“We have launched this initiative now to capitalise on significant investment in our Brazil distribution operation, trading high volumes of iron ores and sinter feed, all of which are available for quick delivery,” said Carvalho.”

Carvalho Launches Europontex Sinter Feed Export Initiative

Europontex Business Division Manager, Pedro Carvalho, has announced Europontex’ new export initiative, offering a new range of competitive raw materials, principally sinter feed and copper. Currently, prices are historically high and growing demand for raw materials will lift prices again, Carvalho is advising manufacturers to lock out excessive price rises.

“Our new export initiative is based on three competitive advantages, said Carvalho, “firstly, our competitive pricing; secondly, our swift distribution lead times. And thirdly, this initiative aims to add value to clients’ full year earnings with an emphasis on annual contracts.”

“We have launched this initiative now to capitalise on significant investment in our Brazil distribution operation, trading high volumes of iron ores and sinter feed, all of which are available for quick delivery,” said Carvalho. “Just one example is our currently availability of 10 million tonnes of sinter feed 65.90% for immediate delivery.”

“When speaking with clients and producers, we can clearly see the market is looking for alternative solutions to avoid the dominance of some suppliers. Also, today’s high prices are forcing new opportunities for creative solutions with respect to origin, logistics, and financial tools. Buying for the short-term has only increased price risk for producers and manufacturers.”

Carvalho remarked: “In the global steel industry, we find industry leaders are pushing clients to maintain longer term contracts and to find an end of year mechanism for adjusting prices where necessary; rather than each working blindly in a fluctuating quarterly cycle. This is the only way for steel mills to be competitive and survive.”

European steelmakers are implementing a new model for long-term steel supply contracts to address the now quarterly changes in iron ore and coal costs.

In addition, global commodity buyers have started to sign steel contracts for all types of coils, and sheets, annually or every six months – they are concerned with the impact of the iron ore prices and want to mitigate the risk. Some producers however, pushed for shorter contracts, but clients, almost universally, did not agree. Most prefer new contracts on the same longer term basis as before. Companies today need the stability of annual contracts; it helps with planning and allows them to focus on added value services.

Europontex will be present at the SBB Raw Materials Conference, in London, from 30 Sept - 1 Oct 2010.

Contact:

Pedro Carvalho, Europontex Raw Materials Division Manager 

Email: pedro@europontex.com

Phone: +351 21 762 12 12

For more information, visit: www.europontex.com