IRON ORE – PRICES

FMG in iron price talks amid volatility

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Original article by Paul Garvey
The Australian – Page: 20 : 9-Aug-17

Fortescue Metals Group CEO Nev Power says the pure-play iron ore miner has held talks with steel mills and industry associations about addressing recent volatility in the price of the steel input. However, he says there is unlikely to be any support for a return to the fixed pricing system. Power adds that speculative futures trading has been a major contributor to the iron ore price volatility.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, DIGGERS AND DEALERS FORUM, EASTERN GOLDFIELDS LIMITED – ASX EGS, NORTHERN STAR RESOURCES LIMITED – ASX NST, GALAXY RESOURCES LIMITED – ASX GXY, GENERAL MINING CORPORATION LIMITED

Yawning gap in iron ore prices here to stay

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Original article by Tess Ingram, James Thomson
The Australian Financial Review – Page: 20 : 4-Aug-17

The differential between the benchmark price of iron ore and lower-grade ore has widened in recent months, which affected the earnings of miners such as Fortescue Metals Group and BC Iron in the June 2017 quarter. Fortescue expects the discount to narrow in the second half of fiscal 2018, but Rio Tinto CEO Jean-Sebastien Jacques forecasts that it will be sustained for some time. He argues that the shift is structural rather than cyclical. and he says China’s move to close down inefficient steel mills has been a major driver of the shift.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BC IRON LIMITED – ASX BCI, ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, MOUNT GIBSON IRON LIMITED – ASX MGX, SMORGON STEEL GROUP LIMITED

Iron awe: metal surges but investors cautious

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Original article by Matt Chambers
The Australian – Page: 22 : 2-Aug-17

The price of iron ore for delivery to ports in China has risen to its highest level since early April 2017. However, the share prices of Australia’s three largest iron ore producers have not benefited significantly from the rise in the price of the steel input. Market observers have differing views on the reasons for the rise in the iron price, while Vale CEO Fabio Schvartsman expects it to remain at around the current level in the near-term.

CORPORATES
VALE SA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DOW JONES NEWSWIRES, REUTERS HOLDINGS PLC, DALIAN COMMODITY EXCHANGE, PLATTS, THE STEEL INDEX LIMITED

Unseasonal iron ore rally boosts budget

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Original article by Peter Ker
The Australian Financial Review – Page: 10 : 21-Jul-17

The iron ore price peaked at a three-month high above $US70 a tonne on 20 July. The price of the steel input has risen by 31 per cent in just over a month, and it has averaged $US65.12 a tonne since the start of July. Paul Bloxham of HSBC estimates that this will increase the Australian Government’s revenue by about $US1.25bn in 2017-18. The May 2017 Budget had forecast that iron ore would average $US55 a tonne in 2017-18. Bloxham expects the iron ore price to fall to around $US50 a tonne by late 2017.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, UBS HOLDINGS PTY LTD

Analysts trim commodity forecasts, examine mining

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Original article by Myriam Robin
The Australian Financial Review – Page: 20 : 10-Jul-17

The iron ore price was trading above $US62 per tonne on 7 July 2017, but the latest forecasts from Australia’s Department of Industry, Innovation & Science suggest that it could test $US48 by 2018. The Department says the price of copper could fall by 4.1 per cent in 2018, while it expects metallurgical coal to fall by 28 per cent to $US137 a tonne in 2018. Capital Economics also forecasts that the iron ore price will fall, and UBS has downgraded its forecast for the copper price in 2017-18.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, CAPITAL ECONOMICS LIMITED, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG, T ROWE PRICE GROUP INCORPORATED

Iron ore dive hits revenue expectations

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 7-Jul-17

Australia’s revenue from resource and energy exports will peak at $A205bn in 2016-17, according to revised forecasts from the Department of Industry, Innovation & ­Science. This is 4.6 per cent lower than it had forecast earlier in 2017, and the new forecast takes into account a sharp fall in the iron ore price in recent months. The department is bearish about the outlook for the steel input, forecasting that the benchmark price will fall to $US48 per tonne in 2018 and $US47 in 2019. It also anticipates a fall in the price of coking coal.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIAN BUREAU OF STATISTICS

Fortescue tipped to hit export guidance

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Original article by Tess Ingram
The Australian Financial Review – Page: 27 : 6-Jul-17

Fortescue Metals Group had forecast that it would export about 170 million tonnes of iron ore in 2016-17. Analysts expect its export volumes to be at the higher of its guidance, although its exports for the June quarter will need to be around 44 million tonnes. BHP Billiton’s iron ore shipments for the year are also expected to be at the higher end of its guidance. Meanwhile, Peter O’Connor of Shaw & Partners expects the iron ore price to retreat to around $US50 per tonne in the second half of 2017.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, ROY HILL HOLDINGS PTY LTD

Fortescue confident of even more cost cutting

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 29-Jun-17

Iron ore miner Fortescue Metals Group aims to achieve a "C1" unit cost of production of between $US12 and $US13 per tonne in 2016-17, compared with $U50/tonne several years ago. Greg Lilleyman, Fortescue’s director of operations, is confident that the company can further reduce its costs. While he acknowledges that it will be hard to match its recent cost performance in coming years, he says there are still opportunities for more cost savings. Lilleyman also expects the price discount of lower-grade iron compared with the benchmark price to narrow.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO

Iron ore fall continues but Deutsche says China steel demand will hold

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Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 15-Jun-17

The spot price of iron ore for delivery to the port of Qingdao in China has fallen below $US54 per tonne, its lowest level in 12 months. A number of factors have contributed to the recent downturn in the iron ore price, including a sharp fall in Chinese steel exports, a growing move toward protectionism by other steel-producing nations and China’s move to reduce steel capacity. However, Deutsche Bank expects demand for steel in China to remain relatively strong.

CORPORATES
DEUTSCHE BANK AG, ROY HILL HOLDINGS PTY LTD

US miner lauds activist campaign against BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 1-May-17

Cliffs Natural Resources CEO Lourenco Goncalves contends that the recent fall in the price of iron ore is in part the fault of BHP Billiton CFO Peter Beaven. He had forecast that the iron ore price would weaken in a speech on 9 March 2017, and the price has been in decline since then. Goncalves has welcomed the activist campaign being waged against BHP by Elliott Associates, while also accusing BHP of over-production of iron ore.

CORPORATES
CLIFFS NATURAL RESOURCES INCORPORATED, BHP BILLITON LIMITED – ASX BHP, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG, ARCONIC INCORPORATED, CASABLANCA CAPITAL LP, ROY HILL IRON ORE PTY LTD