Blount International Inc

In 1Q16, despite a 16% decline in revenue and a 22% YoY decline in adjusted profits, Lincoln Electric has successfully given $125 million to shareholders.

Lincoln Electric’s (LECO) stock has been in a downward trend since March 2015. This can be attributed to the softness in demand and weakness in the oil and gas sector and US export markets.

Lincoln Electric’s 2015 revenues have declined by 16% to $2.5 billion when compared to $2.8 billion in 2014.

Iron ore exports from Port Hedland totaled 38.4 million tons in June. In May, exports totaled 38 million tons. So that’s a jump of 14.3% year-over-year and 1.1% month-over-month.

In the week ending June 12, iron ore port inventories were 85.4 million tons. This is a decline of 2.1% week-over-week. The inventory level is the lowest since November 2013.

On June 16, Chinese steel prices fell to a new 12-year low of 2,337 yuan per metric ton. Weak fundamentals in steel prices translate to weak fundamentals for iron ore prices.

Japan accounts for 10%–13% of the seaborne market. So Japan’s iron ore imports are a good indicator of iron ore demand. Japanese iron ore imports totaled 11.1 million tons in April compared to 11.6 million tons in March.

Iron ore prices have staged a huge comeback, trading at $65 per ton on June 16. In early April, prices fell to a decade low of $47.08. This is a huge 38% correction. But prices are still quite low compared to 2014.

Industrial output measures the output of businesses involved in the industrial sector of the economy, including manufacturing, mining, and utilities.

Auto sales in China (FXI) fell 0.5% year-over-year (or YoY) in April to 1.99 million vehicles. Growth for April was the lowest for China’s auto sales since February 2013.

The real estate climate index indicates that construction activity in China remains weak despite the government’s easing efforts.

Iron ore prices rallied close to 30% in May to reach a peak of $63 per ton on May 13. However, after that, they started a downward march once again.

In March, China’s iron ore imports came in at 80.5 million tons against February’s 67.9 million tons. This was an increase of 19.0% month-over-month.

Benchmark iron ore futures for September settlement on the Dalian Commodity Exchange closed up by 4% at 417.5 yuan (close to $67).

Auto sales in China (FXI) gained 3.3% year-over-year in March after having slowed in February.

Iron ore prices reached historic lows, so this current rebound might just be a correction rather than a sustained uptrend.

BHP Billiton (BHP) chose the demerger approach after considering many alternatives to simplify its portfolio. It plans to focus on its core operations.

Iron ore exports from Port Hedland totaled 36.6 million tons in March 2015, an increase of 2.2 million tons or 6.3% from March 2014 levels.

The iron ore price slide has been particularly pronounced in the last few weeks, as Chinese demand didn’t pick up as expected after the New Year holiday.