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Vale S.A. (VALE)

- NYSE
  • Oct. 13, 2014, 9:22 AM
    • Iron ore prices rose 4.9% to $84.17/ton.
    • The gain is the biggest intraday gain since May.
    • Vale (NYSE:VALE) is the world's No.1 iron ore producer.
    | 2 Comments
  • Oct. 9, 2014, 10:49 AM
    • Rio Tinto (RIO -1%) is defending its plans to expand iron ore production in Australia at a time of sharply falling prices, as the head of its iron ore division says "if we don't fill that void, somebody else will."
    • Rio Tinto is pouring billions of dollars into expanding iron ore mines and infrastructure in Australia's Pilbara region, betting that its huge efficiencies of scale will allow it to increase profits even though iron ore prices have fallen more than 40% this year.
    • Earlier this week, BHP Billiton (BHP -0.5%) also said it planned to increase its output by nearly 30% by making its operations more efficient; Vale (VALE -0.8%) also is planning increases in output.
    | 6 Comments
  • Oct. 7, 2014, 2:22 PM
    • Petrobras (PBR +7.1%) and other Brazilian stocks continue to climb higher after Sunday's presidential election resulted in pro-business candidate Aeceo Neves showing surprising strength in making the runoff against incumbent Pres. Rousseff.
    • Also: CIG +9.3%, EBR.B +3.9%, ELP +3.2%, EWZ +2.4%, BBD +2%, VALE +1.8%, ITUB +1.8%.
    • Separately, PBR says its latest well in the Brigadeiro discovery evaluation plan area has confirmed the presence of good quality oil in the ultradeep waters of the Espirito Santo Basin post-salt deposits.
    • PBR, with an 89.9% stake, is the operator of the consortium developing the project.
    | Comment!
  • Oct. 6, 2014, 11:18 AM
    • Petrobras (PBR +13.2%) leads Brazilian stocks higher after yesterday's presidential election resulted in a runoff to be held Oct. 26 between incumbent Pres. Rousseff and - in an upset - pro-business challenger Aécio Neves.
    • Raymond James analyst Pavel Molchanov says a Neves victory would be the best outcome by far for PBR concerning the potential for loosening domestic content rules and restrictions on foreign investment; but the analyst warns that even under a Neves administration, it would be unrealistic to expect an immediate dramatic fuel price hike since such a move would be very unpopular move and cause economic dislocation.
    • Among other Brazilian stocks: VALE +2.5%, ITUB +9.8%, BBD +12.7%.
    | Comment!
  • Oct. 6, 2014, 9:16 AM
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  • Oct. 6, 2014, 7:03 AM
    • The iShares MSCI Brazil Index ETF (NYSEARCA:EWZ) is ahead by 6.7% premarket after President Dilma Rousseff pulls in just 42% of the vote in Brazil's 3-way election, and her more-conservative challenger Aecio Neves gets 34%, well ahead of the 26% support he saw in the most recent pre-election poll.
    • Finishing in 3rd place is Marina Silva with 21% of the votes.
    • Brazilian stocks have been rallying all year on hope Rousseff was set to be tossed, but lately have given back some gains on worry she might in fact win another term.
    • The runoff election will be on October 26.
    • Petrobas (NYSE:PBR+14.5%, Vale (NYSE:VALE+3.5%, Itau Unibanco (NYSE:ITUB+1.6%, Banco Bradesco (NYSE:BBD+3.9% premarket
    • ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    | 17 Comments
  • Sep. 29, 2014, 10:24 AM
    • Sumitomo will set up a special investigation into how it lost nearly $1.8B in Texas shale oil and Australian coal mining, after writedowns connected to the investments almost completely wipe out its full-year earnings forecast.
    • Most of the losses were incurred at the shale oil project it shares with Devon Energy (NYSE:DVN); in 2012, Sumitomo paid DVN $340M for 30% of the project in the Permian Basin, agreeing to supply another $1B to fund most of the cost of drilling wells, but now it says it wants to sell most of its share since it is “difficult to extract the oil and gas efficiently."
    • The company also plans to stop production at the Isaac Plains coal mine in Australia's Queensland state it co-owns with Vale (NYSE:VALE) by the end of January.
    • “Even by the standards of trading companies, this is not good,” says the co-head of Japan equities at Mirabaud Securities, drawing parallels to Mitsui's costly exposure to BP’s blowout in the Gulf of Mexico.
    | 1 Comment
  • Sep. 29, 2014, 9:43 AM
    | 9 Comments
  • Sep. 26, 2014, 5:49 PM
    • Vale (NYSE:VALE) reaches a deal to expand its fleet of extremely large ships for carrying iron ore, following a truce with China’s largest shipping company that is expected to allow the vessels to dock at Chinese ports.
    • Cosco, China's largest shipping group, had lobbied against the Valemax ships having access to Chinese ports, but Vale is agreeing to transfer ownership of four of the vessels to the Chinese company, which will commission the building of a further 10 vessels.
    • Vale, unable to dock its large ore fleet at Chinese ports, has been forced to transfer ore to smaller ships at ports including Subic Bay in the Philippines.
    | 6 Comments
  • Sep. 25, 2014, 2:54 PM
    • Former Rio Tinto (NYSE:RIO) CEO Tom Albanese says the world's biggest mining companies are behaving rationally by digging out more iron ore even as prices continue to fall.
    • "If you look at the forward curve two years ago, if you look at the estimates of supply and demand, there are no real surprises in the present market place that had not been anticipated," Albanese says.
    • Iron ore prices have plunged 41% YTD to below $80/ton, their lowest level since 2009, exacerbated in large part by the world's three top iron ore miners - Rio, BHP and Vale (NYSE:VALE) - ramping up production in the hope they can profit from efficiencies of scale.
    | 1 Comment
  • Sep. 22, 2014, 3:47 PM
    | 2 Comments
  • Sep. 22, 2014, 11:22 AM
    • Iron ore slumped to a new five-year low overnight as China's finance minster said not to expect anything major from Beijing to counter a recent string of weak economic data.
    • “The Chinese government is signaling it won’t be very aggressive in stimulating growth, and that’s scaring investors,” says a hedge funder in Rio, though it'll be upcoming elections as the main driver for the Bovespa.
    • The ASX (NYSEARCA:EWA) fell 1.3% in Sydney, and the aussie (NYSEARCA:FXA) is off 0.7% to $0.8865. Brazil's Bovespa is lower by 2.2%, led by Vale (VALE -4.2%).
    • Brazilian banks: Banco Bradesco (BBD -1.8%), Banco Santander Brasil (BSBR -0.6%), Itau Unibanco (ITUB -2.3%).
    • The iShares MSCI Brazil Index ETF (EWZ -2.7%)
    • Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRZU, BRAZ, BZQ, BRAF, UBR, BRZS, DBBR, FBZ
    | 1 Comment
  • Sep. 16, 2014, 12:14 PM
    • "Investors are watching election polls very closely, and people are betting that Dilma’s support is losing momentum," says one fund manager as the Bovespa jumps 3.5%. The latest polls suggest opposition candidate Marina Silva has a 70% chance of winning, says Nomura's Tony Volpon.
    • Individual names: Petrobas (PBR +8.1%), Vale (VALE +1.5%) - even amid the "End of the Iron Age", Itau Unibanco (ITUB +5.6%).
    • The iShares Brazil MSCI Index (EWZ +4%).
    • Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRZU, BRAZ, BZQ, BRAF, UBR, BRZS, DBBR, FBZ
    • The iShares S&P LatAM 40 Index (ILF +3.1%)
    • Broad LatAm ETFs: ILF, LBJ, GML, EEML, FLN
    • Broad emerging markets: EEM +1.5%, VWO +1.6%
    | Comment!
  • Sep. 15, 2014, 12:42 PM
    • News that China’s industrial production growth in August slipped to its lowest level since the 2008 global financial crisis could cause iron ore prices to extend their slide after reaching their lowest level in five years.
    • Morgan Stanley says in a report that the price of iron ore could drop to as low as $70/ton from the current level of ~$82, but adds that prices may rebound towards $90/ton by year-end as China’s seasonal demand typically weakens before picking up again in Q4.
    • Stanley’s forecast for a rally in the final quarter follows a similar prediction last week from Vale (VALE +0.8%), the world’s largest supplier, which said prices may be poised for a rebound to as much as $100/ton by year-end because of declining inventory at ports.
    • Also: RIO +0.6%, BHP -0.8%.
    | Comment!
  • Sep. 10, 2014, 5:15 PM
    • Iron ore continues to slide, hitting fresh five-year lows on concerns about rising supply and slowing demand.
    • Today’s decline - the price of benchmark ore for immediate delivery into China dropped another $1 to $82.20/metric ton - came as Goldman Sachs analysts wrote of "the end of the Iron Age," saying the long period of above trend in profitability enjoyed by the iron ore industry has been destroyed by the billions of dollars major producers have ploughed into new, low-cost capacity.
    • The steelmaking material, which is critical to the profitability of several large mining groups including BHP Billiton (NYSE:BHP), Rio Tinto (NYSE:RIO) and Vale (NYSE:VALE), has dropped by nearly 40% this year, the worst performance among metals and bulk commodities.
    • Goldman forecasts $80 iron ore next year and lowers its estimates for 2016 and 2017 to $79 and $78, respectively; Goldman says big producers will still be able to generate good returns at those prices but their ability to return capital to shareholders will be impaired.
    | 9 Comments
  • Sep. 9, 2014, 12:21 PM
    • RBC Capital analysts met recently with senior managers of Vale’s (VALE +0.7%) global base metals business, and say Vale was “very positive" on the outlook for the nickel market over the next 12 months as excess ore inventories in China are eliminated and metal inventories are drawn down.
    • Vale signed a memo of understanding with the Indonesian government that could mean a license renewal, and the miner likely will sell an additional 20% stake in an Indonesia business, RBC says; Indonesia is China’s main supplier of nickel.
    | 2 Comments
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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