A bearish pall is emerging for the iron ore pellets market amid growing supply from Brazil and a shift in demand toward fines with the expected easing of sintering restrictions in China. Mineral Resources shipped 7.9 million tonnes of iron ore from its Yilgarn and Utah Point hubs in WA in the June to December 2020 period, up 17 per cent on the 2019 second half. The mining company is to bring online its Parker Range iron ore project mid-year, while its Wonmunna project is starting production this month, the company said in a report last week. W/r/t Biden's stimulus...this isn't like your usual run-of-the-mill fiscal policy it takes up to 6-9 months to spill into the real economy. Iron ore shipments from WA’s Port Hedland hit 42 million tonnes in January, up 4.3 per cent on year, although this was 9 per cent lower than December 2020. Dublin, Feb. 17, 2021 (GLOBE NEWSWIRE) -- The "Global Iron & Steel Directory 2021" directory has been added to ResearchAndMarkets.com's offering. Rest-of-the-world demand in the seaborne market for coking coal is starting to improve as uncertainty over China’s imports policy grows, said BHP in its earnings report this week. A stacker/reclaimer at a WA iron ore shipping terminal. Iron ore is Australiaâs biggest export earner. Iron Ore Prices, Covid-19 Suppression to Underpin AUD. $GBP $USD https://t.co/okcxVqkAIu, Mid-Week Market Check Up Webinar with IG starting in 30mins! The company has lowered its railings guidance for coal by 10 million tonnes in the June 2021-ended financial year to 200 million to 210 million tonnes. If headline US CPI continues to grow at +0.4% m/m, then headline US inflation rate will reach 3.82% y/y by May 2021. https://www.dailyfx.com/economic-calendar#2021-03-10, ðºð¸ Inflation Rate MoM (FEB) BHP received an average price of $US106.30 per tonne for its hard coking coal shipped from Australia for the June to December 2020 period, down from $US154 per tonne in the June to December 2019 period. This field is for validation purposes and should be left unchanged. JPMorgan believes the mood should remain buoyant and upgrades 2021 estimates for iron ore prices to US$162/t. While Magnetite Mines is a Stockhead advertiser, it did not sponsor this article. âExport volumes are expected to grow from an estimated 860 million tonnes in 2019-2020 to 905 million tonnes by 2021-2022,â its report added. This indicates that steel consumers and end users are starting to go through a re-stocking phase and are adding to their inventory. $usd back down to support after cpi release https://t.co/s6XKpwlKkO https://t.co/ks9Tts7Rpn, ðºð¸ Core Inflation Rate MoM (FEB) Market Close Update Lunch Update Prices for Australian hard coking coal ticked $US5 lower over the week to $US128.30 per tonne as non-Chinese buyers such as from Brazil and India took over in the spot market. The company expects to produce between 71 million and 77 million tonnes of metallurgical coal from its Queensland business unit on a 100 per cent basis. Prices of iron ore showed an average increase over the last 13 years, before decreasing considerably in 2015. “In the second half of the 2020s, China’s demand for iron ore is expected to be lower than today as crude steel production plateaus and the scrap-to-steel ratio rises,” it said. “Chinese steel production has picked up against all expectations,” said Mark Eames, director of ASX iron ore company Magnetite Mines (ASX:MGT). Get the latest Stockhead news delivered free to your inbox. Do NOT follow this link or you will be banned from the site! Markets coverage, company profiles and industry insights from Australia's best business journalists - all collated and delivered straight to your inbox. “Recent ship tracking data showed a fall in exports from Australia, but exporters are keen to expand output amid strong demand,” said the ANZ analysts. Direct cash payments could prove stimulative much sooner. “Long term, we believe that a wholesale shift away from blast furnace steel-making, which depends on metallurgical coal, is still decades in the future,” the company said. Advertising & Media Outlook New ... 2021). Signs of improvement in steel markets outside China also helped boost iron ore prices, analysts at ANZ said in a note, citing profits of and better 2021 prospects highlighted by Japanese steelmakers. It's free. shows 37.70% of traders are net-long with the ratio of traders short to long at 1.65 to 1. This rise in LME rebar steel prices could translate into higher prices for similar Chinese product in the weeks ahead as the Asian country emerges from its Spring holiday. The situation in China for Australian coal imports was laid bare in a report this week by Australian rail company Aurizon (ASX:AZJ). Actual: 0.4% Australia is the largest iron ore producer in the world. https://www.dailyfx.com/economic-calendar#2021-03-10. Email Lists In its latest earnings report, BHP said its iron ore unit was on target to achieve its earnings guidance for the 2021 financial year of $US10.2 billion. Export volumes of metallurgical coal were lower due to adverse weather and higher planned infrastructure maintenance in the June to December 2020 period, said the company. Reuters | March 7, 2021 | 8:48 am In the first half of the 2021 financial year, BHP’s Queensland metallurgical coal production was 34 million tonnes, down 5 per cent on the June to December 2019 half year. Iron ore fines prices traded this week at $US166.90 per tonne, up $US6.40 on a week ago, Hard coking coal prices were $US5.25 lower on-week at $US128.30 per tonne at Queensland ports, China’s steel reinforcing bar price is steady this week at $US667 per tonne. Unsubscribe whenever your want. The company’s earnings report revealed BHP achieved an average free-on-board (FOB) price of $US103.78 per tonne for its iron ore shipments in the June to December 2020 period. Steel reinforcing bar (rebar) prices at the Shanghai trading hub were steady during China’s holiday lull this week at $US667 per tonne. https://www.dailyfx.com/economic-calendar#2021-03-10, $GBPUSD is currently testing the 1.3900 level for the second time today. On the other hand, other market experts such as investment banks Goldman Sachs and Morgan Stanley are adamant that iron ore prices are entering a new boom time. Previous: 0.3% In the second half, the broker suspects trader enthusiasm may settle down because of more subdued outlook in 2022 and forecasts prices ending this year at US$150/t. China’s urbanisation levels are currently around 50 per cent compared to a level of 80 per cent in Europe and North America. Current steel production in China is around 1.1 billion tonnes per year and has increased by around 200 million tonnes in the past few years. It's free. Iron ore price from November 2019 to November 2020 (in U.S. dollars per dry metric ton unit)* [Graph]. Western Australiaâs Department of Treasury has upgraded its forecast for the stateâs 2020-21 Budget surplus to $3.1 billion, compared with expectations in December of just $2.2 billion. Morning Update The miner’s iron ore production was 145 million tonnes in the June to December 2020 half-year, up 5 per cent on the 2019 second half-year. Stockhead is providing factual information where there is a reasonable likelihood of doubt. Wonmunna, part of the company’s Utah Point hub, is expected to deliver iron ore exports of 1 million to 2 million tonnes per year. All-in production costs for BHP’s WA iron ore business unit are $US12.46 per tonne, representing a before tax profit margin of 73 per cent. Iron ore prices jumped on Thursday after Vale reported 4Q20 output of 84.5 million tonnes, a 5% decline from the third quarter (88.6 million tonnes). And the Fed will look through it, undeterred. BHP shipped 290 million tonnes of iron ore in 2020 and its new South Flank mine in WA is 90 per cent complete and forecast to start production mid-year. The cyclically-sensitive Australian dollar seems poised to outperform its major counterparts in 2021, as ⦠BHP’s metallurgical coal business unit in Queensland was on course for an EBITDA of $US100m, representing a profit margin of 3 per cent on its production cost of $US84.92 per tonne. The Australian iron ore shipper said its analysis of the seaborne market suggested that for a price correction to happen either Chinese demand or Brazilian supply would have to change “materially”. Registered Address: 32 Old Slip, Suite 803; New York, NY 10005. Weekend Update. Stockhead's morning newsletter makes things simple: Markets coverage, company profiles and industry insights from Australia's best business journalists - all collated and delivered straight to your inbox every morning. “The industry faces a difficult and uncertain period ahead,” said BHP, one of the world’s largest producers of coking coal, and the largest shipper in Australia. The pair is attempting to rebound from the recent multi-week lows hit around 1.3800. MELBOURNE: Anglo-Australian mining giant BHP on Tuesday reported a spike in half-yearly profits, on the back of strong iron ore prices and record exports from Western Australia. The company expects to ship around 20 million tonnes of iron ore exports from its WA hubs in the June 2021-ended financial year. While trade flows are adjusting in the seaborne market, a mismatch is developing between the expected evolution of customer demand and the cost-competitive growth options available to producers, said the company in its report. Iron ore is a non-fungible commodity, and its quality varies. This is a point often missed by market commentators who focus on monthly trade flows, and who perhaps overlook the growing gap between demand and supply for iron ore. “Structurally market demand has gone up by hundreds of millions of tonnes, while supply has only gone up by tens of millions of tonnes,” he added. “That means another 300 million tonnes a year of iron ore is needed,” he said. “Subdued economic conditions, combined with restrictions on Australian coal imports by China, continue to weigh on export volumes,” said ratings agency S&P Global Ratings in a report on Aurizon. Fitch expects the iron ore price to average $US100 per tonne next year. FX Publications Inc is a subsidiary of IG US Holdings, Inc (a company registered in Delaware under number 4456365). No country that has produced steel in large volumes historically has ever seen production crash, he said. Georgina Fraser, mining analyst at UBS, discusses her outlook for iron ore and how that will impact earnings for Australian miners which report earnings this week. âExport volumes are expected to grow from an estimated 860 million tonnes in 2019-2020 to 905 million tonnes by 2021-2022,â its report added. Cargoes of US origin coking coal continue to trade at prices higher than Australian cargoes by a margin of around $US30 per tonne for standard quality shipments. Actual: 0.1% The number of traders net-long is 25.39% higher than yesterday and 3.75% lower from last week, while the number of traders net-short is 7.27% lower than yesterday and 2.50% higher from last week. Stockpiles of the steel product have been building ahead of the Lunar New Year holiday and have relieved some of the market’s recent upward price pressure. “Iron ore prices have been elevated since the Brumadinho tailings dam tragedy in Brazil first disrupted the market in early 2019,” said BHP in an earnings report this week. Ratings agency Fitch added its voice to a chorus of iron ore analysts saying prices for the commodity will trend lower over the next two years. “Policy driven demand is going to create a capex cycle that is bigger than the BRICs (Brazil, Russia, India, China) in the 2000s, not quite as big as the ’70s, but we are talking about that kind of a bull market in commodities,” Goldman Sachs’ global head of commodities research, Jeffrey Currie was reported as saying in a recent speech. And the Fed will look through it, undeterred. This compares to an average price it received for the commodity of $US78.30 per tonne for the June to December 2019 period. March 10, 2021 | Mike Cooper, March 3, 2021 | Mike Cooper, March 1, 2021 | Special Report. We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests AUD/, We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests, British Pound (GBP) Latest: EUR/GBP Decline Not Over Yet, FX Publications Inc (dba DailyFX) is registered with the Commodities Futures Trading Commission as a Guaranteed Introducing Broker and is a member of the National Futures Association (ID# 0517400). Given current iron ore prices and pellet premiums, as well as the positive outlook for steel production in 2021, LIORC is well positioned to benefit ⦠Unsubscribe whenever you want. Image: Getty, February 17, 2021February 17, 2021 | Mike Cooper. Bulk Buys: Iron ore prices stay elevated, demand outlook starting to improve for coking coal, Bulk Buys: China wants 32,000km more high-speed rail and 160 new airports by 2035, Bulk Buys: China's record steel prices support iron ore, coking coal demand cools, Magnetite Mines gets choice iron ore tenement in South Australia. Base effect at work given slouch in US CPI March-June 2020. BHP shipped 290 million tonnes of iron ore in 2020 and its new South Flank mine in WA is 90 per cent complete and forecast to start production mid-year. Although a fresh outbreak of Covid-19 in New South Wales and Victoria has forced interstate borders to shut down, case numbers are nowhere near the levels that forced Victorian Premier Dan Andrews to enforce one of the. ... EU steel shortage to persist throughout 2021. To help facilitate price adjustment for differences between expected and delivered product specifications, PRAs have developed value-in-use (VIU) indices for the key price-affecting chemical components of iron ore - iron⦠The company’s production guidance for the June 2021-ended financial year is 276 million to 286 million tonnes on a 100 per cent production basis. Previous: 0% For investors, getting access to the right information is critical. Magnetite Mines is developing a new iron ore mine in its Razorback project in South Australia for which it is on course to complete a feasibility study by mid-year. “Metallurgical coal prices faced by Australian producers in the free-on-board (FOB) market have been weak,” said the company in a report to accompany its financial results. The immediate outlook for iron ore is still robust with the spot price at $US166 per tonne ($212.75/tonne) as cargo trading slowed to a crawl for China’s Lunar New Year holiday. “We forecast global mine output growth to average 2.4 per cent over 2021 to 2025 compared to minus 2 per cent over the previous five years,” said Fitch, reported the Australian Financial Review. Previous: 59.5 The bank added that earnings reports this week from top-tier iron ore producers would provide some insight into production and shipping volumes near term. >4% US CPI is possible by May'21. The minerâs iron ore production was 145 million tonnes in the June to December 2020 half-year, up 5 per cent on the 2019 second half-year. “Record production partially offset unfavourable foreign exchange movements and higher third party royalties,” said the company in a presentation. At Stockhead we tell it like it is. ATLAS Iron expects the iron ore price to rise over the next two months and remains upbeat about Chinese demand, even though it reported a ⦠Expected: 0.4% Mar 8, 2021 @ 13:43 ... Pessimistic outlook clouds iron ore pellets market Expected: 0.2% Surging iron ore prices and Australia’s success in suppressing the novel coronavirus may underpin the cyclically-sensitive currency against its major counterparts. The company earned around $US119 per tonne for these shipments, at an average cost of $US76.50 to $US87.50 per tonne on a delivered-China price basis. Home / Commodities / Commodity News / Valeâs weaker production, China demand supports iron ore outlook. China Jan-Feb iron ore imports up 2.8% on healthy demand Demand for the steelmaking ingredient was supported by a firm consumption outlook. Get the latest stock news and insights straight to your inbox. The information is not intended to imply any recommendation or opinion about a financial product. Seaborne prices for iron ore are at their highest since late 2011, when the market was coming off a record of $US180 per tonne earlier in that year. The Parker Range project is part of Mineral Resources’ Yilgarn production base that ships iron ore through Fremantle’s Kwinana bulk terminal and Esperance Port, both in WA. This indicates the Asian country still has some way to go to equal urbanisation rates in Western countries, he said. Business Confidence (MAR) due at 14:30 GMT (15min) Some iron ore market analysts also agree with the Australian governmentâs outlook for iron ore, and expect prices to moderate over the next two years. The notable drop-off in Chinese iron ore demand appears to have notably weighed on the Australian Dollar in recent days as attention turns to the upcoming Q4 inflation release. Iron ore futures contract prices, an indication of near term market conditions, were trading at $US160 per tonne for March and $US150 per tonne for June settlement on the Singapore Exchange, Tuesday. https://t.co/8SFBJxwo30. Australian mid-tier iron ore producer Mineral Resources (ASX:MIN) is to construct a new iron ore mine in WA’s Pilbara region and another at its Yilgarn production base. Elsewhere, on the London Metal Exchange, prices for its rebar steel futures contract have rebounded this week to $US614 per tonne, from $US543 per tonne a week ago. “Liquidity remains limited in the iron ore market, with Chinese markets closed,” ANZ bank commodity analysts said in a report. Some Chinese traders and steel plants have tried to re-sell pre-ordered Australian coking coal cargoes back to the spot market partly because of ongoing port issues in China.