Iron ore price

3

Iron ore short squeeze screams higher

We’ve got ourselves a fair dinkum short squeeze going now in iron ore. Given how hot futures markets have turned, BHP and RIO are lagging a little at 2.5% rises. FMG is hotter at 5.3%. To the indexes: After a few brief days of closing, the idiocy spreads are off the races again: A measure

6

Who bought Fortescue’s ponzi bond?

From the AFR: To get the latest deal away it not only had to offer a significantly higher coupon on the bonds it was forced to secure the debt against the company’s assets. That rang warning bells at the credit ratings agency Standard & Poor’s which lowered its credit rating on FMG’s senior secured debt.

5

Daily iron ore price update (squeeze)

Here are the charts for April 23, 2015: Spot climbed again with Tianjin benchmark up 1.7% to $53.80. The Dalian six month futures short squeeze continues unabated with overnight markets up another 2.5% to 414. However, the Singapore 12 month swap has already sobered up. Rebar is still melting. We’re still chopping wood as steel mills

2

Big iron equity struggles as FMG triumphs

Big iron shares are making sense today as neither RIO nor BHP has taken off post the overnight surge with the former up a lousy 1.5% and latter 2%. Surely weighing upon them is FMG’s ponzi-bond coup, which is cruising upwards at a cool 12%. Of course that won’t last either as markets realise that

14

Iron ore lunatics take over asylum

From the AFR: Treasurer Joe Hockey, whose budget hopes are being smashed by falling iron ore prices, has backed a decision by Australia’s biggest miner to curb production of the key export. Mr Hockey said “common sense must prevail,” while he was also pleased to see exporters were “taking a more reasonable approach to production levels”.

3

China cuts more steel

From Morgan Stanley: MIIT targets to reduce 80mnt steel capacity and to limit steel companies to within 300 in the next three years: MIIT targets to reduce 80mnt steel capacity within three years and to limit the number of steel companies to within 300 from the current 500 during the same period. By 2025 the top 10 steel mills’

14

Fortescue locks in iron ore catastrophe

From The Australian: The initial $1.5 billion senior secured notes offer from Fortescue Metals has ballooned to $US2.3 billion due to a high level of demand. Chief executive Nev poer said US capital markets have shown great support for Fortescue. “We’ve seen strong demand from the market which will result in repayment of our 2017 and

2

More iron ore cartel clap trap

The AFR back page gives Colin Barnett a lift today with a poorly reasoned rationale for Colin’s cartel: Canada started operating the Canadian Potash Exporters cartel marketing firm 43 years ago to manage the world price of potash, the mineral used in fertiliser. …BHP and Rio have rejected Barnett’s criticism of their corporate strategies to maximise

10

Daily iron ore price update (launch)

Here are the iron ore charts for April 22, 2015: Don’t adjust your television set. It’s back to the future with Qingdao rocketing 6% on the day. Tianjin benchmark was a little less impressive up 4.1% to $52.90. Paper flew as well and Dalian is still pouring on it overnight now at 404. The ongoing

4

S&P cuts Fortescue deeper into junk

Standard and Poors has cut FMG debt deeper into junk: MELBOURNE (Standard & Poor’s) April 22, 2015–Standard & Poor’s Ratings Services said today that it had lowered its corporate credit rating on Fortescue Metals Group Ltd. to ‘BB’ from ‘BB+’. The outlook is negative. At the same time, we lowered the ratings on the company’s

11

Big iron still wearing lead shoes

Big iron equity is struggling again today with RIO at its lowest since January down 1.5%, BHP is similar and below $30 and FMG is going nowhere. To the indexes: Idiocy spreads still mad if closing marginally: The dead:   This despite a roll on in futures with Dalian rising to 393 as I write.

11

Beware the RIO iron ore catch-up surge

From Morgan Stanley: Iron ore has seasonally weak 1Q: The 1Q report shows Iron ore sales of 73Mt annualising 17% below guidance, while Pilbara production of 71Mt was 14% below. The Pilbara production rate needs to average 345Mtpa for the next three quarters and group sales need to average 370Mtpa vs a 360Mtpa name plate. It was a particulary

2

Daily iron ore price update (steel sink)

Here are the iron ore charts for April 21, 2015: Spot fell and so did paper though Dalian rallied back to 389 overnight. Texture from Reuters: “Mills are trying to limit their raw material stocks to as low as possible. This way they can keep their cost at current market level and guarantee their small profit from

13

Atlas crushed

From the AFR: Embattled iron ore junior Atlas Iron will extend its suspension from trading on Tuesday but is likely to be in receivership by the end of the month, industry sources told Street Talk. …Sources said the majority of the company’s debt-holders were in favour of it entering receivership, an outcome which is likely to be

3

RIO readies iron ore deluge mark II

RIO has released its Q3 production update and disappointed on volume: Pilbara operations First quarter production of 71.1 million tonnes (Rio Tinto share 57.3 million tonnes) was 12 per cent higher than the same period in 2014 following commissioning of the Nammuldi wet plant and the ramp up of Hope Downs 4. First quarter production

2

Daily iron ore price update (CISA)

Here are the iron ore charts for April 21, 2015: Spot firmed with Tianjin benchmark up 10 cents to $50.80. But paper weakened with Dalian down yesterday and even further over night, currently trading at 381. 12 month swaps rolled and Rebar average also broke lower. Reuters has texture: The 100 basis point reduction in

2

Big iron equity ignores China stimulus

Things sure ain’t what they used to be for big iron. China undertakes its largest monetary easing in seven years and BHP and RIO don’t move. The former rocket in FMG has barely managed a couple of percent rise. Not so very long ago it would have been party with your ears pinned back. To the