Fertilizers Were Affordable for the Week Ending June 23
According to the Fertilizer Affordability Index, 2017 has been one of the most affordable years for fertilizers. Mosaic issues the index.
For the week ending June 23, potash prices remained broadly flat to negative. Muriate of potash is one of the most popular potash fertilizers.
Last week, MAP (monoammonium phosphate) prices in Brazil continued to trend downwards week-over-week. MAP prices were still weak.
What Makes Analysts Bearish on Century Aluminum Stock?
Century Aluminum (CENX) stock has received a “hold” rating from three of the four analysts polled by Thomson Reuters.
Of the eight analysts covering Arconic, three have given the stock a “buy” or equivalent rating, while the remaining five have given it a “hold.”
Aluminum market sentiments have faded somewhat over the last month, putting pressure on aluminum prices.
Must-know: Factors that influence the cement industry
The cement industry is highly affected by regulatory norms. This is prominent in developed countries where environmental issues are more stringent. This adds to the companies’ costs.
An increased focus on infrastructure development increases cement demand. This effect is prominent in emerging economies. A substantial portion of this demand comes from infrastructure projects. The projects are funded by the government.
The cement industry relies on power. Power and fuel costs account for ~30% of the price of cement when it’s sold. As a result, power and fuel have a major impact on the company’s operating expenditure.
Chemours by Valuation: Where CC Stands among Peers
On June 23, 2017, Chemours one-year forward PE (price-to-earnings) multiple was 10.0x, as compared to KRO’s one-year forward PE multiple of 16.30x.
Chemours has $1.4 billion variable interest rate debt. Now that the Fed has begun raising the interest rates, CC’s interest expenses could go up.
Among the eight analysts covering Chemours stock, 75% have issued a “buy” recommendation, while 12.5% have issued a “hold” recommendation.
How Are Analysts Rating Southern Copper in 2Q17?
Southern Copper has received a “buy” or equivalent rating from only three of the 13 analysts surveyed by Thomson Reuters.
The consensus view is bullish on Glencore. The stock has received a “buy” or equivalent rating from 18 of the 24 analysts polled by Thomson Reuters.
Freeport is expected to post revenues of $3.8 billion in 2Q17 compared to $3.3 billion in 1Q17.
What’s Really Driving Cliffs’ Valuation
Cliffs has a forward EV-to-EBITDA multiple of 5.2x, as compared to its last-five-year average multiple of 9.6x.
Cliffs Natural Resources issued a press release on June 15, 2017, to announce Toledo, Ohio, as the site for its first HBI (hot briquetted iron) production plant.
The estimated investment needed for Cliffs Natural Resources’ (CLF) HBI (hot briquetted iron) plant is ~$700 million.
How Does SQM Compare to Its Peers?
SQM has outperformed its peers based on PE ratio. The PE ratios of SQM, POT, MOS, and CMP are 20.3x, 11.5x, 9.6x, and 15.4x, respectively, as of November 17, 2015.
Sociedad Química y Minera de Chile (SQM) has a market cap of $5.7 billion. After the company’s 3Q15 earnings report, SQM fell by 5.6% to close at $18.49 per share on November 17, 2015.
Looking ahead, SRC said it has seen the early signs of a recovery in the resource sector, and expects it to continue to be a challenging environment for many commodities-focused businesses throughout 2014 and into 2015.
Commodities Are Mixed, Dollar Weighs on Precious Metals
Gold lost strength amid the firmer dollar and improved global sentiment. The firmer dollar weighs on dollar-denominated commodities like gold and silver.
The PowerShares DB Base Metals ETF (DBB) rose 2.7%, while the SPDR S&P Metals & Mining ETF (XME) rose 3.8% in the week ending June 23.
First Majestic Silver (AG) has a three-year correlation of ~0.71 with gold and a year-to-date correlation of ~0.64.
Understanding Environmental Regulations and Efficiency Trends in Specialty Chemicals
Greater community awareness toward the degradation of the atmosphere is forcing specialty chemical companies to comply with environmental regulations.
When the specialty chemicals industry entered a mature phase in the mid-1990s, innovation came to be characterized by small steps rather than by big leaps.
Companies in the specialty chemical industry have fewer intermediaries in their distribution range as they move from coatings to more specialized chemicals.