Iron ore price

Viewing posts in the Iron ore price category

Iron ore miners fall sharply with futures

dfgsws The big miners are all down today, almost 2% for RIO and BHP and 3% for FMG. There was a brief flurry around the insipid China PMI suggesting that traders are as bored as I am but that's selling into the afternoon. To the relative performance charts: With the recent price rebound, the idiocy spreads have shed a few extra IQ points and are now trading at the level of a gap-toothed moonshiner. At least the moron cross has receded: The death's head is still shadowing the prices of the juniors. Even poor Atlas can't find a bid with its heroic cost cutting efforts: In China, Dalian...
read more

How much iron ore production has shut?

fgwe From Morgan Stanley: What’s required for a rebalance? Assuming no  operations close and producers deliver what has been  guided, we estimate the global seaborne iron ore market  (including domestic Chinese production) would be in a  71Mt surplus in 2014. By next year, the surplus will rise  another 86Mt. These figures are the magnitude required  of material to exit the market to achieve price stability. Industry consultant, Wood Mackenzie,  estimates 52Mt of Chinese domestic iron ore capacity  has so far been permanently removed as a result of low prices. So far, the group claims, all...
read more

Atlas slams into iron ore price deck

ATLAS-IRON-LOGO---FINAL Atlas Iron has released its Q3 production update and it's an admirable effort: All-in cash costs* A$68.90/wmt CFR for the September 2014 Quarter, down from $75/wmt in the June 14 Quarter > C1 cash costs $48.10/wmt (wet basis, FOB and excluding royalties) for the September 2014 Quarter, down from A$51/wmt in the June 2014 Quarter > Average headline price of US$69.62/dmt CFR received for Standard Fines over the September 2014 Quarter, after adjusting for US$5.24/dmt of negative provisional pricing adjustments > Competitive product discount of circa 10% achieved, resulting in average...
read more

Daily iron ore price update

dfbw Her are the iron ore charts for October 22, 2014: Singapore was closed so no iron ore prices. The rebar average rally powered on but futures fell sharply again. Sensible enough given it's the Hebei effect described yesterday. That's it...
read more

Iron ore miners rally over futures

djh It's rally day for everyone today, with the iron ore majors up strongly all over: The idiocy spreads are clearly widening again now: Juniors are mixed but mostly still gasping for breath: Dalian futures are down 3...
read more

West Pilbara lunacy revs up

Capture From the West Australian: China's Baosteel has signalled that sagging iron ore prices will not hold back development of its West Pilbara iron project, recruiting former Iron Ore Holdings boss Alwyn Vorster to head up its local iron ore business. Mr Vorster confirmed yesterday he had accepted the role as general manager iron ore at Aquila Resources, delisted from the stock exchange earlier this year after Baosteel and Aurizon closed a $1.4 billion takeover. The poor outlook for iron ore prices has industry watchers discounting the likely development of multibillion-dollar iron ore projects,...
read more

BHP unleashes iron ore tide

Capture The BHP third quarter production report is out iron ore is fountaining from the big Australian: Western Australia Iron Ore (WAIO) production increased by 15 per cent in the September 2014 quarter to a record  62 Mt (100 per cent basis) as the ramp-up of Jimblebar continued ahead of schedule and we improved the  availability, utilisation and rate of our integrated supply chain. In addition to the strong operational performance  achieved at our mines, a higher proportion of direct to ship ore increased outflow capacity at the port and facilitated  record sales volumes of 63 Mt (100 per cent...
read more

Charlie Aitken says buy iron ore

l8yg Charlie Aitken reckons iron ore and oil have bottomed: Importantly also for Australia, and I may well be on my own saying this, but I think the iron ore price has bottomed for the year and will track higher ($95t target) on seasonal restocking from China. It also appears spot Oil prices have bottomed and will also edge higher. Last night the base metal complex also bounced on Chinese GDP data and if I am right and our key commodity prices have stopped falling, and in fact start edging a little higher, you will see buying coming into the beaten up Australian resources sector. You can ONLY make...
read more

Daily iron ore price update (Hebei)

anvil1-200x20011 Find the latest iron ore charts below: Paper markets were mixed. Although Dalian 6 month future were firm, they are still pricing in the mid $70s for January delivery once taxes and charges are removed. 12 month swap weakness is a concern. These markets have been way oversold yet the working off of excesses is taking the form of a sideways grind not a bounce, illustrating muted support. The spread to spot is very wide even allowing for the premium on Qingdao prices and will close one way or another. If the swap market doesn't pick up, spot will fall. Underlining the physical versus paper...
read more

Iron ore juniors not waving, drowning

drowning The race is well and truly on now. Locally, Cape Lambert Resources is thought to be ready to: ...announce it will contribute around $US20 million ($22.7m) into a financing package that will be funnelled into a distressed bulk commodities asset in Africa. In return, it will pick up a royalty on future production that could start generating money for Cape Lambert before the year is out. The obvious candidate for the package would be London Mining... London Mining is a 5-6 million tonnes operation out of Sierra Leone that is projected to reduce costs to $40 per wet metric tonne (wmt) when it's...
read more

World steel growth stops

From the World Steel Association today: World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 134 million tonnes (Mt) in September 2014, a slight decrease of -0.1% compared to September 2013. China’s crude steel production for September 2014 was 67.5 Mt, the same compared to September 2013. Elsewhere in Asia, Japan produced 9.2 Mt of crude steel in September 2014, a decrease of -0.5% compared to September 2013. In September 2014, India produced 6.8 Mt of crude steel, an increase of 2.5% compared to the same month 2013. South Korea produced 5.7...
read more

Baltic Dry rockets most ever

article-1341521-0C93F69C000005DC-905_964x639 I've given up on this index as a leading indicator of anything but it's probably worth noting that the Baltic Dry capesize component rocketed the most ever yesterday, from Bloomie: Daily rates for Capesize vessels hauling about 160,000 metric tons of the commodity jumped 38 percent to $12,580 today, according to the Baltic Exchange in London, a shipping bourse tracking freight rates on more than 50 routes. The advance was the biggest in percentage terms in data starting in March 1999. Costs climbed by more in dollar terms in December. ...“We’re seeing an increased push towards Chinese volume...
read more

Iron ore miners rally on China data

fdhgre As I've already described, the China data release was very clearly commodities negative but only in the longer term and miners are still rallying on market relief. BHP and RIO are up firmly and FMG is flying on the MS upgrade: The idiocy spreads are widening again as markets rebound from the recent swoon: Juniors, however, are still pushing up daisies: Dalian iron ore prices continue their rally as well, up 1%...
read more

MS upgrades Fortescue

Capture From the eternal optimists at Morgan Stanley: We expect iron ore prices to stabilise above US$85/t. We forecast debt reduction and increased dividends on this basis. EBITDA is flat on our base case, but we identify upside elements that could contribute inforward years. We upgrade Fortescue to OW. Equity price decline has created the upside: Our valuation and forecasts are largely unchanged. The equity is trading below a spot price scenario valuation, A$3.95/sh, and our base valuation of A$4.69/sh. We still allow for a bear side skew in our PT, but at A$4.30/sh there is sufficient upside...
read more

Daily iron ore price update (iron snoreting ends)

anvil1-200x2001 Here are the iron ore charts for October 20, 2014: Better price action. Paper markets were solid though don't forget that once charges and taxes are removed Dalian is still pricing in the mid-US$70s for January delivery. In physical, spot was firm too and the rebar rally continued, however it remains very much driven by price rises in Hebei which are artificial given the looming APEC shutdown. Baosteel and China Steel (in Taiwan) cut prices. In an interesting development, Chinese port stocks of iron ore fell by 1.35 million tonnes last week. As I always say, one must be cautious in...
read more

Pettis on $50 iron ore and why Australia is Spain

images Find below an excerpt from a Michael Pettis post that pretty much captures everything that MB has been arguing since it was created (in part thanks to Michael Pettis!) After last week’s tumultuous markets one of my clients sent me an email saying “I am so relieved your constant talk about worsening imbalances kept us from getting too complacent. Things really are as bad as you keep saying.” I am not sure that what happened last week is proof of anything I’ve been saying, but I do think that the framework I have used over the past decade has been useful, at least to me, in understanding both...
read more

Iron ore miners miss rally

dsgfwe It's all good today in markets, exception for iron ore miners. Most are in the green but only just except BHP which has managed a little better. All opened strongly and have sold all day. All charts are going sideways:    Despite Chinese iron ore futures being up...
read more

Moody’s warns of iron ore downgrades

imgres Nothing really new here expect the threatened downgrades from Moody's: The growing oversupply in the iron ore market is damaging for the sector and poses risks to the downside. We estimate over 300 million metric tons (MT) of new and expanded production will come on-stream over the next several years. In light of expectations for muted growth in global steel production for at least into 2016, the lack of equilibrium will continue to weigh negatively on prices and operating performance of iron ore producers. As a result, we have revised our price sensitivity for iron ore for the period...
read more

APEC shutdown to weigh on iron ore?

url From Mac Bank: Three weeks before the APEC conference in Beijing, the city has suffered another bout of “airpocalypse” with air quality measures reaching the “hazardous” level three days in a row. While at least part of the cause has been linked to agricultural fires following the autumn harvest, the response has reportedly been to order shutdowns and output restrictions of heavy industry in the surrounding area over 1-12 November. All steelmaking and coking plants within 100kms of Beijing will be required to close – a relatively small impact as there is limited capacity so close to...
read more

Margin squeezes junior iron ore miners

28755_300 In its Q3 production update, Arrium announced this morning: Record shipments of 3.45Mt (dmt), up 0.29Mt on prior quarter  Sales of 3.29Mt (dmt), down 0.03Mt on prior quarter  Achieved targeted annualised sales rate of 13Mtpa  Average Platts market index price (62% Fe CFR) US$90/dmt, down US$12/dmt on prior quarter  Average realised price ~US$73/t CFR (dmt), down US$12/t on prior quarter  Average realised price ~A$78/t CFR (dmt), down A$14/t on prior quarter  Average grade of shipments 59.9% Fe, average for prior quarter 59.6% Fe  Average cash cost loaded on ship...
read more

Daily iron ore price update (FMG desperation)

asa Find below the iron ore price charts for October 17, 2014: A better day Friday across the board suggesting that steel mills are prepared to step in and buy so long as prices hover around $80. Reuters has texture: "Some mills did replenish some stocks after the National Day holidays, but after that the buying interest has slowed," said an iron ore trader in Shanghai, referring to the Oct. 1-7 holidays. Some iron ore traders who have held off on offering cargoes to the market earlier this week on hopes of keeping prices high have resumed sales, the Shanghai-based trader said. "They...
read more

Joske: China to slow, iron ore to fall 20%…

imgres This pretty much sums up the MB view, from the AFR: AustralianSuper, which has $80 billion under management, believes asset prices in China will be hit when credit is eventually tightened and will stay on the sidelines until this adjustment is over, according to its senior manager for Asia, Stephen Joske. ...He believes over the next decade, China’s growth will be much less reliant on resources such as coal and iron ore. ...Mr Joske does not believe China will have a banking crisis, but says the inevitable tightening of credit will hit asset prices and cause a short-term downturn in the...
read more

Iron ore miner slide arrested as futures calm

defibrillator By David Llewellyn-Smith That funereal stink pervading markets yesterday has lifted and iron ore miners are again ambulant if not exactly robust today. RIO and FMG are down marginally and BHP flat. The major's relative performance chart is still has some bed sores: The idiocy spreads are stalled but much improved on recent times: A gangrenous stench still surrounds the juniors: Chinese markets have applied the defibrillator via a 2 point jump in Dalian iron ore futures. We're out of intensive care and zimmer-framing it around the...
read more

Who will be iron ore’s greatest fall guy?

noah-controversy-255x211 By David Llewellyn-Smith In Brazil, former iron ore stars are falling and production has ceased: An iron-ore mining company controlled by Brazilian tycoon Eike Batista filed for bankruptcy on Wednesday, the third time in a year that a unit of the former billionaire's EBX industrial group has sought protection from creditors. MMX Sudeste Mineracao SA, the company that made the petition, holds nearly all the significant assets of Batista's MMX Mineracao e Metalicos SA, part of an EBX mining, oil, energy, shipbuilding and port group that suffered one of the most spectacular collapses in...
read more

Daily iron ore price update (ouch)

anvil Here are the iron or charts for October 16, 2014: Paper markets were very weak. Qingdao too. Some hope for prices remains while rebar rallies but that appears to be related to the Heibei shutdown surrounding APEC. CISA fortnightly output at major steel mills rose slightly suggesting demand is still OK. Texture from Reuters: "There is a bit of volatility around the globe and it's certainly not helping things at the moment," said James Wilson, analyst at Morgans in Perth. ...But after heavy losses, iron ore prices are likely to stabilise from the current quarter through January-March...
read more
Page 1 of 5012345...102030...Last »