IRON ORE – PRICES – AUSTRALIA

China’s steel production to fall

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Original article by Sarah-Jane Tasker, Matt Chambers
The Australian – Page: 20 : 5-Feb-15

The iron ore price may fall to below $US60 ($A77) a tonne, having dropped 50% between September 2013 and early February 2015. The commodity is now trading at $US63, but China Iron & Steel Association executive vice secretary-general Li Xinchuang forecasts a further weakening in demand. In response, dominant Australian producers Rio Tinto and BHP Billiton have ramped up their output while also cutting their cash costs by nearly half. Lourenco Goncalves, CEO of US-based rival Cliffs Natural Resources, has criticised the strategy

CORPORATES
CHINA IRON AND STEEL INDUSTRY ASSOCIATION, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CLIFFS NATURAL RESOURCES INCORPORATED, WHITEHAVEN COAL LIMITED – ASX WHC, ILUKA RESOURCES LIMITED – ASX ILU, SOUTH32 LIMITED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, NIKKO ASSET MANAGEMENT GROUP

Iron ore set for $6bn in writedowns

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Original article by Matt Chambers
The Australian – Page: 18 : 28-Jan-15

Provisioning worth $A5.7bn combined due to the falling iron ore price has so far been announced by Australian producers Arrium, Citic Pacific, Atlas Iron, Mount Gibson Iron, Gindalbie Metals and Grange Resources. Fortescue Metals Group may join them when it issues its output data for the December 2014 quarter on 29 January 2015, while the commodity on 27 January declined a further $US2.88 to $US63.54 a tonne. Fortescue shares closed 2.4% lower at $A2.09, after an intraday low of $A1.92 that had not been seen since 2009

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ARRIUM LIMITED – ASX ARI, ATLAS IRON LIMITED – ASX AGO, MOUNT GIBSON IRON LIMITED – ASX MGX, GINDALBIE METALS LIMITED – ASX GBG, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CITIC PACIFIC LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, METAL BULLETIN PLC, UBS HOLDINGS PTY LTD, BAILLIEU HOLST LIMITED

Iron ore glut spurs ‘race to bottom’

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Original article by Jemima Whyte, Matthew Stevens
The Australian Financial Review – Page: 15 & 21 : 13-Oct-14

Australian producers BHP Billiton and Rio Tinto are responding to the recent dramatic decline of the iron ore price with a boost in output. The strategy is being criticised by Nev Power, CEO of third-ranked competitor Fortescue Metals Group, as well as by Alberto Calderon. The latter had spearheaded the ultimately abandoned plan to merge BHP and Rio, and also argues that a currently rumoured takeover bid for Rio by Swiss resources house Glencore would not reverse the price trend for iron ore

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, GLENCORE PLC, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, PERPETUAL LIMITED – ASX PPT, PERPETUAL INVESTMENTS

BC Iron signals tough times ahead for the Pilbara as ore price pushes two-year low

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Original article by Barry FitzGerald
The Australian – Page: 17 : 28-Aug-14

BC Iron has announced a 2013-14 full-year net profit increase from $A71.4m to $A72.9m. However just 15% of the earnings were generated in the second six months, demonstrating the major negative impact of the weaker iron ore price. The commodity has declined 35% to below $US90 a tonne so far in calendar 2014. BC’s 12-month distribution has also been cut by $A0.03, to $A0.32. MD Morgan Ball says the iron ore price will not fall further

CORPORATES
BC IRON LIMITED – ASX BCI, IRON ORE HOLDINGS LIMITED – ASX IOH, MOUNT GIBSON IRON LIMITED – ASX MGX, ATLAS IRON LIMITED – ASX AGO, FOSTER STOCKBROKING PTY LTD

BHP, Rio buyback plans put in doubt

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Original article by Matt Chambers
The Australian – Page: 17 : 7-Jul-14

Analysts at Macquarie and Credit Suisse have voiced doubts on whether planned stock repurchasing schemes of BHP Billiton and Rio Tinto will go ahead. Both Australian-listed groups have been affected by a recent drop in the iron ore price, which may cost investors the equivalent of $US11bn ($A11.7bn) in cash. The companies want to reduce their net liabilities before buying back shares, with BHP aiming for $US25bn by mid-2015 and Rio for $US13bn by late that year

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, GLENCORE XSTRATA PLC, TRAFIGURA BEHEER BV, X2 RESOURCES PARTNERS LP, JINCHUAN NON-FERROUS METALS IMPORT AND EXPORT COMPANY, MMG LIMITED

Fortescue exec tips rebound for iron ore price

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Original article by Andrew Burrell
The Australian – Page: 17-18 : 30-Jun-14

Fortescue Metals Group is confident that the price of iron ore will recover. CFO Stephen Pearce feels that the drop to $US89 a tonne on 16 June 2014 was the bottom of the trough in the present price cycle. He believes that the price will rise to about $US110 a tonne and remain at that level for a while. His view is based on strong Chinese economic data and the market adjustment to the increase in supply. Pearce warned that prices of $US150 and above were not likely to occur again

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP