IRON ORE – PRICES

Protectionism hurts growth: BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 3 : 28-Apr-17

BHP Billiton’s Huw McKay says global economic growth in 2017 is likely to be at the higher end of the group’s recent forecast of between three and 3.5 per cent. However, he warns that global growth is likely to slow over the rest of the current decade as some nations adopt protectionist policies. McKay adds that this will in turn affect global demand for resource commodities. BHP’s Vicky Binns says factors such as a looming increase in iron ore supply and lower demand for steel in China are likely to weigh on the iron ore price in coming months.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Prices of iron ore grades ‘will narrow’

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Original article by Tess Ingram, Lisa Murray
The Australian Financial Review – Page: 21 : 24-Apr-17

The price of iron ore with 62 per cent iron content averaged $US85.52 per tonne in the March 2017 quarter, while lower-grade iron ore averaged $US52.96 per tonne. However, some analysts do not expect the price differential to be sustained. Mark Pervan of AME Group notes that Chinese steel mills are already beginning to use lower-grade iron ore again. Meanwhile, China Iron & Steel Association vice-president Li Xinchuang has forecast that the iron ore price will average about $US65 per tonne in 2017.

CORPORATES
AME GROUP PTY LTD, CHINA IRON AND STEEL ASSOCIATION, FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, UBS HOLDINGS PTY LTD, SHANGHAI STEELHOME INFORMATION TECHNOLOGY COMPANY LIMITED

Big miners defy iron ore price slide to hold firm

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Original article by Matt Chambers
The Australian – Page: 20 : 20-Apr-17

The iron ore price has shed 33 per cent in the last month, and it has now fallen to a six-month low. However, ratings agency Standard & Poor’s has upgraded its average price forecast for 2017 from $US55 per tonne to $US66. The firm has also upgraded Rio Tinto’s "A-" credit rating from "stable" to "positive", and flagged the potential for a further upgrade within 12-18 months. Shares in Australia’s three largest iron ore producers were resilient in local trading on 19 April, despite the falling iron price.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, STANDARD AND POOR’S FINANCIAL SERVICES LLC, NIKKO ASSET MANAGEMENT GROUP, MERRILL LYNCH (AUSTRALIA) PTY LTD, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED

Iron ore discounts take toll on Atlas

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Original article by Paul Garvey
The Australian – Page: 20 : 19-Apr-17

Iron ore miner Atlas Iron achieved an average price of $A62 per tonne in the March 2017 quarter, which is well below the average benchmark index price for the period. The company was affected by rising Chinese demand for higher grade ore, which widened the gap between the benchmark price and the lower-grade ore produced by Atlas. Adverse weather conditions in the Pilbara also resulted in Atlas’s shipments falling to 3.2 million tonnes, down from four million tonnes for the same period in 2016.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, THE STEEL INDEX LIMITED

Iron ore dives but stockpile declines

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Original article by Paul Garvey
The Australian – Page: 17 & 28 : 11-Apr-17

The spot price of iron ore for delivery to the port of Qingdao in China recently reached a low of $US75.45 per tonne, compared with a peak of $US94.86 in late February. However, China’s iron ore stockpiles have fallen by 1.1 million tonnes to 121 million tonnes since early April. The recent downturn in the spot price had been attributed to a sharp rise in Chinese stockpiles. Macquarie Group notes that demand for iron ore and steel will be boosted by the Chinese Government’s plans to develop the new Xiongan region.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, IRON ORE RESEARCH PTY LTD, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, COMMUNIST PARTY (CHINA)

Iron ore price begins slow descent to ‘normal’

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Original article by Tess Ingram, Lisa Murray
The Australian Financial Review – Page: 17 & 28 : 24-Mar-17

The spot price of iron ore in China has fallen by 7.7 per cent in two days, reaching a low of $US84.99 per tonne. SteelHome’s Du Hongfeng has attributed the fall to a downturn in the price of construction steel in China, which has in turn been prompted by moves by some Chinese cities to introduce stricter regulations for property speculators. Vivek Dhar of the Commonwealth Bank anticipates a "gradual" decline in the iron ore price, forecasting that it will fall to around $US60/tonne by the end of 2017.

CORPORATES
STEELHOME, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UBS HOLDINGS PTY LTD, CITIC LIMITED, BHP BILLITON LIMITED – ASX BHP

Port Hedland’s iron spirit surfaces again

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 21-Mar-17

Housing rent charges in Port Hedland rose by $A10 per week in the December 2016 quarter, according to data from the Pilbara Development Commission. It was the first quarterly rise in rents since 2012, and reflects the recent rebound in the iron ore price. The average advertised sale price of homes in Port Hedland rose for the first time since 2013. The average rent in Port Hedland is now $A506 per week, compared with nearly $A2,600 at the height of the mining boom. The iron ore price has reached a peak of more $US90 per tonne, but many forecasters do not expect this to be sustained.

CORPORATES
PILBARA DEVELOPMENT COMMISSION, EVANS AND PARTNERS PTY LTD, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, FIRST NATIONAL REAL ESTATE GROUP

Pause ahead of next Fed rate decision

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Original article by Timothy Moore
The Australian Financial Review – Page: 20 : 13-Mar-17

The US Federal Reserve is widely tipped to increase official interest rates in the week beginning 13 March 2017, and sharemarket trading volumes are likely to be subdued ahead of the monetary policy meeting. Stronger-than-expected growth in US jobs in February will strengthen the case for a rate rise. In contrast, most economists expect the Reserve Bank of Australia to leave the cash rate on hold in 2017. Meanwhile, Capital Economics forecasts that the iron ore price will fall to around $US45 per tonne.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, THE GOLDMAN SACHS GROUP INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, OANDA AUSTRALIA PTY LTD, EUROPEAN CENTRAL BANK

Fears grow of pullback in iron ore prices

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Original article by Paul Garvey
The Australian – Page: 22 : 8-Mar-17

Australian iron ore miners’ earnings have been boosted by the recent spike in the price of the steel input to more than $US90 per tonne, but Evans & Partners analyst Andrew Hines warns that the rally is not sustainable. He forecasts that the iron ore price will fall from its current level to around $US45 in the second half of 2017, which will in turn hit the profits and share prices of BHP Billiton, Rio Tinto and Fortescue Metals Group. Credit Suisse and UBS recently upgraded their iron ore price forecasts for 2017.

CORPORATES
EVANS AND PARTNERS PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, ATLAS IRON LIMITED – ASX AGO, VEDANTA RESOURCES PLC, MOUNT GIBSON IRON LIMITED – ASX MGX

Mixed views on dollar’s chance of hitting US80c

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Original article by David Rogers
The Australian – Page: 28 : 15-Feb-17

The Australian dollar rallied on 14 February 2017, benefiting from factors such as an upbeat business survey and a strong rise in the Chinese producer price index. The currency has reached a two-year high on a trade-weighted index basis, while it is within sight of the 2016 high of $US0.7835. However, the spot price of iron ore may not be sustainable at the current elevated level, while the gap between official interest rates in Australia and the US is likely to narrow as the Federal Reserve gears up to tighten monetary policy.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, JP MORGAN AUSTRALIA LIMITED