow so rapidly

and the following market may face risks. Thus,

steelmakers are cautious about purchases recently.

(Contributing by Liu Danyang; Editing by Susan Chen)

Lifting Export Ban to Soften the

Soaring Price

UMETAL-CHINA, Indian high court announced April 5

to lift the Karnataka's export ban, beginning from April

20.

Indian Karnataka State issued a ban on iron ore export

in July 2010 in an effort to tackle illegal mining and to

preserve resources for domestic consumption. Apart

from this, the government had decided to improve the

export duty of iron ore fines and lump ore to 20% this

year.

Karnataka yields approx 50 million tonnes of iron ore

annually and is one of Indian main iron ore exporters

which exports 30 million tonnes every year,

accounting for 30% of the total volume.

However, iron ore exports from this state began to

slump sharply after the government implemented the

ban, coupled with the duty hike. Indian iron ore exports

declined 18% YoY to 85.4 million tonnes in the first 11

months of FY2010/11. We could know how badly the



ban impacted Indian export by reviewing the imports

data of China, which is the largest importer of Indian

iron ore. In October 2010, market share of Indian iron

ore in China's import market is less than 6.4%, which

was 9% in September and 20% in the peak of 2010.

Although the market share slightly bounced back after

that, the share in the whole year decreased.

In 2010, the production capacity of Indian steel was 70

million tonnes while iron ore production was 240

million tonnes. Although the country's demand for

steel is soaring due to the economy development and

is expected to double the current level by 2020, half of

its iron ore, seeing from the short term, have to be

exported. Therefore, Indian iron ore exports may pick

up if the ban is lifted. Considering previous exports

from Karnataka, the domestic demand and the impact

of duty hike, analysts predict the country's iron ore

export will improve by 20-25 million tonnes in 2011.

To lift the ban will not heavily impact the global iron ore

market, but it will help to soften the rocketing price.

The global seaborne iron ore was 1.1 billion tonnes in

2010, 43% of which were made up by Australia, 29%

by Brazil and only 10% were from India. This indicates

the impact of lifting the ban will be very small despite

25 million tonnes more iron ore will be exported.

Hence, Umetal analysts predict the iron ore price

would not plummet drastically in Q2. Instead, it would

stabilize at a high level with slight fluctuations.

Moreover, the transactions won't improve greatly

either as the Chinese central bank has announced to

further control the credit and loan, which brings harder

capital problems to the small- and medium-sized

companies. (Compiling by Mike Lei)



Daily: Traders and Steelmakers

Start to Purchase

UMETAL-CHINA, China's domestic iron ore market in

North China today sees a continued increase of

RMB10/tonne while the real transaction remains

modest, largely courtesy of suppliers' reluctance to

sell out.

Faced with the generally stable market and increasing

steel price, domestic traders are purchasing actively.

Moreover, with the peak season for steel products

coming near, the whole market inventory of steel is

decreasing, which boost the steelmakers to replenish

stocks of raw materials.

However, the transactions don't pick up apparently as

suppliers who bullishly look at the consequent market

choose to hold goods at hand. One more thing, a

trader from Tangshan, North China, told Umetal the

transportation is suffering government's inspection of

overloading, so the deliveries are adversely affected.

Compiling by Mike Lei)

The table below shows more details regarding prices:

(Unit: RMB/tonne)

Steel Mills' Purchase Prices

Product Specificatio

n

Steel

mills Price

Chang

e

Remar

k

Iron ore

concentrate

s

Fe66%

Lingyuan

Iron &

Steel Co

1310 -- acid

Iron ore

concentrate

s

Fe66%

Jinxi Iron

and Steel

Co

1,400-1,41

0 -- acid

Iron ore

concentrate

s

Fe64%

Shaogua

n Iron &

Steel

Group

1,310 --

Purch

ase

price

Iron ore

concentrateFe64%

Guangxi

Liuzhou 1,320 --

Purch

ase

s Iron and

Steel Co

price

Local Market Prices


n Regions Price

Chang

e Remark

Iron ore

Concentrate

s

Fe66% Jianping 970~980 --

Wet

basis,

VAT

exclude

d

Iron ore

Concentrate

s

Fe66% Qianxi 1090~1,10

0 +20

Wet

basis,

VAT

exclude

d

Iron ore

concentrate

s

Fe65% Fanchan

g 1,340 --

Dry

basis,

VAT

included

Iron ore

concentrate

s

Fe65% Laiwu 1,030~1,04

0 --

Wet

basis,

VAT

exclude

d

Iron ore

concentrate

s

Fe65% Zibo 1,320~1,34

0 --

Dry

basis,

VAT

included

,

alkalinity

Iron ore

concentrate

s

Fe65% Huaji 1,000 --

Wet

basis,

VAT

exclude

d, acid

Iron ore

Concentrate

s

Fe64% Liuzhou 1,300 --

Dry

basis,

VAT

included

, acid

Domestic Miners' Prices




n Miner Price

Chang

e Remark

Iron ore

Concentrate

s

Fe65%

Hualian

Mining

Group

1,405~1,42

5 -

Dry

basis,

VAT

include

d

Iron ore

Concentrate

s

Fe64%

Luzhong

Metallurg

y and

Mining

Co

1,425~1,44

5 -

Dry

basis,

VAT

include

d,

alkalinit

y

Imported Iron Ore Market- Spot

Price Increases on Surging Foreign

Quotes

UMETAL-CHINA, Spot iron ore price had been

surging, especially for foreign quotes, for last week.

More enquiries could not end with more transactions

as big-sized and some middle-sized steelmakers were

holding a great amount of stocks and small-sized

steelmakers were purchasing spot iron ore resources

in small amount. No big restock actions shown on

market. To the foreign quotes, some transactions had

been committed on US$ 187/tonne for Indian fines

(63.5%); some quotes were even at US$ 190/tonne,

up US$ 7/tonne over previous week.

Traders were purchasing high grade iron ore

resources after miners increased their outputs,

however, steelmakers were not hurry to buy, keeping

their mouth shut and seeing where the market goes by

holding the sufficient inventory. Pulled by increasing

demands and surging foreign quotes, spot price of

imported iron ore at ports swelled RMB 20-30/tonne to

RMB 1330-1350/tonne.

As prices being constantly pulled up, most traders

believed there's higher risk in this excessive round of

price rising, resulting in cautious operations.

According to news from Indian that the ban of iron ore

exports in Kanataka is to be lifted from Apr 20, which

is warmly welcomed by local miners and traders and

expected to reverse the situation of iron ore exports

fell in India. Furthermore, the surging global iron ore

price could be dragged down somehow. Government

of Kanataka said new acts of iron ore mining and

transport would be taken into action before Apr 20 to

prevent the illegal mining and transport issues. Indian

is the third largest iron ore exporter, which exported

117 million tonnes of iron ore in fiscal year 2009-2010.

However, due to the export ban of Kanataka, raised

railway freight and iron ore export duty, iron ore

exports in Indian would suffer a decline of 20% YoY in

fiscal year 2010-2011. (Reporting by Nick Zhang)

Sales Prices of Imported Ores at main China Ports

Price

(RMB/WM

T)

Tax

included

Port Tianjin Port

Qingdao

Port

Lanshan/Rizh

ao

Port Beilun

Pric

e

Chang

e from

last

week

Pric

e

Chang

e from

last

week

Price

Change

from

last

week

Pric

e

Chang

e from

last

week

Indian

fines

63.5%

134

0

+30 133

0

+20 1330 +20 - -

Indian

fines 62%

126

0

+20 125

0

+20 1250 +20 - -

Indian

fines 58%

106

0

+20 105

0

+20 1050 +20 - -

Brazilian

iron ore

concentrat

e 67%

- - 142

0

+20 1420 +20 142

0

+20

Brazilian

fines 65%

- - 139

0

+20 1390 +20 139

0

+20

Brazilian - - 154 +20 - - - -



Pellet 65% 0

MAC lump

62%

138

0

+20 138

0

+20 1380 +20 138

0

+20

PB fines

62%

129

0

+20 128

0

+20 1280 +20 128

0

+20

Yandi

fines 58%

- - 117

0

+10 1170 +10 - -

Robe

River fines

56%

- - 111

0

+20 1110 +20 - -

Iron Ore in Stock of Major China Ports (Update:

Apr 8, 2010)

Port Cargo In Stock

(tonne)

QTY change

(tonne)

Stock

Capacity

(tonne)

Dalian 3,680,000 30,000 5,000,000

Jingtang 4,570,000 -60,000 7,000,000

Tianjin 4,500,000 -100,000 9,000,000

Qingdao 14,080,000 30,000 17,000,000

Rizhao 13,900,000 30,000 15,000,000

Lanshan 4,060,000 -460,000 5,000,000

Lianyungang 6,730,000 -150,000 8,000,000

Beilun 2,700,000 * 3,000,000

Yantai 2,380,000 -270,000 4,500,000

Caofeidian 8,400,000 -480,000 9,000,000

Shanghai 1,200,000 * 1,600,000

Nantong 1,750,000 -50,000 2,200,000

Qinhuangdao 1,400,000 * 3,300,000

Zhanjiang 2,200,000 100,000 4,000,000

Majishan 3,500,000 -100,000 5,000,000

Baoshan 1,200,000 * 2,300,000

Yingkou 3,600,000 100,000 4,600,000

Zhenjiang 2,420,000 -30,000 -

Fangcheng 2,250,000 -150,000 -

Total 84,520,000 -1,560,000 -

Price Increases, Transaction

Remains Moderate

UMETAL-CHINA, China's domestic iron ore market

this week remained increasing while the transactions

showed no improvements as the price was so high.

Northeast: Iron ore price in northeast this week

increased by RMB10-30/tonne but the transactions

were at a stalemate. Suppliers seemed to be in lack of

confidence towards this round of increase and they

rarely preserved stocks. Besides, the transactions

were also impacted by the severe inspection of

overloading in Tangshan. As for steel mills, they held

relatively moderate purchasing attitudes and kept the

purchase price unchanged.

North China: Driven by the RMB50-60/tonne increase

of billets during the Tomb-sweeping Day holiday, iron

ore suppliers in Tangshan, north of this region, were

generally bullishly looking at the consequent market in

the short term. However, the mainstream market price

didn't change greatly and steelmakers kept the

purchase price stable, which were expected to be

adjusted next week. In the south, the local miners and

suppliers planned to improve the price stimulated by

the rising foreign quotes. Meanwhile, the steelmakers

which met low inventories started to build up stocks

intensively and lifted the purchase price. Umetal

analysts predict the market in North China would

remain moderate with an uptrend in the short term.

East China: The market in East China continued

stabilizing and rising with transactions in most markets

remaining active. Some suppliers quoted high and felt

reluctant to sell out since they believed the market

would rise further. On the other hand, steel mills

purchased cautiously as the price was so high. Some

steel mills hadn't accepted the price increase of

RMB50/tonne planned by Luzhong Metallurgy and

Mining Co and Hualian Mining Group. Strong

wait-and-see sentiments existed in the market.



Middle South China: Iron ore market in Middle South

China stabilized this week. Local large steel mills

announced not to adjust the purchase price due to the

tight capital chain and the bearish expectation for

consequent market. However, the suppliers were

trying to improve the transaction price as they thought

the market would improve in the short term.

(Compiling by Mike Lei)

The table below shows more details regarding market

prices: (Unit: RMB/tonne)

Steel Mills' Purchase Prices


n Steel mill Price

Chang

e Remark

Iron ore

concentrate

s

Fe66%

Mainstrea

m Steel

Mills in

Tangshan

1,450-1,48

0 -

VAT

include

d, dry

basis,

acid

Iron ore

concentrate

s

Fe64% Hubei

Egang Co 1,220 -

VAT

include

d, dry

basis,

acid

Iron ore

concentrate

s

Fe64%

Jiangxi

Pingxiang

Iron and

Steel Co

1,330 -

VAT

include

d, dry

basis,

acid

China's Domestic Iron Ore Prices


n Region Price

Chang

e Remark

Iron ore

Concentrate

s

Fe66% Tangshan

g

1,100-1,13

0 -

VAT

exclude

d, wet

basis,

leading

prices,

acid

Iron ore

Concentrate

s

Fe64% Zunhua 1,090-1,11

0 +30

Wet

basis,

VAT

exclude

d, acid

Iron ore

Concentrate

s

Fe64% Wu'an 1,110-1,12

0 +50

Wet

basis,

VAT

exclude

d,

alkalinity

Iron ore

Concentrate

s

Fe64% Daye 1,320 -

Dry

basis,

VAT

included

, acid

Iron ore

Concentrate

s

Fe65% Jingmen 1,020 -

Wet

basis,

VAT

exclude

d, acid

Domestic Miners' Prices


n Miner Price

Chang

e Remark

Iron ore

Concentrate

s

Fe65%

Hualian

Mining

Group

1,405~1,42

5 -

Dry

basis,

VAT

include

d

Iron ore

Concentrate

s

Fe64%

Luzhong

Metallurg

y and

Mining

Co

1,425~1,44

5 -

Dry

basis,

VAT

include

d,

alkalinit

y



CCCMC Reference Prices

Iron Ore In Stock of Major China Ports (Update: Apr 8, 2011)

Port Cargo In Stock (tonne) QTY change (tonne) Stock Capacity (tonne)

Dalian 3,680,000 30,000 5,000,000

Jingtang 4,570,000 -60,000 7,000,000

Tianjin 4,500,000 -100,000 9,000,000

Qingdao 14,080,000 30,000 17,000,000

Rizhao 13,900,000 30,000 15,000,000

Lanshan 4,060,000 -460,000 5,000,000

Lianyungang 6,730,000 -150,000 8,000,000

Beilun 2,700,000 * 3,000,000

Yantai 2,380,000 -270,000 4,500,000

Caofeidian 8,400,000 -480,000 9,000,000

Shanghai 1,200,000 * 1,600,000

Nantong 1,750,000 -50,000 2,200,000

Qinhuangdao 1,400,000 * 3,300,000

Zhanjiang 2,200,000 100,000 4,000,000

Majishan 3,500,000 -100,000 5,000,000

Baoshan 1,200,000 * 2,300,000

Yingkou 3,600,000 100,000 2,200,000

Zhenjiang 2,420,000 -30,000 -

Fangcheng 2,250,000 -150,000 -

Total 84,520,000 -1,560,000 -

※Port Congestion:

(Number of vessels waiting for berth)

Caofeidian Qingdao Rizhao

7 8 5

Date Indian Ores (63.5%) High Prices Low Prices Unit

2011-3-28 FOB 154 152 $/t

2011-3-28 CIF 174 172 $/t

Spot Iron Ore Market in China




Port Iron Ore Grades RMB/WMT(tax included,17%)

Mar 30 Mar 31 Apr 6 Apr 7 Remark

Tianjin Indian fines 63.5% 1,300 1,330 1,300 1,330-1,350 -

PB fines 62% 1,240 1,260 1,240 1,280 -

Qingdao

Indian fines 59% 1,030 1,040 1,030 1,060 -

Indian fines 62% 1,210 1,220 1,210 1,240 -

Robe River fines 56-57% 1,060 1,070 1,060 1,090 -

Brazilian fines 65% 1,360 1,360 1,360 1,380 -

PB fines 62% 1,230 1,250 1,230 1,270 -

Brazilian

concentrate 67% 1,390 1,390 1,390 1,410 -

Rizhao

Indian fines 61% 1,160 1,170 1,160 1,190 -

Indian fines 62% 1,210 1,220 1,210 1,240 -

Yandi fines 58% 1,130 1,140 1,130 1,160 -20

Australian lump 62% 1,330 1,350 1,330 1,370 -20

Foreign Quotes for Imported Iron Ore in China 2011-4-8

Country Product % Grade CFR ($/T) FOB ($/T) Port of Loading Remark

Australia PB fines 61.5 180-182 1 173-175 1 Dampier/Hedland Moisture: 8%;To be unloaded at

Chinese major ports

Australia Newman fines 62 183-185 1 176-178 1 Dampier/Hedland Moisture: 8%;To be unloaded at

Chinese major ports

Australia MAC fines 62 181-183 1 174-176 1 Dampier/Hedland Moisture: 8%;To be unloaded at

Chinese major ports

Australia YANDI fines 58 164-166 1 157-159 1 Dampier/Hedland Moisture: 8%;To be unloaded at

Chinese major ports

Australia Robe River

fines 56 155-157 1 148-150 1 Dampier/Hedland

Moisture: 8%;To be unloaded at

Chinese major ports

Australia PB lumps 62 186-188 1 179-181 1 Dampier/Hedland Moisture: 3%;To be unloaded at

Chinese major ports

Australia Newman

lumps 63 188-190 1 181-183 1 Dampier/Hedland

Moisture: 3%;To be unloaded at

Chinese major ports

Australia MAC lumps 62 187-189 1 180-182 1 Dampier/Hedland Moisture: 3%;To be unloaded at

Chinese major ports

Australia YANDI lumps 58 167-169 1 160-162 1 Dampier/Hedland Moisture: 3%;To be unloaded at

Chinese major ports

Brazil SFCJ 66 194-196 2 175-177 2 Tubarao/PDM Moisture: 8%;To be unloaded at

Chinese major ports

Brazil SSFT 65 191-193 2 172-174 2 Tubarao/PDM Moisture: 8%;To be unloaded at

Chinese major ports

Brazil SFOT 63 184-186 2 165-167 2 Tubarao/PDM Moisture: 8%;To be unloaded at



Country Product % Grade CFR ($/T) FOB ($/T) Port of Loading Remark

Chinese major ports

Brazil Lumps 65 199-201 2 180-182 2 Tubarao/PDM Moisture: 3%;To be unloaded at

Chinese major ports

India Iron Ore Fines 63.5/63 185-187 2 166-168 2 Chennai/Paradip Moisture: 8%; To be loaded at one

Indian port

India Iron Ore Fines 61/60 167-169 2 148-150 2 Chennai/Paradip Moisture: 8%; To be loaded at one

Indian port


Indian port


Indian port


Indian port

India Iron Ore Fines 59/58 152-154 2 131-133 2 Goa/Mangalore Moisture: 8%; To be loaded at one

Indian port

India Iron Ore Fines 58/57 144-146 2 123-125 2 Goa/Mangalore

Moisture: 8%; To be loaded at one

Indian port; To be unloaded at

Chinese Northern ports

India Iron Ore Fines 55/54 117-119 2 96-98 2 Goa Moisture: 8%; To be loaded at one

Indian port

India Iron Ore Fines 53/52 95-97 2 74-76 2 Goa Moisture: 8%; To be loaded at one

Indian port

Iran Hematites 62/61 164-166 2 141-143 2 BANDA ABBAS 6%Si,2%Al,0.2%P,0.2%S; By bulk




Iran Magnetite 62/61 166-168 2 143-145 2 BANDA ABBAS 6%Si,2%Al,0.2%P,0.2%S; By bulk






China Iron Ore Market Prices

China Iron Ore Purchase Prices



China's Report of Imported Iron Ore Transaction

Date Description Grade Price Quantity Company Delivery Place Remark

Apr 7 Rocket Fines 59% RMB 1180 20,000 tonnes Undisclosed Rizhao Port WMT

Apr 7 Indian Fines 63.5% RMB 1350 30,000 tonnes Undisclosed China Major Port 63MIN,

WMT

Apr 6 Indian Fines 63.5% CFR 184.5 50,000 tonnes Undisclosed China Major Port 63MIN, DMT

Apr 6 Indian Fines 51% FOB 56 30,000 tonnes Undisclosed China Major Port 50MIN, DMT

Apr 1 Venezuela

Fines 65% CFR 186 70,000 tonnes Undisclosed China Major Port 64MIN, DMT

-Int’l Shipping Prices-

Average Ocean Freight Rate in India-China Route

Date

Handymax (52,454 tonnes): Length ≤ 190M. Full Loaded Sail at a Speed of 14 Knots.

Fuel Consumption 30 tonnes.

Vizag Port - Qingdao Port

Price (US$/tonne) Change (US$/tonne)

Apr 8, 2011 17.79 -0.01

Apr 7, 2011 17.80 -0.05

Apr 6, 2011 17.85 -

Apr 5, 2011 17.85 -0.03

Apr 4, 2011 17.88 +0.10

Apr 1, 2011 17.78 +0.04

Daily Bunker Fuel Oil Prices in Singapore

Date IFO380 (heavy oil) IFO180 (heavy oil) MDO( light oil )

Price($/t) Chg($/t) Price($/t) Chg($/t) Price($/t) Chg($/t)

Apr 8, 2011 684.5 +4 697.5 +3.5 1041 +19

Apr 7, 2011 680.5 - 694 -0.5 1022 -3

Apr 6, 2011 680.5 +4.5 694.5 +7 1025 +8

Apr 5, 2011 676 +3.5 687.5 +5 1017 -

Apr 4, 2011 672 +15.5 682.5 +12.5 1017 +20

Transaction Reports

Shipping & Logistics



-Vessel Lineup-

Shipments of Iron Ore at Main Brazil Ports for Apr 4- Apr 17, 2011

26 vessels are scheduled to arrive at port Tubarao for operation for Apr 4- Apr 17, 2011. The outward cargo

volumes are 4.13 million tonnes.

TUBARAO PIER ONE

VESSEL ETA ETB ETD CGO QTY *1,000

Annita 21/03/2011 05/04/2011 06/04/2011 50

Ocean Crescent 17/03/2011 05/04/2011 07/04/2011 160

Panayiota K 26/03/2011 07/04/2011 08/04/2011 60

Ocean Compass 27/03/2011 07/04/2011 09/04/2011 170

Navios Lumen 09/04/2011 09/04/2011 11/04/2011 160

Berge Arctic 30/03/2011 11/04/2011 12/04/2011 155

Giuseppe Mauro Rizzo 21/03/2011 11/04/2011 12/04/2011 75

Mineral Kyoto 30/03/2011 12/04/2011 13/04/2011 170

Ocean Mercy 03/04/2011 13/04/2011 14/04/2011 90

Pierre LD 08/03/2011 13/04/2011 14/04/2011 170

Atlantic Tiger 01/04/2011 14/04/2011 15/04/2011 150

Dong-A EOS 09/04/2011 15/04/2011 16/04/2011 170

Frederico II 31/03/2011 15/04/2011 16/04/2011 90

Caro 11/04/2011 16/04/2011 17/04/2011 160

Eternal Power 02/04/2011 16/04/2011 17/04/2011 70

Frontier Discovery 13/04/2011 17/04/2011 18/04/2011 160

Torm Bornholm 04/04/2011 17/04/2011 18/04/2011 45

TUBARAO PIER TWO


Navix Astral 31/03/2011 04/04/2011 05/04/2011 240

Stellar Daisy 16/03/2011 07/04/2011 08/04/2011 235

Faith N 18/03/2011 08/04/2011 09/04/2011 230

Berge Bureya 21/03/2011 09/04/2011 10/04/2011 260

Hebei Ambition 15/03/2011 10/04/2011 12/04/2011 250

Ocean Challenger 31/03/2011 12/04/2011 13/04/2011 160

STX Bona 25/03/2011 13/04/2011 14/04/2011 160

He Tong 21/03/2011 15/04/2011 16/04/2011 290

Stamatis 02/04/2011 17/04/2011 18/04/2011 200



9 vessels are scheduled to arrive at port PONTA DO UBU for operation for Apr 4- Apr 17, 2011. The outward cargo



Michele Iuliano 24/03/2011 05/04/2011 06/04/2011 60

Mineral Belgium 30/03/2011 06/04/2011 08/04/2011 166

Navios Prosperity 05/04/2011 08/04/2011 09/04/2011 45

Ostende Max 01/04/2011 08/04/2011 09/04/2011 45

C. Atlas 05/04/2011 09/04/2011 11/04/2011 174

Aquadiva 06/04/2011 11/04/2011 13/04/2011 175

Yeoman Brok 08/04/2011 13/04/2011 14/04/2011 57

C. Polaris 11/04/2011 14/04/2011 15/04/2011 150

Frontier Explorer 13/04/2011 16/04/2011 17/04/2011 150

8 vessels are scheduled to arrive at port GIT for operation for Apr 4- Apr 17, 2011. The outward cargo volumes are

1.35 million tonnes.

VESSEL ETA ETB ETD CGO QTY

Alexandra P 21/03/2011 04/04/2011 09/04/2011 176000

AM express 28/03/2011 07/04/2011 11/04/2011 81100

Mc Garnet 25/03/2011 10/04/2011 12/04/2011 220000

Shourong 27/03/2011 12/04/2011 14/04/2011 220000

Ore Moatize 01/04/2011 12/04/2011 16/04/2011 147050

Shangang First 27/03/2011 14/04/2011 16/04/2011 174530

New Forest 01/04/2011 16/04/2011 18/04/2011 169300

Hanjin Cape Town 08/04/2011 16/04/2011 20/04/2011 160000

7 vessels are scheduled to arrive at port CPBS for operation for Apr 4- Apr 17, 2011. The outward cargo volumes

are 885,000 tonnes.


C. Corsier 24/03/2011 04/04/2011 05/04/2011 124823

Mineral Hokkaido 25/03/2011 06/04/2011 08/04/2011 163590

Tampa 23/03/2011 08/04/2011 10/04/2011 158300

Bulk Hong Kong 30/03/2011 10/04/2011 12/04/2011 162700

Pacific Enterprise 29/03/2011 12/04/2011 14/04/2011 115500

Lin Jie 24/03/2011 14/04/2011 16/04/2011 160000

Hanjin Melbourne 04/04/2011 17/04/2011 19/04/2011 176000

7 vessels are scheduled to arrive at port CSN for operation for Apr 4- Apr 17, 2011. The outward cargo volumes

are 1.10 million tonnes.




Ocean Duke 19/03/2011 04/04/2011 06/04/2011 162300

Julian N 19/03/2011 06/04/2011 08/04/2011 143800

Cape Provence 21/03/2011 09/04/2011 11/04/2011 163460

Citius 10/03/2011 11/04/2011 12/04/2011 158600

Cape Century 24/03/2011 13/04/2011 14/04/2011 159962

Nightwing 25/03/2011 14/04/2011 16/04/2011 159530

Hebei Challenger 08/04/2011 16/04/2011 18/04/2011 150000

28 vessels are scheduled to arrive at port PDM for operation for Apr 4- Apr 17, 2011. The outward cargo volumes

are 5.05 million tonnes.

PONTA DA MADEIRA PIER ONE


Pacific Beauty 20/03/2011 04/04/2011 05/04/2011 250

Bing N 12/03/2011 05/04/2011 07/04/2011 290

MG Courage 19/03/2011 07/04/2011 08/04/2011 185

Yu Zhong Hai 13/03/2011 07/04/2011 09/04/2011 260

Anangel Zhogte 14/03/2011 09/04/2011 10/04/2011 240

Grande Progresso 21/03/2011 11/04/2011 13/04/2011 270

Warrior 20/03/2011 12/04/2011 13/04/2011 214

Berge Vik 24/03/2011 14/04/2011 16/04/2011 270

BW Odel 11/03/2011 15/04/2011 16/04/2011 185

PONTA DA MADEIRA PIER THREE


Global Enterprise - Pier

South 10/03/2011 04/04/2011 05/04/2011 160

Cape Triumph - Pier North 18/03/2011 04/04/2011 06/04/2011 170

Athens - Pier North 21/03/2011 05/04/2011 06/04/2011 160

Bet Fighter - Pier South 11/03/2011 05/04/2011 07/04/2011 160

C Harmony - Pier South 26/03/2011 06/04/2011 07/04/2011 160

Cape Stork - Pier South 17/03/2011 06/04/2011 07/04/2011 132

Flash - Pier South 21/03/2011 08/04/2011 09/04/2011 291

E.R. Borneo - Pier South 23/03/2011 09/04/2011 11/04/2011 170

Proud - Pier South 21/03/2011 10/04/2011 12/04/2011 0

Teh May - Pier North 22/03/2011 10/04/2011 12/04/2011 160

Wadi Alkarm - Pier South 30/03/2011 11/04/2011 12/04/2011 70

Berge Atlantic - Pier North 01/04/2011 13/04/2011 15/04/2011 155




Christina J - Pier North 31/03/2011 13/04/2011 15/04/2011 175

DHL Pacific - Pier North 25/03/2011 13/04/2011 15/04/2011 170

Cape Azalea - Pier North 02/04/2011 14/04/2011 16/04/2011 165

CPO Asia - Pier North 05/04/2011 15/04/2011 16/04/2011 160

Samjohn Legacy - Pier

North 27/03/2011 15/04/2011 17/04/2011 150

Cape Apricot - Pier South 29/03/2011 17/04/2011 18/04/2011 150

Alameda - Pier North 09/04/2011 17/04/2011 19/04/2011 130

Shipments of Iron Ore at Main India Ports for Apr 4- Apr 17, 2011

7 vessels are scheduled to arrive at port HALDIA for operation for Apr 4- Apr 17, 2011. The total cargo volumes

are 124,000 tonnes.

VESSEL ETA ETB ETD CGO QTY Deliver Destination

United 03/04/11 06/04/11 09/04/11 17300 Rungta Group CHINA

Vinalines Ocean 01/04/11 04/04/11 06/04/11 16590 Ambo Exports CHINA

Noble Halo 03/04/11 06/04/11 09/04/11 18000 Rungta Mines CHINA

Larch Arrow 05/04/11 08/04/11 10/04/11 18000 Rungta Group CHINA

Nord Maru 03/04/11 09/04/11 11/04/11 18500 Map Mines CHINA

Prabhu Gopal 07/04/11 10-11/04/11 13/04/11 18000 Rungta Group CHINA

26 Augustos 07/04/11 11/04/11 14/04/11 18000 Rector Mines CHINA

9 vessels are scheduled to arrive at port PARADIP for operation for Apr 4- Apr 17, 2011. The total cargo volumes

are 310,000 tonnes.


MV. MIN ZHOU 76 2-Apr-2011 5-Apr-2011 7-Apr-2011 34850 RUNGTA/BONAI CHINA

MV. BASHUNDHARA 2 6-Apr-2011 7-Apr-2011 8-Apr-2011 30000 CORE MINERALS CHINA

MV. UNITED 9-Apr-2011 9-Apr-2011 11-Apr-2011 35000 RUNGTA MINES CHINA

MV. RENOS 31-Mar-2011 5-Apr-2011 7-Apr-2011 20300 ISHA ORE CHINA

MV. JIA HE SHAN 2-Apr-2011 5-Apr-2011 10-Apr-2011 55600 LG/GRM/K.J.S

AHLUWALIA CHINA

MV. VELLA 4-Apr-2011 7-Apr-2011 10-Apr-2011 48000 KASHVI/KK/MODERN CHINA

MV. BK BOSS 7-Apr-2011 7-Apr-2011 9-Apr-2011 15000 INTERLINK CHINA

MV. GOLDEN HOPE 9-Apr-2011 9-Apr-2011 12-Apr-2011 35000 TPS CHINA

MV. C DUKE 12-Apr-2011 15-Apr-2011 18-Apr-2011 37200 GLOBAL CHINA

1 vessel is scheduled to arrive at port VIZAG for operation for Apr 4- Apr 17, 2011. The total cargo volumes are

53,000 tonnes.




ANTOINE 05.04.2011 05.04.2011 07.04.2011 53300 KIOCL CHINA

Shipments of Iron Ore at Main Australia Ports for Apr 4- Apr 17, 2011

19 vessels are scheduled to arrive at port DAMPIER for operation for Apr 4- Apr 17, 2011. The outward cargo

volumes are more than 3.01 million tonnes.

EAST INTERCOURSE ISLAND

VESSEL ETA ETB ETD Destination CGO/ QTY *1,000

NIAN FENG HAI 1200/05 4 1730/08 1900/09 CHINA 60L 100F *

DONG-A RHEA 1800/06 4 2000/09 2130/10 CHINA * * 160TBA

MINERAL TIANJIN 0000/07 4 0100/12 0230/13 CHINA 60L 100F *

SHIN KORYU 0000/10 4 0330/13 0500/14 JAPAN 80L 80F *

JIANG JUN SHAN 1000/08 4 0600/14 0730/15 CHINA * * 160TBA

CIC PRIDE 0200/09 4 0830/15 1000/16 CHINA * * 160TBA

BAOSTEEL EVOLUTION 0800/07 4 1100/16 1230/17 CHINA * * 160TBA

PARKER POINT BERTH 2 & BERTH 3


KIRMAR 0800/05 4 0600/09 0100/11 TAIWAN 80L 40F *

PACIFIC EXPLORER 1210/06 4 1330/10 0230/12 CHINA 100L 65F *

AZALEA ISLAND 0800/08 4 0200/11 0400/13 TBA * * 160TBA

CAPE OLIVE 0000/08 4 0330/12 0600/14 CHINA 60L 100F *

CS GROWTH 0000/10 4 0500/13 0700/15 TBA * * 160TBA

BULK AFRICA 2100/13 4 0700/14 0830/16 CHINA 60L 100F *

PARKER POINT BERTH 4 & BERTH 5


BAO ZHU HAI 2100/05 4 1400/10 1600/12 CHINA 160F *

FRONTIER

GARLAND 1500/08 4 1530/11 1730/13 CHINA * 160TBA

C. SUMMIT 0900/07 4 1700/12 1900/14 CHINA 160F *

CSK ENTERPRISE 1200/08 4 1830/13 2030/15 CHINA * 160TBA

C. UTOPIA 0000/10 4 2000/14 2200/16 CHINA 160F *

LOWLANDS

LONGEVITY 0000/13 4 2130/15 2330/17 CHINA 160F *



10 vessels are scheduled to arrive at port HEDLAND for operation for Apr 4- Apr 17, 2011. The outward cargo


ANDERSON POINT NO. 1 BERTH


ANANGEL DESTINY 1800/06 4 * * CHINA 170SF

ALPHA PRUDENCE AM/10 4 * * CHINA 170SF

ANANGEL SPLENDOUR AM/10 4 * * CHINA 160SF

NORDTRAMP 0800/11 4 * * CHINA 169SF

AQUAMARINE 0500/14 4 * * CHINA 170RF

SG ENTERPRISE 0800/11 4 * * CHINA 187L/SF

FMG CLOUDBREAK 1200/15 4 * * CHINA 170RF

MYSTIC 1200/16 4 * * CHINA 170L/SF

PACIFIC CONFIDENCE 0400/06 4 * * CHINA 170L/SF

AQUAGRACE 1700/07 4 * * CHINA 170RF

7 vessels are scheduled to arrive at port WALCOTT for operation for Apr 4- Apr 17, 2011. The outward cargo


Berth 1 & Berth 2


STELLA ANNABEL 1700/05 4 2000/13 0715/15 KOREA 25F 145Y

CAPE SOFIA 0000/12 4 2000/14 1930/15 JAPAN 55F 45Y

HANJIN SALDAHA

BAY 0000/13 4 2000/15 0830/17 TBC * 160TBA

YI DA 2300/12 4 2000/16 0900/18 CHINA * 163TBA

OCEAN

UNIVERSE 0600/14 4 2000/17 0945/19 KOREA * 160TBA

Berth 3 & Berth 4


LINDA HOPE 0000/12 4 1815/13 0715/15 TBC 160TBA

OCEAN COMMANDER 0000/13 4 0815/14 0800/16 JAPAN 160TBA

1 vessel is scheduled to arrive at port ESPERANCE for operation for Apr 4- Apr 17, 2011. The outward cargo

volumes are 166,000 tonnes.

VESSEL ETA ETD Destination CGO/ QTY *1,000

AQUA VENTURE 0900/08 /11 CHINA 83L/83F



6 vessels are scheduled to arrive at port GERALDTON for operation for Apr 4- Apr 17, 2011. The outward cargo

volumes are 360,000 tonnes.

VESSEL ETA ETB ETD Destination CGO/ QTY

*1,000

KAVO ALKYON 1700/04 1900/04 1130/06 CHINA 60F

YUAN ZHI HAI 2230/04 /07 /09 CHINA 60L

MARITIME BAGUI 2100/07 /09 /11 CHINA 60L

MEDI BALTIMORE /09 /11 /13 CHINA 60

KALLIOPI L 0930/10 /13 /15 CHINA 60F

JIN RUN /13 /15 /17 CHINA 60L

Arrivals of Imported Iron Ores at Main China Ports for Apr 4- Apr 17, 2011

12 vessels are scheduled to arrive at port Beilun for Apr 4- Apr 17, 2011. The arrived cargo volumes are expected

to reach 2.20 million tonnes. The unloading volumes are 1.64 million tonnes.

VESSEL ETA CGO QTY *1,000 Unloading Volumes

(in 1,000 tonnes) Loading Port Receiver

POUNDA 5-Apr 173 85 PORT OF HEDLAND MAGANG

GREAT DYNASSTY 6-Apr 170 85 PORT OF HEDLAND SHAGANG

MINERAL SHIKOKU 6-Apr 170 100 PORT OF HEDLAND WUGANG

DAEWOO SPIRIT 6-Apr 164 164 SAN NICOLAS SHOUGANG

AQUABEAUTY 6-Apr 158 80 DAMPIER NINGGANG

SHAGANG GIANT 7-Apr 265 265 BRAZIL SHAGANG

OCEAN CREST 8-Apr 165 165 PERU SHOUGANG

STAR AURORA 13-Apr 170 90 DAMPIER NANCHENG

F DUCKLING 13-Apr 168 85 PORT OF HEDLAND WUGANG

KATERINA WARRIOR 15-Apr 170 90 PORT OF HEDLAND XINYEGANG

AMBER HORIZON 16-Apr 190 190 PORT OF HEDLAND SHAGANG

WUGANG ASIA 17-Apr 237 237 SALDANHA BAY WUGANG

28 vessels are scheduled to arrive at port Qingdao for Apr 4- Apr 17, 2011. The arrived cargo volumes are

expected to be less than 4.08 million tonnes.

VESSEL ETA CGO QTY *1,000 Loading Port Receiver

CHINA PEACE 4-Apr 171 AUS JIUYANG

SA ALTIUS 5-Apr 168 AUS TAISHAN

MARITIME HARMONY 5-Apr 74 INDONESIA WEIQIAO

SEA PACE 5-Apr 55 INDONESIA WEIQIAO

CRYSTAL TIGER 5-Apr 175 BRAZIL MAGANG

BERGE VINSON 6-Apr 157 BRAZIL RUIGANGLIAN



VESSEL ETA CGO QTY *1,000 Loading Port Receiver

ELLIDA ACE 7-Apr 166/78 BRAZIL QINGGANG

GLOBAL UNITY 8-Apr 150/50 INDIA ?

KING COAL 8-Apr 60 AUS LAIGANG

HSIN MAY 8-Apr 173/80 AUS SHAGANG

MARIJEANNIE 8-Apr 100 AUS TAISHAN

MIGHTY SKY 8-Apr 65 AUS CHIPING

DIVINUS 8-Apr 161 AUS QINGGANG

V EUROPE 8-Apr 130/86 UKRAINE TAISHAN

NORD POWER 9-Apr 172 AUS ?

NORD HERCULES 9-Apr 107 AUS HEBEI JINGYE

ANANGEL VISION 9-Apr 156 BRAZIL SHAGANG

PACIFIC ENDURANCE 9-Apr 163/80 AUS BAOSTEEL

ANANGEL AMBITION 10-Apr 156 AUS TIANTIE

LEON V 10-Apr 143 INDONESIA SHANLV

SG EXPRESS 11-Apr 170 AUS TYHOON

ANGEL MERCHANT 11-Apr 175 AUS ?

NAVIOS ETOILE 12-Apr 165 AUS TAIYUAN

CSB FORTUNE 12-Apr 223 AUS TAIYUAN+HEBEIDAGANG

HEBEI WINNER 13-Apr 251 S.AFRICA KUMBA

AQUABEAUTY 14-Apr 78 AUS TAISHAN

PHYLLIS N 15-Apr 240/100 BRAZIL BAOSTEEL

CELINE I APR 71 UKRAINE XINJIANG BAI YI STEEL

18 vessels are scheduled to arrive at port Caofeidian for Apr 4- Apr 17, 2011. The arrived cargo volumes are

expected to be more than 2.10 million tonnes.

VESSEL ETA CGO QTY *1,000 Loading Port

SAG BULK GERMANY 5-Apr 171 AUS

ORE FABRICA 5-Apr 123 BRAZIL

AGILITY 5-Apr 149 INDIA

CENTRANS LEADER 6-Apr 163 BRAZIL

TENNEI MARU 6-Apr 56 ?

GRAND ROYAL 6-Apr 38 ?

AN SHENG SHAN 6-Apr 56 ?

SERPENTINE 6-Apr 48 ?

ANANGEL SKY 6-Apr 110 ?

CHANNEL NAVIGATOR 6-Apr 170/40 AUS

ZHEN YU 7-Apr 90 ?

IRON YANDI 7-Apr 170 AUS




ZHENGYU 7-Apr 170 INDIA

MARTZOUKOS A 7-Apr 158 ?

GRETA 8-Apr 52 ?

OCEAN CRYSTAL 8-Apr 71 ?

CHS BRIGHT 9-Apr 146 ?

KWK PROVIDENCE 12-Apr 159 ?

12 vessels are scheduled to arrive at port Tianjin for Apr 4- Apr 17, 2011. The arrived cargo volumes are expected

to reach 1.23 million tonnes.

VESSEL ETA CGO QTY *1,000 Receiver Loading Port

HARMONY CARRIER 4-Apr 151 LIGANG S.AFRICA

QING PING HAI 5-Apr 36 XUANGANG INDONESIA

TAI GLORY 4-Apr 90 HEBEI AOSEN INDIA

ZOSCO TAIZHOU 6-Apr 165 CHENGGANG AUS

ROAD RUNNER 7-Apr 145 HEBEI AOSEN INDIA

PREM POORVA 7-Apr 67 HEBEI PUYANG ?

KING PHENIX 8-Apr 26 RONGCHENG INDIA

HEBEI TENGFEI 9-Apr 147 RONGCHENG CHILE

JIN BO 10-Apr 19 GENERAL NICE INDIA

HAI SHI 11-Apr 169 TIANTIE AUS

ELLIDA ACE 14-Apr 166/? TRADING ?

ROSITA 17-Apr 50 TRADING INDIA

24 vessels are scheduled to arrive at port Rizhao for Apr 4- Apr 17, 2011. The arrived cargo volumes are expected

to reach 2.91 million tonnes.


PACIFIC DOLPHIN 4-Apr 47 INDIA

ALFRED N 5-Apr 90 SF

CAPE PROVIDENCE 5-Apr 143 INDONESIA

MEYNELL 6-Apr 176/40 AUSTRALIA

ANTOINE D 4-Apr 73 IRAN

PLAIA SAILING 4-Apr 23 INDONESIA

MALATHI 4-Apr 53 INDIA

VANESSA A 4-Apr 26 INDONESIA

DIONE 5-Apr 160 BRAZIL

FU AN CHENG 6-Apr 180 VENEZUELA

WUGANG ATLANTIC 6-Apr 190 BRAZIL

LUCKY FUTURE 7-Apr 20 INDONESIA




ZHENG HAO 7-Apr 260 BRAZIL

FRONT DRIVER 8-Apr 160 AUSTRALIA

TAI PROFIT 9-Apr 70 AUSTRALIA

LOWLANDS PHOENIX 9-Apr 160 AUSTRALIA

ATLANTIC 9-Apr 42 IRAN

CAPTAIN P.EGGLEZOS 10-Apr 73 ?

MINERAL OAK 11-Apr 168 AUSTRALIA

GREEN PINE 11-Apr 81 INDIA

C.OASIS 12-Apr 163 AUSTRALIA

MELLOW WIND 13-Apr 160 AUSTRALIA

NAVIOS ALTAMIRA 13-Apr 160/40 AUSTRALIA

REBEKKA N 17-Apr 230 BRAZIL

The next issue will be published on Monday, April 18, 2011.



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vol. 1 no. 97 umetal iron ore weekly apr 6-apr 8, 2011...

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