J.P. Morgan cut its iron ore forecast today down by 11 to 105t for 2014 97t for 2015 and 94t for 2016. As such the bank adjusted its price target for Vale VALE from 21 to 19.5 but re-iterated a Buy position. Vale closed at 13.29 on Friday.Get A Quote
J.P. Morgan cut its iron ore forecast today down by 11 to 105t for 2014 97t for 2015 and 94t for 2016. As such the bank adjusted its price target for Vale VALE from 21 to 19.5 but re-iterated a Buy position. Vale closed at 13.29 on Friday.
The bank expects price of iron ore to decline over time as new supplies from the Big Four - Rio Tinto RIO BHP Billiton BHP Fortescue Metals FSUMF and Vale - come in starting this year but says it expects the price of iron ore to rebound into the end of the year as Chinese demand improves and high-cost production curtailments tighten the market.
In particular the bank observes that privately-held Chinese producers which produce iron ore at higher cost than the Big Four have already started cutting production. Here are analyst Rodolfo Angele and team
But state-owned enterprises have not shown any signs of slowing down. Their economic incentives are after all different. These producers are large. In the banks forecast J.P. Morgan expects them to continue churning out 193mt per year whereas the Big Four is only importing to China 384mt of new supply till 2020.
Citi is also getting more bullish on iron ores near-term outlook for similar reasons Bloomberg reports.
As for Vale J.P. Morgan estimates the current share price is incorporating 76t real terms in iron ore prices until perpetuity which is 20 below spot and even below JPMs LT price assumption of 80t.
This has put considerable pressure on the higher-cost iron ore producers to reduce costs and even the major producers such as BHP Billiton Rio Tinto Vale Fortescue Metals Group FMG and Kumba Iron Ore at the lower end of the cost curve are under pressure to reduce costs. However analysis of per capita steel consumption in China shows .
Methodology BIs new iron ore supply model includes an operating cost curve and margin curve across major producers such as BHP Billiton Rio Tinto and Vale as they continue to ramp up supply.
Sep 20 2012nbsp018332If FMG fails as the iron ore lifeboat of Chinese demand is sunk by the weight of excess iron ore supply JPM and CS have a claim against FMGs assets AND they would also win
Iron Ore Mineralogy Processing and Environmental Issues summarizes recent key research on the characterization of iron ores including important topics such as beneficiation separation and refining agglomeration e.g. production of pellets or powders blast furnace technology for smelting and environmental issues relating to its production. The text is an ideal reference on the topic during a time when iron ore production has increased significantly driven by increasing demand from countries such as India and China.
The iron ore cost curve has shifted outward and flattened in recent years because of the significant increase in iron ore production capacity that has resulted from substantial new investment particularly from lower-cost iron ore producers in Australia and to a lesser extent Brazil . Over the next few years the pace of expansion in iron ore .
Jul 30 2012nbsp018332It looks like spot iron ore prices are indeed catching up or down with rebar and thats taken iron ore below the critical 120tonne mark. Why is 120 important Because of the cost curve.
Nickel cost curves and models highly granular historical and forecast cash costs broken down by activity including mining processing overhead freight treatment charges refining charges by-products royalties and additional full sustaining costs such as sustaining capital expenditures corporate selling and general and administrative .
Sep 28 2020nbsp018332The U.S. says the precious metals desk at JPMorgan was a racketeering operation. Now the bank is poised to pay a record penalty for spoofing. Heres a
Resulting 2020 seaborne CFR China cost curve cash cost for 62 sinterfeed Real 2014 USDt Projected real FOB mining cost inflation by geography p.a. Based on typical premiums of the cash cost and brownfield pricing regimes we expect a 2020 62-CFR price range of 75-95 USDt SOURCE McKinsey iron ore supply model 2015Q2 400 130 120 90 20
Not really 8211 given there are a variety of iron products a plethora of contaminants such as Si P S etc even a variety of iron ore sizes loosely termed lump and fines with need to be sintered an extra cost before they enter the blast furnace otherwise they would be blown away via thermal turbulence. Even substantial differences between hematite majority of producers and magnetite covers a lot of Chinese production which is actually exothermic which is beneficial when you smelt meaning that you can conserve on the amount of coking coal required.
Mar 17 2014nbsp018332The seaborne iron ore cost curve. By David Llewellyn-Smith in Commodities Iron ore price. at 936 am on March 17 2014 7 comments. Heres a chart from UBS to raise a few eyebrows
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For Australian producers this will include take-or-pay contracts where miners paya fixed cost for access to port and rail facilities regardless of whetherthey use them or not. These contracts are regularly renegotiated whichis why they are often treated as variable costs.1
ore equals 1.12USt the cost of under mined tons of ore su ggests that the amount of cost uncertainty will be higher if t he extraction rate is stable while it drastically reduces when the
Comprehensive coverage of the global industry cost structure for the mining and production of iron ore fines lump pellet feed and pellets for the years 2006-2030 Detailed analysis and benchmarking for over 300 iron ore mines and projects around the world - including over 96 of global production - with a user-friendly and flexible Cost Model
Capital cost incurred to set up an iron ore unit and operating costs per ton are the two main considerations before setting up a plant. Capital intensity.
1 Introduction 2 Methodology 3 Cost Components 4 Key Highlights 5 Global Iron Ore Cost Curve 2015 6 Company Cost Curve 2015 7 Country Cost Curve 2015 8 Rio Tinto Cost Curve 2015 9 Vale Cost Curve 2015 10 BHP Billiton Cost Curve 2015 11 Further Information . Inquiry For Buying .
Iron ore prices remain near multi-month highs according to data from Metal Bulletin.
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