IRON ORE – PRICES

Fortescue offers BC Iron some rail access slack

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Original article by Tess Ingram
The Australian Financial Review – Page: 31 : 28-Oct-15

The iron ore price was trading at $US51.03 per tonne on 27 October 2015. A new rail tariff deal between Fortescue Metals Group and BC Iron will reduce the latter’s costs by about $A2.3m if the price remains at around this level. The partners in the Nullagine joint venture will trial a new rail access regime whereby the tariff rate is linked to the iron ore price.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI

Iron ore tipped to hit $US40 by March after Chinese woes

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Original article by Mark Mulligan
The Australian Financial Review – Page: 26 : 23-Oct-15

The iron ore price fell by 0.3 per cent to $US52.79 per tonne on 22 October 2015. Ivan Szpakowski of Citigroup forecasts that the iron ore price will fall to $US50/tonne by the end of 2015 and around $US40/tonne in the first quarter of 2016. He attributes the bearish outlook to factors such as slowing demand for iron ore in China and an increase in global supply.

CORPORATES
CITIGROUP PTY LTD, SHANGHAI BAOSTEEL GROUP CORPORATION, METAL BULLETIN PLC, PRESTIGE ECONOMICS

Supply cuts and firmer demand may lift prices

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Original article by Rose Powell
The Australian Financial Review – Page: 31 : 21-Oct-15

The iron ore price has fallen by 25.2 per cent so far in 2015 and 48.3 per cent in the last year. Oversupply has also prompted the price of Brent crude oil to fall by 15.05 per cent in 2015 and 47.1 per cent over the last 12 months. Julian Jessop of Capital Economics expects the crude oil price to rebound more quickly than iron ore. Meanwhile, HSBC forecasts that iron ore will continue to trade within a range of $US50 to $US60 per tonne for the next several years.

CORPORATES
CAPITAL ECONOMICS LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, MORGAN STANLEY AND COMPANY INCORPORATED, CITIGROUP PTY LTD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, ROY HILL IRON ORE PTY LTD

BHP’s Mackenzie bullish on China

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Original article by John Kehoe
The Australian Financial Review – Page: 20 : 18-Sep-15

The iron ore price fell by 3.2 per cent to $US62 per tonne on China’s Dalian Commodity Exchange on 17 September 2015. BHP Billiton CEO Andrew Mackenzie concedes that rising iron ore output could put further downward pressure on the price of the steel input. However, Mackenzie says he is much more upbeat about the economic outlook for China – the key market for Australian commodities – than he was earlier in 2015.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, DALIAN COMMODITY EXCHANGE, RIO TINTO LIMITED – ASX RIO, UNITED STATES CHAMBER OF COMMERCE, WORLD BANK, APPLE INCORPORATED, DEMOCRATIC PARTY (UNITED STATES)

$A overshoots as iron ore export volumes up again

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Original article by Mark Mulligan
The Australian Financial Review – Page: 26 : 10-Sep-15

The Australian dollar is trading at around $US0.70, having recently fallen to $US0.6896. However, Annette Beacher of TD Securities argues that the rebound in the iron ore price means the currency should be trading at the $US0.76 level. Meanwhile, Beacher says the Reserve Bank is likely to maintain the cash rate at two per cent in the wake of the currency’s recent downturn.

CORPORATES
TD SECURITIES, RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, GROUP OF TEN (G-10)

BHP’s Mackenzie says China has ‘bottomed’

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Original article by James Chessell, Amanda Saunders
The Australian Financial Review – Page: 17 : 27-Aug-15

BHP Billiton CEO Andrew Mackenzie has played down fears about China’s economy, claiming it was showing signs of recovery. He agreed with Apple CEO Tim Cook that there was still solid demand in China. Mackenzie forecast its second half financial year would be better than the first. BHP posted a 51 per cent fall in underlying annual profit to $US6.4 billion ($A8.9 billion) because of a slump in commodity prices.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, APPLE INCORPORATED, GLENCORE AUSTRALIA PTY LTD

Iron ore recovery to be ‘short term’

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Original article by Rose Powell
The Australian Financial Review – Page: 23 : 31-Jul-15

The price of iron ore rose by 4.57 per cent on 30 July 2015, to $US55.89 per tonne, after reaching a low of $US45 earlier in the month. Kelly Teoh of Clarksons does not expect the upturn to be sustained and warns that the iron ore price will fall again. Ric Spooner of CMC Markets agrees, noting that the commencement of production at projects such as Roy Hill will weigh on the iron ore price.

CORPORATES
CLARKSONS, CMC MARKETS PTY LTD, BLOOMBERG LP, ROY HILL IRON ORE PTY LTD, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, QUAY EQUITIES PTY LTD

Rinehart lieutenant bullish on ore, flags Roy Hill delays

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Original article by Perry Williams
The Australian Financial Review – Page: 13 & 18 : 27-Jul-15

Iron ore was trading at $US51 per tonne on 24 July 2015, but Hancock Prospecting executive director Tad Watroba expects it to rebound to $US80, due to factors such as continued strong demand from China. Meanwhile, Watroba has indicated that factors such as inclement weather and safety concerns will delay the start of production at the Roy Hill iron ore project until early October. Production had been initially slated to commence in September.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, CHINA IRON AND STEEL INDUSTRY ASSOCIATION, POSCO, MARUBENI CORPORATION, CHINA STEEL CORPORATION, CREDIT SUISSE (AUSTRALIA) LIMITED

Goods prices tipped to bottom out

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 23 : 24-Jul-15

The iron ore price is currently trading at around $US51.76 per tonne, while thermal coal is fetching $US60.45 a tonne and crude oil is trading at $US56.11 per barrel. A report from the World Bank forecasts that the prices of all three commodities will remain subdued for the remainder of 2015, although an upturn is expected in 2016. Iron ore is forecast to average $US55 per tonne in 2015, before rising to $US56.70 in 2016.

CORPORATES
WORLD BANK, THE GOLDMAN SACHS GROUP INCORPORATED, MORGAN STANLEY AND COMPANY INCORPORATED, UBS HOLDINGS PTY LTD, BLOOMBERG LP, CITIGROUP PTY LTD, RBC CAPITAL MARKETS

Mt Gibson iron ore mine may close if prices stay low

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Original article by Tess Ingram
The Australian Financial Review – Page: 22 : 16-Jul-15

Mount Gibson Iron achieved a 15 per cent reduction in costs at its Extension Hill iron ore mine in Western Australia during the second half of 2014-15. The group aims to further reduce costs in 2015-16, with production slated to rise from three million tonnes per annum to at least 3.5 million tonnes. However, CEO Jim Beyer has not ruled out closing the mine if the iron ore price remains subdued. The steel input is trading at around $US50 per tonne.

CORPORATES
MOUNT GIBSON IRON LIMITED – ASX MGX