SILO Temporarily Stops Concentrate Exports To China

Kotabaru, S Kalimantan, Oct 17 (Antara) - PT Sebuku Iron Lateristic Ores Group (SILO) on Sebaku Island, Kotabaru District, South Kalimantan, has stopped its concentrate exports to China as the price of the commodity has been declining. SILO operational manager IDK Dharmaja said on Friday that his company had stopped the exports after the price of concentrate fell from about US$35 per ton to US$20 per ton. "Our product cannot compete with that coming from Australia and the Philippines. The Fe content of our product is still 51 percent while that of the Philippine and Australia have reached 60 percent. Thus the price of our products drops," IDK Dharmaja said. He explained that since concentrate export was allowed last June, PT SILO had exported concentrate to China two times in July and August 2014. "Since early September 2014 until now, we have only one concentrate shipment. Now buyers decide the market (price). It is not the market which decides buyers," he added. Dharmaja said he could not yet predict how long his company was going to stop exporting the commodity. It was waiting for the price to rebound. PT SILO has the export quota of eight million metric tons worth US$120 million in 2014.