The Anglo American Kumba iron ore production for Q1 CY19 witnessed at 9.5 MnT, down 12% as against Q1 CY18 production at 10.8 MnT. On quarterly basis too, the production dropped 6% as against Q4 CY18 at 10.2 MnT. The production was on lower side due to unplanned plant maintenance at Sishen and Kolomela mine.
Kumba iron ore exports up 2%; domestic sales down 16% in Q1 CY19
• The Kumba iron ore exports in Q1 CY'19 increased to 10.1 MnT as against 9.95 MnT in Q1 CY18 amid rising demand for premium quality lump products.
• The Kumba iron ore domestic sales dropped 16% to 0.75 MnT against 0.89 MnT in Q1 CY18.
Minas-Rio mine production up 61% in Q1 CY19 amid ramp-up projects
Minas Rio mines, pellet production for the quarter witnessed at 4.9 MnT, up 61% against 3.05 MnT in Q1 CY18 amid progression of ramp-up projects.
The production in Q1 CY19 picked up against 0.2 Mnt in last quarter due to operation resumption at mine in Dec’18. The production at mine was suspended in Mar’18 following discovery of two leakage in iron ore pipeline from mine to Acu port.
Minas Rio pellet sales up 39% in Q1 CY19
Minas Rio pellet sales recorded at 4.03 MnT in Q1 CY19, up 39% as compared to 2.9 MnT in Q1 CY18. The pellet sales picked up in Q1 CY19 after being nil for H2 CY18.
Anglo American: 2019 Guidance
• The 2019 production guidance for Kumba iron ore mine remain intact at 43-44 MnT
• Minas Rio pellet production guidance for 2019 remains firm at 18-20 MnT (wet MT basis).
Pellet offers for this week increased sharply in the recently concluded deals. SteelMint’s assessment stands at INR 6,900-7,000/MT (ex-Raipur, GST extra) against last week’s assessment of INR 6,600/MT. Current prices are hovering at 3-month high.
Sponge iron market seems to remain strong, as per manufacturers in central & eastern India. Rising raw material prices & active demand are likely to keep Indian sponge iron prices supported, they added.
Department of Mines and Geology (Govt. of Karnataka) has floated the tender for auctioning of 4 iron ore blocks in Karnataka for its 4th phase.
The iron ore market is on a surge, the price last week punching up through the $100-per tonne level for the first time in five years.
Spot iron ore fines Fe 62% index has picked up to USD 100.4/MT, CNF China as against USD 98/MT, CNF China yesterday. The increase is due to Vale forecast of dam rupture in next week. The prices have hit 5 years high as the prices were last seen in May'14.
Brazil's Vale’s warning that a tailings dams at its shuttered Gongo Soco mine in Minas Gerais is at risk of rupturing as soon as next week lit a fire under iron ore prices on Friday, sending the steelmaking raw material to a five-year high.