Iron Ore  

Iron ore price rally could give BHP, Rio Tinto 30% earnings boost

Spot iron ore prices rose from $75 per tonne to $95 per tonne in the weeks following the Brumadinho dam disaster at Vale’s (NYSE: VALE) Feijao iron ore mine in Brazil, before settling in at about $85 per tonne, according to the latest research on the global iron ore market by the Macquarie Group.

Spot prices are now back up at the $95 per tonne level as lower shipment volumes out of Australia mainly due to Cyclone Veronica have contributed to supply disruptions from Brazil, analysts at the Australian investment bank and financial services company report. Spot prices are now back up at the $95 per tonne level as lower shipment volumes out of Australia mainly due to Cyclone Veronica have contributed to supply disruptions from Brazil

In addition, premiums for high grade ore and discounts for lower grade ore have shrunk since the Brumadinho tragedy, Macquarie points out. Prices have risen by about 35% year-to-date for lower grade ore, while the premium for high grade ore has increased by 23% year to date.

Vale’s share of total shipments from Brazil has dropped to about 50% from a peak of about 90%, the report states. “While initially the quantum of decline was managed by the selling of stockpiles, recent sharp declines shows the extent of the supply disruption.”

The supply/demand dynamics benefit Australia’s iron ore miners.

“At spot prices all covered Australian iron ore miners see a substantial increase in forecast calendar year earnings per share,” the report stated. “BHP, Rio Tinto, and Mineral Resources Inc. see CY19 EPS increase by about 30% each, while the pure-play exposure is highlighted in Fortescue Metals Group and Mt. Gibson Iron as CY19 increases by 60% and 120% respectively in a spot scenario.”

News No: 4321
Date: 2019/04/11 - 16:48
News Source: MINING.COM

Iron ore  BHP  VALE  Brazil  Macquarie Group 


Leave a Comment:


SQM to acquire 80% interest in Revelo's copper projects in Chile

Revelo Resources (TSXV: RVL) and Sociedad Química y Minera de Chile (NYSE: SQM) signed this week an exploration option agreement under which the latter can acquire up to an 80% interest in Calvario and Mirador, two of Revelo's copper-focused projects in northern Chile.

Mosaic suspends phosphate mines in Brazil after new rules for dams

The Mosaic Company, a Brazilian fertilizer maker, said on Thursday it will suspend production at its phosphate mines of Tapira and Catalão after failing to obtain a deadline extension in order to provide stability certification for three of its tailings dams.

Global Iron Ore & Pellet Import Market Scenario in 2018

The total iron ore & pellet imports in CY18 witnessed at 1,342 MnT. Amongst the major importing countries include China, Japan, India, South Korea, and Bahrain.

Indian Iron Ore Exports May Hit 5 MnT in Q1 FY20

Iron ore exports from India may hit 5 million tonnes (MnT) in Q1 FY20 on high demand for low grade from China, according to SteelMint analysis.

How Much Iron Ore Supply Disruption is Expected in CY19 - SteelMint Analysis

As per SteelMint analysis, amidst the disruption and additions by global iron ore producers and exporters, the iron ore market for the year is expected to witness a shift against market demand and supply in CY18.

Turkey Ferrous Scrap Imports Hit 9 Year Low in Feb'19

Turkey, the world's largest ferrous scrap importer has observed a sharp fall in imports of raw materials like Ferrous Scrap, Iron Ore, Coal and Ferro Alloy in Feb'19.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners