IRON ORE – PRICES

Pressure on lower grade iron ore miners as discount widens

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Original article by Tess Ingram, James Thomson
The Australian Financial Review – Page: 17 : 16-Jun-16

The benchmark spot price of iron ore has shed 23 per cent since the start of May 2016. Meanwhile, the discount on lower-grade iron ore has increased from 9.8 per cent in early January to 21 per cent in mid-June, after peaking at 26 per cent in late May. Peter O’Connor of Shaw & Partners says the widening price discount is having a big impact on producers of lower-grade iron ore.

CORPORATES
SHAW AND PARTNERS LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, MORNINGSTAR PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

No relief in sight for iron ore bulls

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 28 : 3-Jun-16

Morgan Stanley notes that global iron ore production will rise by 41 million tonnes in the second half of 2016, followed by an additional 78 million tonnes in 2017. The looming increase in global supply does not bode well for the price of the steel input, which has fallen by more than 30 per cent since late April 2016. BHP Billiton, Rio Tinto and Vale are among the iron ore producers that will increase their output in coming years, as new projects or mine expansions reach full production capacity.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, ROY HILL IRON ORE PTY LTD, SAMARCO MINERACAO SA

Stockpiles of iron ore drive prices lower

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Original article by Matt Chambers, Barry FitzGerald
The Australian – Page: 19 & 28 : 25-May-16

New data shows that iron ore stockpiles at Chinese ports have risen to 100.45 million tonnes, which is the highest level in 14 months. This could put further downward pressure on the benchmark price of iron ore, which has retreated from recent highs. Macquarie Group now expects the iron ore price to average about $US50 per tonne in 2017, compared with its previous forecast of $US45.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, METAL BULLETIN LIMITED, ATLAS IRON LIMITED – ASX AGO, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, BLUESCOPE STEEL LIMITED – ASX BSL, ARRIUM LIMITED – ASX ARI, RESERVE BANK OF AUSTRALIA

Iron ore blows hole in budget

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Original article by David Uren
The Australian – Page: 6 : 11-May-16

Revenue forecasts in the Australian Government’s May 2016 Budget are based on expectations that the iron ore price will average $US55 over the next two years. The price of the steel input is currently trading at around this level, but futures market quotes in Singapore suggest that it could fall to about $US50. Meanwhile, Justin Smirk of Westpac warns that the iron ore price could potentially fall below $US40, before stabilising at about $US42.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Treasury’s medium-term price forecast paints unsettling picture

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Original article by Geoff Winestock
The Australian Financial Review – Page: B13 : 4-May-16

The Australian Government’s May 2016 Budget forecasts include a 1.35 per cent increase in the nation’s terms of trade in 2016-17. The Mid-Year Economic and Fiscal Outlook had forecast a 2.25 per cent decline in the terms of trade. Meanwhile, the Treasury has upgraded its forecast for the iron ore price in 2017 from $US39 per tonne to $US55. The price of metallurgical coal has been upgraded from $US73 per tonne to $US91.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

China bid to cool ore trading welcomed

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Original article by Paul Garvey
The Australian – Page: 20 : 28-Apr-16

A sharp rise in iron ores futures trading in China is believed to have contributed to recent volatility in the price of the steel input. Atlas Iron MD David Flanagan recently visited China, and says he was told that many so-called "mum and dad" investors are actively trading iron ore futures. The Dalian Commodity Exchange has sought to rein in futures trading activity by doubling its trading fees.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, DALIAN COMMODITY EXCHANGE, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, THE GOLDMAN SACHS GROUP INCORPORATED, CLARKSONS PLATOU

Brace ‘for another $129b’ in deficits

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 26-Apr-16

Chris Richardson of Deloitte Access Economics expects the Australian Government to announce a 2016 Budget deficit of $A41.7bn, compared with $A37.9bn in 2015. It would also be $A4.3bn higher than the Government had forecast in the mid-year Budget update. Richardson downplays the impact of the recent rally in the iron ore price on the deficit, arguing that slowing growth in wages will have a bigger effect on government revenue.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY

Iron ore price leaps to 10-month high

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Original article by Frik Els
Mining.com – Page: Online : 21-Apr-16

The Northern China benchmark import price of iron ore has risen by four per cent to $US64.30 per dry metric tonne. This is its highest level since June 2015. The price of the steel input has risen by almost 50 per cent so far in 2016, and 11.8 per cent during the current week’s trading.

CORPORATES
THE STEEL INDEX LIMITED, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA

Macquarie tips $US48 iron ore

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 35 : 20-Apr-16

The iron ore price is trading at around $US60 per tonne, but Macquarie Group does not expect the recent gains to be sustained. Macquarie forecasts that the price of the steel input will retreat to around $US52/tonne during the June and September 2016 quarters, before falling to $US48/tonne in the December quarter. Macquarie also expects the iron ore price to reach a low of $US45/tonne in 2017.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, CITIGROUP PTY LTD, RIO TINTO LIMITED – ASX RIO

Iron ore price reverses as Rio Tinto predicted

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Original article by Frik Els
Mining.com – Page: Online : 15-Apr-16

The Northern China benchmark import price of iron ore has fallen by 2.2 per cent to $US58.60 per dry metric tonne. However, the price of the steel input has still risen by 36.6 per cent so far in 2016, and by 58 per cent since mid-December 2015.

CORPORATES
THE STEEL INDEX LIMITED, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, THE GOLDMAN SACHS GROUP INCORPORATED