|Bid||12.80 x 46000|
|Ask||13.08 x 900|
|Day's Range||12.89 - 13.21|
|52 Week Range||10.20 - 15.45|
|Beta (5Y Monthly)||1.14|
|PE Ratio (TTM)||19.32|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||14.47|
(Bloomberg) -- The world’s biggest iron ore miners are looking for novel ways of satisfying their customers and protecting market share in the $150 billion global industry.From selling through a mobile app to portside sales, the likes of BHP Group, Rio Tinto Group and Vale SA are looking for an edge with buyers of the steelmaking raw material in China, the top customer. The need to retain their business is becoming ever more critical amid forecasts that the market is around its peak.“For miners, Chinese import volumes are basically not going to grow the way they used to,” said Tomas Gutierrez, analyst at Kallanish Commodities Ltd. “Any increase in value for iron ore will come from either adding service to mills or from cutting out the traders.”Rio and rivals -- who have spent more than a decade pumping billions into expansions to keep pace with China’s fast-rising appetite for iron ore -- are now preparing for an era of slower growth and an eventual high point in the nation’s steel output.They are introducing a range of initiatives to retain existing sales and add new customers -- from Rio’s development of a mobile app, to portside sales, and selling directly from China’s ports in yuan instead of shipping cargoes from Australia or Brazil that are sold in dollars.New Strategies“Our China portside customers will be able to order via a mobile app,” Rio’s Chief Commercial Officer Simon Trott told an investor seminar in October. “You can order a few tons of ore, in the same way you’d place an order on Amazon.”Rio has started portside sales, while BHP also has been testing “spot sales during transport to China as well as sales in smaller quantities with shorter lead times from bonded stockpiles in China,” Rod Dukino, vice president for sales and marketing iron ore, said at a conference in September.Selling at ports allows miners to blend different types of ore, and means “more money in the miners’ pockets,” according to UBS Group AG managing director and global head of mining, Glyn Lawcock. “We have seen over the last few years increasing sales to traders and now the miners are clawing back some of that lost margin essentially.”In particular, the use of the Chinese yuan is a breakthrough for an industry dominated by the dollar. For mills, this eliminates currency risks. For miners, this broadens their customer base and again cuts out the traders, said Lawcock.In June, Fortescue Metals Group Ltd. set up a sales office in China, offering direct supply of smaller volumes in the yuan. “This represents a new sales channel for Fortescue to complement our existing seaborne trade,” Chief Executive Elizabeth Gaines said in an email.BHP sees “huge potential in the digitization of our post-trade processes across our portfolio, both for customers and suppliers alike, through increased visibility and traceability of goods” Dukino said in an email.Large and medium-sized steel mills in China generally support the miners’ new sales strategies, according to a survey by Bloomberg of five executives at mills and industry groups.“As producers get closer to a diverse range of end customers, they understand their needs more, to facilitate an evolution in interaction and even digitalization,” according to Andrew Glass, founder of Avatar Commodities Pte and formerly head of iron ore financial trading at Anglo American Plc.Still, launching new sales channels also has its risks, and companies need to be mitigating them at the same time as extending their supply chain, Glass warned.Tight RaceThe initiatives follow similar strategies adopted by Vale since 2015. The Brazilian miner, which is still grappling with the effects of a fatal dam disaster earlier this year, blends and sells from 16 ports in China. It also has a center in Malaysia, where ore can be stored and blended.In the first for a foreign miner, Vale signed a deal with a Chinese steel mill based on prices of iron ore futures on the Dalian Commodity Exchange.While Vale has had a headstart in sales efforts, Rio is catching up, according to Kallanish’s Gutierrez. “Now that the port stock market is more developed, and the sales mechanisms are developed, then all the miners will need to compete in this area.”“The enhancement of having things like port stocks and port trade allows flexibility, and allows smaller parcel deliveries to customers,” Rio’s iron ore Chief Executive Officer Chris Salisbury said in a interview last week.\--With assistance from David Stringer, Winnie Zhu and Alfred Cang.To contact the reporter on this story: Krystal Chia in Singapore at firstname.lastname@example.orgTo contact the editor responsible for this story: Phoebe Sedgman at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Vale S.A (VALE) trims production and sales guidance for first-quarter 2020, as the company will lower its Brucutu-mine output for one-two months.
Investing.com - Steel and mining companies were higher in midday trade on Monday after U.S. President Donald Trump said he was re-implementing steel tariffs on imports from Brazil and Argentina.
(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterVale SA, the Brazilian mining giant, plans to place its Mozambican coal operations on maintenance for three months, essentially closing the tap on about one-third of the southeast African country’s export earnings.The move could have severe implications for the country’s balance of payments and currency, as coal is by far its biggest source of export earnings. Mozambique exported $1.7 billion worth of the fuel used in power stations and steel plants last year, with Vale operations in the center of the country accounting for almost all of that.The company completed a review of its Mozambican coal mines and decided to shift the focus to producing more metallurgical coal -- used to produce steel -- and less of the lower-value product that power stations burn. Under the new plan, the assets will produce at a rate of 15 million tons per year by the end of 2020, up from less than 12 million tons last year, but still well short of Vale’s target to export 22 million tons from the mines in central Mozambique.Vale will this quarter write down the assets by $1.6 billion, it said in a statement.To contact the reporter on this story: Matthew Hill in Maputo at firstname.lastname@example.orgTo contact the editors responsible for this story: Gordon Bell at email@example.com, Hilton Shone, Rene VollgraaffFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Vale S.A (VALE) is also likely to gain from investment in projects, lower debt and focus on introducing more high-quality ore in the market.
The former chief executive of Brazilian iron ore miner Vale received an anonymous email weeks before the deadly collapse of a tailings dam at Brumadinho in January 2019 warning about "dams at their limit," according to the findings of an exhaustive congressional report on the disaster. Rather than seeking to investigate the allegation in the email, also addressed to other senior executives, Vale's then-Chief Executive Officer Fabio Schvartsman directed other employees to try to identify the email's author, according to the 625-page report. The congressional investigative committee report, written by leftist congressman Rogerio Correia and released last week after five months of hearings, cited the email episode as evidence that Vale's senior management, including Schvartsman, was aware ahead of the dam collapse - which killed more than 250 people - that there were safety issues with the facility used to store mining waste.
Vale SA's chief executive officer said on Friday that a resumption in paying dividends or share buybacks would depend on progress in repairing the damage from its Brumadinho tailings dam collapse, which killed more than 250 people. Eduardo Bartolomeo told investors on a conference call the Brazilian iron ore miner would be able to resume dividend payments at some point, but that "that moment has yet to arrive". Bartolomeo was speaking a day after Vale reported a weaker-than-expected 15% third-quarter earnings gain as the company struggles to restore production lost after regulators demanded that it shut down a series of other dams for safety reasons.
Vale S.A's (VALE) iron ore production numbers in the third quarter exhibit a sequential improvement as mines shut in the wake of the Brumadinho disaster resumed operations.
Vale S.A (VALE) anticipates annual outflow associated with taking down risky dams, repairing environment and compensation to peak at $1.5-$2.1 billion next year before declining through 2022.
Vale (VALE) remains on track to meet its guidance of sales of iron ore and pellets of 307 million to 332 million ton for 2019 despite a partial suspension of operations at Brucutu mine.
The Sao Paulo. index rose 1%, with materials stocks pushing up the index the most. Chilean stocks rose about 0.3% and were slated for a seventh straight session of gains. The Mexican peso rose about 0.4% to near a one-month high.
Declining debt levels and focus on improving quality, productivity and lowering costs in the iron ore business will drive Vale's (VALE) growth despite the impact of the Brumadinho disaster.