IN
SIDER
COMMODITIES
HEALTH
TECHNOLOGIES
MEDIA
Issue No. 3 January - February 2013
IN THIS ISSUE
COMPANY NEWS
■
Iron Ore Expected to
Lead SGT Commodities
for 2013
■
Physique Productions
expands its TV studios
EDITORIAL
■
Message from the CEO
■
Editorial Box
HR SECTION
■
Employee of the Month
■
Birthdays
Fun, Games & Trivia:
Win One Gram of
Gold!
Comics
»
COMPANY NEWS
With the iron ore market hitting a two-week high, SGT is confident that
iron ore will remain as one of its top commodities for the rest of the year.
T
he fluctuating price of iron ore in
the past two years has made several
industry experts give totally different
opinions of how the market will go in the
first quarter of 2013. It can be recalled that
from a high of USD$193/t in February
2011,
the price of Iron Ore Fe 62 % went
to as low as USD$89/t in September of
2012.
A number of business analysts were
predicting at that point that the growth of
the iron ore market has halted. Kris Sayce
(2012)
predicted that with the Chinese
economy collapsing, there was absolutely no
guarantee the iron ore price will ever return
to USD$120/t.
Iron Ore Expected to Lead SGT
Commodities for 2013
However, by mid-October 2012, these
predictions fell flat as the price of iron
ore bounced back with incredible vigour
reaching the USD$115/t range. By the end
of October, the price of spot iron ore went
up to the USD $120/t range and continued
to rise. USD$120/t is a psychologically im-
portant level in the industry because most
producers - including China’s notoriously
fragmented and high cost miners – make
money at this price (Els, 2012).
The rebound did not encourage industry
observers as they quickly anticipated that
the demand will slow down and prices
have nowhere to go but down again, at
Continued on page 3
▶
least until the 2013 Chinese New Year. A
Beijing-based trader was quoted saying that
weak steel prices and lacklustre demand
from mills left them still doubting the
sustainability of iron ore prices (Wong and
Yeo,2012).
A global research published by Standard
Chartered at the beginning of December
was a bit more optimistic stating that steel
mill owners agree with the researchers’ view
that iron ore prices will more likely rise
than fall, trading at USD$105-$120/t up
until the end of January 2013 (Zhu, 2012).
By mid-January it was pretty apparent
