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Iron ore prices, transportation and foreign trade from U.S.A

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Iron ore prices, transportation and foreign trade from U.S.A

June 6, 2023 nflg 0 Comments

Most iron ore prices are negotiated between buyer and seller. In 2000, 79% of domestic ore was produced by captive mines (mines producing for company-owned blast furnaces) and, therefore, did not reach the open market and cannot be said to have a price. Slightly less than 20% of domestic production came from mines wholly or partly owned by Cleveland-Cliffs Inc. (Cliffs).

Prices for that ore were unavailable. Prices may be available for the less than 1% of ore from mines owned by steel companies and Cliffs, but those prices would be representative of only a tiny portion of domestic production. The average free-on-board mine value of usable ore shipped in 2000 was $25.57 per metric ton, slightly lower than that of 1999. This average value should approximate the average commercial selling price less the cost of mine-to-market transportation.

International iron ore prices rose in 2000. The price for Hamersley Iron Ore Pty. Ltd. and Mount Newman mining Co. Pty. Ltd. fine ores for fiscal year 2000 (April 1, 2000, to March 31, 2001) in the Japanese market was 27.35 cents per 1% Fe per long ton unit, up 4.4% compared with that of 1999 (Duisenberg, 2001, p. 46). The price for lump ore was settled at 36.26 cents per 1% Fe per long ton unit, an increase of 5.8 % compared with that of 1999. The lump ore to fine ore premium for Australian ore sold to Japan, increased from 8.2 in 1999 to 9.1 cents per 1% Fe per long ton unit. There were similar price percentage decreases in Europe. Iron ore prices have declined over the long term as well. The price of Carajás fines, a grade of ore produced by Companhia Vale do Rio Doce (CVRD) and sold to Europe, when denominated in U.S. dollars and adjusted for inflation using the U.S. Consumer Price Index for All Urban Consumers, fell by 33% between 1990 and 2000.

Iron ore mining equipments

In the iron ore mining process, iron ore crusher is important crushing machinery for crushing. Crushed by iron ore crusher , grinded by iron ore grinding mill , and according to the iron ore beneficiation we can get the final products with industrial usage.

In the iron ore beneficiation plants, we can divide it into various stage such as iron ore dressing, iron ore concentration, iron ore crushing, grinding, screening, etc. NFLG iron ore jaw crusher is usually used as primary ore crushing equipment in ore processing plants. Iron ore crusher is applied widely in ore mining of Malaysia, Mauritania, India, Ethiopia, Canada, Kelantan State, Brazil, Zimbabwe, Philippines, etc.

Transportation of iron ore

Almost no iron ore is consumed near its source; most ores must be transported, often great distances. Nearly all iron ore leaves the mine by rail, after which much of it is transferred to ships. In the United States, a much larger proportion of ore is moved by water than in other countries because of the proximity of the mines to the Great Lakes, which offer low-cost transportation. No taconite mine is more than about 160 kilometers (km) from Lake Superior or Lake Michigan, and most are much closer. In 2000, 47.5 Mt of ore was moved on the Great Lakes, the equivalent of about 75% of domestic production. Iron ore constituted 47% of U.S.-flag cargoes, more than twice that of stone and gypsum, the next largest dry bulk material category shipped. Excluding transshipments, U.S.-flag carriers moved 53 Mt of iron ore in 2000.

Iron ore plays a more important role in Great Lakes shipping than is readily apparent. Significant quanities of coal and stone move via the Great Lakes, but they are generally backhaul cargoes. When a laker (ore carrier) moves an iron ore cargo to a steel mill, it often carries a stone or coal cargo on the way back to the iron ore ports of Lake Superior. Without iron ore to fill one leg of the voyage, freight rates would increase so much that railroads would capture much of these markets (Lake Carriers Association, oral commun., July 12, 2001).

The U.S. Congress passed and the President signed a bill providing funding for a new icebreaker for the Great Lakes. The $110 million contract for building the ship was expected to be let in July 2001, with the vessel scheduled to be working by 2005. The current icebreaker, the 56-year old Mackinaw, is well beyond its designed service life and is scheduled to be decommissioned in 2006 (Steve Kuchera, Duluth News Tribune, July 1, 2000, Senate funds new icebreaker—$110 million to go to Mackinaw replacement—U.S.

The near drought conditions that have been causing low water levels in the Great Lakes since 1998 persisted through 2000. Lake Superior began the year at about 20 centimeters (cm) below the long-term average (LTA) and ended at about 38 cm below the LTA. The largest cargo shipped from Two Harbors in 2000 was 58,716 metric tons (t) compared with 62,559 t in 1998, an 8% drop. The average cargo shipped from Two Harbors for the same period fell by 7% (Lake Carriers Association, 2000).

The greatest financial loss caused by the low water levels was suffered by the shipping companies that transport iron ore on the Great Lakes. These companies enter into contracts with steelmakers to move a given quantity of ore at a certain price. Because of the low water levels, the ore boats must carry lighter loads to avoid running aground, so it takes more trips to carry a given quantity of ore. The shipping companies have not raised their rates to pass higher costs on to the steel companies because most of the steel companies are having financial troubles of their own.

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