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Outlook for CIS Iron Ore Market Andrey Kuzmin Head of Raw Materials Department Metal Courier CIS Raw Materials in World Markets 15 -16 November 2006, Moscow. The main points of presentation CIS domestic market structure CIS iron ore export structure Iron ore consumption and export forecasts.
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Outlook for CIS Iron Ore MarketAndrey KuzminHead of Raw Materials DepartmentMetal CourierCIS Raw Materials in World Markets15-16 November 2006, Moscow
The main points of presentation • CIS domestic market structure • CIS iron ore export structure • Iron ore consumptionand export forecasts
CIS Production and Domestic Iron Ore Supplies, Mt 2006Iron OreProduction:180.6 Mt2006DomesticMarket: 133.2 Mt 26% 24% 25% 21%
Concentrate Shipments by CIS Producers, Mt 2006Concentrate Shipments:85.1 Mt2003Concentrate Shipments:77.4 Mt 14% 13% 11% 11%
Pellets Shipments by CIS Producers, Mt 2006PelletsShipments:63.2 Mt2003PelletsShipments:52.1 Mt 40% 31% 38% 27%
Sintering Ore Shipments by CIS Producers, Mt 2006Sintering OreShipments:18.6 Mt2003Sintering OreShipments:17.6 Mt 40% 42% 38% 40%
Iron ore self-sufficiency rate of CIS steelmakers
Consolidation of Russian Iron Ore Market Concentrate Pellets
Consolidation of Ukrainian Iron Ore Market Sintering Ore Concentrate Pellets
CIS Iron Ore Export Structure, Mt 2006Iron Ore Export:44.1 Mt2003Iron Ore Export:29.5 Mt
Russia and Ukraine in Eastern European Market POLAND 7.1 Mt CZECH REP. 7.5 Mt SLOVAKIA 6.5 Mt HUNGARY 1.4 Mt ROMANIA 2.5 Mt SERBIA 2.3 Mt BULGARIA 0.6 Mt Russia Total export – 19.5 Mt incl. to Eastern Europe – 13.2 Mt Ukraine Total export – 20.2 Mt incl. to Eastern Europe – 14.6 Mt Eastern Europe Iron Ore Import Eastern Europe Iron Ore Import Structure in 2006 - Others - Ukraine - Russia
Chinese Iron Ore Import 2006Iron Ore Import:325-330Mt2005Iron Ore Import: 275 Mt
CIS Iron Ore Export Structure, Mt 2006Iron Ore Export:44.1 Mt2003Iron Ore Export:29.5 Mt
Prospects for CIS iron ore producers are not very promising • CIS domestic iron ore demand will show only sluggish growth • In the coming 5 years world major iron ore producers will increase production of high-grade material substantially • Consolidation in steel and mining industries will lead to increase of long-term iron-ore contract market. So, the volume of spot market where CIS suppliers are most active may go down • Steel industry consolidation in Eastern Europe will force out CIS suppliers
Important issues for CIS mining companies to survive To survive, CIS mining companies will have to: • increase product quality • expand transport infrastructure with regard to export
Steel Production in Russia is a Major Raw Materials Consumption driver, Mt
Steel Production Structure in Russia, Mt 2010 2005
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