Find below the iron ore price table for September 12, 2013:
Rebar futures are also easing lower.
A couple of stories of interest today. The first is not new but is important. The Indian stock market has been volatile lately and none more so that iron ore stocks, which are now powering. One such is Sesa Goa, a former major Goan iron ore exporter:
Investors are lapping up Sesa Goa shares after its London Stock Exchange-listed parent Vedanta Resourcesconsolidated its metals-to-crude exploration business under one roof. The shares of Sesa Goa, which will now house zinc, aluminium, power, crude exploration and iron ore mines, have risen by over 50% in the past month. “The market seems to be appreciating the value Sterlite is bringing to Sesa, post merger. Solid zinc assets, improving aluminum and power business are some of the benefits handed down by Sterlite to Sesa,” said Vipul Prasad, research analyst at Morgan Stanley wrote in a note.
…Hopes of government lifting iron ore mining ban in Goa and Karnataka, where Sesa Goa owns mines, also fired up its shares. Industry experts say the government, which is contemplating many steps to boost exports, may allow iron ore exports. India’s export earnings from iron ore stood at more than $10 billion in fiscal 2011, before the Supreme Court banned mining. A depreciating rupee can also add to the company’s earnings significantly as less than one third of its revenues accrue from exports. Analysts say that for every 5% depreciation of the rupee, earnings will improve anywhere between 9% and 10%.
Indian investors are backing a serious shift in Indian policy for iron ore exports. In other news it appears Vale is also restive with more cargoes entering the spot market and some hope for a return of its “Valemaxes”:
Beijing has shown signs that Chinese iron ore ports will accept Vale SA’s supersize ships – Valemaxes – once again, which has the iron ore miner hoping that demand will improve. As it stands, China has prevented Valemax from docking in its ports because they’re simply too big, according to the Wall Street Journal. “Threatened by the competition to their own fleets, Chinese shipowners including state-owned China Ocean Shipping (Group) Co. successfully lobbied Beijing early last year essentially to ban Valemaxes, describing the ships as “a matter of monopoly and unfair competition” and citing safety concerns,” the article stated. The new Chinese proposal, although exhibiting vague language, still shows a glimmer of hope for Valemaxes’ future.
That really was quite a blunder by Vale.
