China iron ore drive delivers $9bn boost

Original article by Geoff Chambers
The Australian – Page: 4 : 24-Jul-20

Finance Minister Mathias Cormann says the federal government has maintained "cautious and conservative assumptions" regarding the outlook for the iron ore price. The steel input is trading at around $US110 per tonne, but the government now expects it to be fetching $US55 a tonne by the end of 2020. It had forecast in December that the iron ore price would fall to $US55 by the end of June. Cormann stresses that the resources sector has been a major contributor to the domestic economy’s resilience during the coronavirus pandemic.

CORPORATES
AUSTRALIA. DEPT OF FINANCE

Iron ore surge a $100b elixir for coronavirus

Original article by Brad Thompson
The Australian Financial Review – Page: 15 & 21 : 9-Jun-20

The rally in the price of iron ore to more than $US100 a tonne will boost federal government revenue by about $2.3bn. The 2019-20 Budget forecasts were based on the iron ore price averaging about $US62 when shipping costs are included, but it is currently averaging more than $80 a tonne. Australia’s export revenue from iron ore is set to top $100bn in 2019-20, eclipsing the previous annual record of $76bn in 2018-19. Meanwhile, shares in Australia’s three major iron ore producers have rallied since the end of March, and investors are set to receive big dividend payouts for the financial year.

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

Boom times back for iron ore

Original article by Nick Evans
The Australian – Page: 13 & 20 : 22-May-20

Adrian Prendergast of Morgans Financial says continued strong demand from China could see the iron ore price rise above $US120 a tonne. Reduced output by Brazilian iron ore group Vale is also likely to boost the price of the steel input; Prendergast notes that Vale’s shipments have totalled just 91 million tonnes so far in 2020, and it will have to ramp up production to meet its revised full-year guidance of 310 to 330 million tonnes. Meanwhile, Australian iron ore miners have downplayed the impact of China’s new rules for inspecting iron ore imports, stressing that they had been planned for some time and were implemented after extensive consultation.

CORPORATES
MORGANS FINANCIAL LIMITED, VALE SA, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG

Iron ore rally tempts marginal miners back

Original article by Peter Ker
The Australian Financial Review – Page: 15 : 20-May-20

Shares in Australian iron ore producers rallied on 19 May, as the price of the steel input approaches $US100 a tonne. The iron ore price has gained about 17 per cent since the end of April, boosting the prospects of marginal iron ore projects as well as the major producers. Nathan River Resources recently received regulatory approval to resume mining at its Roper Bar project in the Northern Territory. It is expected to shortly commence exports of about one million tonnes of iron ore.

CORPORATES
NATHAN RIVER RESOURCES

China pays more for iron ore

Original article by Peter Ker
The Australian Financial Review – Page: 1 & 16 : 19-May-20

The iron ore price has risen by more than 13 per cent since the end of April, and futures pricing suggests that further gains are likely. The price of the steel input has been resilient during the coronavirus pandemic, due to factors such as continued strong demand for iron ore in China and the fact that major producer Brazil has been hit hard by the virus. Citigroup’s analysts expect the continued strong price of iron ore to result in the resources sector paying out $14.4bn in dividends for 2019-20. The banking sector in turn is tipped to pay out $14.7bn.

CORPORATES
CITIGROUP PTY LTD, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG

Finally a profit for Citic iron ore mine

Original article by Nick Evans
The Australian – Page: 16 : 5-May-20

The annual report of Citic indicates that the Chinese group’s Sino Iron magnetite project in the Pilbara was profitable for the first time in 2019. The $16bn project benefited from the strong price of iron ore during the year, with its revenue rising by 15 per cent. Mining and processing magnetite is more expensive and uses more energy than traditional iron ore projects, but the fact that Sino Iron has made a profit will give encouragement to other proponents of magnetite, including Fortescue Metals Group.

CORPORATES
CITIC LIMITED, SINO IRON PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, KARARA MINING LIMITED

Brazil struggles may prolong iron ore boom

Original article by Peter Ker
The Australian Financial Review – Page: 21 : 24-Jan-20

Brazilian miner Vale will release a market update on 11 February, but several sources have suggested that its iron ore exports so far in January are significantly lower than previously. Vale had flagged lower shipments in the first quarter of 2020, although it has advised that export volumes would rise later in the year. Nevertheless, lower exports from Brazil could see the price of iron ore remain high in the near-term, which would boost the earnings of Australian producers and federal government revenue.

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

Fast-tracked income tax cuts unlikely

Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 18-Dec-19

Treasurer Josh Frydenberg has not ruled out bringing forward the next stage of the federal government’s income tax cuts package, which is due to take effect in mid-2022. However, sources have indicated that this is unlikely given the reduction in projected Budget surpluses over the next four years. Meanwhile, Chris Richardson of Deloitte Access Economics argues that bringing forward the second stage of the tax cuts to 2020-21 would require the iron ore price to remain about $US15 per tonne higher throughout that financial year.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, BUSINESS COUNCIL OF AUSTRALIA, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

China appetite for ore strong, says Fortescue

Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 16-Dec-19

Fortescue Metals Group CEO Elizabeth Gaines is upbeat about the outlook for the iron ore price in 2020. She says the benchmark price will continue to benefit from inventory restocking ahead of the Chinese New Year, while she does not expect the price gap between benchmark iron ore and the lower-grade ore produced by Fortescue to widen much. Fortescue received 89 per cent of the benchmark price during the September 2019 quarter, after the gap had widened significantly in mid-2018.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Trade surplus declines on lower iron ore price

Original article by Matthew Cranston
The Australian Financial Review – Page: 10 : 4-Oct-19

Official figures show that Australia recorded a trade surplus of $5.9bn in August, compared with a record $8bn in June. The total value of exports of goods and services fell by $1.4bn in August, and imports fell by $137m. A downturn in the price of iron and coal was the major contributor to the lower trade surplus. The value of iron ore exports declined by 12 per cent during the month, with the price of the steel input falling from a peak of $US120 per tonne to $US91. However, iron ore export volumes increased by 15 per cent.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, COMMONWEALTH SECURITIES LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB