Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

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

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

China Economic Slowing Not Hitting Iron-Ore Steel Index

share with twitter share with LinkedIn share with facebook
share via e-mail
0
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

Of

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
0
Latest news on BHP BILLITON LIMITED
07:21a BHP BILLITON : trumps BP for Mexican oil joint venture
12/05 BHP BILLITON : Mexico awards first deep-water oil agreement
12/05DJBHP Billiton Wins Trion Oil Field Bid
12/05DJBHP Billiton Buys 60% of Two Blocks Offshore Mexico for Up to $382.4 Million
12/05 BHP BILLITON : Australia's BHP wins bidding for Mexico's Trion block
12/05DJAustralia's BHP Billiton Wins Bidding for Stake in Mexico's Trion Oil Field -..
11/29DJBrazil's Vale Hopes for Samarco Mining Operations Restart in Mid-2017 -- Upda..
11/29 CITIC aims to cut costs at Sino Iron project, ramp up output
11/28DJAsian Shares Mostly Down on Skepticism About OPEC Deal
11/26 BHP BILLITON : Firm boosts fund for dam disaster
More news
Sector news : Integrated Mining
12/05DJBHP Billiton Wins Trion Oil Field Bid
12/05DJBHP Billiton Buys 60% of Two Blocks Offshore Mexico for Up to $382.4 Million
12/05DJAustralia's BHP Billiton Wins Bidding for Stake in Mexico's Trion Oil Field -..
12/02 Turquoise Hill suspends Mongolia mine shipments to China
11/29DJBrazil's Vale Hopes for Samarco Mining Operations Restart in Mid-2017 -- Upda..
More sector news : Integrated Mining
News from SeekingAlpha
12/05 Citigroup turns bullish on metals for 2017
12/05 BHP Billiton beats out BP for stake in Mexico?s Trion oil field
11/30 Texas Pacific Land - Lumpy Growth
11/30 Iron ore extends pullback from two-year high as China tightens trading rules
11/29 Bidders set for next week's Mexico deepwater oil auction
Advertisement
Financials ($)
Sales 2017 36 167 M
EBIT 2017 9 629 M
Net income 2017 4 796 M
Debt 2017 21 240 M
Yield 2017 3,05%
P/E ratio 2017 19,30
P/E ratio 2018 19,10
EV / Sales 2017 3,25x
EV / Sales 2018 3,06x
Capitalization 96 299 M
More Financials
Chart BHP BILLITON LIMITED
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
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 19
Average target price 18,4 $
Spread / Average Target -1,9%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
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 LIMITED40.09%96 299
BHP BILLITON PLC71.58%96 299
RIO TINTO LIMITED31.09%71 949
RIO TINTO PLC51.83%71 949
GRUPO MEXICO S.A. DE C..60.23%23 173
ANGLO AMERICAN PLC303.74%22 169
More Results