Nippon Steel May Transport Iron on Valemax Ships

Posted by Greg Trauthwein
Friday, June 20, 2014
5-Vale Beijing VLOC being loaded in Brazil. (Photo - Vale do Rio Doce)


Nippon Steel & Sumitomo Metal Corp, Japan's biggest steelmaker, may start talks on a contract to transport iron ore from Brazilian miner Vale on Valemax ships, the world's biggest bulk carriers, to cut costs, a senior official said.

Such a contract would be a boost for Vale, which is trying to increase use of the ships after China in 2012 prevented the world's biggest iron ore miner from docking the giant vessels in its ports to protect its own shipping companies.

The 400,000 deadweight tonne (dwt) vessels could cut Nippon Steel's shipping costs by at least $400,000 on each cargo.

For Nippon Steel, the world's second-biggest steelmaker, cutting costs is vital to improving its competitiveness as global markets face prolonged oversupply due to massive production by Chinese mills.

The Valemax entered the firm's Kashima steelworks port, near Tokyo, for the first time this week as a trial run. It was the third of its plants in Japan to have received Vale's giant vessels following Oita in southern Japan and Kimitsu, near Tokyo.

"We had no technical problems in receiving the Valemax at Kashima," Koichiro Harada, Nippon Steel's general manager at raw materials transportation department, said on Friday after the company held a media tour at its Kashima plant.

"No decision has been made on a formal contract. We may enter formal negotiations on a (Valemax) freight contract once Kashima gets permissions from authorities and we confirm our plants are ready to receive the ships," Toshiharu Sakae, Nippon Steel's managing executive officer, told reporters on Thursday.

The Valemax has made a total of seven shipments to Japan since its first berth in June 2012 at Oita, the only Japanese port deep enough to receive a fully loaded Valemax.

Nippon Steel buys about 70 million tonnes of iron ore a year, 80 percent of which come from the three biggest suppliers, Brazil's Vale and Australia's Rio Tinto and BHP Billiton.

By country, the steelmaker gets more than 60 percent of its iron ore from Australia, from where a cargo takes about 11 days to travel to Japan, much shorter than about 40 days from Brazil.

"We can't say exactly how much we can save by using Valemax, but in theory the transport cost per 1 tonne of iron ore would be lowered by dollar amount in the single digits," Sakae said. \

(By Yuka Obayashi, Editing by Aaron Sheldrick and Jane Baird)

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

Dassault Systèmes’ 3DEXPERIENCE Platform Extends Interoperability on Large Assets

Dassault Systèmes (Euronext Paris: #13065, DSY.PA), the 3DEXPERIENCE Company, world leader in 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions,

IOMAXIS Awarded $245 Mln Contract to Support NRL

Contract will allow IOMAXIS to provide research, development and technical support to initiatives at the Naval Research Lab   IOMAXIS, provider of technologies

Broadband Upgrade for MSC Cruises

Intelsat S.A. has been selected by Marlink to deliver fast, high quality Intelsat EpicNG broadband connectivity to Mediterranean Shipping Company’s (MSC) cruise ships.

Shipbuilding

Fincantieri Launches Silver Muse

Silver Muse, the new ultra-luxury cruise ship which Fincantieri is building for the ship owner Silversea Cruises, was launched at Fincantieri’s shipyard in Genoa Sestri Ponente.

Swiftships to Procure Patrol Craft Kits for Egyptian Navy

Naval Sea Systems Command (NAVSEA) awards contract to Swiftships for four 28-meter KITs for the Egyptian Navy   On June 28, 2016 Louisiana-based Swiftships, LLC,

Ingalls to Build US Warship LH8

Huntington Ingalls Industries (HII) announced that its Ingalls Shipbuilding division has been selected to build the U.S. Navy’s next large-deck amphibious assault warship, LHA 8.

Bulk Carrier Trends

Vale Sells 3 Valemax Iron Ore Ships to ICBC

Brazil's Vale SA said it has sold three of its giant "Valemax" iron ore ships to a group led by Industrial and Commercial Bank of China, continuing efforts to unload

NORDEN’s Dry Cargo Head Bonderup Resigns

Ejner Bonderup, Executive Vice President and member of the Executive Management in Dampskibsselskabet NORDEN A/S, has resigned from his position to take up a position in another shipping company.

Baltic Index Up for Eighth Straight Session

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, continued its rise on Friday, for an eighth consecutive session,

Finance

Baltic Index Up for Eighth Straight Session

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, continued its rise on Friday, for an eighth consecutive session,

Asia-N.Europe Box Rates up 77 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe rose 77.4 percent to $1,206 per 20-foot container (TEU) in the week ended on Friday,

Euronav Share Buyback

Euronav NV (NYSE: EURN & Euronext: EURN) (“Euronav” or the “Company”) today announces that the Company has purchased 192,415 of its own shares on Euronext Brussels for an aggregate price of EUR 1,

Insurance

MAST, AMSA Partner for Risk Management Services

Maritime security company Maritime Asset Security Training (MAST) has announced their partnership with Astbury Marine Services & Associates (AMSA), a specialist

UK P&I and Britannia Clubs Call off Merger Talks

The boards of the UK P&I and Britannia Clubs since February 2016 have been in discussion regarding a potential merger between the two clubs.     While a number

Tanker Contamination Claims

One of the most common areas of bulk oil cargo claims is cargo contamination which occurs during the transfer of bulk liquid cargoes, says  Captain Paul D. Hall,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Salvage Ship Electronics Ship Repair Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1046 sec (10 req/sec)