iShares MSCI Glbl Metals & Mining Prdcrs
China’s Crude Steel Production Impacts Iron Ore Miners Like Vale
Since 98% of mined iron ore goes into making steel, it’s important to track steel production. China consumes two-thirds of seaborne iron ore.
What Rio Tinto’s Balance Sheet Means for Future Growth
Rio Tinto’s (RIO) net debt at the end of 1H17 was $7.6 billion, compared with $12.9 billion at the end of 1H16 and $9.6 billion at the end of December 2016.
BHP’s Balance Sheet: The 2017 Outlook
BHP’s net debt was $20.1 billion at the end of December 2016, as compared to $26.1 billion on June 30, 2016.
What China’s High Iron Ore Imports Suggest
China imported 92 million tons of iron ore in January 2017—a growth of 12.0% YoY and 3.4% month-over-month.
This Could Lead BHP’s Cost-Reduction Efforts in Iron Ore
Iron ore makes up 38% of BHP Billiton’s (BHP) revenues and 42% of its EBITDA.
Can Vale SA Reverse Its 2Q17 Performance in 2017?
While Vale SA outperformed peers including Rio Tinto (RIO) and BHP Billiton by rising 24.7% in 1Q17, its performance deteriorated significantly in 2Q17.
How Vale Reacted to Higher Iron Ore Prices in 4Q16
Iron ore price realization In 4Q16, Vale’s (VALE) ferrous division accounted for ~85.0% of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization). The company’s EBITDA for ferrous minerals came in at $4.1 billion, which was $1.6 billion higher than 3Q16. Higher realized prices and higher sales volumes led to these rises. The CFR […]
What Led Robust Chinese Iron Ore Imports despite Contrary Views
Contrary to what was suggested by many market participants, the iron ore imports by China increased in September 2016 instead of declining.
High expectations for Rio Tinto’s full year results
All eyes are now on Rio Tinto’s full year 2014 results due on February 12, 2015, when its management is expected to announce capital management initiatives.
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.
BHP Billiton is a leading global diversified resources company
BHP Billiton (BHP) is a leading global diversified resources company. It’s one of the world’s largest major commodity producers.
BHP Billiton’s steady iron ore production hits a record
BHP Billiton (BHP) is the third-largest iron ore producer in the world. It’s ranked behind Brazil’s Vale (VALE) and Rio Tinto (RIO).
Could Citibank’s Three-Figure Forecast for Iron Ore Prices Come True?
Citibank (C) is advising investors to participate in the current iron ore price (PICK) rally.
Why Industrial Production Figures Dipped in May
Industrial production in the United States fell 0.1% in May as compared to an increase of 0.9% in April.
How Long Can Chinese Steel Margins Support Iron Ore?
After hitting a multi-year high earlier this year, Chinese steel inventories are now depleting quickly.
Which Sector Posted the Most Job Gains in May?
As per the May ADP employment report, job growth in the professional and business services sector continued to be the key driver for jobs additions.
Analysts’ Take on Iron Ore Prices in 2018
Macquarie upgraded its price forecasts for iron ore (PICK) and coal in January 2018. It revised its iron ore and steel prices on the back of improved ex-China demand and a rising cost curve.
FOMC’s Review of Economic Situation Signals Strong US Economy
As per the FOMC staff report, inflation (TIP) in the US remained below the 2% target.
Capacity Utilization Trends across US Industries in December
Capacity utilization and the US economy Among the key macroeconomic indicators published by the Federal Reserve, US industries’ capacity utilization is particularly important for understanding the health of each industry. Changes to this indicator can help forecast any changes to the business cycle, product demand, and workforce demand. Increasing levels of capacity utilization could translate to a higher number […]
BHP Billiton Outlook: Iron Ore Volumes Flat
Iron ore (PICK) volumes are key to BHP Billiton’s (BHP) revenues and earnings as iron ore is the single largest commodity produced by the company.
What to Expect from Cleveland-Cliffs’ Asia-Pacific Segment
Iron ore prices have been very volatile lately. While the prices fell substantially in September 2017, they picked up after that.
China’s Steel Demand Indicators: A Slower 2018?
China’s property sector is a steel-intensive market—consuming approximately 50% of overall steel in the country—followed by the automotive industry.
How China’s Steel Prices Can Support Iron Ore in 2018
Due to the government’s efforts to fight pollution in winter months, steel prices in China have hit a nine-year high in the first week of December 2017.
Can China’s Steel Production Pick Up after March 2018 on Pent-Up Demand?
Overall, China’s steel production in 2017 was strong, which was mostly supported by higher steel prices and firm demand.
What Are Analysts Predicting for Iron Ore Prices in 2018?
Goldman Sachs (GS) believes that iron ore prices should sink back to $50 per ton in 2018.
Iron Ore Investors Could Anticipate These Factors in 2018
Iron ore prices were tumultuous throughout 2017. There is a 44% difference between the peak of $95 per ton in February and the trough of $53 per ton experienced in July.
A Look at Capacity Utilization across US Industries in November
In the November capacity utilization report, the manufacturing sector remained strong with 76.4% capacity utilization, the highest level since May 2008.
Why Industrial Production Fell from 1.2% to 0.2% in November
The Federal Reserve released its November industrial production report on December 15, 2017. The report indicated that industrial production improved 0.2% in November.
How Vale Could Benefit from a Move to Quality in Iron Ore
Vale has changed its product portfolio and quality in iron ore according to market demand. In 2017, it’s more focused on selling high-quality ore.
Can China’s Steel Prices Keep Supporting Iron Ore Prices?
In the previous part of this series, we discussed how the momentum in Chinese steel production in 2017 has come on the back of strong steel prices.
Iron Ore Rebound: How Analyst Ratings for Miners Are Changing
Iron ore prices in 2017 so far have been a roller coaster ride. Prices reached a peak of $95 per ton in February only to slump to a low of $53 per ton in July and take off soon after.
Here We Go Again: More Upside for Iron Ore Prices?
We can easily call the journey for iron ore prices so far this year “tumultuous.” Prices hit a peak of $95 per ton in February 2017 only to fall to lows of $53 per ton in July before taking off again.
Which Industries Increased Industrial Production in October?
The October Industrial Production report was released by the Fed on November 16 and showed a continued rebound in key sectors of the US economy.
Why Vale Believes the Iron Ore Market Is in Balance
Vale’s (VALE) Ferrous division accounted for ~87.6% of its adjusted EBITDA in 3Q17, compared with ~82.0% in 2Q17.
Which Industries Increased Production Last Month?
The Federal Reserve released its September industrial production report on October 17. The report indicated that key sectors in the US economy increased production in September.
Can China’s Iron Ore Imports Support Prices?
China is the world’s largest consumer of iron ore. Therefore, to gauge the outlook for iron ore demand, it’s important to track China’s iron ore import data.
China Steel Prices Are Touching Higher Highs: Impact on Iron Ore
According to Reuters, the September 2017 steel rebar futures contract on the Shanghai Futures Exchange has risen 40% year-to-date.
Why China’s Lower Iron Ore Imports in July Could Be a One-Off
China’s iron ore imports for July 2017 fell 2.4% over July 2016 to 86.3 million tons.
Why Analysts Are Rethinking Their Near-Term Iron Ore Price Forecasts
Goldman Sachs is bullish Although Goldman Sachs (GS) is bullish on the near-term price forecasts for iron ore, it believes that the pressure could return in the long run. In the near term, it believes that prices could be supported by the better-than-expected demand in China. Goldman Sachs believes that the supply pressure could build […]
Does BHP Billiton Expect to Sustain Iron Ore Price Momentum?
BHP Billiton (BHP) attributed the rise in iron ore prices to higher pig iron production in China, the preference for higher grade materials, and improved steel margins.
What’s Compass Minerals Doing to Gain a Cost Advantage?
Led by its superior assets, location, and geological advantages, Compass Minerals holds a competitive position with a wide economic moat rating.
What’s the Outlook for Vale’s Iron Ore Division?
Vale’s (VALE) ferrous division accounted for ~82%.0% of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) in 2Q17.
Chinese Steel Prices Are Surging—Can They Keep the Momentum?
Chinese steel production has been hitting one record after another. This renewed vigor in the Chinese steel industry is due to higher steel prices.
China’s Iron Ore Imports Surged in June—Where Will They Go Next?
It’s important for investors to keep track of China’s iron ore import data because they provide a clue regarding the demand patterns for imported iron ore among Chinese mills and traders.
Analysts’ Views: What Iron Ore Price Could Bring Balance?
While iron ore prices have rebounded recently, analysts are still skeptical about the long term. Morgan Stanley has reduced its iron ore price forecast for 3Q17 by 23% to $50 per ton.
CLF and Peers in Overbought Territory: What Triggered It?
Based on its June 12, 2017, closing price, Cliffs Natural Resources is trading 15.2% and 11.9% higher than its 50-day and 20-day moving averages, respectively.
Can the Rebound in Chinese Steel Prices Support Iron Ore Miners?
One of the major factors that led to the iron ore price rally in 2016 and 1Q17 was stronger-than-expected Chinese steel prices.
Why China’s June Iron Ore Import Outlook Is Strong
China’s iron ore imports recovered from a six-month low in April by importing 91.5 million tons in May 2017.
Cliffs Natural Resources’ First HBI Plant: What You Need to Know
The estimated investment needed for Cliffs Natural Resources’ (CLF) HBI (hot briquetted iron) plant is ~$700 million.
What Will Drive Vale SA’s Iron Ore Division Going Forward?
In 1Q17, Vale’s (VALE) ferrous division accounted for ~89.0% of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization).
These Factors Led to Weakness in Vale Stock after 1Q17
In 1Q17, Vale (VALE) significantly outperformed its major peers with a rise of ~25%.
China’s Iron Ore Imports Remain Strong: What’s the Outlook?
Strong Chinese iron ore imports China imported 95.6 million tons of iron ore in March, compared with 83.5 million tons in February 2017. This figure implies a strong growth of 11% year-over-year (or YoY). This number is also the second-highest monthly amount on record. China imported 96.3 million tons of iron ore in December 2015. […]
Inside Iron Ore Miners’ Price Targets: Gauging Their Upside Potential
Among the iron ore miners (PICK), analysts are most bullish on Rio Tinto (RIO), with 63% “buy” and 19% “hold” ratings.
What China’s Resilient Iron Ore Imports Mean for Miners
China imported a total of 83.5 million tons of iron ore in February 2017, which represents a growth of 13% YoY (year-over-year) and -9.2% month-over-month.
China Imported Record Iron Ore in 2016: How’s the 2017 Outlook?
China’s iron ore imports were robust in 2016. While the country’s imports fell 7.6% year-over-year (or YoY) in December 2016, they hit a yearly record in 2016.
Rockwell Automation’s Fiscal 2017 Guidance: A Closer Look
ROK maintains that oil prices have recovered since early 2016 and that most of its business in the heavy industries end market is expected to stabilize.
What’s the Outlook for Chinese Iron Ore Imports?
Contrary to what’s been suggested by many market participants, China’s iron ore imports have been robust in 2016. In November, imports were 92.0 million tons.
Why Were Chinese Iron Ore Imports Weak in October?
China’s weaker iron ore imports Contrary to what’s been suggested by many market participants, China’s iron ore imports have been robust in 2016. In October, however, the imports were at their lowest since February, at 80.8 million tons, down 13% month-over-month. On a year-over-year basis, the imports rose 7%. In the first ten months of […]
Jacobs Engineering Posts the Highest Annual Free Cash Flows
Jacobs Engineering Group declared its 4Q16 and fiscal 2016 results on November 22. It reported adjusted EPS (earnings per share) of $0.77.
After 3 Years, Rockwell Could See Sales Growth in Fiscal 2017
Rockwell Automation maintains that oil prices have recovered since the beginning of 2016, and most of its business in the heavy industries end market is expected to stabilize.
Caterpillar’s 3Q16 Earnings Bring ‘Inflection’ Back into Focus
Caterpillar, the world’s largest manufacturer of construction and mining equipment, will declare its 3Q16 earnings before the market opens on October 25.
Could China’s Iron Ore Imports Pull Back in the Near Term?
In August 2016, China’s iron ore imports came in at 87.7 million tons, a rise of 18.3% compared to 74.1 million tons in August 2015 but a slight fall of 0.8% compared to July 2016.
Higher Productivity and Lower Sales Highlight Clarcor’s 3Q Results
Clarcor beat Wall Street estimates by four cents with 3Q16 adjusted earnings per share (or EPS) of $0.73.
Why China’s Iron Ore Imports May See a Near-Term Pullback
In July 2016, China’s iron ore imports came in at 88.4 million tons. This was a rise of 2.7% compared to 86.1 million tons in July 2015 and 81.6 million tons in June 2016.
A Look at BHP Billiton’s Balance Sheet after Fiscal 2016
BHP has a strong balance sheet in this depressed commodity environment. Standard & Poor’s cut its rating by one notch from A+ to A in February 2016.
More Losses? Caterpillar Puts Part of Its Mining Business on Sale
Caterpillar logged four consecutive quarters of operating losses in the Resource Industries segment—it houses the mining equipment business.
Investors Shouldn’t Expect Near-Term Optimism from Caterpillar
Caterpillar (CAT) released its retail statistics for July on a three-month rolling basis on August 18. However, Caterpillar’s retail sales fell in July.
How Much Lower Can BHP Billiton Push Its Costs in Iron Ore?
BHP’s total iron ore production increased by 2% in fiscal 2016 to a record 227 million tons.
Parker-Hannifin’s 2017 Guidance Suggests Slowdown in Industrials
Parker-Hannifin has guided its fiscal 2017 adjusted EPS at $6.40–$7.10. The midpoint of this range is roughly 4.5% higher than $6.46 in fiscal 2016.
What Variables Impacted Rio’s Iron Ore Earnings in 1H16?
Like other major miners, Rio Tinto (RIO) is making efforts to improve its iron ore volumes while reducing its costs.
How Consolidation in the Mining Industry Impacts Caterpillar
Caterpillar’s (CAT) sales in the Resource Industries segment, which houses the Mining Equipment business, fell by 29% year-over-year in 2Q16 to $1.4 billion.
Will Vale’s Realized Iron Ore Prices Take a U-Turn in 2016?
Vale’s realized iron ore price fell by $5.50 per ton from $61.50 per metric ton in 2Q15 to $56.0 in 3Q15.
Alcoa Reported a Fall in Income Quarter-over-Quarter
Alcoa (AA) has a market cap of $14.42 billion. Its YTD (year-to-date) price movement is falling day by day. Alcoa’s income has fallen every quarter.
ArcelorMittal Has Major Upcoming Debt Maturities
ArcelorMittal has a steep debt repayment schedule for the next three years and could face refinancing risk if steel market conditions continue to worsen.
Crude Oil Prices Are Under Pressure – Impact Iron Ore Companies
Any significant fall in crude oil prices greatly impacts iron ore companies engaged in seaborne trade. This is because oil prices affect shipping rates.
China’s Credit Growth Increased in February
Aggregate financing was 1,350 billion yuan in February—down from 2,051 billion yuan in January. Overall, China’s credit growth picture was positive for February.
China’s HSBC Manufacturing PMI at a 7-Month High in February
The HSBC Manufacturing PMI for China is a key indicator. It shows what direction the country’s manufacturing sector is taking. It was 50.7 for February.
China’s Industrial Output Growth Slows – Worst in over 6 Years
Industrial output measures the output of businesses involved in the industrial sector of the economy—including manufacturing, mining, and utilities.
China’s Iron Ore Imports Fell in February – Impacted Iron Ore Stocks
Chinese customs data tracks the country’s iron ore imports. It gives a good sense of the appetite for imported ore among Chinese mills and traders.
Japan: Weak Iron Ore Imports Impact Iron Ore Miners
Japan accounts for 10%–13% of the seaborne market. For full-year 2014, Japan imported 136.44 million tons of iron ore. This was a 0.5% increase from 2013.
Brazilian Iron Ore Exports Shipped Strong Volumes in February
Brazil had a stronger run at iron ore exports in February. It had relatively weak data in January. The exports grew 8.4% month-over-month in February.
How Is Cliffs Asia Pacific Doing in a Seaborne Supply Glut?
Cliffs Asia Pacific iron ore operations are located in Western Australia at the Koolyanobbing complex. The remaining mine life there is only five years.
All You Need to Know about Cliffs’ Debt Exchange Offer
On February 26, 2015, Cliffs Natural Resources (CLF) announced exchange offers for four of its five series of senior unsecured notes outstanding as of 4Q14.
What’s the Current Market Sentiment for Cliffs Natural Resources?
As for market sentiment, Cliffs (CLF) seems to be on the receiving end. Most of it is due to the worsening current and future outlook for iron ore prices.
An Investor’s Guide to the Copper Supply Chain
Copper is also known as “Dr. Copper,” as analysts see the metal’s prices as a reflection of the global economy’s health.
Iron Ore Prices Are at a 6.5-Year Low – Will They Fall More?
Iron ore prices hit a 6.5-year low of $54.20 per ton on March 23. The prices already fell by 13% YTD (year-to-date). The prices fell by 49% in 2014.
No bottom yet for iron ore prices
Iron ore prices fell more than half since the start of last year. Iron ore is the primary raw material for steel producers using traditional blast furnaces.
Why Freeport’s debt levels surged post acquisitions
In 2013, Freeport acquired Plains Exploration & Production Company and Moran Exploration Company. Freeport’s debt levels surged post acquisitions.
How lower copper prices impact Freeport-McMoRan
Lower copper prices are due mainly to the slowdown in the Chinese economy. Chinese copper demand has been a key driver of the global copper industry.
What part of Freeport’s financials should investors track?
Investors should track aspects of Freeport’s financials such as trends in operating profits. Freeport posted a loss of more than $3 billion in 4Q14.
Diamonds and minerals delivered strong free cash flow
The Diamonds & Minerals segment’s underlying earnings of $401 million were 15% higher than 2013. Diamond production decreased 13% YoY.
Why the increased cash returns are important for Rio
Rio Tinto announced a full-year dividend of $2.15 per share. For 2014, this represents total cash returns to shareholders of almost $6 billion.