FMG is up today in the general excitement over commodities: But its quarterly production report was a bit of a disaster: Fortescue has released its June 2017 quarterly production results, reporting shipments of 44.7 million tonnes (mt) of iron ore. Cash production costs (C1) were a record US$12.16 per wet metric tonne (wmt), a 15
DXY sank last night: AUD roared above 80 cents: But could not outpace other EM currencies: Gold was firm: Base metals were mixed: Big miners too: EM stocks flew: US high yield too, EM not so much: US bonds were bid: European not so much: Stocks hit record highs again: The Fed balked at lowflation:
Iron ore price charts for July 26, 2017: Tianjin benchmark fell $1.30 to $68.40. Paper flamed out. Steel has not updated. No change. $70 headwinds for the restock. Then down.
DXY rebounded last night: AUD rose against DMs: Gold fell: Brent roared back on OPEC jawboning: Base metals rocketed. Copper broke out: Big miners flew: EM stocks tried but failed: As high yield rightly yawned: US yields jumped and the curve steepened: Same in Europe: And stocks hit record highs again in the US: OPEC jawboned.
From CAT (chart from ZH): CAT now expects FY revenue $42 billion to $44 billion, up $3 billion from the previous guidance provided in April, which was $38 billion to $41 billion, and well above the consensus estimate of $40.85BN . In April 2017, Caterpillar provided an outlook range for full-year 2017 sales and revenues
Iron ore price charts for July 25, 2017: Tianjin benchmark jumped $2.80 or 4.2% to $69.70. Paper is at new breakout highs overnight. Steel is holding up. Coking coal is along for the rise. A bunch of positives converged yesterday. Samarco is going nowhere: Brazilian iron ore pellet producer Samarco’s return to operations has been delayed
Via Morgan Stanley: Déjà vu, all over again: Even though China’s National Development and Reform Commission (NDRC)has largely abandoned its controversial 276-day policy, imposed during 2016’s coal industry reform – its more moderate approach to change this year has helped deliver another deficit.For thermal coal, weak supply growth vs. China’s summer demand kick,have together driven
Via Morgan Stanley: The oil market reached balance earlier this year, and in May observable stocks were drawing at above seasonal rates. Still, forward looking indicators suggest this may be temporary: tanker loading are high and rising, OPEC compliance is slipping and non-OPEC growth is back above 1 mb/d. Not all data points are bearish
Tianjin benchmark fell 20 cents to $66.90. Paper took off overnight. Steel is stable. Restock ongoing. From Reuters: Stocks of rebar SH-TOT-RBARINV, mostly used in construction, added 2.34 million tonnes over the last week to 372.7 million tonnes, according to the SteelHome data. That’s ringing the bell at the top.
Via Bloomie: Limiting oil output from Nigeria and Libya won’t be on the agenda when OPEC and other producers meet on Monday, with both African nations saying they’ll need to keep pumping at a higher level before they can join a global effort to stem a supply glut, according to two people familiar with the planned
Via Domainfax: The Turnbull government is moving a step closer to slapping export restrictions on liquefied natural gas producers as part of its bid to secure domestic supply and bring down prices. Resources Minister Matt Canavan will give formal notice to LNG producers on Monday that he will use the Australian Domestic Gas Security Mechanism
Iron ore price charts for July 21, 2017: Tianjin benchmark down 20 cents to $67.10. Paper down. Steel is slowing fading. Port stocks are rising again with prices as expected, up 750kt tonnes last week to 140.45mt. I still expect the restock to persist a little while longer but we appear to be at the
Dalian is soft during the day: Big Iron is copping it: Big Gas does not look well: Those descending triangles on the majors might break. Oil has rebounded but they haven’t… Big Gold still looks weak too: Big Bubble has lost it’s froth: And Big Liar is whatever: Avagoodweekend.
Via Morgan Stanley: 1st Take: The Federal Court on July 20, recognized native title rights and interests over a large area of the Pilbara in WA that includes FMG’s Solomon Hub (70Mt of 170Mt production). The company responded to the news stating the decision has no impact on the current and future operations or mining
Via the AFR: The first signs have emerged of a sea change in the flow of gas around the east coast, and they couldn’t have come soon enough. After more than 18 months of Queensland acting as a giant hoover, sucking up gas from as far south as the Bass Strait to feed the LNG refrigerators on
Iron ore price charts for July 20, 2017: Tianjin benchmark sank $2.20 to $67.30. Paper flamed out and fell sharply overnight. Steel eased. The rally looks cooked to me. We’ll probably bounce around $70 for a while as Chinese mills complete their restock but there’s just no reason to drive it higher here. Supply is flooding
Dalian has just flopped into the positive today: With Big Iron down a little: Big Gas is up a bit as one of Australia’s most evil firms, STO, gouges the entire east coast for better profits: Big Gold is still sickening: Big Banks are trampling the APRA pansies: As Big Liar trades sideways: Another ethicists
From Macquarie, Chinese steel mill sentiment is still booming: Orders are good but there is a hint of downturn in the all important construction sectors: More restocking coming, though it’s mild: Rebar still short: Enough momentum here to suggest firm prices in the short term.
It’s congratulations all around as Australia’s failing post-mining boom adjustment takes another blow today from the hottest currency on the planet. Against DMs it is on fire: Against EMs it is on fire: Gold has nothing on the Aussie: Though oil pretended everything is OK for now: Base metals fell: Big miners eased: EM stocks
Because it sure is taking it for the team. RIO is doing a great job of limiting supply as it finds problem after problem with its fully completed Pilbara 360 iron ore expansion, leaving 30 mt of capacity idle on the shelf: Pilbara operations Pilbara operations produced 157.0 million tonnes (Rio Tinto share 128.7 million
Via China Daily: China’s iron ore demand is expected to see a continuous decline in the next few years, due to growing awareness of environmental protection and increased consumption of scrap steel, experts said. In 2020, China’s iron ore consumption is expected to reach 960 million metric tons, a decline of 150 million tons year-on-year,
The Aussie is flying against USD and EUR: And EMs: Gold finally rallied, giving some confirmation to further USD weakness: Brent was soft: Base metals were mixed: Big miners mostly up: EM stocks are in heaven: Tracking a rebound in high yield which is oil dependent: The Us yield curve is flattening again: European spreads
Iron ore price charts for July 18, 2017: Tianjin spot climbed $1.30 to $68.20. Paper kept going overnight. Steel has not updated. Coals are powering. We’re off the hook again. At least this time is has some underpinning with Chinese realty holding up well. I has further to run given inventories: Could be another month
Via The Australian: Queensland Premier Annastacia Palaszczuk’s support for the Adani coal mine has been attacked by one of her own MPs who says coalminers are “worried sick” about losing their jobs because of the project. During parliamentary Estimates hearings today, Labor MP for Bundamba Jo-Ann Miller challenged Ms Palaszczuk to model the impact on
From RIO: Pilbara operations Pilbara operations produced 157.0 million tonnes (Rio Tinto share 128.7 million tonnes) in the first half of 2017, two per cent lower than the same period of 2016 reflecting adverse weather conditions in the first quarter. Second quarter production of 79.8 million tonnes (Rio Tinto share 65.0 million tonnes) was slightly
