Gold Prices: Undervaluation, Smart Money Piles Up
Since March, gold prices are on a tear due to uncertainty surrounding COVID-19. The SPDR Gold Shares has seen gains of 16.2% since March 18.
Materials
US Steel Companies: Price Hikes amid COVID-19
U.S. Steel Corporation, Nucor, and ArcelorMittal announced a price hike earlier this month. US steel prices fell to multiyear lows amid COVID-19.
Should You Sell Alcoa Stock before Its Q1 Earnings Release?
Alcoa will likely report its first-quarter earnings on April 22 after the markets close. The stock has risen sharply from its March lows.
Should US Steel Mills Halt Production amid Coronavirus?
The AISI asked the Trump administration to classify the steel industry as “essential.” The industry wants to continue production despite the coronavirus.
Why CLF Stock Fell after Its Q4 Earnings Release
CLF reported its fourth-quarter earnings on February 20 before the markets opened. The company generated revenues of $534 million in the quarter.
Gold or Crude Oil: Where to Hide amid US-Iran Tensions?
Active gold futures have risen to their highest level since 2013 after the renewal of US-Iran tensions. Last week, active gold futures rose by 1.1%.
Could US Steel Stocks Be a Contra Play in 2020?
Overall, 2019 was a mixed year for US steel stocks. However, due to the rally in the fourth quarter, most stocks managed to close the year with gains.
Why US Steel Stock Underperformed Peers in 2019
U.S. Steel stock (X) has underperformed peers so far in 2019. Notably, it’s the only leading US steel name that’s trading with a YTD (year-to-date) loss.
Sales Drivers and What to Expect for Fertilizer Companies
The world has a problem that’s actually good for the fertilizer industry. This is the world’s population, which is ever-growing, as is food consumption.
A Look at Analysts’ Top 5 US Steel Stocks
In this overview article, we’ll see how analysts are rating the leading steel stocks, and we’ll also compare performance from the top five steel companies.
Alcoa and Arconic Sue Berkshire-Owned Railroad
Alcoa, Arconic, and NOVA Chemicals have filed a lawsuit against several US railroad companies. One defendant is BNSF Railway, owned by Berkshire Hathaway.
Alcoa’s Transformation Is Still a Work in Progress
Alcoa has lost more than a quarter of its market capitalization this year. Aluminum and alumina prices have been weak, which impacted aluminum producers.
A Trader’s Guide to the Commodities Market
Learn the basics of commodities trading, including the most traded commodities worldwide, and what it takes to be a successful trader in this class.
CLF Acquires AKS: A Match Made in Heaven?
Yesterday, Cleveland-Cliffs (CLF) announced that it would acquire AK Steel (AKS) at a premium of 16% over both stocks’ December 2 closing prices.
Price of gold relates to growth of global money supply
When money supply growth is used to prop up the financial and economic system instead of fuel strong economic growth, the price of gold relates to growth of the money supply.
Important End Consumers Of Steel
The automobile industry is on of the biggest end consumers of steel. It accounts for a quarter of steel consumption in the US.
Valemax ships sail Vale SA to cost-effective distribution
Valemax ships are ultra-large vessels, capable of carrying 400,000 dwt (dead weight tons) each. That’s 2.3 times more than traditional Capesize ships. They also emit 35% less CO2 per ton of ore transported.
Vale SA: Overview of the world’s largest iron ore company
Vale SA (VALE) is a Brazilian multinational diversified metals and mining company. It is the world’s largest producer of iron ore and iron ore pellets and the world’s second-largest producer of nickel.
The implications of the Vale SA ownership structure
Although there hasn’t been any recent cause for concern, and the government doesn’t interfere in the day-to-day workings of Vale, there’s always a risk that the company could be pushed into pursuing objectives that aren’t in the best interests of all shareholders.
Vale SA: Top-quality iron ore and pellets
Vale SA (VALE) is the world’s largest producer of iron ore and pellets. Pellets are manufactured by gathering together the powder generated during the ore extraction process.
How Vale SA values its iron ore customers
Vale SA offers technical assistance to its customers and operates sales support offices in several cities. These offices monitor customer requirements and ensure timely deliveries.
Realized price: The factors impacting Vale SA iron ore
Realized prices for iron ore vary depending on quality, moisture content, freight costs, and pricing mechanisms. ROM sales reduced Vale’s realized price by about $6 per ton in 2013.
Vale SA in the manganese and ferroalloys business
Vale SA is the largest manganese producer in Brazil, accounting for roughly 70% of the country’s market. The Azul Mine in Para is responsible for 80% of its output.
Why Aluminum Is An Important Metal For Investors
Investors like aluminum. They can play the aluminum industry by trading aluminum on commodity exchanges. Investors can also investment in aluminum plays.
What Are The Major Regions That Consume Aluminum?
China is the biggest consumer. It consumes almost half of the aluminum that’s produced globally. However, this isn’t surprising. China is the biggest consumer of most industrial commodities.
How Investors Can Play The Steel Industry
Steel is a cyclical industry and is dependent on the growth in economic activity. In this series, we’ll learn key facts related to the steel industry and how investors can play the steel industry.
Key Facts Investors Need To Know About Steel
Steel can be classified into several categories. Various types of steel products are based on chemical composition. Types of steel are made by altering the chemical properties of steel.
What Investors Need to Know About Aluminum Warrants
Analysts expect that most of the metal has been moving away from LME registered warehouses to non-LME registered warehouses, which typically charge less rent than registered warehouses.
Why the automobile industry is important for metal companies
Automobile companies are one of the biggest metal product consumers. Steel and aluminum are widely used in the automobile industry. Aluminum is being used more in automobiles.Materials Key gold indicators that you should keep an eye on
You should analyze these gold indicators together since many of them are interrelated. They show the direction of gold prices and gold-backed ETFs.Materials Why investors should understand Alcoa’s business model
Alcoa is an integrated player in the aluminum value chain. This means its operations extend from bauxite refining to aluminum fabrication.
Why mini mills are changing their raw material strategy
Along with steel scrap, EAF can also produce steel through direct reduced iron (or DRI). DRI is produced by heating iron ore. STLD and NUE increased their focus on DRI.
Essential fertilizer trends: The importance of Brent oil prices
Why oil affects fertilizer price In a competitive industry like nitrogenous fertilizer, the marginal producer’s cost sets the floor for the industry. These producers are the most expensive manufacturers to supply the product at that point in time. When the marginal producer’s cost rises, so does the industry’s. On the the other hand, falling costs […]
Key inputs and processes of nitrogenous fertilizer production
The importance of costs Understanding how fertilizers are produced is an important part of investing. What companies buy and what they pay for will be their costs. When costs are rising, they can have a negative impact on earnings and cash flow if the industry can’t pass them on to buyers. Conversely, when costs are falling, […]
The relationship between ammonia and Brent oil hasn’t returned
In a competitive industry like the nitrogenous fertilizer industry, the marginal producer’s cost sets the industry floor.
Why Global Steel Production Fell in October
Yesterday, the World Steel Association released data that showed global steel production falling YoY (year-over-year) in October.
Why Chinese producers are driving nitrogenous fertilizer prices down (Part 1)
How China affects the global fertilizer market China, the world’s largest producer of nitrogen (a chemical used to make nitrogenous fertilizers for growing plants) occupies roughly 40% of global production capacity. Although much of its output is sold to domestic farmers—as an export tax of as much as 75% during the on-season restricts domestic firms […]Materials Must-know: ANR’s thermal coal business in 3Q14
ANR produces thermal coal from its mines in the Appalachian and Powder River Basin (or PRB). The company had around three billion tons of thermal coal reserves.Materials Is gold no longer an inflation hedge?
Gold certainly can be an inflation hedge, and it has worked in the past. Obviously, one of the reasons gold has been weak of late is that people are becoming less concerned about inflation.Materials Key things to look out for when you invest in junior gold stocks
The junior mining space is very risky, given very limited options in terms of mines and their involvement in early stages. So it’s very important to identify the right junior stock.
Analyzing Lowe’s Merchandise and Services Assortment
Lowe’s sources its merchandise from over 7,000 suppliers with no supplier accounting for more than 6% of sales.
Why Flat Steel Products Are Important For Steel Companies
Flat steel products consist of sheets and plates rolled from slabs, which are a semifinished steel product. These products are used in a wide range of industries such as automobile, domestic appliances, shipbuilding, and construction.
Where Vale SA operates and why
Currently, the the private sector is leading significant expansion and major rehabilitation of Mozambique’s infrastructure. Vale itself is investing in the development of the Nacala infrastructure project.Materials Why Nucor’s Louisiana DRI plant could be a game changer
Nucor has produced 1.2 million tons of DRI this year at the Louisiana plant and expects to produce another 0.5 million tons in the next quarter.
Stock Valuation: Using Fundamental Analysis in Equities
When it comes to equity investments, stock valuation is a crucial part of the process. Let’s look at valuation techniques using fundamental analysis.
Why the Swiss National Bank removed the cap against the euro
A cap was put in place to stop the currency’s appreciation. An appreciating local currency is detrimental to exporters.
BHP reports mixed production results and maintains its guidance
Overall, BHP reported mixed 2Q15 results. It recorded a 9% production increase during the December 2014 half-year.
The World’s Top Gold-Producing Countries
In 2018, 3,503 metric tons of gold were produced globally, 1.8% higher than in 2017. Let’s look at the world’s top gold-producing countries.
Why Cliffs plans to reduce its capex going forward
Cliffs Natural Resources’ (CLF) estimation for the 2015 annual capital expenditure, or capex, is $125–$150 million.
Global money supply and its link to gold
The gold price increase kept pace with the global money supply until recently. The relationship between the two appears to have broken.