Iron ore costs continued to weaken on Thursday after the announcement on Chinese commodities that the government would reintroduce controls on crude metal production for the rest of 2024.
While this solution has been the subject of much discussion, it is not seen as aiming to reduce pollutant levels, but rather as an attempt to recover the resource to meet low levels of demand for steel.
The fact that the government adopts this resolution and makes it public shows us that the scenario is much more worrying than a few years ago, when there were limits to direct contact with companies.
In fact, this is a government resolution to the call made last week through the China Iron and Steel Association for metallurgical corporations to try to adjust production to require and advance maintenance and other measures to reduce production.
This came after some major Chinese manufacturers of metal rebar (used in housing and construction) called on the government to increase production of metal rebar amid falling profit margins and losses similar to continued weakness in China’s real estate and infrastructure sectors.
It also follows moves by China’s copper processing industry – the world’s largest – into production and early maintenance of plants due to a shortage of copper concentrates (dead due to the closure of a giant mine in Panama and several hundred thousand tonnes of lost production in other countries). producers). through Anglo American).
This is the most powerful sign that, despite all the signs of a recovery in the health of the economy in March (with stronger levels of activity), demand remains weak for key tissues due to the housing crisis.
NDRC news indicated that Singaporean iron ore was trading around $98 a tonne just after Thursday’s open, up from $99. 50 a tonne at Wednesday’s close.
A report issued on Wednesday by China’s National Development and Reform Commission (NDRC) showed the controls for a fourth year, although they were not implemented in 2023, allowing crude metal production to far exceed 1 billion tonnes for another year.
He said the NDRC, in collaboration with the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the Ministry of Emergency Management and the National Bureau of Statistics, will cooperate this year to monitor the country’s crude metal production.
The Commission said the departments would work to promote the progress of the metal industry with energy savings and reduced carbon emissions, and that they would collect data from the country’s metal manufacturers on their equipment.
The government has introduced controls requiring zero production expansion in its metal sector in 2021 and 2022 to restrict carbon emissions from one of its most polluting industries. This translated into a year-on-year drop in production of 3% in 2021 and 1. 7% year-on-year. year in 2022, which will contribute to a decrease in imports of iron ore, a key element for metal manufacturing, and a decrease in the consumption of coking coal, lower quality materials.
Despite making public statements about a cap in 2023, China’s crude metal production remained solid from the previous year, at around 1. 02 billion metric tons. After rising 1. 3% at the end of June, output in the second half of last year slowed due to weaker demand, specifically in the real estate sector.
So far, there is no target for metal production this year, even though production in January and February was 168 million tonnes, up 1. 6% from a year earlier.
But demand has weakened markedly, especially after the Lunar New Year holiday in February, which in turn led to a surge in iron ore inventories at China’s forty-five major ports, which reached 144 million tonnes last week, in two years.
But the real challenge for China’s huge metallurgical industry is the continued increase in exports from metal generators who can’t sell all the products they produce domestically. These exports are like an outlet valve that is lately being opened to allow metal generators to produce as much as possible. as much metal as they can to protect their margins and maximum usage rates.
China exported about 90 million tonnes of the metal in 2023, about a month of average crude metal production. In January and February of this year, crude metal exports increased by almost a third.
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Increases across all areas of Deep Leads resources: quality, tonnage and target area ABx Group has reported a 30% increase in its Mineral Resource Estimate (MRE) at the Deep Leads Ionic Adsorption Clay (IAC) rare earth deposit in northern Tasmania. The accumulation in MRE comes from 36 extension wells analyzed, representing a significant northward extension for the existing Deep Leads prospect.
Lake Resources (LKE. ASX) – LKE has signed two non-binding memorandums of understanding within 10 days. Ford Company (Ford) has signed a memorandum of understanding for about 25,000 t/year and last week, Hanwa, a Japanese commodity trading company, signed a memorandum of understanding for up to 25,000 t/year. Subject to execution, this is a feat as Ford and Hanwa are in a position to engage in longer-term strategic partnerships with LKE. Commercial negotiations are still ongoing, but they should, i. e. if Ford and Hanwa inject new capital into LKE, it will further reduce the risk of the financing of the assignment and thus ensure that LKE and Kachi are fully funded.
Two recent severity studies have particularly exceeded expectations and revealed the possibility of expanding the existing MRE at Throssell Lake, as well as a significant expansion opportunity at Yeo Lake. This reinforces the prospect of a multi-decade-long Tier 1 SOP production facility around Throssell Lake.
TMG is currently completing paints for the planned PFS in early 2023, adding the start of drilling in the third quarter of 2022, evaporation testing and permitting activities. The effects of these systems will affect the SFP and any long-term resource improvements.
SOP reference prices have increased to around $940/t due to recent geopolitical developments. The October 2021 scoping study assumed an SOP value of $550/t and contained a sensitivity study showing that each 10% accrual in value effects amounted to $144 million accrued to the NPV of the $364 million allocation. The increase of approximately 70% during the scoping study implies an NPV of the allocation of approximately $1. 4 billion.
Despite the drop in oil and fuel prices, which fell by 5. 4% and 19. 7% respectively in August, Calima managed to record an improvement in its key industry indicators.
WT Financial Group Limited (WTL) is a fast-growing diversified monetary company founded in 2010 and indexed on the Australian Securities Exchange (ASX) in 2015. Their recommendations and product offerings are primarily provided through an organization of independent money advisors who act as legal representatives. . de WTL in connection with its broker organisation business Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group). It has approximately 275 advisers in more than two hundred money advice firms across Australia. It also operates a direct-to-consumer operation under its Spring Financial Group brand.
In May 2021, Corporate Connect analyst Marc Sinatra published a comprehensive study report on ASX-listed biotech company Immutep Ltd (ASX: IMM). He was so inspired by IMM that Corporate Connect felt it was imperative to publish a follow-up report that valued the company. as the market did not see the great prospects of Eftilagimod Alpha (EFTI).
The follow-up report published today. Using comparables, after adding a monetary rebate to its EV estimate and dividing it by the total number of percentages issued, Corporate Connect now puts the fair price of a percentage of Immutep at A$2. 20.