Iron ore prices

Despite the majority of market participants believing the contrary, iron ore prices have rallied in 2016. The stimulus provided by the Chinese government helped the construction sector, which stimulated the demand for steel and iron ore. Apart from slight cutbacks in long-term production, the supply scenario hasn’t changed much. Vale’s (VALE) 90 million ton-per-year project, S11D, is still on track to come online in 2017. Australia’s Roy Hill has already started shipping ore. Most analysts are still bearish (SPXS) on the medium-to-long-term outlook for iron ore prices.

Analysts’ Winners and Losers among Iron Ore Miners

Performance of iron ore miners

With stronger iron ore prices YTD (year-to-date), iron ore miners have recuperated from some of their losses. Cliffs Natural Resources (CLF) has outperformed its peers, with a YTD rise of 240% as of October 12, 2016.

Fortescue Metals Group (FSUGY) and Vale have risen 164% and 83%, respectively. Rio Tinto (RIO) and BHP Billiton (BHP) (BBL) have risen 16% and 29%, respectively.

In this series

In this series, we’ll look at Wall Street analysts’ recommendations and ratings for iron ore miners. It’s important to note that analysts’ estimates usually lag behind price movements, and we see upgrades after stocks have risen. As for downgrades, they’re apparent after a company sees lower prices.

That being said, changes in analysts’ estimates are key drivers of short-term price movements. You should keep track of changes in analysts’ estimates because they offer insight into what the market expects from a given company. In the next part of this series, we’ll look at iron ore price estimates.

Latest articles

On June 25, Credit Suisse initiated its coverage on Shake Shack with an “outperform” rating and a target price of $77—an upside potential of 15.4% from its closing price of $66.72 on June 24.

On June 25, the soft economic data isn't an isolated case. We have been getting a flurry of dismal data points. The US economy added only 75,000 non-farm jobs in May.

French retail giant Carrefour has agreed to sell an 80% stake in its China operations for ~$705 million to Suning.com, an Alibaba (BABA) backed company. While China represents a massive opportunity with its almost 1.4 billion population, it has not been an easy market for foreign companies, at least when it comes to retail and e-commerce.

On June 25, US Secretary of Agriculture Sonny Perdue told CNN in an interview that the US-China trade war has impacted US farmers. He said that farmers “are one of the casualties” of the trade war.

25 Jun

Hang Seng and Nikkei 225 Lose amid Trade Worries

WRITTEN BY Mayur Sontakke, CFA, FRM

After rising marginally yesterday, Hong Kong’s Hang Seng Index fell today. The index lost 1.15% to end at 28,185.98. Only seven stocks in the index rose, while 39 declined. Four remained unchanged. Tencent Holdings (TCEHY) was one of the worst performers with a 1.8% fall.

Square (SQ) was absent from the list of the inaugural members of the Libra Association, the entity that will ensure that Facebook’s (FB) Libra cryptocurrency works as intended. Nearly 30 companies have joined the Libra Association.

172.31.16.229