Investments & Deals
U.S. Government Invests in Nickel Mining in $25 Million Deal
US Steel Guidance: A Negative Read for Cleveland-Cliffs
Cleveland-Cliffs (CLF) and its US steel peers are on a roller-coaster ride in 2019. CLF fell 25.5% in August alone. Year-to-date, it’s up 6.4%.
CLF Stock: Buy Now in the Current Dip?
Cleveland-Cliffs, Inc (CLF) stock is having a roller coaster ride in 2019, as well as its US steel peers. CLF’s stock declined by 25.5% in August.
Digging into Cleveland-Cliffs before Its Q2 Earnings
Cleveland-Cliffs (CLF) is set to release its Q2 earnings before markets open on July 19, and hold a conference call with analysts and investors at 9:00 AM Eastern Time that day.
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 […]
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.
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.
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.
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.
Company & Industry Overviews
Vale’s Dam Disaster Could Continue to Provide Upside to CLF
A major disaster struck Vale (VALE) on January 25 when a dam burst at one of its iron ore mine sites.
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.
Company & Industry Overviews
Is the Worst Behind Vale? BAML Upgrades the Stock to a ‘Buy’
Vale (VALE) stock has been on the receiving end ever since one of the dams at its mine in Brazil burst on January 25.
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.
As Vale Warns of a Possible Dam Collapse, Iron Ore Surges
According to Reuters, on May 16, Vale (VALE) told prosecutors that a dam was at risk of rupturing at its Gongo Soco mine.
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.
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.
Will Steel Prices Go Aluminum’s Way in 2019?
Last year, alumina prices surged to record highs. US sanctions on RUSAL coupled with the closure of Norsk Hydro’s Alunorte refinery lifted alumina prices.
What China’s March Trade Data Could Mean for Metal Investors
China’s trade data is especially crucial for metal and mining investors (XME) given the country’s dominant share in global metal consumption.
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.
US Steel Lagged, Other Steel Stocks Rose in Q1
AK Steel (AKS) outperformed other US steel stocks and rose 22.2% in the first quarter. Cleveland-Cliffs continued to outperform steel stocks.
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.
How Is Vale’s Base Metals Segment Performing?
Vale’s (VALE) copper production in 2018 was 395,500 tons—a decline of 9.8% YoY (year-over-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.
Why Analysts Could Raise Their Earnings Estimates for CLF
Cleveland-Cliffs (CLF) has guided for production and sales volumes of 20 million tons each this year, including 500,000 tons of direct-reduced grade pellets to be delivered to its HBI (hot briquetted iron) plant in Toledo.
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.
Company & Industry Overviews
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.
AK Steel: What Could Drive the Stock This Year
Steel companies are facing across-the-board cost inflation for raw materials such as coke and electrodes.
Chinese Slowdown Deepens: Industrial Output at 17-Year Low
China’s industrial production rose 5.3% YoY in January and February combined.
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%.
How Long Will Cleveland Cliffs Continue to Buy Back Stock?
Since the new management took over Cleveland-Cliffs (CLF) in August 2014, the company has turned around for the better.
Q4 Earnings: Why Cleveland-Cliffs’ Upside Could Be Far from Over
Similar to 2018, Cleveland-Cliffs stock has significantly outperformed its peers year-to-date in 2019.
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.