Again...this has gotta make it easier........you all have word right?? Quick copy paste copy paste and get rid of the slide bar.......impossible to read without a valium.!!
Andthis from Bloomberg:
ShakyIron Market Turns to Vale for Final Piece of Supply Puzzle
James Attwood 2 days ago
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Shaky Iron MarketTurns to Vale for Final Piece of Supply Puzzle
(Bloomberg)-- With iron ore at a crossroads, investors turn to Brazilian producer Vale SAfor the final piece of the supply puzzle.
Lastmonth, BHP Group boosted its forecast for annual production, while Rio Tinto Group is also seeking to lift shipments of the steel-making ingredient this year. Vale -- the other member of the trio of suppliers that dominate the seaborne market -- will deliver its production report on Wednesday, including updating annual guidance.
Stronger-than-expectedfourth-quarter output or an increase in 2021 projections at Vale could pourmore cold water on iron ore prices that have recoiled on China’s push to reinin steelmaking amid slumping margins and rising port stockpiles.
Futures,which surged to as high as $175 a metric ton in December, have slipped back toabout $150 and could end the year at $100, according to Daniel Hynes, seniorcommodity strategist at Australia & New Zealand Banking Group Ltd.
Clickhere for more on iron’s nasty week
Still, there’s also a stronger-for-longer case, with MorganStanley this week outlining the “plausible scenario” of $165-plus over the nextthree years. A disappointing report from the world’s second-largest supplierwould support such a storyline. While Chinese demand may slow, it remainsrobust.
TheRio de Janeiro-based company will report quarterly output of 86.6 million tons,according to the average estimate of seven analysts surveyed by Bloomberg. Thatwould be a slight decline from the third quarter but well ahead of the sameperiod a year earlier.
© Bloomberg Iron ore slidover 6% last week, erasing 2021 advance
Assumingthere were no big surprises in the final three months of the year, attentionwill focus on guidance. In its previous report, Vale lowered its 2020 iron oreprojection to between 300 million and 305 million tons and forecast 315 millionto 335 million tons this year. At the time, executives described the 2021 goalas part of a conservative approach, leaving the door open to adjustments. Sincethen, operations resumed at its Samarco venture with BHP.
Valeis still looking to return to a capacity of 400 million tons, which would seeit regain the title of world’s biggest producer that it lost to Rio Tinto inthe wake of the Brumadinho dam collapse that killed 270 people.
Butthe production recovery is taking a little longer than thought as Valenavigates legal and pandemic obstacles. That helped fuel last year’s pricerally that pushed up earnings. The company was raised to an investment-gradecredit rating by Moody’s and has reinstated dividend payments.
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