Latest news with #Cheong
Business Times
3 days ago
- Business
- Business Times
Iron ore markets head for shake-up as Singapore-linked Simandou nears production
[SINGAPORE] Global iron ore trade is facing a pivotal shift as Simandou, a massive iron ore mine in Guinea being developed by a Singapore conglomerate, is about to ramp up supply of the ferrous mineral. Estimated at 2.4 billion tonnes of high-grade iron ore as one of the world's richest untapped deposits, and projected to start production by end-2025, Simandou is a strategic project for China as it aims to diversify its suppliers from Australia and Brazil – the two countries together accounting for about 80 per cent of seaborne iron ore exports. As a long-anticipated supply disruptor, the project is closely monitored by the iron ore industry, which is also betting on India to absorb demand lost in China, based on panel discussions during Singapore International Ferrous Week. Two blocks of the mining concession are being developed by Winning Consortium Simandou (WCS), a joint venture led by Singapore-based mine-to-shipping conglomerate Winning International Group. This is in partnership with China Shandong Weiqiao Group and state-owned China Baowu Steel Group. The remaining two blocks are under a Simfer joint venture, led by British-Australian mining giant Rio Tinto, in partnership with China's Chalco Iron Ore, and the Guinea government. At full capacity, the mine is projected to produce up to 120 million tonnes of high-grade iron ore (about 65 per cent iron content) annually. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Trade implications Cheong Jin Yu, head of Baltic Exchange Asia, told The Business Times that Baltic Exchange is keeping an eye on the development of Simandou as a key force to change trade routes of iron ore. 'What I would imagine would happen is that, if and when Simandou becomes a consistent supplier into the iron ore market, the (Baltic Exchange's) advisory council will tell us it's time to start pricing a route out of. So it will be a West Africa-to-China route,' he said. He added that once an index is established, the exchange would then develop different tools such as futures for the new index for market players to manage freight volatilities. The impact of Simandou's supply on key iron ore routes such as China-Australia hinges on actual cargo flows, Cheong said, with markets awaiting clarity. Vamsi Goutam, chief commercial officer of Tata Steel Minerals Canada, said during a panel that Simandou's supply could push up volumes and potentially freight rates in the Atlantic trades. He expects 'freight balancing' as shipping capacity might not pick up at the same rate as the steep increase in dry bulk volume. De-risking for iron ore producers The expected influx of high-grade iron ore from Simandou might worsen an oversupply situation as China's demand growth softens, which would put more pressure on iron ore producers. 'A lot of producers who are high on the cost curves will come under pressure,' said Claire Chong, senior analyst of Thurlestone Shipping, noting that their operational resilience will come into play. Francois Lavoie, senior vice-president of sales of technical market and product development at Champion Iron, said that as Simandou is 'mixing things up', small producers such as Champion Iron are trying to diversify offerings as part of their de-risk strategy. This includes converting production into iron ore of even higher grades and lower impurities, he noted. India's rising appetite Baltic Exchange's Cheong noted that the industry is also monitoring how iron ore imports to India would evolve, as the second-largest steel producer in the world ramps up its production. Paul Bartholomew, lead analyst of S&P Global Commodity Insights, noted that India is expected to emerge as a major iron ore importer, with the import forecast in 2026 to more than double from 2024's imports. However, Thurlestone Shipping's Chong noted that despite a rising projection, India's iron ore imports are still 'too small to compare with China's'. While India's iron ore import is expected to hit more than 130 million tonnes, China's iron ore imports are projected to stay above 1.1 billion tonnes to 2035, S&P Global indicated.
Business Times
3 days ago
- Business
- Business Times
Iron ore markets brace for shake-up as Singapore-linked Simandou nears production
[SINGAPORE] Global iron ore trade is facing a pivotal shift as Simandou, a massive iron ore mine in Guinea being developed by a Singapore conglomerate, is about to ramp up supply of the ferrous mineral. Estimated at 2.4 billion tonnes of high-grade iron ore as one of the world's richest untapped deposits, and projected to start production by end-2025, Simandou is a strategic project for China as it aims to diversify its suppliers from Australia and Brazil – the two countries together accounting for about 80 per cent of seaborne iron ore exports. As a long-anticipated supply disruptor, the project is closely monitored by the iron ore industry, which is also betting on India to absorb demand lost in China, based on panel discussions during Singapore International Ferrous Week. Two blocks of the mining concession are being developed by Winning Consortium Simandou (WCS), a joint venture led by Singapore-based mine-to-shipping conglomerate Winning International Group. This is in partnership with China Shandong Weiqiao Group and state-owned China Baowu Steel Group. The remaining two blocks are under a Simfer joint venture, led by British-Australian mining giant Rio Tinto, in partnership with China's Chalco Iron Ore, and the Guinea government. At full capacity, the mine is projected to produce up to 120 million tonnes of high-grade iron ore (about 65 per cent iron content) annually. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Trade implications Cheong Jin Yu, head of Baltic Exchange Asia, told The Business Times that Baltic Exchange is keeping an eye on the development of Simandou as a key force to change trade routes of iron ore. 'What I would imagine would happen is that, if and when Simandou becomes a consistent supplier into the iron ore market, the (Baltic Exchange's) advisory council will tell us it's time to start pricing a route out of. So it will be a West Africa-to-China route,' he said. He added that once an index is established, the exchange would then develop different tools such as futures for the new index for market players to manage freight volatilities. The impact of Simandou's supply on key iron ore routes such as China-Australia hinges on actual cargo flows, Cheong said, with markets awaiting clarity. Vamsi Goutam, chief commercial officer of Tata Steel Minerals Canada, said during a panel that Simandou's supply could push up volumes and potentially freight rates in the Atlantic trades. He expects 'freight balancing' as shipping capacity might not pick up at the same rate as the steep increase in dry bulk volume. De-risking for iron ore producers The expected influx of high-grade iron ore from Simandou might worsen an oversupply situation as China's demand growth softens, which would put more pressure on iron ore producers. 'A lot of producers who are high on the cost curves will come under pressure,' said Claire Chong, senior analyst of Thurlestone Shipping, noting that their operational resilience will come into play. Francois Lavoie, senior vice-president of sales of technical market and product development at Champion Iron, said that as Simandou is 'mixing things up', small producers such as Champion Iron are trying to diversify offerings as part of their de-risk strategy. This includes converting production into iron ore of even higher grades and lower impurities, he noted. India's rising appetite Baltic Exchange's Cheong noted that the industry is also monitoring how iron ore imports to India would evolve, as the second-largest steel producer in the world ramps up its production. Paul Bartholomew, lead analyst of S&P Global Commodity Insights, noted that India is expected to emerge as a major iron ore importer, with the import forecast in 2026 to more than double from 2024's imports. However, Thurlestone Shipping's Chong noted that despite a rising projection, India's iron ore imports are still 'too small to compare with China's'. While India's iron ore import is expected to hit more than 130 million tonnes, China's iron ore imports are projected to stay above 1.1 billion tonnes to 2035, S&P Global indicated.
Daily Express
21-05-2025
- Automotive
- Daily Express
South Korea exports fall on tariff woes
Published on: Wednesday, May 21, 2025 Published on: Wed, May 21, 2025 By: AFP Text Size: Stacks of one hundred dollar notes are piled up for counting at the headquarters of the Korea Exchange Bank in Seoul February 3, 2009. - Reuters pic SEOUL: South Korea's exports fell 2.4 percent year-on-year in the first 20 days of May, partly due to weak sales to the United States after Washington imposed and then partly lifted sweeping tariffs, official data showed Wednesday. Last month, the country's exports showed unexpected strength, lifted by robust semiconductor demand even as US tariffs weighed on trade. But early signs suggest that rising trade tensions are beginning to affect South Korea's other key industries -- including automobiles, which have been hit by a 25 percent levy. South Korea's exports totalled $32 billion from May 1 to 20, down 2.4 percent from the same period last year, according to data from the Korea Customs Service. Shipments to the United States, Seoul's key ally, fell 14.6 percent year-on-year during the period, while exports to China and the European Union also declined by 7.2 percent and 2.7 percent, respectively. Asia's fourth-largest economy was hit with a 25 percent across-the-board tariff by the United States -- although it was temporarily reduced to 10 percent for 90 days starting in early April. Advertisement But specific 25 percent duties remain in place on key exports such as steel, aluminium and automobiles. Following a second round of ministerial-level trade talks last week, Seoul is now in working-level technical discussions with Washington, aiming to secure full tariff exemptions by finalising a trade package by early July. Shipments of semiconductors, South Korea's biggest export, rose 17.3 percent year-on-year. Experts have suggested the rise in chip exports, including the high-tech ones needed for AI, could be due to stockpiling. But the country's other key exports, cars and steel, fell on-year by 6.3 percent and 12.1 percent, respectively, during the May 1-20 period. The auto industry accounts for 27 percent of South Korea's exports to the United States, which takes in nearly half of the country's car exports. Exports of petroleum products, home appliances and wireless communication devices also all dropped, by 24.1 percent, 19.7 percent and 5.9 percent, respectively. Seoul aims to leverage the talks with Washington with commitments to purchase more US liquefied natural gas (LNG) and offer support in shipbuilding, a sector in which South Korea is a leader, after China. Sharp slowdown Cheong In-kyo, South Korea's minister for trade, said for the entire month of May, the country's 'exports to the US and China are expected to decline as the impact of US tariff measures begins to materialise.' On the ongoing tariffs talks with Washington, Cheong said 'we will actively engage ... to find a mutually beneficial solution, with national interest as our top priority.' Seoul's finance ministry announced Wednesday that it will deploy a total of 28.6 trillion won ($20.5 billion) in emergency liquidity and financial aid to support domestic firms impacted by US tariff measures. The amount marks an increase from the 25 trillion won announced by the government last month, but was part of an additional budget dedicated to easing tariff woes for the country's exporters announced earlier this year. 'The government is taking a preemptive approach to the impact of tariffs by formulating an all-ministry export strategy,' the ministry said in a statement. It is also 'working to fundamentally strengthen the ecosystem of high-tech industries such as semiconductors, AI, and secondary batteries,' the ministry added. South Korea's imports also fell 2.5 percent year-on-year to $32.2 billion in the first 20 days of May, resulting in a trade deficit of $300 million, according to the Korea Customs Service. Due to escalating tariffs, experts now expect a meagre 0.4 percent growth in exports for the Asia-Pacific region this year -- a sharp slowdown from 5.7 percent in 2024, according to an APEC report released last week. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Sun
21-05-2025
- Automotive
- The Sun
S. Korea Exports Drop 2.4% Amid Rising U.S. Tariffs
SEOUL: South Korea's exports fell 2.4 percent year-on-year in the first 20 days of May, partly due to weak sales to the United States after Washington imposed and then partly lifted sweeping tariffs, official data showed Wednesday. Last month, the country's exports showed unexpected strength, lifted by robust semiconductor demand even as US tariffs weighed on trade. But early signs suggest that rising trade tensions are beginning to affect South Korea's other key industries -- including automobiles, which have been hit by a 25 percent levy. South Korea's exports totalled $32 billion from May 1 to 20, down 2.4 percent from the same period last year, according to data from the Korea Customs Service. Shipments to the United States, Seoul's key ally, fell 14.6 percent year-on-year during the period, while exports to China and the European Union also declined by 7.2 percent and 2.7 percent, respectively. Asia's fourth-largest economy was hit with a 25 percent across-the-board tariff by the United States -- although it was temporarily reduced to 10 percent for 90 days starting in early April. But specific 25 percent duties remain in place on key exports such as steel, aluminium and automobiles. Following a second round of ministerial-level trade talks last week, Seoul is now in working-level technical discussions with Washington, aiming to secure full tariff exemptions by finalising a trade package by early July. Shipments of semiconductors, South Korea's biggest export, rose 17.3 percent year-on-year. Experts have suggested the rise in chip exports, including the high-tech ones needed for AI, could be due to stockpiling. But the country's other key exports, cars and steel, fell on-year by 6.3 percent and 12.1 percent, respectively, during the May 1-20 period. The auto industry accounts for 27 percent of South Korea's exports to the United States, which takes in nearly half of the country's car exports. Exports of petroleum products, home appliances and wireless communication devices also all dropped, by 24.1 percent, 19.7 percent and 5.9 percent, respectively. Seoul aims to leverage the talks with Washington with commitments to purchase more US liquefied natural gas (LNG) and offer support in shipbuilding, a sector in which South Korea is a leader, after China. Sharp slowdown Cheong In-kyo, South Korea's minister for trade, said for the entire month of May, the country's 'exports to the US and China are expected to decline as the impact of US tariff measures begins to materialise.' On the ongoing tariffs talks with Washington, Cheong said 'we will actively engage ... to find a mutually beneficial solution, with national interest as our top priority.' Seoul's finance ministry announced Wednesday that it will deploy a total of 28.6 trillion won ($20.5 billion) in emergency liquidity and financial aid to support domestic firms impacted by US tariff measures. The amount marks an increase from the 25 trillion won announced by the government last month, but was part of an additional budget dedicated to easing tariff woes for the country's exporters announced earlier this year. 'The government is taking a preemptive approach to the impact of tariffs by formulating an all-ministry export strategy,' the ministry said in a statement. It is also 'working to fundamentally strengthen the ecosystem of high-tech industries such as semiconductors, AI, and secondary batteries,' the ministry added. South Korea's imports also fell 2.5 percent year-on-year to $32.2 billion in the first 20 days of May, resulting in a trade deficit of $300 million, according to the Korea Customs Service. Due to escalating tariffs, experts now expect a meagre 0.4 percent growth in exports for the Asia-Pacific region this year -- a sharp slowdown from 5.7 percent in 2024, according to an APEC report released last week.
The Sun
21-05-2025
- Automotive
- The Sun
South Korea exports fall on tariff woes
SEOUL: South Korea's exports fell 2.4 percent year-on-year in the first 20 days of May, partly due to weak sales to the United States after Washington imposed and then partly lifted sweeping tariffs, official data showed Wednesday. Last month, the country's exports showed unexpected strength, lifted by robust semiconductor demand even as US tariffs weighed on trade. But early signs suggest that rising trade tensions are beginning to affect South Korea's other key industries -- including automobiles, which have been hit by a 25 percent levy. South Korea's exports totalled $32 billion from May 1 to 20, down 2.4 percent from the same period last year, according to data from the Korea Customs Service. Shipments to the United States, Seoul's key ally, fell 14.6 percent year-on-year during the period, while exports to China and the European Union also declined by 7.2 percent and 2.7 percent, respectively. Asia's fourth-largest economy was hit with a 25 percent across-the-board tariff by the United States -- although it was temporarily reduced to 10 percent for 90 days starting in early April. But specific 25 percent duties remain in place on key exports such as steel, aluminium and automobiles. Following a second round of ministerial-level trade talks last week, Seoul is now in working-level technical discussions with Washington, aiming to secure full tariff exemptions by finalising a trade package by early July. Shipments of semiconductors, South Korea's biggest export, rose 17.3 percent year-on-year. Experts have suggested the rise in chip exports, including the high-tech ones needed for AI, could be due to stockpiling. But the country's other key exports, cars and steel, fell on-year by 6.3 percent and 12.1 percent, respectively, during the May 1-20 period. The auto industry accounts for 27 percent of South Korea's exports to the United States, which takes in nearly half of the country's car exports. Exports of petroleum products, home appliances and wireless communication devices also all dropped, by 24.1 percent, 19.7 percent and 5.9 percent, respectively. Seoul aims to leverage the talks with Washington with commitments to purchase more US liquefied natural gas (LNG) and offer support in shipbuilding, a sector in which South Korea is a leader, after China. Sharp slowdown Cheong In-kyo, South Korea's minister for trade, said for the entire month of May, the country's 'exports to the US and China are expected to decline as the impact of US tariff measures begins to materialise.' On the ongoing tariffs talks with Washington, Cheong said 'we will actively engage ... to find a mutually beneficial solution, with national interest as our top priority.' Seoul's finance ministry announced Wednesday that it will deploy a total of 28.6 trillion won ($20.5 billion) in emergency liquidity and financial aid to support domestic firms impacted by US tariff measures. The amount marks an increase from the 25 trillion won announced by the government last month, but was part of an additional budget dedicated to easing tariff woes for the country's exporters announced earlier this year. 'The government is taking a preemptive approach to the impact of tariffs by formulating an all-ministry export strategy,' the ministry said in a statement. It is also 'working to fundamentally strengthen the ecosystem of high-tech industries such as semiconductors, AI, and secondary batteries,' the ministry added. South Korea's imports also fell 2.5 percent year-on-year to $32.2 billion in the first 20 days of May, resulting in a trade deficit of $300 million, according to the Korea Customs Service. Due to escalating tariffs, experts now expect a meagre 0.4 percent growth in exports for the Asia-Pacific region this year -- a sharp slowdown from 5.7 percent in 2024, according to an APEC report released last week.
