IRON ORE

Chinese steel has peaked: Rio boss

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 2-Aug-23

Official figures show that China’s crude steel production fell by 21.7 million tonnes year-on-year in 2022, to 1.01 billion tonnes. Rio Tinto CEO Jakob Stausholm believes that China’s steel production has peaked and output will be flat over the next several years, before starting to decline by the end of this decade. However, Stausholm expects global demand for iron ore to remain strong, as steel production in other developing countries increases. He adds that Chinese steel producers may also opt to build steel mills in other countries.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Vale fights to meet iron ore guidance

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 4-Jun-20

Macquarie Wealth Management’s analysis of port data shows that BHP, Rio Tinto and Fortescue Metals Group are on track to achieve their iron ore export guidance for 2020. However, Macquarie believes that Brazilian rival Vale will struggle to meet its full-year guidance of 310 million to 330 million tonnes, despite ramping up shipments in the last two weeks. Macquarie estimates that Vale will need to export more than six million tonnes per week to achieve the lower end of its guidance; its weekly shipments have averaged 4.5 million tonnes so far in the June quarter.

CORPORATES
BHP GROUP LIMITED – ASX BHP,RIO TINTO LIMITED – ASX RIO,FORTESCUE METALS GROUP LIMITED – ASX FMG,VALE SA,MACQUARIE WEALTH MANAGEMENT

Rio Tinto to take iron ore exports crown as Vale struggles

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 26 : 24-Jul-19

Rio Tinto and Brazilian rival Vale are both expected to record lower iron ore shipments in 2019 than the previous calendar year. New data shows that Vale exported 138.5 million tonnes of iron ore during the first half of 2019, a decline of 18 per cent year-on-year. Vale expects its shipments to rise in the second half, with full-year exports to be around the midpoint of its guidance of between 307 million and 332 million tonnes. This suggests full-year exports of around 319.5 million tonnes. Rio Tinto in turn expects to ship between 320 million and 330 million tonnes of iron ore for the year.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, KUMBA RESOURCES LIMITED

Welcome to the futures: Dalian’s iron ore pitch

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Original article by Glenda Korporaal
The Australian – Page: 20 : 1-Oct-18

Glencore and Trafigura are among the international companies that have commenced trading iron ore on the Dalian Commodity Exchange since it was opened to foreign companies in May. The exchange’s CEO Wang Fenghai would like BHP Billiton, Rio Tinto and Fortescue Metals Group to trade on the exchange, adding that an unnamed Australian company already does so. The Dalian exchange launched iron ore trading contracts five years ago, and it now accounts for 96 cent of global iron ore futures trading.

CORPORATES
DALIAN COMMODITY EXCHANGE, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, GLENCORE PLC, TRAFIGURA BEHEER BV, CARGILL INCORPORATED, HEBEI IRON AND STEEL COMPANY LIMITED, VALE SA

Iron ore miners bend to China’s will

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Original article by Rhiannon Hoyle
The Australian – Page: 22 : 6-Jun-18

Global iron ore producers are responding to growing demand for higher-grade iron ore in China by shifting production away from low-grade ore. They include Fortescue Metals Group, Vale and Cleveland-Cliffs. Fortescue recently announced plans to develop the Eliwana mine in Western Australia, with its output to be blended with lower-grade ore from the company’s other mines in the Pilbara. BHP also intends to blend ore from its proposed South Flank project with lower-grade ore.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, VALE SA, CLEVELAND-CLIFFS INCORPORATED, RIO TINTO LIMITED – ASX RIO

Rio Tinto digs in as Vale raises iron ore grades

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 19-Feb-18

Brazilian iron ore miner Vale has advised that the average iron grade of its ore rose to 64.3 per cent in the December 2017 quarter. Vale has been progressively increasing the quality of its iron ore, due to factors such as increased output at its higher-grade mines and a corresponding fall in production at mines that yield lower-grade ore. Although Vale has indicated that it aims to further lift the average grade of its iron ore, Rio Tinto has ruled out similar action at its Australian iron ore mines.

CORPORATES
VALE SA, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIC LIMITED, ANSHAN IRON AND STEEL COMPANY

BHP guidance for iron ore unchanged

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Original article by Timothy Moore, James Thomson
The Australian Financial Review – Page: 15 : 19-Oct-17

BHP Billiton has advised that it produced 64 million tonnes of iron ore in the September 2017 quarter, which is four per cent lower than the same period in 2016. However, BHP still expects iron ore production to be within the range of 275 and 280 million for 2017-18. Meanwhile, copper production rose by 14 per cent to 404,000 tonnes during the quarter, while petroleum production was down eight per cent to 50 million barrels of oil equivalent.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RBC CAPITAL MARKETS, ELLIOTT MANAGEMENT CORPORATION

China’s call for higher grade iron ore a worry

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 23-May-17

Research by UBS shows that the break-even cost for producers of lower-grade iron ore has increased due to the widening spread between such iron ore and the benchmark index price. As a result, the break-even cost for Fortescue Metals Group has risen by $US13 per tonne to $US43 in the last 12 months. Fortescue is likely to be affected by Chinese steel mills’ growing demand for higher-quality iron ore as less efficient mills are closed down.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, DEUTSCHE BANK AG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Fortescue shares sink as Vale deal stalls

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Original article by James Thomson
The Australian Financial Review – Page: 21 : 15-Sep-16

Vale’s Peter Poppinga says a proposed iron ore blending joint venture with Fortescue Metals Group is unlikely to be finalised before the end of 2016. He says negotiations between the two groups are taking longer than anticipated, with the pricing of their iron ore products believed to be a key issue. Fortescue CEO Nev Power has been more upbeat, suggesting in July that the deal could be finalised in the near-term. Fortescue shares have gained 153 per cent so far in 2016.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, BLOOMBERG LP

New Rio boss signals end of iron ore wars

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Original article by James Chessell, James Thomson
The Australian Financial Review – Page: 21 & 24 : 4-Jul-16

BHP Billiton, Rio Tinto and Vale have significantly increased iron ore production in recent years. However, Rio’s new CEO Jean-Sebastien Jacques has indicated that rather than increasing output, the group will prioritise productivity and operational gains at its iron ore mines in the Pilbara region of Western Australia. Jacques also says Rio would be interested in acquiring quality assets, but only at the right price, and the group’s focus is likely to be on expanding its existing mines.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, CHINA. ASSETS SUPERVISION AND ADMINISTRATION COMMISSION, ANGLO-ASIA PROPERTY, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, GLENCORE PLC, CHINA MOLYBDENUM COMPANY LIMITED, BARRICK GOLD CORPORATION, ANTOFAGASTA PLC