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Vale S.A. (VALE)

  • Aug. 29, 2012, 8:17 AM
    "Watching this market is like watching the Titanic," writes a commodity broker of iron ore, off another 7% today to just $90/ton. The plunge will put to the test to the theory (also hopefully put forth in today's Joy Global earnings release) that Chinese ore production will come to a halt below $120/ton. Since when has oversupply/low prices caused the Chinese to cut back?
  • Aug. 27, 2012, 8:19 PM
    Brazilian mining company Vale (VALE) says it's resumed production at its Carborough Downs coal mine in Queensland, Australia. The mine had been closed since May31, following the detection of abnormal levels of carbon monoxide in the mine. No employees were adversely affected and no environmental damage occurred from the incident. In Q2, the mine produced 82K metric tons of metallurgical coal. Shares +0.4% AH.
  • Aug. 24, 2012, 11:37 AM
    Bookmark this chart of iron ore prices, as it's becoming one of the more widely-followed global indicators. They've fallen another 1.9% today to just $100/ton, well below the line-in-the-sand price of $120 - the level at which Chinese producers would supposedly stop producing.
  • Aug. 23, 2012, 6:45 PM
    Even as Vale (VALE) shares slide near a 52-week low, Citi's Alexander Hacking says it's not yet time to buy, even as it is his preferred LatAm metals and mining stock. Annualized operating cash flow is sub-$10B vs. Vale’s proposed $27B of capex and dividends in 2012; Citi sees the biggest challenge as Vale’s spending, not the drop in iron ore prices.
  • Aug. 23, 2012, 3:13 PM
    Brazil's national development bank approves 3.88B reais ($1.9B) in financing for Vale (VALE -3.6%) to expand its transport infrastructure in the Brazil states of Maranhao and Para, where the company's massive Carajas iron ore mine is located. But investors are unmoved, sending shares lower as iron ore prices tumble on slower Chinese economic growth.
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  • Aug. 22, 2012, 2:38 PM
    BHP's decision to postpone its Jansen potash project and Vale's (VALE) move to shelve its Kronau project amid weakening global demand for commodities and falling resource prices expose the risks of Canada’s heavy reliance on resource extraction. Saskatchewan faces losses of potential tax revenue every year a project flounders, and the effects could ripple across the country.
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  • Aug. 22, 2012, 8:53 AM
    Forget Dr. Copper (which hasn't been a relevant moniker since Rickey Henderson played for the Yanks), it's iron ore which is the far better economic bellwether, and its price is collapsing. (see also)
  • Aug. 22, 2012, 7:09 AM
    Prices of Chinese steel and its key ingredient - iron ore - continue to fall, now at their lowest levels since 2009. The combination of steel mills ramping up production in the face of a slowing economy is proving toxic. One report says the mills are beginning to default on supply contracts or have deferred shipment of up to 4M tons of iron ore this month. It's a start.
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  • Aug. 22, 2012, 12:08 AM
    Iron ore output in China dives 8.1% in July, the steepest July decline since 2008. Yes, the economy is slowing, but plunging shipping costs and iron ore prices make it cheaper to get the good stuff from Brazil rather than dig up lower-grade ore in China. VALE isn't complaining.
  • Aug. 17, 2012, 3:57 PM
    Saskatchewan's economy minister expects BHP Billiton (BHP -0.2%) to proceed with construction of its potash mine, and does not expect BHP to replicate Vale's (VALE) delay of its own project in the Canadian province. BHP’s mine at Jansen would be the world’s largest potash mine, capable of producing 8M metric tons annually, but analysts have suggested BHP is weighing a delay.
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  • Aug. 16, 2012, 6:09 PM
    Vale (VALE) says it is postponing development of its $3B Kronau potash project in Canada for an indefinite period and may delay other projects as it seeks to prioritize cost control and concentrate on projects that have the greatest potential to help it grow, such as the Serra Sul iron ore project in Brazil.
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  • Aug. 16, 2012, 3:21 PM
    Iron ore prices will begin to recover in September, Vale's (VALE +0.6%) Murilo Ferreira believes, citing inventories of the steel-making raw material in China falling to the equivalent of 20 days' usage from a level of 30 days in June. Spot prices of iron ore with 62% iron content for delivery into China slumped this week to $113 per metric ton, lowest since Dec. 2009.
  • Aug. 14, 2012, 3:26 PM
    Vale (VALE -3.6%) sees “early signals” of recovery in China's economy, but "we are not going to see the spectacular growth rates of 10%, 12% per year... the golden years are gone," Vale says. The top iron ore producer shipped ~44% of its iron ore and pellets to Chinese steelmakers in Q2, and iron ore prices have dropped to their lowest since Dec. 2009 - not an upbeat combo.
  • Aug. 2, 2012, 7:28 AM
    BHP Billiton is set to postpone a $20B port expansion plan in Australia, according to a memo from the company's iron ore chief: The resources industry is "facing numerous challenges including substantial capital and operating cost escalation and decreasing commodity prices." Mining contractors in Perth have reportedly already started laying off workers.
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  • Aug. 1, 2012, 2:56 PM
    Brazil has sacrificed ~$20B and lost a significant share of the global seaborne iron ore market in the past decade, mainly due to licensing difficulties which have caused mine project delays, a Vale (VALE) exec says. The world's largest iron ore producer must obtain no fewer than 174 environmental permits to complete projects for which $34B in investments already have been approved.
  • Jul. 30, 2012, 4:01 PM
    The price of iron ore catches with Shanghai rebar prices, falling below the $120/ton mark. $120 has importance as it's thought to be the level below which Chinese miners will stop producing the stuff, and hopefully - for companies like BPH, RIO, and VALE - bring about a rebound in the price. (see also)
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Company Description
Vale SA is a metals & mining company. It produces & supplies iron ore, iron ore pellets, nickel, manganese ore, ferroalloys, copper, coal, phosphates, potash, cobalt & others.
Industry: Steel & Iron
Country: Brazil