SPDR® S&P Metals and Mining ETF

Gold remains the most dominant among the four precious metals. It’s crucial that investors analyze how the miners are moving versus precious metals.

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.

As per the latest JOLTS report, about 3.2 million American workers quit their jobs voluntarily in September.

Most precious metals had a down day on Tuesday, October 10, despite the recent overall upward movement in precious metals.

As per the latest JOLTS report, about 2.1 million Americans quit their jobs voluntarily in August, which was a decrease of 70,000 from the previous reading.

Steel stocks have recouped some of their losses in the last two trading sessions. However, U.S. Steel Corporation (X) and AK Steel (AKS) have lost 5.3% and 4.1%, respectively, month-to-date based on their September 27 closing prices.

As per the latest JOLTS report, about 3.2 million Americans quit their jobs voluntarily last month. This is an increase of 0.1 million from the previous month.

Steel companies have high sensitivity to steel prices and their earnings tend to be volatile. Spot steel prices have been volatile in the last few years.

Led by its superior assets, location, and geological advantages, Compass Minerals holds a competitive position with a wide economic moat rating.

Latin American (ILF) equities in June 2017 remained steady amid the political turmoil among its member nations.

According to Peru’s Ministry of Economy and Finance, the El Niño–related infrastructure damages were close to $4 billion.

After falling to five-week low price levels on May 2, crude oil prices are stable in the early hours on May 3. The market opened higher on Wednesday.

Century Aluminum (CENX) was among the best-performing aluminum stocks (NHYDY) (ACH) (SOUHY) last year with gains of 94%.

Gold (GLD) and silver (SLW) are weaker in the early hours due to the firmer dollar and expectations of a US interest rate hike in the Fed’s March meeting.

It’s important to monitor the implied volatilities of large mining stocks as well as their RSI levels, particularly after changes in precious metal prices.

At 5:00 AM EST on December 9, the WTI crude oil futures contract for January 2017 delivery was trading at $51.21 per barrel—a rise of ~0.71%.

Copper prices are stable in the early hours on December 8. China’s upbeat trade balance data are supporting the sentiment in the copper market.

Crude oil prices are weaker early on November 29 amid speculations about the supply cuts. Russia confirmed that it wouldn’t attend OPEC’s meeting.

The market is also waiting for the weekly crude oil inventory reports from the U.S. Energy Information Administration and the American Petroleum Institute.

Goldman Sachs has gone bullish on commodities. The finance major, which is the biggest commodities dealer (in sales), has advised clients to go overweight.

One of the key features of steel companies’ 3Q16 financial performance was lower-than-expected revenues.

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.

3M company owes much of its innovative culture to William McKnight, who became the General Manager of the company in 1914.

Zinc has gained more than 15% in 2016 so far, outperforming other base metals in the same category.

Even the recent uptick in US steel prices has been accompanied by strength in steel scrap prices.

In its 4Q15 earnings release on January 27, 2016, Cliffs Natural Resources (CLF) may provide a further update on its venture into a direct reduced iron business.

In 2015, Fortescue Metals Group (FSUGY) and Cliffs Natural Resources (CLF) fell 35% and 78%, respectively.

In the week ended January 9, copper and tin inventories increased. Levels for other base metals fell.

2015 has been tough for miners, especially due to the price rout in the commodities market. The commodities market has fallen about 24.3% since the start of the year.

Brazil’s government has announced that it intends to start legal proceedings against Samarco, Vale, and BHP Billiton for Samarco’s tailings dam failure.

The usage of aluminum in automobiles has been gradually increasing, as it improves vehicle performance, reduces CO2 emissions, and boosts fuel economy.

Gold futures trading on COMEX, the commodity division of the New York Mercantile Exchange, fell 0.91% on December 2, 2015. Also, platinum fell 0.36%.

Alcoa’s stock has witnessed a decent upwards move over the last few trading sessions, gaining more than 16% since November 12.

While major mining companies like Freeport-McMoRan and Glencore are declaring copper production cuts, BHP Billiton says it is reluctant to decrease its copper production.

In its 2Q15 results, Cliffs Natural Resources (CLF) downgraded its volume guidance for the USIO division for 2015, from 20.5 million tons to 19 million tons.

Market expectations for Cliffs Natural Resources (CLF) are varied. Of the analysts covering Cliffs, one has a “buy” recommendation, eight have a “hold,” and seven have a “sell.”

The third quarter of 2015 hasn’t been good for iron ore equities. Most of them lost significant value during the quarter.

Cliffs Natural Resources (CLF) will release its 3Q15 results before the US market opens on October 29, 2015. A conference call will occur at 10:00 AM ET on October 29.

Iron ore prices fell 49% in 2014, which was reflected in the share price performance of major miners. In this series, we’ll discuss the position of various iron ore players on the cost curve relative to iron ore prices.

Rio Tinto’s (RIO) underlying EBITDA (earnings before interest, taxes, depreciation, and amortization) was $7.3 billion for 1H15.

Within four trading days of its 1H15 results, Rio Tinto’s stock price rose 3%. This is despite a 1.7% fall in benchmark seaborne iron ore prices.

Iron ore shipments through Port Hedland reached an all-time high of 39.2 million tons in August as compared to 35.3 million tons in July.

Chinese credit easing measures should positively impact the steel industry. This will help iron ore companies like Rio Tinto and BHP Billiton.

Since the end of July, benchmark iron ore prices have been holding steady near $55–$57 per ton. This is despite the continuing slide in other commodities amid China slowdown worries.

Nucor’s net revenues fell ~18% in 2Q15, compared to the corresponding quarter last year. Most steel companies have reported lesser revenues in 2Q15 as well.

With the recent news of activist investor Carl Icahn taking an 8.5% stake in the company coupled with Freeport’s lower capital expenditure guidance, the stock has seen a smart up move.

Iron ore costs are key to determining BHP’s iron ore segment’s profitability, which ultimately impacts its stock price and relative performance.

Newbuild vessel prices for all of the ship sizes remained constant in July 2015—compared to June 2015—according to data from Athenian Shipbrokers.

BHP Billiton’s (BHP) (BBL) underlying EBITDA was $21.9 billion for fiscal 2015. This is a fall of 28% year-over-year (or YOY). Operating income also fell 46% YoY in fiscal 2015.

BHP Billiton (BHP) (BBL), the world’s largest miner by market capitalization, reported its fiscal 2015 results on August 25. The results were mostly in line with market expectations.