Rio Tinto PLC
For US Steel Stocks, China Is a Ray of Hope This Year
In 2020, China is a ray of hope for the global steel industry. China has recovered fast from the pandemic. The recovery has been V-shaped.
China’s Iron Ore Imports Drop, Will Prices Stay Elevated?
Falling iron ore imports China consumes more than 70% of seaborne-traded iron ore. As a result, iron ore investors should track China’s demand and outlook. Today, China released its trade data for June. China’s iron ore imports were 75.18 million tons in June—9.7% lower YoY (year-over-year) and 10.2% lower month-over-month. In June, China’s imports fell […]
Most Asia-Pacific Indexes Gain as Markets Wait for Powell
Hong Kong’s Hang Seng Index recovered today after five straight losses.
Iron Ore: Chinese Steel Mills Urge Probe into Price Spike
China’s central government is paying close attention to the sharp rise in iron ore prices. The CISA asked the government to investigate the spike.
Asia-Pacific Update: Most Indexes Fall—with a Few Exceptions
Australia’s S&P ASX 200 was the best-performing index in the Asia-Pacific region on July 3. The index gained 0.59% on the day to end near its 12-year high at 6,685.5.
BMO Downgrades Rio Tinto on Expected Pullback in Iron Ore Prices
Iron ore prices are soaring in 2019 due to the combination of tighter supply and firm Chinese steel demand.
KOSPI Is Flat, but ASX, NZ50, and Singapore Indexes Lose Slightly
Australia’s ASX 200 lost 0.26% today. The index remained in a downward momentum within a narrow range today. 58 stocks in the index gained while 131 fell today. Among the sectors, industrials, healthcare, and basic materials were the only gainers today.
How NZ50, ASX, Singapore, KOSPI Indexes Fared Today
Australia’s ASX200 lost marginally today. Although the index was trading higher until noon, it erased those gains afterward. 70 stocks gained, while 118 fell. BHP Group (BHP) outperformed the index with marginal gains, while Rio Tinto (RIO) gained 0.64%.
ASX Recovers, KOSPI Is Flat, and Singapore Index Retreats
Australia’s ASX200 recovered today after a loss on Friday. After losing 0.55% on Friday, the index rose 0.22% today. Out of 200 stocks in the index, 83 advanced, while 103 retreated. 14 stayed unchanged today. BHP Group (BHP) and Rio Tinto (RIO) were among the gainers, while News Corp (NWSA) lost 1.29% on the Australian Stock Exchange today.
Rio Tinto’s Production Cut Could Propel Iron Ore Prices
On June 19, Rio Tinto (RIO) announced that it’s cutting its iron ore production guidance again for 2019. Rio Tinto’s production cut could be good news for seaborne iron ore prices and iron ore miners.
ASX Inched Closer to New High, KOSPI and Singapore Gained Big
On June 19, Australia’s ASX200 posted its second consecutive gain. The index rose 1.2% and closed at a fresh 11-year high of 6,648.10. The index is inching towards its lifetime high of 6,851.5.
Miners Pull ASX 200 Down, NZX 50 and Singapore Are Down Too
Australia’s S&P/ASX 200 fell 0.35% on June 17. The index traded in a narrow range as investors remained cautious. Out of the index’s 200 constituents, 62 stocks advanced, while 130 declined. Telecommunications, energy, and mining pulled the index down.
Supply or Demand: What Will Weigh on Iron Ore Prices More?
Tighter environmental controls are pushing Chinese mills to go for higher-quality imported ore as opposed to domestic ore. Seaborne iron ore exporters including Vale (VALE), BHP Billiton (BHP), and Rio Tinto (RIO) generate more than two-thirds of the total seaborne iron ore supply.
Why Iron Ore Prices Are Rising despite Disappointing Chinese Data
Iron ore prices are breaking one record after another. Today, Dalian iron ore futures reached a record of 797.5 yuan per ton (or $115.2), which is the highest level since Dalian iron ore futures started trading in 2013.
NZ50 Gains even as ASX and Singapore End Flat
After reaching an 11-year high yesterday, Australia’s S&P/ASX 200 dropped marginally and ended in the red today.
Why Iron Ore Prices Aren’t Facing Copper and Aluminum’s Losses
Chinese (FXI) iron ore imports have remained strong in 2019 year-to-date due to strength in steel production as prices remain high.
Will May’s Lower Chinese Iron Ore Imports Support Prices?
As China consumes more than 70% of seaborne-traded iron ore, it’s imperative for iron ore investors to track the country’s demand and outlook.
Record China Steel Production Supports Iron Ore despite Trade War
As the supply tightness in the seaborne iron ore market continues, there’s another factor supporting prices: Chinese steel demand.
Why Iron Ore Prices Are Bucking the Downtrend in Metals Prices
Iron ore supply tightness and continued demand from China have driven iron ore prices above $100 for the first time in the last five years.
Dalio’s Bridgewater: Stock Exits, Cuts, and Additions in Q1
For Ray Dalio’s Bridgewater Associates, the notable exits during the first quarter included U.S. Steel Corporation (X).
Why Iron Ore Prices Could Have More Upside after Breaching $100
Iron ore miners, including Vale, BHP Billiton, and Rio Tinto, have signaled reduced iron ore production, and steel mills aren’t prepared.
Vale’s Production Loss Has Become Its Peers’ Gain—Here’s How
Vale (VALE) published its first-quarter production report on May 8, making its shipment data much clearer.
Are Higher Iron Ore and Pellet Prices the New Normal?
Investors might recall that a major disaster struck Vale (VALE) on January 25, with a dam rupture at its iron ore mine in the Brazilian state of Minas Gerais (EWZ) killing more than 300 people.
Freeport-McMoRan: What to Expect after Last Week’s Sell-Off
Freeport-McMoRan (FCX), the leading US-based copper miner (XME), saw a selling spree after its first-quarter earnings were released.
Cleveland-Cliffs’ Upside: Vale’s Dam Burst and Supply Disruptions
Vale’s dam burst On January 25, a major disaster struck Vale (VALE) when a dam ruptured at one of its mines in Brazil (EWZ). More than 300 people died when the dam ruptured. Since then, there have been several injunctions on the company. Vale announced that it will decommission all of the dams built by the upstream […]
Cleveland Cliffs: Realized Price Expectations in 2019
Cleveland-Cliffs expects US (SPY) (IVV) realized prices to be $102.0–$107.0 per ton for 2019.
Iron Ore Prices Could Be Supported after Vale’s Mine Restart
Even though a Brazilian court gave Vale authorization to restart the Brucutu mine, Vale hasn’t increased its guidance.
Vale: No Production Upgrade despite Authorization to Reopen Mine
On April 16, a Brazilian (EWZ) court gave Vale (VALE) authorization to restart its operations at the Brucutu mine.
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 Goldman Sachs Advises Investors to Take Profits in Iron Ore
Like most other analysts, Goldman Sachs (GS) also increased its price forecast for iron ore due to the supply disruptions in Australia and Brazil (EWZ).
Why Is Barclays Optimistic on the Iron Ore Price Outlook?
Barclays is optimistic about the iron ore price outlook given the supply disruptions from Australian miners as well as Vale’s (VALE) dam disaster.
Credit Suisse Is Expecting a Push in Iron Ore Prices on Supply Deficit
As iron ore supply disruptions, at least from Vale (VALE), don’t look likely to go away easily, analysts have started another round of upgrades for iron ore prices.
Could Chinese Port Inventories Decline amid Supply Tightness
As the supply disruptions from the world’s two largest iron ore exporters, Brazil and Australia, have started showing in the export data, the fears of a supply crunch have gripped markets.
Is the Party Just Getting Started for Iron Ore Miners?
Iron ore prices are again touching multiyear highs.
Freeport-McMoRan’s Valuation: What’s Priced In?
Freeport-McMoRan (FCX) is valued at 9.4 times its 2019 expected EBITDA and 7.0 times its 2020 expected EBITDA.
Alcoa Could Be in for Another Challenge
Last year, Alcoa (AA) posted adjusted EBITDA of $3.1 billion, which was higher than what it posted in 2017.
Alcoa’s Outlook Looks Murky amid Conflicting Indicators
Alcoa (AA), the leading US-based aluminum producer, is having a somber year.
Could Iron Ore Gain from Vale’s Large Production Cut Expectation?
Vale’s (VALE) iron ore production came in at 101 million tons in the fourth quarter of 2018, an increase of 8.2% YoY (year-over-year).
Vale’s Q4 Results: Why Analysts’ Sentiments Are Trending Down
Vale (VALE) released its fourth-quarter and 2018 results on March 27. In 2018, it reported a net profit of $6.86 billion.
Vale’s Dam Burst Has Yet to Fully Reflect in CLF’s Prices
On January 25, a major disaster struck Vale (VALE) when a dam ruptured at its iron ore mine in the Brazilian (EWZ) state of Minas Gerais.
Vale’s Production Is Strong, Investors Await Q4 Results
On March 26, Vale (VALE) reported its fourth-quarter production. The company’s iron ore production was 101 million tons in the fourth quarter.
Why Vale’s Problems Will Likely Continue
Vale’s (VALE) problems don’t seem to be ending anytime soon. Since the disaster on January 25, Vale stock has fallen 13.5% as of March 25.
Chinese Slowdown Deepens: Industrial Output at 17-Year Low
China’s industrial production rose 5.3% YoY in January and February combined.
Alcoa’s Aluminum Exports Continue to Rise, Concerns Persist
After rising YoY for 14 consecutive months, China’s aluminum exports fell 7.8% YoY in February. The exports also fell 38% sequentially.
Moody’s Downgrade and Potential Fines Weaken Vale’s Outlook
Vale (VALE) could face $7 billion worth of fines in connection with the audit of the mining dam that collapsed.
Rio Tinto Beats 2018 Estimates and Declares Special Dividend
Rio Tinto (RIO) released its 2018 results on February 27. Its EPS of $5.12 beat consensus estimates by 5%.
Analyzing Alcoa’s 2019 Outlook
On paper, aluminum’s fundamentals look strong. Aluminum markets were expected to be in a deficit of 1.5 million metric tons last year.
Is Alcoa Undervalued like Analysts’ Estimates Suggest?
Although some analysts have lowered Alcoa’s target price, the consensus estimates still suggest a strong upside for the stock.
Should You Expect More Gains from Alcoa in 2019?
Alcoa (AA) has seen an upward price action of 13.5% in 2019 based on its closing prices on February 22.
Why Freeport-McMoRan Is Surging Today
Freeport-McMoRan (FCX), the leading US-based copper miner, is trading with gains of 5.5% as of 11:55 AM EST.
Which Analysts Expect Iron Ore Prices to Breach $100 and Why?
The true impact of Vale’s recent difficulties in terms of iron ore prices is still unknown.
Vale’s Loss Is Its Peers’ Gain—More Upside for Miners?
The clampdown on Vale (VALE) stock is expected to continue. It’s been spiraling downward since the dam disaster struck.
Will Iron Ore Breach $100 in the Wake of Vale’s Dam Collapse?
Following Vale’s (VALE) dam collapse on January 25, iron ore prices have been rising.
Vale: More Issues after the Dam Disaster
Vale stock fell ~6% on February 6 after the Wall Street Journal report. Investors should expect more pressure on Vale stock in the short term.
Why Is Cleveland-Cliffs Stock Soaring More than 15% Today?
Cleveland-Cliffs (CLF) stock has been soaring today. At 11:00 AM EST, the stock was up more than 15%.
Can China’s Real Estate Keep Supporting Its Economy This Year?
As China (FXI) is the world’s largest steel consumer, investors should watch the country’s steel demand.
What China’s Steel Price Trends Could Mean for Iron Ore Miners
Bumper margins prompted Chinese steel mills to continue increasing their output.
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.
Why China’s Iron Ore Demand Could Soon Weaken
As China consumes more than 70% of seaborne-traded iron ore, it’s imperative for iron ore investors to track the country’s demand and outlook.
Could China’s Slowdown Weigh on Iron Ore Prices This Year?
Iron ore prices were volatile last year, peaking at $79 per ton in February, plunging to $63 per ton in March, and taking off again soon after.
Is Freeport-McMoRan Preparing for an Eventual Sale?
Last year, rumors cropped up that Freeport-McMoRan (FCX) was up for sale.
Freeport-McMoRan: Should You Think Like Warren Buffett
Freeport-McMoRan Freeport-McMoRan (FCX) is valued at an EV-to-EBITDA (enterprise value-to-EBITDA) of 6.6x its 2019 expected EBITDA. Among other mining companies, Vale (VALE) and Rio Tinto (RIO) have EV-to-EBITDAs of 6.09x and 5.43x, respectively. Southern Copper (SCCO) has a 2019 EV-to-EBITDA of 7.7x. If we consider these valuation multiples alone, Freeport could appear relatively overpriced. However, as […]
Freeport-McMoRan’s Q4 Earnings: The Word on Wall Street
Freeport-McMoRan (FCX) is expected to release its fourth-quarter results on January 24.
Alcoa: Strong Q4 Numbers Can’t Hide Its Weakness
Alcoa (AA) released its fourth-quarter earnings on January 16 after the markets closed. The company reported revenues of $3.3 billion.
Alcoa Stock: Analysts Might Be a Little Too Optimistic
Alcoa has received a mean consensus target price of $49.93 from the analysts polled by Thomson Reuters.
Alcoa: 2019 Might Be the Real Test
Alcoa is expected to post revenues of $3.35 billion in the fourth quarter. The company posted revenues of $3.39 billion in the third quarter.
Why Analysts Expect Higher Earnings for Vale Going Forward
While Vale’s gains this year haven’t been much in absolute terms, it has outperformed most of its close peers.
Why Are Analysts Turning Around on Vale?
Among the three major seaborne iron ore miners we’re discussing in this series, Vale stock has the highest percentage of “buy” ratings.
Factors Driving Rio Tinto’s Earnings Estimates in 2019 and Beyond
Rio Tinto (RIO) (TRQ) stock has returned -9.8% YTD (year-to-date) as of December 21.
Analysts’ Latest Upgrades and Downgrades for Rio Tinto
Of the 16 analysts covering Rio Tinto (RIO) stock, 62.0% have given it “buys,” 25.0% have given it “holds,” and 13.0% have given it “sells.”
Should Alcoa Be on Your Shopping List for 2019?
As we noted previously in this series, Alcoa (AA) and other aluminum producers—including Century Aluminum (CENX)—are having a terrible year as aluminum prices have plunged.
Is Freeport-McMoRan Worth a Look Now?
Freeport-McMoRan (FCX), the leading US-based copper miner, has been struggling in 2018. The stock has fallen 44% year-to-date.
Will Chinese Steel Mills’ Pains Intensify with the Trade War?
Chinese steel producers have finally come under pressure after reaping significant benefits over the last three years.
China’s Iron Ore Imports Have Fallen, Outlook Remains Muted
China imported 86.25 million tons of iron ore in November, implying declines of 8.8% YoY (year-over-year) and 2.4% sequentially.
Is the Party Over for Commodities as China Steel Feels the Heat?
On November 26, iron ore prices collapsed, recording their largest one-day fall of 8.4% since April 2017.
How Vale’s Valuation Multiples Look
Currently, Vale (VALE) is trading at a forward EV-to-EBITDA multiple of 4.9x, which is a discount of 23% to its past five-year average multiple.
These Factors Could Boost Vale’s Cash Flows Going Forward
Vale (VALE) is expecting its cash flows to significantly expand going forward.
Vale Has Delivered on Deleveraging Plan: What’s Next?
At Vale Day in December 2017, Vale (VALE) had committed to reducing its net debt to $10 billion from $21 billion.
What Is Vale’s Iron Ore Price Outlook?
Vale’s (VALE) CEO mentioned during Vale Day that the recent weakness in iron ore prices was expected due to the start of the winter season in China.
Vale Stock Could Benefit from Focus on Shareholder Returns
Vale stock has outperformed its close peers on a year-to-date basis.
BHP Billiton Downgraded by JPMorgan, Added to Goldman’s Buy List
JPMorgan Chase analyst Lyndon Fagan downgraded BHP Billiton (BHP) from an “overweight” to a “neutral” rating on December 6.
Is There a Buying Opportunity in Alcoa?
Alcoa (AA), the leading US-based aluminum producer, fell 9.0% in November. Alcoa has fallen 41% in 2018.
How Are Copper Miners Placed in Q4 2018?
Copper prices have been largely rangebound during the past month. Copper prices have hovered above $6,000 per metric ton.
Is There More Heat Left in Freeport-McMoRan’s Rally?
Freeport-McMoRan (FCX) has seen a significant upside after the stock fell to its 52-week low after its third-quarter earnings were released.
What Really Changed for Alcoa after Trump’s Tariffs?
The US-China trade war and the general slowdown in China’s aluminum demand have taken a toll on aluminum prices.
Why Iron Ore Stocks Could Struggle to Hold Ground
Iron ore production by major miners (XME) including Vale (VALE), BHP (BHP), and Rio Tinto (RIO) continues to be strong.
Can Iron Ore Maintain Its Price Momentum amid China’s Slowdown?
China’s manufacturing growth in October was at its weakest level in over two years.
Alumina Price Volatility Makes Companies Rethink Strategies
Global aluminum markets have seen significant volatility this year. Aluminum prices topped the $2,500 per metric ton level in April.
Should Freeport Consider a Share Buyback?
In this article, we’ll look at the key updates the markets might be expecting on Freeport’s third-quarter earnings call.
Are Mining Companies Bullish on Copper?
Despite the rout in metal prices, diversified miners are still flush with cash thanks to strong iron ore prices.
Alcoa: Key Updates Markets Might Watch
During the second-quarter earnings release, Alcoa lowered its 2018 adjusted EBITDA guidance to $3.0 billion–$3.2 billion.
Why Analysts Are Still Bullish on Alcoa Stock
Alcoa (AA) carries a mean consensus price target of $58.3, which represents a 42.7% upside over its October 1 closing prices.
What’s Holding Back Alcoa Stock This Year?
Alcoa (AA), the leading US-based aluminum producer, is having a terrible year.
Are Miners Looking Cheap? J.P. Morgan Thinks So, Upgrades Rio Tinto
Today, J.P. Morgan (JPM) upgraded Rio Tinto (RIO), believing that demand from China (FXI) should pick up over the coming months.
Factors that Analysts Expect to Drive Rio Tinto’s Earnings Growth
In 2018, analysts expect Rio Tinto’s revenues to rise marginally, with a 0.4% year-over-year increase to $40.2 billion.
Rio Tinto Stock: Are Analysts Turning Away?
Of the 14 analysts covering Rio Tinto (RIO) stock, 57.0% recommend a “buy,” 29.0% recommend a “hold,” and 14.0% recommend a “sell.”
How Copper Miners Stacked Up in the First Half
The second-quarter earnings season is over, and most copper miners have released their quarterly financial performance results.
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.
Alcoa Stock: Can the Uptrend Continue?
Alcoa (AA) has seen upward price action in August. The stock has risen 4.3% in August, while it’s still down 16.2% YTD (year-to-date).