Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  BHP Billiton Limited    BHP   AU000000BHP4

News SummaryMost relevantAll newsSector newsTweets 

China Economic Slowing Not Hitting Iron-Ore Steel Index

share with twitter share with LinkedIn share with facebook
share via e-mail
04/13/2012 | 12:21am CET

(Updates with recent price data on iron ore; European impact, HSBC analyst's comments, Chinese steel statistics.)

By Diana Kinch


The slight slowdown expected in China's first-quarter economic-growth rate isn't hitting the iron-ore market, where prices continue to edge up and analysts remain bullish, said Steve Randall, managing director of London price provider The Steel Index.

After a big fall in October following China's introduction of measures to cool the property market, iron-ore has traded in a very tight band so far this year and prices edged up in March and into April. Thursday, the price was $148.80 a metric ton for iron-ore fines of 62% Fe content delivered into China, the highest so far this year, Randall said in an interview.

"There's no evidence of the world falling apart in iron ore and it's the same story for steel," Randall said. "There's no great fireworks going on."

He added, "It's ultimately supply and demand that rule the market. They possibly need 5% to 10% more iron ore this year in China and that's a big number."

Randall noted while China's overall iron-ore demand growth this year looks set to be lower than the 12% increase registered in some recent years, China's need for imported iron ore will continue to rise due to the decreasing quality of the country's own iron-ore reserves, which have an average iron content of around 20%, compared to 58% to 63% for Australian ore and 64% to 66% in Brazil.

China is due to announce its first-quarter gross domestic product figures Friday. Analysts are expecting a slowdown from 2011's annual growth rate of 9.2%.

Iron-ore spot prices hit a recent low point of $116.90 in late October after plunging from $181 in early September, remaining depressed in early 2012 on high inventories at Chinese ports, the impact of the Chinese New Year holiday and concerns over the European sovereign debt issues, Randall said.

Jonathan Brandt, a New York analyst with HSBC Global Research, said late Wednesday he didn't consider that the Chinese slowdown is affecting mining companies and that any slowdown "is not fully priced into the mining companies' shares."

"There's a disconnect between the economic statistics and what commodity prices are telling us," Brandt said in an interview. Chinese statistics on the country's crude steel production, showing a fall in output in January and February from the year-ago period were possibly misleading, as latest government figures show annualized production now running at record highs of 680 million tons a year, according to HSBC.

-By Diana Kinch, Dow Jones Newswires; 55 21 2586 6086; diana.kinch@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
09:29aDJBHP, Vale Lay Out Plan to Reach Settlement on Fatal Samarco Dam Failure -- Up..
07:39aDJBHP Billiton, Vale, JV Reach Preliminary Agreement With Brazil Prosecutors Re..
01/17 BHP BILLITON : Asanko promotes Di Trapani
01/16DJRio Tinto Annual Iron Ore Shipments Rise
01/07 BHP BILLITON : With 100 years of coal left, what is the future for Navajo Mine?
2016 Eagle Ford sees more activity - but no boom
2016 European shares post small loss for 2016, Britain's FTSE hits record high
2016 British FTSE 100 rises 0.49% on Tuesday
2016 British FTSE 100 rises 0.32 pct on Thursday
2016 Vale to allow use of its pit for Samarco tailings
More news
Sector news : Integrated Mining
09:29aDJBHP, Vale Lay Out Plan to Reach Settlement on Fatal Samarco Dam Failure -- Up..
07:39aDJBHP Billiton, Vale, JV Reach Preliminary Agreement With Brazil Prosecutors Re..
01/17 Oil majors, car makers to push hydrogen technology to help cut emissions
01/17 FTSE falls most since June 2016 after PM May's Brexit speech
01/17 European shares steady as banks turns positive after May speech
More sector news : Integrated Mining
News from SeekingAlpha
07:09a WALL STREET BREAKFAST : First ECB Meeting Of The Year
04:24a BHP, Vale closer to Samarco dam settlement
01/11 Wage talks at BHP's Escondida seen as bellwether for other copper mine talks
01/10 Industrial metals stocks surge after China cuts capacity
01/09 Australia forecasts big drop in iron ore prices
Financials ($)
Sales 2017 38 792 M
EBIT 2017 12 050 M
Net income 2017 5 832 M
Debt 2017 20 620 M
Yield 2017 3,38%
P/E ratio 2017 16,14
P/E ratio 2018 17,45
EV / Sales 2017 3,18x
EV / Sales 2018 3,09x
Capitalization 102 574 M
More Financials
Duration : Period :
BHP Billiton Limited Technical Analysis Chart | BHP | AU000000BHP4 | 4-Traders
Full-screen chart
Technical analysis trends BHP BILLITON LIMITED
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus HOLD
Number of Analysts 19
Average target price 19,6 $
Spread / Average Target -1,4%
Consensus details
EPS Revisions
More Estimates Revisions
Andrew Mackenzie CEO & Non-Independent Executive Director
Jacques Albert Nasser Chairman
Peter Beaven Chief Financial Officer
Diane Jurgens Chief Technology Officer
Wayne William Murdy Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BHP BILLITON PLC11.37%102 574
RIO TINTO PLC10.78%79 977
GRUPO MEXICO S.A. DE C..8.86%21 772
More Results