In this article, we’ll look at China’s iron ore port inventories and what they suggest for iron ore prices. The inventories at port reflect the difference between demand and supply.
Iron ore port inventories in China reflect the balance between demand and supply. Usually, if the iron ore isn’t used up by steel mills, it piles up at ports.
BHP Billiton (BHP) has vowed to focus on reducing costs by another 10% in its Australian operations. It has a target of 2.2 billion Australian dollars (~$1.6 billion USD) in productivity gains over the next two years.
Vale’s CFO (chief financial officer) Luciano Siani Pires said during Vale Day on December 6, 2017, that the company deserves a rerating of its valuation.
It’s important for investors to keep tabs on iron ore port inventories in China. Inventory levels show the balance between demand and supply for iron ore.
China’s iron ore port inventory shows the steelmaking commodity’s (GNR) demand and supply balance. It also measures the imbalance between supply and steel mill demand.
A major factor impacting mining companies’ revenues and earnings is commodity price—especially for iron ore—and analysts’ ratings take cues from prices.
China’s iron ore port inventory reflects supply and demand. It also indicates the safety net and imbalance between iron ore supplies and steel mill demand.
China’s auto sales China’s automotive industry is the second-largest steel consumer after the real estate sector. In this part of our series on iron ore, we’ll look at recent trends in the Chinese automotive industry. We’ll also analyze how auto sales could shape up in 2017. Auto sales growth slows Vehicle sales in China, including […]
China’s iron ore port inventory China’s iron ore port inventory reflects the commodity’s supply and demand balance. It also indicates the safety net and imbalance between iron ore supplies and steel mill demand. High inventory levels are a sign of weak demand for raw materials, and vice versa. High inventory levels Iron ore inventories at Chinese ports have […]
The third element of Elliott Funds’ “value unlock” plan for BHP Billiton (BHP) (BBL) is the adoption of a policy of consistent and optimized capital returns to shareholders.
In this part of our series on iron ore, we’ll look at recent trends in the Chinese automotive industry. We’ll also analyze how auto sales could shape up in 2017.
As most market participants are calling for an iron ore price correction in 2017, it’s important to consider how the supply side of things could shape up this year.
China’s iron ore port inventory reflects the commodity’s supply and demand balance. It also indicates the safety net and imbalance between iron ore supply and steel mill demand.
China’s auto sales rose to 2.9 million in November 2016 from 2.7 million in October 2016. Auto sales in November were 17.0% higher than the same period in 2015.
In 3Q16, Vale SA’s (VALE) ferrous division accounted for ~81.0% of its adjusted EBITDA. EBITDA for ferrous minerals came in at $2.5 billion, which was $357.0 million higher than 2Q16.
China’s automobile sales The automotive industry is the second-largest steel consumer after the real estate sector. In this part of our series on iron ore in 2016, we’ll look at recent trends in the Chinese automotive industry. Car sales rise China’s (FXI) auto sales rose to 2.7 million in October 2016 from 2.6 million in […]
China’s iron ore port inventory China’s (MCHI) iron ore port inventory, a key indicator, reflects the commodity’s supply-and-demand balance. It also indicates the safety net and imbalance between the iron ore supply and steel mill demand. A high inventory is a sign of weak demand for raw materials, and vice versa. Inventories highest in two years While […]
China’s (FXI) auto sales rose to 2.6 million in September 2016 from 2.1 million in August. These auto sales were 26% higher than the same period in 2015.
During its 3Q16 earnings call, Freeport-McMoRan (FCX) reduced its production guidance. The company expects its 2016 copper shipments to be 4.8 billion pounds.
Of the 23 analysts surveyed by Bloomberg, only four rated Southern Copper (SCCO) a “buy,” while seven rated it a “sell.” Most of the analysts rate the stock a “hold.”
Because China is the world’s largest steel consumer, it’s important for investors in companies such as U.S. Steel, ArcelorMittal, POSCO, and Gerdau to keep track of the Chinese steel industry.
According to the consensus estimates compiled by Bloomberg, analysts expect Freeport-McMoRan (FCX) to post EBITDA of ~$7.0 billion in the next four quarters.
Higher gold prices couldn’t have come at a better time for Freeport. The company is grappling with sagging metal prices in its core copper mining business.
U.S. Steel’s earnings estimate Since the spectacular rally in US (DIA) spot steel prices between March and June 2016, we’ve seen some downward pressure on flat-rolled steel prices. Spot HRC (hot-rolled coil) prices have fallen more than $100 per short ton from their June peak. However, despite these steep correction in HRC prices, we’ve not […]
Copper prices are a key driver for Freeport-McMoRan (FCX). The company expects its EBITDA for the second half of 2016 to rise or fall for every increase or decrease in copper prices.
China’s unwrought aluminum exports rose 20.4% YoY in August. Although the increase is a concern, things aren’t as bad as suggested by the big YoY spike.
Currently, U.S. Steel trades at 3.82x its expected EBITDA for the next four quarters. This is much lower when we look at U.S. Steel’s historic valuation multiples.
According to consensus estimates compiled by Bloomberg, Southern Copper (SCCO) has a one-year price target of $27.82—7.5% above its current stock price.
China’s passenger car sales rose to 1.6 million in July 2016, a year-over-year (or YoY) increase of 26.5%. This was the highest growth rate in three-and-a-half years.
Currently, Alcoa (AA) trades at 7.69x its next four quarters’ expected EBITDA. The company’s forward EV-to-EBITDA multiple has averaged 7.73x in the last three years and 7.2x in the last five years.
US Spot hot rolled coil prices have risen in the ballpark of $200 per short ton in 2016. Spot cold rolled coil prices have risen by ~$300 per short ton.
China’s aluminum exports rose by 10% year-over-year in 2015. Facing flak from most of its trading partners, China announced late last year that it would curtail its excess aluminum capacity.
Revenues One of the key features of steel companies’ 2Q16 financial performance has been lower-than-expected revenues. All the steel companies in our coverage of stocks missed consensus revenue estimates in 2Q16. We should note that steel companies’ revenues are functions of shipments and average selling prices. Steel companies’ shipments generally depend on end-user demand as […]
Earlier, Alcoa projected a 1.1 million metric ton deficit for global aluminum markets. It revised down its deficit projection during its 2Q16 conference call.
Rio Tinto reported its 1H16 results on August 3, 2016. Its underlying earnings came in at $1.6 billion, 7% ahead of consensus expectations of $1.5 billion.
U.S. Steel posted adjusted EBITDA of $134 million in 2Q16—its highest since 4Q14. It generated negative EBITDA for two consecutive quarters prior to 2Q16.
For 2016, Archer Daniels Midland plans to balance its capital allocation framework. It advanced the strategy by selling a 50% interest in its Brazilian port in 2015.
Rio Tinto’s (RIO) Diamond & Minerals segment is going through a rough patch. Titanium dioxide’s feedstock and uranium’s demand remain weak due to high inventories.
Under its transformation strategy, Alcoa has turned into a diversified engineering company. It reported 2Q16 EPS of $0.15 after adjusting for special items.
Buying appetite for iron ore has increased in China, but it’s not able to completely absorb the supply. Iron ore inventories have risen above 100 million tons for the first time in 2016.
