SUPPLY AND DEMAND

Protectionism hurts growth: BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 3 : 28-Apr-17

BHP Billiton’s Huw McKay says global economic growth in 2017 is likely to be at the higher end of the group’s recent forecast of between three and 3.5 per cent. However, he warns that global growth is likely to slow over the rest of the current decade as some nations adopt protectionist policies. McKay adds that this will in turn affect global demand for resource commodities. BHP’s Vicky Binns says factors such as a looming increase in iron ore supply and lower demand for steel in China are likely to weigh on the iron ore price in coming months.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

PM orders gas giants: Aussies first

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Original article by Sarah Martin
The Australian – Page: 1 & 4 : 27-Apr-17

The Federal Government will introduce an "Australian Domestic Gas Security Mechanism", which is aimed at ensuring that domestic gas supply is sufficient to meet forecast demand. Resources Minister Matt Canavan will be given the power to block gas exports to ensure that gas users on the east coast have access to sufficient gas. Prime Minister Malcolm Turnbull says the government aims to ensure that the domestic price of gas is affordable and reflects global export prices.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, COCONUT AIRLINES, ROYAL DUTCH SHELL PLC, GLADSTONE LNG PTY LTD, AUSTRALIA PACIFIC LNG LIMITED, QUEENSLAND CURTIS LNG PTY LTD, AGL ENERGY LIMITED – ASX AGL

Government may step in, PM warns gas sector

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Original article by Sarah Martin
The Australian – Page: 1 & 2 : 20-Apr-17

Prime Minister Malcolm Turnbull held further talks with energy industry CEOs on 19 April 2017, as part of the Federal Government’s efforts to resolve the gas crisis. However, the energy groups’ failure to offer new strategies to increase domestic gas supplies prompted Turnbull to raise the prospect of more government intervention in the sector. The Government has also asked the Australian Competition & Consumer Commission to use its inquiry powers to investigate the domestic gas market over the next three years.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, ROYAL DUTCH SHELL PLC, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, THE AUSTRALIAN INDUSTRY GROUP

Santos warns ‘hot air’ inflating gas debate

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Original article by Leo Shanahan
The Australian – Page: 17 & 20 : 19-Apr-17

Executives from LNG producers will meet with Prime Minister Malcolm Turnbull on 19 April 2017. Santos CEO Kevin Gallagher has cautioned against government intervention to address the gas crisis on the east coast, arguing that it is not the role of governments to "pick winners and losers". He adds that lack of sufficient development of gas resources is the main cause of the crisis. Opposition Leader Bill Shorten believes that the government should step in to resolve the crisis, saying domestic gas users should be prioritised over export customers.

CORPORATES
SANTOS LIMITED – ASX STO, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, GLADSTONE LNG PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, ROYAL DUTCH SHELL PLC, QUEENSLAND CURTIS LNG PTY LTD

Iron ore dives but stockpile declines

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Original article by Paul Garvey
The Australian – Page: 17 & 28 : 11-Apr-17

The spot price of iron ore for delivery to the port of Qingdao in China recently reached a low of $US75.45 per tonne, compared with a peak of $US94.86 in late February. However, China’s iron ore stockpiles have fallen by 1.1 million tonnes to 121 million tonnes since early April. The recent downturn in the spot price had been attributed to a sharp rise in Chinese stockpiles. Macquarie Group notes that demand for iron ore and steel will be boosted by the Chinese Government’s plans to develop the new Xiongan region.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, IRON ORE RESEARCH PTY LTD, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, COMMUNIST PARTY (CHINA)

Iron ore price begins slow descent to ‘normal’

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Original article by Tess Ingram, Lisa Murray
The Australian Financial Review – Page: 17 & 28 : 24-Mar-17

The spot price of iron ore in China has fallen by 7.7 per cent in two days, reaching a low of $US84.99 per tonne. SteelHome’s Du Hongfeng has attributed the fall to a downturn in the price of construction steel in China, which has in turn been prompted by moves by some Chinese cities to introduce stricter regulations for property speculators. Vivek Dhar of the Commonwealth Bank anticipates a "gradual" decline in the iron ore price, forecasting that it will fall to around $US60/tonne by the end of 2017.

CORPORATES
STEELHOME, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UBS HOLDINGS PTY LTD, CITIC LIMITED, BHP BILLITON LIMITED – ASX BHP

Gas crunch bites with price hikes

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 1 : 6-Jan-17

Manufacturers have raised concerns about imminent shortages in gas supply and their impact on prices. Mark Chellew, chairman of Manufacturing Australia, says a period of between mid-2017 and late 2018 will be particularly difficult. According to EnergyQuest, a supply shortfall will reach 172 petajoules in 2020 and 205 petajoules in 2025.

CORPORATES
MANUFACTURING AUSTRALIA LIMITED, ENERGYQUEST PTY LTD, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, VICTORIA WOOL PROCESSORS, ENERGYAUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Continued iron ore rally faces threat as supply worry returns

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Original article by Ranjeetha Pakiam
The Australian Financial Review – Page: 16 : 5-Jan-17

The price of iron ore may be negatively affected by oversupply and lower demand. Having risen 81 per cent to around $US80 a tonne in 2016, it is unlikely to continue to climb in 2017. Rising iron ore prices have had a positive impact on share prices of Australian-listed mining companies, with Rio Tinto’s shares gaining 34 per cent in value in 2016.

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

Home affordability shapes as key issue

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Original article by Matthew Cranston
The Australian Financial Review – Page: 11 : 22-Dec-16

Tim Lawless of CoreLogic says housing affordability is likely to be a major issue in 2017. CoreLogic has co-authored a report which shows that while 86 per cent of a household’s income was required to save a 20 per cent deposit for a home in September 2001, this had blown out to 139 per cent in September 2016. It has risen from 117 per cent to 168 per cent in Sydney over the last 15 years, and from 93 per cent to 143 per cent in Melbourne. Federal Treasurer Scott Morrison argues that insufficient housing supply is the main cause of unaffordability, a view shared by leading property groups.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN NATIONAL UNIVERSITY, URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA, STOCKLAND – ASX SGP, FRASERS PROPERTY AUSTRALIA PTY LTD

Mining sector costs on rise as cycle turns

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Original article by Paul Garvey
The Australian – Page: 15 & 16 : 19-Dec-16

There are indications of an upturn in mining industry activity in Australia in the wake of rising commodity prices. Independence Group CEO Peter Bradford notes that there is growing demand for mining equipment and the services of mining contractors, as well as growing competition for skilled labour. Fortescue Metals Group CEO Nev Power adds that it is becoming more difficult for the iron ore miner to achieve further cost savings, particularly with the rising oil price, which has in turn increased the cost of diesel fuel.

CORPORATES
INDEPENDENCE GROUP NL – ASX IGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BARMINCO PTY LTD, DFP RECRUITMENT SERVICES PTY LTD, REGIS RESOURCES LIMITED – ASX RRL, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD