|Bid||10.21 x 800|
|Ask||10.57 x 47300|
|Day's Range||10.39 - 10.77|
|52 Week Range||10.39 - 16.13|
|Beta (3Y Monthly)||0.24|
|PE Ratio (TTM)||16.14|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||14.95|
(Bloomberg) -- Iron ore has gone from high-flier to sinking star in a matter of weeks. The commodity that lit up the first half with a stunning rally dropped back below $100 a ton as supplies pick up, mills’ profitability falls and investors dump raw materials amid the escalating trade war.Futures in Singapore fell as much as 8.6% to $94.32 a ton, while the contract on the Dalian Commodity Exchange extended losses after entering a bear market last week. Miners’ shares retreated, with markets focused on the consequences of China allowing the yuan to weaken to the lowest in more than a decade.Iron ore’s fortunes have shifted as the drivers that aided first-half gains -- a supply squeeze coupled with booming demand -- have weakened. Brazil’s Vale SA has been restoring more capacity after its dam burst, with exports rebounding. At the same time there are headwinds to consumption in China as the trade war rumbles on, with a gauge of mills’ profitability turning negative, and the yuan sinking beyond 7 per dollar for the first time since 2008.Iron ore is “past its peak pricing after the Vale event this year sent it into the clouds,” David Lennox, an analyst at Fat Prophets, said from Sydney. The yuan’s drop “feeds into the concerns about economic growth,” which are ultimately driven by uncertainty around U.S.-China trade relations, he said.The trade war between Washington and Beijing has dented investors’ appetite for raw materials, and the rise in tensions comes on the heels of data highlighting a manufacturing slowdown in key markets. Global steel output dropped in June from a month earlier, with declines seen in nations including China, Germany, the U.S. and India, according to the World Steel Association.‘Outright Bearish’“We are outright bearish on demand,” Marex Spectron Group analyst Hui Heng Tan said. Mills’ margins have taken a turn for the worse, construction activity is facing a slowdown and steel inventories are higher, he said.Ore for September was 7.3% lower at $95.63 a ton in Singapore at 7:28 p.m., heading for the lowest close since early June. Benchmark spot material has also suffered as the negatives stacked up, collapsing to $99.50 a ton on Monday. That’s down from a five-year high of $127.15 last month.Bearish SignalsAmong recent market signals:Port inventories of ore in China expanded 1.5% to 121.05 million tons last week, rising for a third week, according to Shanghai SteelHome E-Commerce Co. Holdings of material from Australia and Brazil both climbed, with ore from the South American nation rising 5%.Shipments from Brazil climbed to 34.3 million tons last month, according to government figures. That’s up 17% from June, and the highest total this year. Vale said it expects a better second half.A Bloomberg gauge of profitability at mainland blast furnace operators has turned negative, dropping to the lowest level since 2017. China accounts for more than half of global steel supply.Both banks and ore users have said they expect prices to ease. Among forecasters, Morgan Stanley sees $90 in the fourth quarter, saying Chinese demand will gradually retreat while supplies gain.Declines in futures in Singapore and Dalian have been given added impetus as markets are backwardated, with lower prices further out, so rolls between contracts as interest and volumes shift forward amplify moves in a falling market.While lower prices aren’t good news for top miners including Vale, Rio Tinto Group, BHP Group and Fortescue Metals Group Ltd., they remain substantially higher than a year earlier and well above their costs of production. Shares in Fortescue slumped 7.2% in Sydney.Shares of Vale, the world’s largest iron ore producer, fell as much as 4.1% in Sao Paulo, heading for a fifth straight decline.\--With assistance from Krystal Chia, Martin Ritchie, Ranjeetha Pakiam and Vinícius Andrade.To contact Bloomberg News staff for this story: Jake Lloyd-Smith in Singapore at email@example.comTo contact the editor responsible for this story: Phoebe Sedgman at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
RIO DE JANEIRO/SAO PAULO (Reuters) - Brazil's Vale SA hopes to wrap up a global compensation settlement for victims of its deadly January dam burst by year-end, its chief financial officer said on Thursday, a day after the company announced $2 billion in related charges. It remains unclear whether the writedowns taken so far would cover such a victims' settlement. Vale has been trying to ramp up production after several of its mines were shuttered as prosecutors and regulators scrambled to avoid a recurrence of the collapse of the Brumadinho dam, which killed nearly 248 people.
(Bloomberg) -- Samarco Mineracao SA, the Brazilian mining venture that hasn’t operated since a deadly dam collapse in 2015, is close to regaining a license to restart production and move closer to paying back $3.5 billion in defaulted debt.The license will most likely be granted within the second half of this year, the Minas Gerais state environmental agency press department said in an email. A Samarco spokeswoman declined to comment. Negotiations with creditors will resume in October following the license renewal, according to a person with direct knowledge of the plans.The venture, jointly owned by Vale SA and BHP Group Ltd., has already reached an agreement with the regulator and could get formal permission to operate as soon as mid-September, said people familiar with the regulatory situation, who asked not to be named because talks between the company and the government are private.“There might be some optimism that Samarco can get theirs later this year to restart in 2020,” said Roger Horn, a senior emerging-markets strategist at SMBC Nikko Securities America in New York. “The bigger issue is how quickly they can ramp up” to start servicing their debt.The miner’s November 2022 bonds rose as high as 76.181 cents on the dollar on Wednesday from 75.75 cents the day before, according to Trace price data.Greenpeace AdviserSamarco has been advised by Lina Pimentel, a former Greenpeace lawyer and now environmental legal specialist at law firm Mattos Filho. Pimentel, who also served as chief of the environmental agency in the state of Sao Paulo, started working with Samarco right after the 2015 accident in Mariana, Minas Gerais, which killed 19 people.She was key to helping the company get an initial license in December. But the efforts became delayed in January when Vale suffered an even worse disaster at one of its mines in Brumadinho, also in the Minas Gerais state. The Brumadinho dam burst killed 248 people with another 40 missing and presumed dead, prompting the state to pass new regulations to avoid future accidents.“We decided to keep the bond after meeting with her in April,” said Ian McCall, who oversees $190 million in emerging-market assets at First Geneva Capital Partners, referring to Samarco’s $2.2 billion in defaulted bonds maturing between 2022 and 2024. “It was quite a pleasant surprise to meet her, understand her background and the job she has been doing for years.”As part of the regulatory negotiations, the miner is revising its business plan to move 80% of its production to dry processing. The new plan will be put up for shareholder approval in August, while the regulatory go-ahead may come before the Mining Expo, the largest in Latin America, that will take place in Sept. 9-12 in Belo Horizonte, Minas Gerais’s capital, one of the people said.(Updates with creditor talks to start in October in second paragrah, bond trading in fifth)\--With assistance from Dan Wilchins.To contact the reporter on this story: Pablo Gonzalez in Sao Paulo at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Alec D.B. McCabeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Despite lower iron production on account of the Brumadinho dam rupture, higher iron ore prices are likely to buoy Vale's (VALE) second-quarter earnings and revenues.
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Vale S.A (VALE) maintained 2019 iron ore and pellets sales guidance at 307-332 Mt and stated that its expected sales volume will move toward the midpoint of the range.
Vale S.A's (VALE) annualized iron ore production is affected by about 92.8 Mt owing to suspended various operations, following the dam disaster.
Brazilian mining company Vale SA said on Monday it would pay 400 million reais ($106.52 million) to compensate workers affected by the deadly rupture of a tailings dam in January that killed at least 240 people. In a statement, Vale said the deal also involves individual compensation for moral and material damages, including job stability and other benefits for a certain period of time. In May, the company said it was taking $2.42 billion (£1.93 billion) in writedowns for payments to victims' families and estimated out-of-court settlements for various damages related to the dam collapse, including $247 million for a "framework agreement" with labor prosecutors.
Cleveland-Cliffs (CLF) is set to release its Q2 earnings before markets open on July 19, and hold a conference call with analysts and investors at 9:00 AM Eastern Time that day.
China consumes more than 70% of seaborne-traded iron ore. As a result, iron ore investors should track China's demand and outlook. Today, China released its trade data for June. China's iron ore imports were 75.18 million tons in June—9.7% lower YoY (year-over-year) and 10.2% lower month-over-month. In June, China's imports fell to the lowest level […]
A Brazilian state judge on Tuesday convicted mining company Vale SA for damages caused by the deadly rupture of a tailings dam in January that killed at least 240 people. Judge Elton Pupo Nogueira ruled that Vale is responsible for fixing all the damages, although he did not set a monetary value for compensation, the Minas Gerais state court said on its website. The 11 billion reais (£2 billion) in Vale assets already frozen by courts will remain blocked, the court said.
Iron ore prices witness a sudden volatility on reports that the Chinese government is likely to act upon complaints from Chinese steel mills regarding soaring iron prices.
China’s central government is paying close attention to the sharp rise in iron ore prices. The CISA asked the government to investigate the spike.