Today - Thursday, October 23, 2014
- The U.S. will not move forward with planned import duties on specialized steel from China, South Korea, Russia and other countries after the U.S. International Trade Commission found the imports were not harming local industry.
- Imports of grain-oriented electrical steel from China had faced the prospect of the highest duties after an earlier Commerce Department determination that they were being sold in the U.S. too cheaply and were being produced using unfair government subsidies.
- AK Steel (NYSE:AKS) and Allegheny Tech (NYSE:ATI), who had lodged the complaints, say they will appeal USITC decision.
- The giant ($30B in assets) SPDR Gold Trust (NYSEARCA:GLD) earlier this week saw its largest one-day decline in holdings (down 1.2%) this year. Instead of exiting gold altogether, some of the money may just be heading into other vehicles as the Merk Gold Trust (NYSEARCA:OUNZ) - with market cap of just $60M - today is reporting assets rising by 5.4%, bringing total AUM to the highest since the fund's May launch.
- Like with GLD or IAU, owners of OUNZ have the option of exchanging their shares for physical gold, but OUNZ allows redemptions as small as one troy ounce (in GLD's case only blocks of 100K shares can be exchanged for gold).
- ETFs: GLD, IAU, SGOL, UGL, DGP, GLL, UGLD, DZZ, GLDI, DGL, DGZ, OUNZ, DGLD, AGOL, TBAR, UBG, GLDE, BAR, GYEN, GEUR, BARS, GGBP
- Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) reports a 37% Y/Y increase in Q3 iron ore production to 13M metric tons, joining larger rivals such as Vale in increasing output to grab market share even as prices fall.
- CEO Mark Cutifani says Anglo will press on with its much-delayed Minas Rio iron ore project in Brazil, which is expected to deliver its first ore later this year.
- Raises its forecast for full-year output at its Kumba Iron Ore subsidiary to 45M-46M metric tons from 44-46M.
- Copper output fell 15% Y/Y due to a decline in the grades of ore at two of the company's main Chilean mines, thermal coal production fell 4% because of bad weather in Colombia, and platinum production dropped 14% as Anglo continues to shake off the effects of a five months-long strike earlier this year.
- Crude oil prices sprint higher as Saudi Arabia is said to have cut supply last month, according to a source familiar with the country’s oil policy.
- The Saudis cut supply by 328K bbl/day to 9.36M bbl/day in September, from 9.69M in August, according to the source; total Saudi output in September was 9.7M bbl/day, up from 9.6M in August.
- WTI +1% to $81.30/bbl, Brent +1.2% to $85.77.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, DIG, BNO, DTO, DBO, DUG, IYE, CRUD, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
- Potash Corp. (NYSE:POT) +1.2% premarket after reporting an 11% drop in Q3 earnings and missed analyst estimates, but the results were within the company's prior guidance.
- POT says it sold 2M metric tons of potash in Q3, up 29% Y/Y, but its average realized price was US$281/ton vs. US$307 in Q3 2013.
- Says global potash shipments reached an all-time high in the first nine months of 2014 amid rising prices, and nitrogen and phosphate prices also have improved as demand has been strong.
- Increases its estimate for potash annual sales volumes to 9M-9.2M metric tons; sees 2014 worldwide potash sales of 58M-60M tons, above its prior guidance.
- Issues in-line FY 2014 EPS guidance, seeing $1.75-$1.85 from prior $1.70-$1.90 vs. $1.82 analyst consensus estimate.
- Vale (NYSE:VALE) -2.3% premarket after saying its Q3 iron ore output rose 3.1% to 85.7M metric tons from 83.1M tons a year ago and is on track to set a record for the year despite plunging prices.
- Output beat the previous quarterly record of 85M tons set in Q3 2011; YTD, iron ore output has climbed 8.1% at 236.2M tons, the highest ever.
- Q3 iron ore shipments fell by 3.6M tons due to protests at its cargo railroad out of Carajas in September, resulting in a 9.3M ton increase in iron ore global stocks.
- Q3 nickel production rose 16% Y/Y to 72.1K tons after the company brought the Onça Puma mine in Brazil online this year.
- Copper output rose 11% to 104.8K tons, and coal production fell 1.5% to 2.34M tons.
- Rio Tinto (NYSE:RIO) extends the tenure of CEO Sam Walsh and CFO Chris Lynch, rewarding them for restoring capital discipline after a run of writedowns from soured acquisitions and eliminating a layer of uncertainty after the company recently became a takeover target of Glencore.
- Walsh and Lynch will be moved to open-ended contracts after the annual general meetings in Australia and the U.K. next year.
- RIO -0.8% premarket.