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 newsTweets 

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 CEST

(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; [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BHP BILLITON LIMITED
10:42a Mining giants race to fill board leadership gaps
04/25 GLOBAL COPPER MINING INDUSTRY 2017 M : Codelco, Xstrata, BHP Billiton
04/24 Activist investor Elliott takes stake in UK takeover target WS Atkins
04/24 BHP BILLITON : Construction of Caval Ridge Southern Circuit approved
04/24 INCA MINERALS : Activities Report - March 2017 Quarter
04/21 BHP BILLITON : Shareholders Add Pressure For Oil Demerger - FT
04/20 Rains cut Rio first-quarter iron ore output 3 percent
04/18 Atrum Coal Limited - Director Appointment
04/18 UK bluechips fall 2 percent after May calls for early election
04/18 ARCONIC : Elliott slams Arconic again, and eyes BHP
More news
Sector news : Integrated Mining
05:02p TSX slips as Home Capital slumps; energy stocks gain
10:42a Mining giants race to fill board leadership gaps
08:59a FRESNILLO : says first quarter silver output up 12.5 percent, on track to meet F..
08:30aDJFresnillo On Track For Fiscal Year Production Guidance
04/25 TSX posts two-month high as energy, lumber shares rally
More sector news : Integrated Mining
News from SeekingAlpha
10:29a Goonyella coal rail system reopens in Australia's Queensland
08:17a BHP Billiton puts U.S. shale gas assets back on the block
07:00a WALL STREET BREAKFAST : Tax Day Comes Round Again
04:20a European earnings roundup
01:53a Cobalt Miner News For April 2017
Advertisement
Financials ($)
Sales 2017 41 097 M
EBIT 2017 14 625 M
Net income 2017 7 925 M
Debt 2017 17 569 M
Yield 2017 5,08%
P/E ratio 2017 11,98
P/E ratio 2018 13,43
EV / Sales 2017 2,64x
EV / Sales 2018 2,58x
Capitalization 90 761 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
TrendsNeutralNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 20
Average target price 21,7 $
Spread / Average Target 21%
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 LIMITED-4.47%90 761
BHP BILLITON PLC-7.65%90 761
RIO TINTO LIMITED-0.13%74 026
RIO TINTO PLC-1.87%74 026
GRUPO MEXICO S.A. DE C..-1.51%23 291
ANGLO AMERICAN PLC-3.19%20 179
More Results