China’s demand for coal may maintain a slow growth in the “13th Five-Year Plan” period (2016-2020), and yet the supply glut in domestic coal industry will continue, said Jiang Zhimin, vice chairman of China National Coal Association (CNCA), at a recent press conference.

http://en.sxcoal.com/0/140152/DataShow.html

China’s coking coal prices continued to drop recently, as some miners cut prices despite favorable sales to ensure cash return before the Lunar New Year starting on February 8.

http://en.sxcoal.com/0/140156/DataShow.html

In a break with tradition, 15 Chinese coal mining groups have said they will close operations and allow workers to leave their posts during the Lunar New Year holidays next month, taking some pressure off a sector burdened by massive overcapacity.

Any suspension of output over the week-long holiday, which starts on Feb. 7, could underpin coal prices that shed nearly a third last year. Spot thermal coal in Qinhuangdao port has risen 1.4 percent to 375 yuan ($57.03) per tonne this week, not far from a multi-year low of 370 yuan. SH-QHA-TRMCOAL

Lower demand and high supplies have led to the price rout, leaving the sector in a crisis, the miners said in a declaration released this week and published on company websites. Suspending operations over the holiday would ease the pressure, they added.

Miners are normally expected to work through the holidays in order to guarantee supplies over the period when power and heating demand typically hit a peak. During the holiday, state leaders are often filmed visiting miners working underground.

"On the condition that we can maintain safe production and stable supplies, and barring any special circumstances, we declare that we will cease operations during the 2016 Spring Festival holiday and workers will go on holiday," the miners' declaration said.

China's top coal producers - the Shenhua Group, China Coal Energy Group and the China Datong Coal Group - that account for about a fifth of national output, have signed the declaration.

China Coal Energy's Shanghai-listed unit said its losses in 2015 could have been as high as 2.8 billion yuan, while Datong Coal's listed vehicle also warned of about 1.7 billion yuan in losses, blaming the supply glut.

Another signatory, the Longmay Group, based in northeast China's Heilongjiang province, said last year that it was planning to lay off 100,000 miners. Thousands had already been put on leave with reduced pay.

http://www.reuters.com/article/china-coal-slowdown-idUSL3N15D1SD

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Brazilian miner Vale SA will recommend to its board that no dividend is paid to shareholders this year because of the slump in commodity prices, the company said on Thursday.

The world's largest producer of iron ore has been hit hard by a dramatic fall in the price of the steelmaking raw material, with analysts predicting the company will be cash flow negative in 2016 unless it manages to curb costs and sell assets.

http://www.reuters.com/article/vale-sa-dividends-idUSE5N0ZX01N

Iron-ore miner Atlas Iron on Friday reported that December quarter had increased by 10% on the previous quarter, while its full cash costs for the three months fell by 9%. Atlas shipped 3.6-million tonnes of ore in the December quarter, compared with the 3.3-million tonnes in the September quarter, with full cash costs declining from A$58/t to A$54/t, including all contractor cost clawback and profit share. 

A total of 3.5-million tonnes of ore was mined at Atlas’ various Western Australian assets, with more than 3.4-million tonnes of ore processed during the quarter under review. The Wodgina mine delivered 1.52-million tonnes of ore during the quarter, with the Abydos mine contributing 829 372 t, and the Mt Webber operation 1.14-million tonnes. 

Atlas MD David Flanagan told shareholders that while iron-ore market has remained challenging going into January, the falling Australian dollar, low freight prices and further interim cost savings negotiated in December, would assist the company in remaining competitive during the completion of its debt restructure. 

Flanagan said that the debt restructure agreement, which was struck during the December quarter, was an important step in making Atlas more sustainable, particularly in volatile iron-ore markets. Atlas in December last year miner inked agreements with more than 75% of its term loan B (TLB) lenders, and amended its existing syndicated facility agreement. 

Under the two agreements, Atlas would make a pay down of the TLB loan of some $10-million and issue shares and options to the TLB lenders in exchange for the lenders retiring $132-million of debt. The TLB lenders would hold a combined 70% of the company’s shares and options on issue, immediately post the restructure. The issue of these shares and options would be subject to shareholder approval. 

Furthermore, the existing syndicated facility agreement would be amended to include a covenant that cash was not to fall below A$55-million on any day during the implementation of the interim covenant. On implementation of the financial restructuring, Atlas would have reduced its term loan debt from $267-million to $135-million, extended the maturity date from December 2017 to April 2021, and reduced its cash interest expense by over 65% as a result of the lower debt balance and reduced interest rate.

http://www.miningweekly.com/article/atlas-iron-boosts-shipments-lowers-costs-2016-01-29

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The European Union will impose duties on imports of cold-rolled flat steel from China and Russia while its investigation into alleged dumping by the two countries continues.

The European Commission has set provisional duties of up to 16 percent for China and of up to 26 percent for Russia, according to sources familiar with the Commission's plans.

The Commission's investigation follows a complaint from Eurofer, the European steelassociation, which said Russia and China were dumping the steel - selling it below market prices at home or below the cost of production - on the EU market and thereby damaging the local industry.

The provisional measures are due to be announced by Feb. 14 and definitive duties, if imposed at the conclusion of the investigation, by Aug. 12. Such duties would typically apply for five years.

The Commission previously ordered customs authorities to register imports of cold-rolled flat steel from mid-December, meaning duties would apply to imports from China and Russia from then.

Eurofer says that, since the investigation was launched in May, imports of steel - used in cars and home appliances - into the EU have increased.

It said on Wednesday that overall imports of steel surged by 29 percent year-on-year in the third quarter of last year and by 51 percent in the final three months.

Russia, China and Ukraine made up some 60 percent of total steel imports.

For cold-rolled flat steel, Eurofer has said the average dumping margin - the amount by which export prices from the two countries undercut a normal market price - is 28 percent for China and 15-20 percent for Russian producers.

Russian producers Severstal and Novolipetsk Steel said when the investigation was launched last May that they were in compliance with international trade rules and not carrying out dumping.

China said then that the surge in Chinese steel product exports was "normal and also beyond reproach", reflecting a rise of demand and the strong competitiveness of its industry.

http://www.reuters.com/article/steel-eu-china-russia-idUSL8N15C266

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South Korean steelmaker POSCO posted its smallest quarterly operating profit in at least three years, as steel prices fell faster than raw materials costs, pressured by record exports of Chinese steel.

POSCO, the world's sixth-biggest steelmaker, saw its operating profit in the October-December period slump 55 percent to 341 billion won ($282.22 million) on a consolidated basis, which includes earnings of its affiliates, according to Reuters' calculations. POSCO only provided full-year earnings.

That was below a consensus forecast of 503 billion won compiled by Thomson Reuters I/B/E/S.

On an annual basis, the steelmaker swung to a net loss of 96 billion won, its first since at least 2010. The loss was smaller than the 300 billion won loss forecast by POSCO in October.

http://www.reuters.com/article/posco-results-idUSS8N14N004

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Japan's spot high-carbon ferrochrome prices fell to a 10-year low of 60-62 cents/lb CIF Japan this week as keen spot sellers emerged amid the seasonal pre-Lunar New Year holiday lull, according to Platts' assessments.

The 60-62 cent/lb level is the lowest since March 8, 2006, when prices were assessed at 61 cents/lb CIF Japan.

A consumer in southern Japan awarded a 280 mt tender for early March delivery this week, triggering competition among spot sellers in a market devoid of buyers in the leadup to the Lunar New Year holidays.

One producer offered at 60 cents/lb CIF Japan for 10-50 mm sized lumps with minimum 60% chrome, maximum 8% carbon, maximum 2.5% silicon, maximum 0.03% phosphorous and maximum 0.05% sulfur for loading in February from Oman.

Another producer offered at 62 cents/lb CIF Japan for 10-50 mm lump for minimum 58% chrome, maximum 8-9% carbon, maximum 4% silicon, maximum 0.04% phosphorous and maximum 0.05% sulfur for loading in February from India.

There were offers at 64 cents/lb CIF Japan for similar specifications except chrome content at 56%-60%, maximum 4% silicon and maximum 0.03% phosphorous, sources said.

The tender in southern Japan was awarded at around 60 cents/lb, basis unknown. Platts has not been able to confirm the details.

A Japanese trader this week sold to a mill over 1,000 mt of 0-10 mm fines for prompt shipment at 57-60 cents/lb CIF Japan.

The material contained maximum 48-49% chrome, maximum 8% carbon, maximum 6-7% silicon, maximum 0.03% phosphorous and maximum 0.05% sulfur.

There is typically a 10 cent/lb gap between 0-10 mm fines and 10-50 mm lumps.

"You can no longer distinguish fines from lumps," the trader said.

Falling Chinese steelmaker bids for domestic ferrochrome, producers closing term deals on a China domestic price basis and thin spot demand amid the seasonal lull caused lump prices to plunge, traders said.

China's largest stainless steelmaker, Taiyuan Iron and Steel Group, bid at around Yuan 4,800/mt ex-plant for domestic high-carbon ferrochrome for January delivery, which equates to 56 cents/lb without local tax.

Some Japanese and Taiwanese steelmakers have suggested producers set term contracts on the basis of the Taiyuan monthly bid price, producer and mill sources said.

However some producers were not in the spot market as ferrochrome demand in India remained steady.

"We have sold out our production this month and we are not selling spot. We have been selling to Indian customers at 67 cents/lb FOB equivalent and I refuse to sell below 66-67 cents/lb CIF Japan," one Indian producer said.

Platts assessed 58%-60% high-carbon ferrochrome at 59-60 cents/lb CIF China Friday, down from 64-65 cents/lb CIF China a week earlier, and 48%-52% charge chrome at 59-60 cents/lb CIF China, flat week on week.

http://www.platts.com/latest-news/metals/tokyo/asia-ferrochrome-japan-prices-fall-to-10-year-27196169

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