World’s main iron ore producer optimistic about China demand
February 24, 2009
Brazilian mining giant Vale do Rio Doce, the world’s biggest iron ore producer, expects to ship a record-high 30 million tonnes of iron ore to China in the first quarter of 2009, it said on Friday.
China is Brazil’s single biggest customer for iron ore and the mining industry is sensitive to any change demand from the Asian giant, which is still in growth as other large economies slide towards recession.
“Demand in China is coming back beyond previous levels … China is helping cover a lot of weakness in other markets,” said Jose Carlos Martins, executive director of ferrous minerals.
Chief Executive Roger Agnelli said steel mills in Europe had, like China, been burning through their iron ore and steel stocks and could be expected to start buying again in the second quarter.
On Thursday, the company announced fourth quarter net profits of 10.44 billion Reales (4.44 billion US dollars), more than double the 4.41 billion Reales it made in the same three-month period of 2007 and the 4.82 billion Reales profit in quarter three.
The company said that cost controls, production cuts and a weaker local currency helped it offset weaker demand for metals. (The weaker Brazilian currency inflated its earnings at home from dollar-denominated exports). The Brazilian currency Real has shed about 33% of its value against the US dollar since hitting a nine-year high last August.
Overall revenue totalled 17.94 billion Reales in the fourth quarter, up from 15.21 billion Reales in the year-earlier period but down from 21.39 billion Reales in the third quarter of 2008.
However according to US GAAP accounting principles, Vale’s fourth-quarter net profit fell 47% to 1.37 billion US dollars from 2.57 billion in the year-ago period and 4.82 billion in the third quarter.
The global market turmoil had seen demand for iron ore plummet in the last quarter of 2008. Vale slowed production at some of its mines in Brazil and abroad and in December announced it was cutting 1,300 jobs and put 5,500 on mandatory paid vacation.
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Why PROPANE is Dangerous?
February 21, 2009
There’s a reason why propane-fuelled vehicles are banned from underground parking garages. If the gas leaks, a little goes a long way and a minor leak can cause a major explosion.
Propane – the main constituent of the liquefied petroleum gas (LPG) widely used as for heating and home barbecues – is heavier than air, meaning it will sink to the ground and stay there. Even a spark can set it off.
Propane tanks, whether they be a 200,000-litre storage unit or a barbecue bottle, contain about 80 per cent liquid with the remaining space for vapour. Relief valves on the tank open when the pressure exceeds the design limits.
The gas that escapes rapidly expands. The liquid contents of an average barbecue tank – could expand to more than 380 cubic metres of potentially explosive gas – enough to cover a parking garage 40 metres by 30. Vehicle propane tanks are usually at least one-and-a-half times as big as a barbecue tank.
Source: www.thestar.com
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China’s Trade Numbers at January
February 18, 2009
Last week’s trade numbers from China could not have been more dismal. After declining by 2.8 per cent year on year in December, China’s exports plummeted 17.5 per cent in January, placing huge pressure on the country’s manufacturing sector. Already unemployment in China is surging.
Chinese import numbers are even more dismaying. After dropping 21.3 per cent in December, imports fell a staggering 43.1 per cent in January.
At first glance there seems to be a silver lining in the export numbers: they are not as bad as those reported by some other Asian countries. In December, for example, Taiwan’s exports fell by 42 per cent, South Korea’s by 17 per cent and Japan’s by 35 per cent, capping many months of contraction. Less developed Asian countries also performed worse than China, which suggests China may have increased its competitive edge over its trading rivals. But it is precisely this relative outperformance that indicates the severity of the adjustment yet to take place. China’s trade surplus for January was a mind-blowing $39.1bn (€31.1bn, £27.4bn), just under November’s all-time high of $40.1bn and edging out December’s $39bn for second place. In comparison, in the first half of 2008 China’s average monthly trade surplus was an already high $16.7bn. In the second half it surged to $32.9bn.
Pls read the rest of article at Financial Times
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TNT launches rapid road service for China
February 16, 2009
Source : XINHUA
THE world’s express giant TNT launched a faster and more cost-efficient road distribution service today in China eying the potential demands spurred by China’s 4-trillion-yuan stimulus package.
TNT’s wholly-owned subsidiary TNT-Hoau will deliver the “Day-Definite Road Service,” which targets corporate customers who need shipments arriving on time and in good condition.
The service costs about one-third of the air cargo rate and is faster than less-than-truckload road services which cannot guarantee arrival times.
All shipments will be bar-coded to allow customers to track and trace their shipments via the Internet and this also saves on supply chain costs. The day-definite trucks are equipped with Global Positioning System technology to enable real-time tracking of each truck throughout the process.
The new service will be offered between 115 depots covering the key economic areas of the Yangtze River Delta, the Bohai Economic Rim and the Pearl River Delta regions.
TNT-Hoau plans to increase the service to more than 260 depots by July 2009.
China’s government has issued a 4-trillion-yuan stimulus package to boost domestic demand, a sizable proportion of which will be directed at the construction of transport infrastructure such as building new roads.
“We invest heavily in road and air services which enables us to shift our focus flexibly during the global financial crisis,” said Michael Drake, Regional Managing Director of TNT North Asia.
“When the Chinese government decided to bolster domestic industries, we complement trusted less-than-truckload road services to boast our full-service offerings capability in the country,” Drake said
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Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)
February 13, 2009
Definition of “Hong Kong Service Supplier” (HKSS)
Generally speaking, “juridical persons” (including companies, partnerships and sole proprietorships) as well as “natural persons” of Hong Kong will be able to enjoy preferential treatment granted by the Mainland under CEPA, provided that they fulfil the definition and related requirements of Hong Kong service suppliers. Unless otherwise specified in CEPA, a “natural person” means a Hong Kong permanent resident, whereas a “juridical person” means any legal entity duly constituted or otherwise organized under the applicable laws of Hong Kong and which has engaged in substantive business operations in Hong Kong for three to five years.
Hong Kong service supplier as a juridical person should apply to TID for a Certificate of Hong Kong Service Supplier (HKSS) before it can apply to the relevant Mainland authorities for providing services in the Mainland with preferential treatment under CEPA. Applicant should furnish TID with an application form, a copy of statutory declaration attested by a China appointed attesting officer recognized by the Mainland, as well as other relevant supporting documents. Detailed application procedures for all service sectors covered in CEPA have been announced in Notices to Service Suppliers available from the website of TID.
A Hong Kong service supplier who wants to obtain CEPA treatment as a natural person is not required to apply for a Certificate of HKSS. He or she should provide to the relevant Mainland authorities identification of his or her Hong Kong permanent resident status. He or she should also provide his or her Home Visit Permit or HKSAR passport if he or she is a Chinese citizen. Copies of the identification documents should be attested by a China appointed attesting officer recognized by the Mainland.
Source: Trade and Industry Department
The Government of the Hong Kong SAR
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