Iron ore price

Viewing posts in the Iron ore price category

Roy Hill passes halfway

imgres The last starter of Australia's major projects, Gina's Roy Hill, appears to be making cracking progress: The Roy Hill iron ore mine has hit a milestone, reaching the construction halfway point. The mine has been ramping up progress at the site since the successful completion of a US$ 7.2 billion loan facility in March, which was the biggest in the world at the time. Close to 5000 people will work on the project, with more than 3800 workers currently on site and the number set to increase to 4500 later this year. The mine is also on track to ship first ore late next year. 90% of those...
read more

Iron ore miners rise into thin air as futures fall

ub The iron ore miners are off to the races again today despite Chinese markets reversing course. Dalian and rebar futures have both fallen at the open, down 1% and 0.7%, and the news flow is mixed as well. Westpac's China consumer confidence index is up but the internals softer:: The head-to-head comparison with the business surveys implies that households are feeling less direct benefit from easier policy vis-a-vis the corporate sector. While there was a consistent lift across household perceptions of current, one year and five year ahead business conditions, with the latter indicator improving...
read more

Daily iron ore price update (property punt) (members)

fgea Here are the iron ore charts for July 29, 2014: We're all green today with physical chasing paper markets higher. Rebar futures joined the party. The BDI cape remains becalmed. Reuters has texture: "The sentiment towards the second half for China has really improved but we still believe that the stimulus we have seen is minuscule and the property market remains tough," said Helen Lau, senior mining analyst at UOB-Kay Hian Securities in Hong Kong. Optimism over China's economy rose after HSBC's preliminary survey showed manufacturing activity there quickened to an 18-month high in July,...
read more

Miners rise as iron ore futures gain

logo It's all green again for iron ore miners today as Dalian iron ore futures are up almost 1% and rebar futures are following, up...
read more

Iron ore juniors fiddle while China burns prices

Capture The media loves it, but this one goes in the totally irrelevant category. From the AFR: Australian iron ore miners are playing with the structure and dating of contracts for the ore in a bid to lessen the impact of big discounts being forced on them by Chinese buyers. ...Instead of continuing to set prices in accordance with the previous month’s average iron ore price, BC Iron managing director Morgan Ball said his company had been offering buyers a choice of several reference periods against which to calculate the iron ore price. For example, ore delivered in April may actually be priced...
read more

Victorian iron ore dreams eat dust

imgres This one was always in the deep hopium category. From the ABC: The company proposing a new iron ore mine at Nowa Nowa says it will have to re-evaluate the economics of the project. Eastern Iron had hoped to export the ore from Eden but the owner of the bulk wharf facility, South-East Fibre Exports (SEFE), has withdrawn its offer. SEFE exports woodchips and timber from the wharf but it announced earlier this year it will stop sourcing timber from East Gippsland. The managing director of Eastern Iron, Greg De Ross, says he is investigating a smaller naval wharf near Eden or other port options...
read more

Chinese developers pull up iron ore miners (members)

wfwq The Wall Street Journal has a story today on the sudden and steep rally in Chinese shares, especially large developers: As China's real-estate market slows, investors are turning bullish and buying up stocks of large property developers, betting they won't only ride out the storm but also grow. The MSCI China Real Estate Index, which tracks the stocks of mainland developers, has surged 16.5% from the start of July through Friday, on pace for its best month in nearly three years, as local governments have started to ease restrictions on housing purchases to boost sales. The index remained down...
read more

Daily iron ore price update (closed)

,jhb Singapore was closed yesterday so there is no spot or 12 month derivative prices. Dalian 6 month iron ore futures jumped 1.5% to 689 yuan: The BDI cape fell a little more to near record lows and rebar futures didn't do much. Stimulus hopes seem to be winning over fundamentals at the moment and there's not much else one can say. The often bullish Clyde Russell puts a brave face on things: One thing has become clear from the latest production reports from the big three iron ore miners: They appear intent on ensuring their dominance by boosting low-cost output...The three global iron ore...
read more

Iron ore futures fly on stimulus hopes

logo Via Forexlive, China Securities Journal  reports on the price monitoring center of the National Development and Reform Commission: Chinese economy is expected to improve further in the second half of 2014 Inflation is seen stable – full year CPI growth estimated at around 2.3% Said the PBOC should not boost overall liquidity any more via monetary policy given the fast M2 growth at the end of June Said the government should look to gradually relax or totally lift housing purchase limits to prevent a sharp and overly-rapid fall in prices The Chinese press is reporting that as many as...
read more

Daily iron ore price update (port draw) (members)

rtye Here are the iron ore charts for July 25, 2014: Paper markets bounced. So did spot. It appears largely to have have been driven by the news that port stocks saw a solid draw down on the week, 1.25 million tonnes, to be slightly less ridiculous. That may suggest that despite the destock that's underway that there is enough demand to draw on the port pile. If true it would mitigate against the argument that we're about to see materially deeper new lows. The steel and iron ore market remains weak overall with rebar average still falling and right on new post-GFC lows and the BDI cape...
read more

Why the big iron ore miners are stuffed too (members)

ItsATRAAAAAAAAAAP Eureka Report's Tim Treadgold gives me a serve today for being bearish on iron ore: If the iron ore price has fallen by more than 40% over the past two years why are the biggest producers of the steel-making material continuing to expand production? ...Managers in most other industries can only dream about producing a product for around $45 a ton and selling it for $94 a tonne. Misunderstanding the margins available to the world’s major producers of iron ore is one of the common mistakes when analyzing the biggest miners of the stuff. Another mistake is to image that somehow the world is...
read more

Atlas fugged

atlas From Goldman today on Atlas Iron full production update: On balance, we believe AGO has delivered a disappointing 4Q14 result. Production/shipments beat – AGO pre-announced FY14 shipments of 10.9mt, beating guidance (10.2-10.7mt) and our estimates (10.6mt). Inmtoday’s result we gain comfort that it was underlying 4Q production of 3.1mt (GSe 2.6mt) delivering the beat, rather than just destocking. Received pricing miss – Heavy discounting for low grade/quality has delivered a contract price of US$78/dmt CFR (vs 62% Fe index 103/dmt CFR), which once provision pricing, shipping and...
read more

Iron ore miner profits are still stuffed (members)

liyvi In 1987, following the sharemarket crash, I approached my grandpappy, who was a cunning businessman with a large share portfolio, and asked him how depressed he was feeling about his lost wealth. He laughed long and loud. "Share market crash" he guffawed. "My boy, that's for the birds." He was a long-term investor, you see, and such gyrations were mere amusements to him. His portfolio boomed and boomed in subsequent years and he kept laughing. That's how I feel about iron ore mining stocks today, only in reverse. In recent days, after the tearaway BHP production report, we've seen a...
read more

Daily iron ore price update: free fall (members)

anvil Here are the iron ore charts for July 24, 2014: Another bad day. Some paper market falls eased but Dalian looks headed for new lows to me. Rebar futures are bouncing along the bottom. Physical was worse with spot also headed for new lows in my view. Rebar average is fading away and the BDI cape is stuck at the bottom (it can't really go any lower). Gloom is spreading, from Reuters: "All the mills are now decreasing their inventories of iron ore - there are more than 100 million tonnes at seaports and so nobody is worried about supply," said Xu Zhongbo, the chief executive of Beijing...
read more

Iron ore futures rain on ASX parade again (members)

imgres The ASX tried to take off again this morning and got a boost out of the 11.45 China PMI:   It's the same story with rebar futures in China which jumped half a percent on the release. The iron ore miners followed too. Here is FMG: The problem is, Dalian iron ore futures aren't playing. They opened down and have dropped further. Quite rightly. The PMI is encouraging for Chinese manufacturing but it doesn't say much about property and right now that's what matters. Actually, the more informative PMI for property is the official non-manufacturing PMI, which covers...
read more

Daily iron ore price update (Q3 destock) (members)

anvil Here are the iron ore charts for July 24, 2014: Paper markets are not quite back in free fall but they're sure not strong. Rebar futures were also down a little. Physical is weak too with the BDI cape up slightly and spot down consistently. I don't have a rebar average price today but I'd put the house on it falling too. Chinese mills are destocking raw materials again. It happens most years at this time and they have plenty to run down given the recent climb in inventories. The weak housing market persists and they may well push it. Reuters has texture: "I think some steelmakers might...
read more

Iron ore futures rain on ASX parade

imgres In case you're wondering why the air is coming out of the ASX rally and the iron ore juniors this afternoon, the dollar is up and threatening and Dalian iron ore futures are down 0.6% points in...
read more

Rio plots monster pit

images From The West: Rio Tinto is working on plans to build the biggest single pit iron ore mine in the Pilbara, filing environmental applications for a 70 million tonne-a-year monster at its Yandicoogina operation. ...The documents suggest the Pocket and Billiard South pit would be about 7.5km long and nearly a kilometre wide. Rio told the Environmental Protection Authority it wanted to begin production at the new pit in 2017, at an initial rate of 28mtpa. That would take total production at Yandicoogina to 70mtpa, with expansion of the pit likely as other areas of the mining hub wind...
read more

BHP dirt monster feasts

afw Woho! BHP is chucking out dirt like a transformer on steriods. From its Q2 production report: Strong operating performance delivered a 9% increase in Group production with annual records achieved across 12 operations and four commodities. Western Australia Iron Ore achieved a fourteenth consecutive annual production record as volumes increased to 225 Mt (100% basis), significantly exceeding initial full-year guidance. We now expect production of 245 Mt (100% basis) from the Pilbara in the 2015 financial year. Metallurgical coal production of 45 Mt exceeded full-year guidance as...
read more

World steel growth solid

Production_6 From the World Steel Association today: World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 137 million tonnes (Mt) in June 2014, an increase of 3.1% compared to June 2013. World crude steel production in the first six months of 2014 was 821.3 Mt, an increase of 2.5% compared to the same period of 2013. The EU 28 showed an increase of 3.8% while Asia and North America reported growth of 2.9% and 1.7% respectively in the first half of 2014. South America and C.I.S. produced -1.0% and -2.6% less each. China’s crude steel production for June...
read more

Daily iron ore price update (head fake) (members)

anvil Here are the iron ore charts for July 22, 2014:   A bad day at the office. Paper markets delivered a head fake as spot sold. The slavish devotion of iron ore equities to daily Dalian futures pricing is not foolproof. Rebar futures were soft and BDI cape flat. Worryingly, rebar average is falling steadily once more. The restock is done, whatever Dalian did for one day. Reuters has texture: "You can see from the relatively high stockpiles of iron ore at the ports that things haven't changed very much and demand isactually pretty weak from traders, and probably getting...
read more

China leading index bounces

images17 I can take or leave these leading indexes but the Conference Board version for China just posted a strong result, up 1.3% in June, to 294.0. Forexlive reports that: Follows a 0.7% increase in May and a 1.1% increase in April Five of the six components contributed positively to the index in June Andrew Polk, resident economist at The Conference Board China Center in Beijing: “June’s pickup in the leading economic index for China is unlikely to be fully felt until the final quarter of the year, even though slight monetary loosening and better export performance could underpin more...
read more

Mirabile dictu: MS says short Fortescue

anvil Now they're getting it. From Morgan Stanley today: We believe the share price will fall in absolute terms over the next 15 days. This is because the stock has traded up recently, making short term valuation much less compelling. Data points from the Chinese steel industry suggest the recent restocking cycle may be concluding. Total steel inventory of traders and mills combined has dropped below 12 days of production, down from the peak of 17 days in February, which suggests demand has eased as we enter the slow season. Also 37 days of iron ore inventory at ports is the normal operating level...
read more

Daily iron ore price update (property problem) (members)

dgrwa Here are the iron ore charts for July 21st, 2014: Paper markets have broken down. Rebar futures especially have choked. Physical is not much better. Spot is falling, port stocks rose slightly on the week and are rock solid, and the BDI cape fell another 3%+ to only 20 points above its post-GFC low. We are signalling a renewed destocking here on two factors. The property slowdown is not under control and we've entered the Q3 seasonal construction slowdown. Texture from Reuters: Stocks of five major steel products held by Chinese traders fell to 13.13 million tonnes on Friday,...
read more

Iron ore zombie shuffles towards writedowns

Capture Arrium has reported production for the second quarter and, hey, hey, it's more dirt, 3.32 million tones of it for a total over the year of 12.5mt. It expects to be at 13mt output with six months. Realised prices tumbled to $85 per tonne. Well, good for it. Here's the UBS grade adjusted break even chart:     Not such good news, then. For interest's sake, here is the comparative chart of Bluescope and Arrium over time: Lousy investments, both, but the praise that was heaped upon Arrium (formerly Onesteel)  for a few years as a vertically integrated iron ore and...
read more
Page 1 of 4112345...102030...Last »