Free Newsletters - Space News - Defense Alert - Environment Report - Energy Monitor
. Earth Science News .




TRADE WARS
BHP chief says China steel surge has peaked
by Staff Writers
Sydney (AFP) Oct 17, 2012


BHP Billiton chief Marius Kloppers said on Wednesday that China's steel surge had peaked and iron ore and steel growth was likely to decline, as the miner delivered a mixed quarterly production report.

BHP produced 39.77 million tonnes of iron ore in the three months to September 30 -- just one percent higher than a year earlier and three percent lower than the preceding quarter as China's slowdown hit commodities.

Metallurgical coal, another key steelmaking ingredient, was down four percent on-year at 8.94 million tonnes.

Kloppers said the China steel boom had peaked, with supply shortages all but met and the Asian giant entering a new phase in its modernisation that would see average annual growth of around eight percent for the next decade.

"Steel intensity per unit of GDP will continue to moderate and growth rates for iron ore and coal are likely to decrease," Kloppers said in a speech after the release of BHP's September quarter production report.

"The record prices we experienced over the past decade, driven by the demand shock, will not be there to support returns over the next 10 years," he added.

"What we can instead expect is demand growth at more predictable and sustainable levels and more moderated pricing.'

As a result Kloppers said it was "difficult to envisage" further investment in its Australian coal operations, where recent increases in state government royalties and a bullish exchange rate have compounded profitability issues.

BHP suspended some Australian coal projects and put expansion plans on hold this year as falling commodity prices saw its annual net profit dive 35 percent to US$15.42 billion. Other major miners have taken similar steps.

"While our resource base in Queensland (state) is very high quality the heavy cost of taxes, royalties, declining productivity and a strong Australian dollar means that further investment to grow these operations is much less likely," Kloppers said.

However, he remained upbeat on the mining industry's broader outlook, with the global iron ore market set to grow by 650 million tonnes by 2020 -- down from 800 million tonnes between 2000-2010 but still "significant".

"At the same time the progressive transition into a consumption-based economy implies increased demand for commodities other than steel, such as copper, energy, aluminium and so on," added Kloppers.

"As the middle class continues to grow, better diets will also imply a higher demand for commodities such as potash."

Melbourne-based BHP reported a 24 percent jump in quarterly copper output from the September quarter last year, reflected by higher grade ore at its Escondida mine in Chile and record quarterly production at Antamina in Peru.

There was a significant bounce in petroleum products -- which Kloppers said was key to BHP's resilience -- up 19 percent from the previous corresponding period, including a 30 percent surge in gas output.

Zinc production was up 11 percent from the previous September quarter, uranium up four percent, silver production was steady while lead output dropped six percent.

.


Related Links
Global Trade News






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





TRADE WARS
Argentine delegation in Ghana for talks on warship seizure
Accra (AFP) Oct 16, 2012
A delegation from Argentina on Tuesday met with Ghanaian officials in an attempt to negotiate the release of a warship being detained outside Accra over a bond dispute, an official said. The vessel that had travelled to the West African nation for a training mission was seized by port officials this month under a court order secured by a Cayman Islands investment group which claims it is owe ... read more


TRADE WARS
Climate change helps drive N. America disasters: re-insurer

French broadcaster apologises to Japan over Fukushima gag

Planning can cut costs of disasters: World Bank

12 Chinese workers killed, 24 hurt in dormitory blaze

TRADE WARS
Physicists crack another piece of the glass puzzle

Worldwide smartphone users top 1 bn: report

New paper reveals fundamental chemistry of plasma/liquid interactions

Google opens window to 'where Internet lives'

TRADE WARS
S. Korea holds 23 Chinese for illegal fishing

Conference seeks to curb exploitation of high seas

Scientists Uncover Diversion of Gulf Stream Path in Late 2011

Documented decrease in frequency of Hawaii's northeast trade winds

TRADE WARS
Ice sheet retreat controlled by the landscape

1 by land and 1 by sea

NASA's Operation IceBridge Resumes Flights Over Antarctica

Antarctic Sea Ice Reaches New Maximum Extent

TRADE WARS
Green leaf volatiles increase plant fitness via biocontrol

Viral alliances overcoming plant defenses

Pollenizer Research Should Help Seedless Watermelon Farmers

Mystery of nematode pest-resistant soybeans cracked

TRADE WARS
Study advances understanding of volcanic eruptions

Pakistan floods kill 455, affect five million

Tropical cyclones are occurring more frequently than before

Hurricane Paul loses punch as it nears Mexico

TRADE WARS
Critical bishop expelled from Chad back in Italy

Four dead after day of violence in restive Nigerian city

Thousands march in Mali to urge intervention against Islamists

Nigerian farmers sue Shell in Dutch case with global reach

TRADE WARS
Nasty noises: Why do we recoil at unpleasant sounds

UN report warns of possible rise in child marriages

Chimps said attacking humans in Africa

New human neurons from adult cells right there in the brain




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement