IRON ORE – PRICES

ANZ tips iron ore to retest lows, surplus

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Original article by Timothy Moore
The Australian Financial Review – Page: 26 : 14-Jan-16

The iron ore price fell by 39 per cent during 2015, reaching a low of $US38.30 an ounce in mid-December. The price of the steel input has since recovered slightly, but Daniel Hynes and Anurag Soin of the ANZ Bank expect it to retreat again when Chinese steel mills restock following the Chinese New Year holiday period. Hynes and Soin are bearish about the outlook for iron ore in 2016, forecasting a 2.8 per cent decline in demand for steel in China.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BLOOMBERG LP, ROY HILL IRON ORE PTY LTD

Gindalbie ‘at risk’ of collapse

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Original article by Paul Garvey
The Australian – Page: 18 : 13-Jan-16

The future of Gindalbie Metals is uncertain following Ansteel’s decision to cease providing funding for the Karara magnetite ore mine in Western Australia. The Chinese group has a 52 per cent stake in the mine, which has a workforce of 1,000. Gindalbie has advised that there now are doubts about its ability to continue as a going concern, prompting its shares to fall to a record low of $A0.08 on 12 January 2016. The stock traded at $A1.40 in 2011, when the iron ore price was around $A180 per tonne.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Fears grow for 1000 mine jobs

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Original article by Barry FitzGerald
The Australian – Page: 17 : 11-Jan-16

Shares in Gindalbie Metals went into a trading halt in the week ended 8 December 2016, ahead of an announcement regarding the Karara magnetite mine. Gindalbie has a 47.84 per cent stake in the Western Australian mine, which is operating at a loss due to the downturn in the iron ore price. China-based Ansteel owns 52.16 per cent of the mine, and its continued support will be essential for the mine to remain open.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, KARARA MINING LIMITED, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR

Top iron ore shipper predicts prices to fall 19pc in 2016

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Original article by Jasmine Ng
The Australian Financial Review – Page: Online : 23-Dec-15

The iron ore price recently rose above $US40 per tonne, after reaching a low of $US38.50 in early December 2015. However, Australia’s Department of Industry, Innovation & Science is bearish about the outlook for the steel input. It now expects the spot price of iron ore with 62 per cent content to average $US41.30 per metric ton in 2016, after previously forecasting an average price of $US51.20.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, METAL BULLETIN LIMITED, GOLDMAN SACHS AUSTRALIA GROUP HOLDINGS PTY LTD

Iron ore’s jump to more than $US40 a tonne unlikely to last

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Original article by Jens Meyer
The Australian Financial Review – Page: 27 : 22-Dec-15

The spot price of iron ore for delivery to China’s Port of Qingdao recently recovered to $US40.10 per tonne, after falling to $US38.30 in early December 2015. However, most analysts surveyed by Reuters do not expect a significant rebound in the iron ore price in 2016. The median forecast is that iron ore with 62 per cent content for delivery to China will average $US47/tonne. However, Clarksons Platou Futures’ Kelly Teoh forecasts an average price of $US38.50/tonne.

CORPORATES
REUTERS HOLDINGS PLC, CLARKSONS PLATOU FUTURES, PORT OF QINGDAO, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG, ROY HILL IRON ORE PTY LTD

Rivals ‘hanging on by fingernails’

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Original article by Jesse Riseborough, Jonathan Ferro
The Australian Financial Review – Page: 16 : 17-Dec-15

The iron ore price has shed 45 per cent so far in 2015, falling below $US40 per tonne in early December. Rio Tinto CEO Sam Walsh says many iron ore producers are struggling to remain viable given the current price of the steel input, and it is inevitable that some will withdraw from the sector. Walsh adds that Rio Tinto’s record low debt means it is well-placed to prosper in 2016.

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

Iron ore’s red streak hits 11 days

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Original article by Daniel Palmer
The Australian – Page: Online : 14-Dec-15

The price of benchmark iron ore for immediate delivery to China’s port of Tianjin has fallen by 1.3 per cent to $US37.00 a tonne, compared with $US37.50 previously. The iron ore price has risen in just four of the last 45 trading sessions, and it has now fallen for 11 consecutive sessions. The downturn in the iron ore price has prompted BC Iron to put production at its Nullagine mine in Western Australia on hold, while Fortescue Metals Group founder Andrew Forrest has again criticised the expansion plans of BHP Billiton and Rio Tinto.

CORPORATES
PORT OF TIANJIN, BC IRON LIMITED – ASX BCI, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Rinehart dreams, rival falters

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Original article by Peter Ker, Julie-anne Sprague
The Age – Page: 23 : 11-Dec-15

Bulk carrier "MV Anangel Explorer" departed Port Hedland with the first shipment of iron ore from Gina Rinehart’s Roy Hill project on 10 December 2015. Despite the downturn in the iron price, Roy Hill CEO Barry Fitzgerald is confident that the $A10bn project will be profitable, while executive director Tad Watroba notes that the bulk of its output will be sold via supply contacts rather than on the spot market. Meanwhile, BC Iron has advised that a review of its Nullagine iron ore mine will have no impact on its other mines.

CORPORATES
ROY HILL IRON ORE PTY LTD, HANCOCK PROSPECTING PTY LTD, BC IRON LIMITED – ASX BCI, FORTESCUE METALS GROUP LIMITED – ASX FMG, SHAW AND PARTNERS LIMITED, POSCO, MARUBENI CORPORATION, CHINA STEEL CORPORATION, UBS HOLDINGS PTY LTD

Iron ore resumes slide, falling to fresh record low

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Original article by
The Australian Financial Review – Page: Online : 11-Dec-15

The price of iron ore with 62 per cent content delivered to the port of Qingdao in China has fallen by 1.4 per cent to $US38.52 per dry ton. Falling demand for iron ore in China’s steel industry is likely to put further downward pressure on the iron ore price, with a number of Chinese steel mills having closed down or scaled back production in recent months.

CORPORATES
PORT OF QINGDAO, METAL BULLETIN LIMITED, DALIAN COMMODITY EXCHANGE, PORT OF TIANJIN, THE STEEL INDEX LIMITED, THE GOLDMAN SACHS GROUP INCORPORATED, SHANGHAI FUTURES EXCHANGE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ROY HILL IRON ORE PTY LTD, MARUBENI CORPORATION

Iron ore price plunge to blow $15bn hole in budget

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Original article by David Uren
The Australian – Page: 2 : 10-Dec-15

The Australian Government’s Mid-Year Economic and Fiscal Outlook will need to contend with the sharp decline in the iron ore price since the May 2015 Budget. Revenue projections in the Budget were based on an average iron ore price of $US48 per tonne, but the price of the steel input has since fallen below $US40/tonne. The downturn in the iron ore price could reduce the Budget bottom line by around $A15bn over the next four years.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC