iShares MSCI Glbl Metals & Mining Prdcrs
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.
China’s Steel Production Outlook Remains Muted
As reported by Reuters, China’s average daily output hit its lowest level in December since March 2018.
How Long Can China’s Steel Prices Keep Supporting the Sector?
Steel futures have gained ~29% from the end of last year to this year’s recent peak.
China Steel Production Hits New High
In July, China produced a record 81.2 million tons of steel.
Cleveland-Cliffs’s Cash Costs Were Higher in Q2, but No Worries
Cleveland-Cliffs’s (CLF) cash cost of goods sold for its US Iron Ore (or USIO) division was $62.30 per ton for Q2 2018.
Will Pollution Curbs Underpin China’s Steel Prices Going Forward?
In 2017, Chinese steel prices rose ~30%, and they’ve remained buoyant this year.
China’s Steel Output Defies US Pressure Yet Again in June
Despite pollution curbs, the daily steel output for Chinese steel mills set a record in June for the third month in a row.
Why China’s Steel Prices Could Come under Pressure in H2 2018
While strong margins have been prompting Chinese steel mills to continue increasing output for the last several months, economic jitters have started to weigh on margins.
China’s Steel Production Supported Iron Ore Prices in H1 2018
After increasing by 0.8% YoY (year-over-year) in April, China’s iron ore imports grew 2.9% YoY to 94.1 million tons in May.
China’s Steel Mills Continue Chasing Fat Margins on Strong Demand
As we saw in the previous part of this series, wider margins have prompted Chinese steel mills to continue increasing their output.
How Capacity Utilization across US Industries Trended in May
The total industry capacity utilization in May has fallen from the upward revised April reading of 78.1 to 77.9 in May.
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.
Company & Industry Overviews
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.
Could China’s Strong Steel Margins Sustain Iron Ore Prices?
China Steel has announced that it will raise domestic product prices for delivery next quarter by ~$14.23 (or 1.9%) per ton, due to rising international prices.
Trends in Capacity Utilization across US Industries in April
According to the Fed’s industrial production and capacity utilization report, capacity utilization increased from 77.6% in March to 78% in April.
Cleveland-Cliffs and China’s Iron Ore Demand Outlook
Since China consumes more than 70% of seaborne-traded iron ore, it’s important to track its demand patterns to get an idea of prices.
Cleveland-Cliffs’s Asia-Pacific Division Remained Weaker
Cleveland-Cliffs (CLF) has direct exposure to the seaborne iron ore trade through its APIO (Asia-Pacific Iron Ore) unit.
What March Capacity Utilization Data Says about Economy
The total industry capacity utilization in March increased from 77.7% in February to 78.0% in February.
These Sectors Drove Industrial Production Higher in March
Industrial production continued to rise in March after strong growth in February.
Why Cliffs’ Asia-Pacific Segment Could Disappoint Again in 1Q18
While Cleveland-Cliffs’ APIO segment doesn’t contribute much to its revenue and earnings, it still accounts for many of its stock price movements via changes in seaborne iron ore prices.
Could Vale Improve Its Transparency?
Vale (VALE) has come a long way in its corporate governance policies and transparency.
Could Technical Indicators Mean Upside for Cliffs and Peers?
The trailing three-month stock returns for almost all the US steel stocks and seaborne iron ore stocks (PICK) are negative.
Cliffs, China’s Iron Ore Demand, and Rising Steel Inventories
Since China consumes more than 70% of seaborne-traded iron ore (COMT), it’s important to track its demand patterns to get a cue for prices.
February’s Capacity Utilization Trends across US Industries
According to the Federal Reserve, total industry capacity utilization increased 1.3% from 77.4% in January 2018 to 78.1% in February.
What Do China’s Steel Demand Indicators Signal for Iron Ore Prices?
China’s auto sales (XLY) in January 2018 increased 11.6% year-over-year (or YoY) to 2.8 million units.
What Could Support Vale’s Iron Ore Earnings
For 4Q17, Vale’s (VALE) ferrous division accounted for ~81% of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), compared with ~88.0% in 3Q17.
China’s Manufacturing Appears Weaker than Expected in January
China’s January 2018 PMI (Purchasing Managers’ Index) came in at 51.3. As per a poll conducted by Reuters, economists were expecting the PMI to come in at 51.5.
Do China’s Steel Prices Have More Room to Run?
Chinese steel mills have been taking advantage of elevated steel prices to continue increasing their output.
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.
What Drove Industrial Production Lower in January 2018?
The Federal Reserve’s report indicated that industrial production fell 0.1% in January as compared to a 0.9% increase in December.
Could Cleveland Cliffs and Peers Pop Based on Their Technical Indicators?
Currently, all US steel stocks, as well as seaborne iron ore stocks (PICK), have positive trailing three-month stock returns. U.S. Steel (X) has given the highest returns among these companies at 26.0%.
Do China’s Steel Prices Have More Room to Benefit Iron Ore Prices?
We discussed, in the previous part of this series, how Chinese steel mills have increased their production in 2017 to take advantage of higher steel prices.
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.
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.
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.
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.