IRON ORE – PRICES

What will stop the iron ore drop?

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 29 : 26-Nov-15

The downturn in the iron ore price has prompted some observers to forecast that it will fall below $US40 per tonne. However, Daniel Morgan of UBS says a number of factors may bode well for the steel input’s outlook. They include the expectation that more smaller producers will withdraw from the market and the potential for the tailings dam disaster at the Samarco project to reduce supply in the short-term. On the other hand, the outlook for the Chinese economy and US interest rates may put further downward pressure on iron ore.

CORPORATES
UBS HOLDINGS PTY LTD, SAMARCO MINERACAO SA, BHP BILLITON LIMITED – ASX BHP, METAL BULLETIN PLC, MORGAN STANLEY AND COMPANY INCORPORATED, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, UNITED STATES. FEDERAL RESERVE BOARD

Iron ore plunges to 10-year low

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Original article by Daniel Palmer
The Australian – Page: Online : 25-Nov-15

The price of iron ore for immediate delivery to China’s port of Tianjin has fallen by 1.8 per cent to its lowest level in a decade, at $US43.40 per tonne. The previous low of $US44.10 per tonne was recorded in July 2015. The sharp decline in the iron ore price has weighed heavily on Australian producers, with BHP Billiton, Rio Tinto, Fortescue Metals Group, BC Iron and Mount Gibson Iron recording double-digit share price falls in the last month.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, PORT OF TIANJIN, THE STEEL INDEX LIMITED, GUOTAI JUNAN SECURITIES COMPANY LIMITED, VALE SA

Fed, China fears hit iron ore, copper

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Original article by Jacob Greber, Stephen Cauchi
The Australian Financial Review – Page: 1 & 13 : 19-Nov-15

The latest downturn in the iron ore price will put pressure on Australia’s terms of trade as Treasurer Scott Morrison prepares to release a Budget update in late 2015. Budget forecasts in May were based on an average iron ore price of $US48 per tonne in 2015-16. Although the price of the steel input rebounded to around $US60 in July, it has fallen to $US45.58 in mid-November. Slower growth in wages will also impact on government revenue.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RIO TINTO LIMITED – ASX RIO, UNITED STATES. FEDERAL RESERVE BOARD, BLOOMBERG LP

Fortescue tips iron ore demand, as price falls

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Original article by Peter Ker, Tess Ingram
The Australian Financial Review – Page: 25 : 19-Nov-15

The iron ore price fell by 4.5 per cent to $US45.68 per tonne on 18 November 2015. However, Fortescue Metals Group CEO Nev Power is upbeat about the outlook for iron ore, saying there are signs of an improvement in China’s housing construction market. Power adds that Fortescue is not "actively" considering asset sales at present, and says Chinese steel mills are more likely to look at investing in the sector when the iron ore price begins to rebound.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, ATLAS INTERNATIONAL TRAVEL, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, GRANGE RESOURCES LIMITED – ASX GRR, ROY HILL IRON ORE PTY LTD, VALE SA, SAMARCO MINERACAO SA, CLIFFS NATURAL RESOURCES INCORPORATED, RBC CAPITAL MARKETS

Iron ore drops to four-month low

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Original article by Mark Mulligan
The Australian Financial Review – Page: 33 : 18-Nov-15

The price of iron ore for delivery to the port of Qingdao in China has fallen by 0.83 per cent to $US47.74 per tonne. This is the steel input’s lowest level since early July, when it reached a low of $US44.59 per tonne. Analysts expect a further downturn in China’s demand for iron ore as its economic growth slows and infrastructure development winds down.

CORPORATES
UBS AG, LONDON METAL EXCHANGE LIMITED

Twiggy predicts iron ore prices will fall further

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Original article by Julie-anne Sprague
The Australian Financial Review – Page: 21 & 28 : 12-Nov-15

The iron ore price is currently trading at around $US48 per tonne, and Fortescue Metals Group chairman Andrew Forrest has forecast that it could remain below $US50 in the near-term. He has again criticised BHP Billiton and Rio Tinto for ramping up iron ore production during a period of price weakness. Meanwhile, 19.3 per cent of shareholders at Fortescue’s 2015 AGM voted against its remuneration report.

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

China mining boom last in history

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Original article by Peter Ker
The Australian Financial Review – Page: 10 : 11-Nov-15

Australian economist Saul Eslake has warned that the prices of many industrial commodities are likely to fall further in the next year or two. Eslake is particularly bearish about the outlook for the price of coal and iron ore. Eslake also told the International Mining and Resources Conference that there is unlikely to be another commodities boom on the scale of the one that was driven by China’s industrialisation. He argues that other developing countries have significantly smaller populations and are less dependent on commodity imports.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Low oil prices won’t stop LNG boom: HSBC

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 4-Nov-15

HSBC’s global head of commodities, Jean-Francois Lambert, expects the crude oil price to trade within a range of $US45 to $US55 per barrel over the next several years. However, he is upbeat about the outlook for Australian LNG producers, arguing that they will adapt to the lower oil price, which has in turn put downward pressure on LNG prices. Meanwhile, HSBC expects the iron ore price to fall to $US52 per tonne in 2016.

CORPORATES
HSBC HOLDINGS PLC

BHP sees bleak iron ore future

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 4-Nov-15

The price of iron ore has shed 16 per cent in the last eight weeks, reaching a low of $US49.50 per tonne on 2 November 2015. Alan Chirgwin of BHP Billiton is bearish about the outlook for the steel input, forecasting that it will keep falling in the next several years and eventually trade at the break-even price of an unspecified iron ore producer in Australia or Brazil. He expects supply to continue to exceed demand in the next several years. BHP’s Shaun Verner also expects the price of metallurgical coal to remain subdued in the near-term.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, ROY HILL HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Iron ore to fall further, says Albanese

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Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 30-Oct-15

The iron ore price fell to $US49.95 per tonne on 28 October 2015, and Vedanta Resources CEO Tom Albanese expects it to come under more downward pressure. He cites factors such as China’s slowing economy and the nation’s falling steel production, which has coincided with increased iron ore output in Australia and Brazil. BC Iron and Grange Resources are particularly vulnerable to a lower iron ore price, as their break-even prices are above $US50/tonne.

CORPORATES
VEDANTA RESOURCES PLC, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR, ATLAS IRON LIMITED – ASX AGO, MOUNT GIBSON IRON LIMITED – ASX MGX, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ANGLO AMERICAN PLC, VALE SA, UBS HOLDINGS PTY LTD, CHINA METALLURGICAL INDUSTRY PLANNING ASSOCIATION, SUPREME COURT OF INDIA