Document 6564321

Th u r s d ay 1 6 , O c to b e r 2 0 1 4
News &
Report Analysis
Currency Market
Precious Metal
Base Metal
Energy Market
 RINL incurs Rs 40-50 cr loss/day due to
Hudhud: Chairman
 Tata Steel plans to sell UK division to
Klesch Group
 IFCI invokes one lakh shares of
Bhushan Steel
 Essar Gr raises $450 mn to expand
Minnesota project
 Iron Ore prices to remain at an average of
$85 by 2015 - UBS
2
Thursday 16, October 2014
Daily
MMR Landed Prices
London Metal Exchange : Wednesday 15, October 2014
Pr. Sell
(1)
Morning Session
Buy
Sell * (2)
Afternoon Session
Buy
Sell
Kerb
Change
(2) - (1)
Value
Stk(tns)
change
$/ton
Rs/ton
Copper Grade A
Spot
6780.50
6780.50
6781.00
6692.00
6692.50
6685.00
0.5
1,54,650
MMR LP
4,50,042
3-mth
6729.00
6745.00
6746.00
6654.00
6655.00
6641.00
17.0
2925
14-D MA
4,47,139
PP (HCL)
4,56,624
Average
10-days - 6736.90
20-days - 6762.50
30-days - 6815.10
Tin High Grade
Spot
20155.00
19720.00
19725.00
19664.00
19665.00
19551.00
-430.0
9,155
--
--
3-mth
20220.00
19700.00
19705.00
19724.00
19725.00
19610.00
-515.0
95
--
--
--
--
Average
10-days -20215.50
20-days - 20521.80
30-days - 20748.30
Lead
Spot
2053.50
2042.00
2042.50
2014.00
2015.00
1997.00
-11.0
2,25,525
MMR LP
1,40,355
3-mth
2065.00
2054.00
2055.00
2024.00
2025.00
2008.50
-10.0
-75
14-D MA
1,42,386
PP (HZL)
1,51,200
Average
10-days -2074
20-days - 2071.40
30-days - 2094
Zinc Special High Grade
Spot
2323.50
2328.00
2330.00
2273.00
2274.00
2273.00
6.5
7,26,400
MMR LP
1,63,142
3-mth
2328.00
2331.00
2332.00
2279.00
2280.00
2278.50
4.0
-75
14-D MA
1,61,974
PP (HZL)
1,75,000
Average
10-days -2304.80
20-days - 2279.30
30-days - 2289.20
Aluminium
Spot
1909.00
1912.00
1912.50
1897.00
1898.00
1892.00
3.5
45,35,475
MMR LP
1,48,133
3-mth
1938.00
1940.00
1941.00
1925.00
1926.00
1919.00
3.0
-4450
14-D MA
1,47,292
PP (Nalco)
1,59,900
Average
10-days -1899.80
20-days - 1914.20
30-days - 1949.60
Aluminium Alloy
Spot
2080.00
2075.00
2085.00
2085.00
2086.00
2081.00
5.0
27600
3-mth
2095.00
2090.00
2100.00
2100.00
2100.00
2095.00
5.0
-80
Average
10-days -2085
20-days - 2084.30
30-days - 2096.80
Nickel
Spot
16180.00
16130.00
16135.00
15769.00
15770.00
15753.00
-45.0
3,74,934
--
--
3-mth
16290.00
16210.00
16230.00
15849.00
15850.00
15830.00
-60.0
1824
--
--
-Copper
Aluminium
-01-Oct
19-Sep
Zinc
Lead
09-Oct
13-Oct
Average
10-days -16390
20-days - 16715.50
30-days - 17382.20
Note: 1. MMR LP = MMR Landed Prices, excluding excise duty. 2. PP = Producer Prices ex-smelter, excl. excise
Minor Metals ($/LB)
Antimony
99.65%
9,600
Cadmium
99.80%
90.00
Cobalt HG Moly.oxide
99.80%
14.00
14.25
Tantalite
30% Ta2O5
92.00
Titanium Ferro-vana
Con. Ti02
650.00
24.90
Silicon
2,050
Week ended Avg of Steel Prices: 11/10/2014 (Incl. Excise duty)
Sponge Iron
Pig Iron
Mandi
29,400 HMS
33,600 CRP(LSLP)
Mumbai
29,800
32,900
Kolkata
29,500
-
Indicative Domestic Market Rates (Rs./kg)
Mumbai
14-Oct
Chennai
29,800
32,200
MS Ingots
Bhiwandi
38,300
Comex Copper (cents/lb)
Prev
Delhi
14-Oct
Prev
-511.0
-511.0
444.0
-
444.0
-
Alum Ingot
Zinc Slab
Lead Ingot
Tin Slab
Nickel (4x4)
Scrap
Copper Heavy
Copper Uten.
166.0
187.0
137.0
1,510.0
1,150.0
166.0
187.0
137.0
1,510.0
1,150.0
170.0
199.0
133.0
1,496.0
1,145.0
170.0
199.0
133.0
1,496.0
1,145.0
475.0
432.0
475.0
432.0
---
---
Copper Mixed
Brass Utensil
Brass Huny
Brass Sheet
Alum Utensil
-326.0
-339.0
135.0
-326.0
-339.0
135.0
434.0
-322.0
142.0
434.0
-322.0
142.0
Virgin Metals
Copper Pat
Copper W/Bar
Delhi
29,700
-
Jul'14
Aug'14
Sep'14
Rate
300.45
300.75
300.90
Change
-2.6
-2.6
-2.6
Kanpur
38,000
Durgapur
34,300
Comex Al (cents/lb)
Rate
-
Change
-
Precious Metals : Indicative Rates
Metal
Gold Std
Silver
Gold
Silver
Gold
Silver
Market
Mumbai
Mumbai
London
London
Comex
Comex
Unit
Rs./10g
Rs./kg
$/tr.oz.
$/tr.oz.
$/tr.oz.
$/tr.oz.
15-Oct
27,400
39,500
1,237.5
17.01
1,244.1
17.41
Prev
27,400
39,500
1,234.8
17.50
1,233.6
17.35
Forex: Oct 14, 2014 (Rs/Unit Currency)
Buy
USD
61.47
61.38
EURO
77.78
GBP
97.88
97.75
SGD
48.23
—
—
AUD
53.71
YEN
0.5754
0.5746
SFR
64.41
Sell
77.67
48.15
53.64
64.30
Buy
Sell
Customs Notified Rates: Oct 02, 2014 [Rs.(Imp/Exp)]: US$ 62.30/61.30;Pound Sterling 101.25/99.00;Euro 79.00/77.10
Currency Market
US dollar currency fell the most in 15 months
versus the yen as a bigger-than-forecast drop in
retail sales prompted traders to pare wagers the
Federal Reserve will increase borrowing costs
for much of next year. The dollar currency has
USD/INR - 14/10/14
USD/INR Overnight VAR
Data releases today
17:00
16:00
15:00
14:00
13:00
12:00
11:00
60.90
60.98
61.06
61.14
61.22
61.30
61.38
61.46
10:00
Asian stocks slid toward a six-month low and
average bond yields for the biggest developed
economies fell to a record on concern that
Europe’s economic woes may scupper the
global recovery. Crude oil extended declines
as South Korea’s won led emerging-market
currencies higher. MSCI's broadest index of AsiaPacific shares outside Japan was down about
0.2 percent. While equity stocks at Shanghai
market also bucked the downtrend and added
0.6 percent after Chinese bank lending data
provided a regional bright spot. Lending beat
expectations last month, a sign that demand
for credit may be picking up, though a drop in
China's foreign exchange reserves in the third
quarter suggested ominous speculative money
outflows. S&P 500 e-mini futures edged up 0.3
percent, which might portend a more stable day
ahead on Wall Street as investors await more
U.S. data.
Among the regional economy update, U.S.
retail sales and producer prices both dropped
last month, a worrisome economic signal
that helped fuel a sell-off on Wall Street as it
quashed expectations the U.S. Federal Reserve
would hike U.S. interest rates sooner rather than
later. The New York Fed's Empire State general
business conditions index also plunged to 6.17
in October from September's 27.54, marking the
weakest pace of manufacturing activity in New
York state since April.
China’s broadest measure of new credit
rose to a three-month high in September as
the central bank’s targeted measures to boost
liquidity helped spur lending.
9:00
Daily
3
Thursday 16, October 2014
0.3554
Forecast
Previous
USD Industrial Production m/m
0.4%
-0.1%
USD Capacity Utilization Rate
79.0%
78.8%
Source : Mecklai Financial
a high risk of falling versus the yen and adding
to its biggest slide in six months, according to
JPMorgan Chase & Co., with global markets
roiled by concerns that growth and inflation are
slowing. The Bloomberg Dollar Spot Index held
declines as traders pushed back expectations
for a U.S. interest-rate increase to December
2015, after earlier this month seeing a rise as
likely to come in July. Australia’s dollar fell on
speculation yesterday’s 1.3 percent advance was
unwarranted. China has shown “some renewed
willingness” to let the yuan strengthen, the U.S.
Treasury Department said in a report. South
Korea’s won rose.
“There’s a general unease across markets,”
said Naohiro Nomoto, an associate for foreignexchange trading at Bank of Tokyo-Mitsubishi
UFJ Ltd. in New York. “People seem to be
dropping their long dollar-yen positions, and
taking a watch-and-wait attitude,” he said
referring to wagers on gains in the U.S. currency.
The dollar was at 106.16 yen as of 1:26 p.m. in
Tokyo after dropping 1.1 percent yesterday, the
biggest loss since April 8. The greenback traded
at $1.2817 per euro after weakening 1.4 percent
yesterday to $1.2838. Japan’s currency was at
136.06 per euro from 135.99.
Hedge funds and other large speculators
raised their net bullish dollar bets versus eight
4
Thursday 16, October 2014
Daily
6 mth
LIBOR
Major
Currencies
Today’s
Crosses
Spot
Cash
v/s INR
0.32
USD / INR
-
ATM Options (put/call)
0.15
Forward Rates v/s INR (Export/ Import)
October
November December
March
June
September
61.56/ 57
61.50/ 51
61.74/ 76
62.11/ 14
62.54/ 58
63.71/ 75
64.88/ 92
65.98/ 02
-
-
-
0.00/0.56
0.00/0.76
0.00/0.94
0.00/1.42
0.00/1.80
0.00/2.15
EUR / USD
1.2822
78.93/ 94
78.85/ 86
79.16/ 18
79.66/ 69
80.23/ 27
81.78/ 82
83.36/ 39
84.84/ 87
0.16
USD / JPY(100)
106.07
58.04/ 04
57.98/ 98
58.21/ 23
58.57/ 60
59.00/ 03
60.16/ 20
61.33/ 37
62.43/ 48
0.69
GBP / USD
1.5986
98.41/ 43
98.31/ 33
98.69/ 74
99.28/ 26
99.92/ 71
101.70/ 95
103.47/ 01
105.15/ 92
0.06
USD / CHF
0.9415
65.38/ 40
65.32/ 34
65.57/ 59
65.98/ 00
66.47/ 51
67.80/ 83
69.15/ 14
70.40/ 41
3.06
AUD / USD
0.8786
54.11/ 12
54.06/ 07
54.24/ 28
54.57/ 62
54.95/ 01
55.98/ 04
57.01/ 07
57.98/ 03
Source : Mecklai Financial
of its major peers to a record 313,878 contracts
as of Oct. 7, compared with 281,204 a week
earlier, according to data from the Washingtonbased Commodity Futures Trading Commission.
Precious Metal
Gold traded near a five-week high as U.S.
economic data that missed estimates added
to signs a global slowdown may hurt the U.S.
recovery, boosting demand for a haven as the
dollar and equities dropped. Gold for immediate
delivery traded at $1,240.37 an ounce at 12:23
p.m. in Singapore from $1,242.02 yesterday,
when prices climbed to $1,249.75, the highest
since Sept. 11, according to Bloomberg generic
pricing. The metal advanced with Treasuries as
U.S. retail sales dropped more than forecast in
September.
Bullion rebounded from this year’s low on
Oct. 6 and is headed for the first back-to-back
as on October 15, 2014
Market Highlights - Gold (% change)
Gold
Gold (Spot)
Unit
Last
Prev.
day
WoW MoM
YoY
$/oz
1240.6
0.67
1.6
0.0
-3.1
Gold
(Spot -Mumbai)
Rs/10
gms
27100.0
0.74
0.9
0.4
-9.1
Gold
(LBMA-PM Fix)
$/oz
-
-
-
-
-
Comex
Gold (Apr’14)
$/oz
1240.8
-0.27
1.3
2.1
-2.5
Rs /10
gms
27252.0
1.07
1.9
1.0
-5.7
MCX Gold
(June’14)
Source: Angel Broking
weekly rise since July on speculation that
the Federal Reserve may delay interest-rate
increases. The MSCI All-Country World Index of
equities slumped to an eight-month low and
the Bloomberg Commodity Index of 22 raw
materials retreated to the lowest level since July
2009.
“Gold’s rally has been a combination of a
flight to safety and shorts being squeezed,” said
Sun Yonggang, a macroeconomic strategist at
Everbright Futures Co. in Shanghai, referring
to the unwinding of bets on lower prices. “The
dollar continues to be the main driver of gold.
The big selloff in other markets may cause some
people to take profit on their gold positions to
meet margin calls elsewhere.”
Gold for December delivery decreased 0.3
percent to $1,240.90 an ounce on the Comex in
New York, after climbing yesterday to $1,250.30,
the highest price since Sept. 11. Holdings in the
SPDR Gold Trust, the biggest exchange-traded
product backed by bullion, fell yesterday to
759.14 metric tons, the least since December
2008.
More importantly, Gold imports by India,
the largest user after China, probably surged
more than fourfold last month on expectations
declining prices would boost festival demand.
Purchases are estimated at about 95 metric tons
compared with 15 tons to 20 tons in September
Daily
5
Thursday 16, October 2014
last year, said Bachhraj Bamalwa, a director at
the All India Gems & Jewellery Trade Federation.
The government raised import taxes for a third
time in August last year after a month earlier
obliging importers to set aside 20 percent of
purchases for re-export as jewelry.
Base Metal
Global base metal commodities market sank
to a five-year low as energy prices extended
losses on rising supplies and U.S. economic
data that missed estimates added to concern
that global growth may be faltering, hurting
the outlook for raw materials. Copper futures
tumbled the most in seven months as signs of
muted inflation signaled lower metal demand
in China, the world’s top user, and the U.S.,
the second-biggest. In September, Chinese
consumer costs rose at the slowest pace
since January 2010, and U.S. wholesale prices
unexpectedly fell for the first time in a year,
separate reports showed today. Copper fell 6.1
percent in the third quarter amid concern that
supplies will top demand.
As per the recent study from the
International Copper Study Group estimated
that the global market will swing to a surplus
next year. Even with signs of slowing demand,
mining companies are spending more to
increase production. Inventories monitored by
exchanges in London, New York and Shanghai
increased in five of the past six weeks.
“Another round of concerning data on the
economic front is weighing on copper,” David
Meger, the director of metal trading at Vision
Financial Markets in Chicago, said in a telephone
interview. “Slower growth means a deflationary
environment, which by definition is lower
pricing, and lower prices puts pressure across
the whole commodity market.”
Copper futures for December delivery
tumbled 2.6 percent to settle at $3.009 a pound
at 1:15 p.m. on the Comex in New York, the
biggest decline for a most-active contract since
March 11. Copper demand will top refined
production by 307,000 metric tons in 2014,
the International Copper Study Group said
yesterday. The shortfall will end next year, with
output exceeding usage by 393,000 tons, the
group estimates. LME monitored inventory
stocks climbed for the third straight day, the
longest string of gains in a month. Retail
sales in the U.S. dropped more than forecast
in September, a government report showed
today, adding to demand concerns. Copper
for delivery in three months fell 2.3 percent
to $6,641 a ton ($3.01 a pound) on the LME.
Among the other base metal Tin declined 0.2
percent to $19,610 a ton. The metal will trade
from $20,000 to $21,500 this quarter, according
to Sucden Financial Ltd. Prices will be supported
as Indonesia’s ore-export ban stays in place and
spurs supply deficits, Steve Hardcastle, head of
client liaison, said yesterday. Aluminum, nickel,
lead and zinc also dropped.
Energy Market
West Texas Intermediate oil declined after
ending last session down 0.1 percent at $81.78,
its lowest settlement since June 2012. Brent
for November settlement, which expires today,
declined as much as 71 cents, or 0.9 percent, to
$83.07 a barrel on the London-based ICE Futures
Europe exchange. The more-active December
contract was down 70 cents at $83.42. Bank of
Market Highlights - Crude Oil (% change)
as on October 15, 2014
Crude Oil
Unit
Last
Prev.
day
WoW
MoM
YoY
Brent (Spot)
$/bbl
84.1
-2.7
-6.8
-12.8 -24.3
Nymex
$/bbl
Crude (June ’14)
81.8
-0.1
-6.3
-12.1 -19.2
ICE Brent
Crude (May’14)
$/bbl
83.8
-1.5
-8.3
-14.6 -23.8
MCX Crude
(May ’14)
Rs/bbl
84.1
-2.7
-6.8
-12.8 -24.3
Source: Angel Broking
Daily
Thursday 16, October 2014
America Corp. and BNP Paribas SA predict prices
will hold above $80 a barrel. Commerzbank AG
also sees that level as a possible low for Brent
crude. They’re in part counting on OPEC cutting
output -- some say as soon as next month -- to
compensate for recent declines in demand.
The lowest oil price in four years will provide
stimulus of as much as $1.1 trillion to global
economies by lowering the cost of fuels and
other commodities, according to Citigroup Inc.
Brent, the world’s most active crude contract,
closed at $83.78 a barrel in London yesterday.
That’s more than 20 percent below its average
for the past three years, amounting to savings
of about $1.8 billion a day based on current
output, Citigroup estimates. Savings will climb
to $1.1 trillion annually as the slide cuts costs
of other commodities, leaving consumers
and companies with extra cash to spend and
bolstering growth, according to Ed Morse, the
bank’s head of global commodities research in
New York.
News & Report
Analysis
RINL incurs Rs 40-50 cr loss/
day due to Hudhud: Chairman
Rashtriya Ispat Nigam Limited (RINL), the
corporate entity of Vizag Steel Ltd, said that it
is incurring losses of Rs 40-50 crore per day
following shutting down of its operations due
to devastation caused by cyclone Hudhud in the
last three days.
The plant is expected to return to production
level in next 10-15 days.
"We are impacted by the cyclone both in
terms of operations and environment (damage
caused to plant's green belt). Both power
sources, internal and external, have been
affected. Entire plant was shut on October
11 (a day before cyclone struck the Andhra
coast)," RINL Chairman and Managing Director
P Madhusudan stated.
He said the production loss following the
shut-down could be up to one lakh tonne.
RINL has a capacity to produce nearly four
million tonne per annum, which was upgraded
to six million tonne recently.
Madhusudan said the ongoing loss would
impact the overall annual production target.
Tata Steel plans to sell UK
division to Klesch Group
Tata Steel said it is in talks with Swiss
investment firm Klesch Group to sell a part of
its European assets, including mills in northern
England and Scotland as part of exercise to
streamline its overseas businesses.
Europe's second-largest steel producer said
an initial agreement for sale of its long-products
manufacturing and distribution sites in UK,
France and Germany.
Long steel products, such as rebars and rails
are mostly used in construction. The division
employees about 6,500 people in Britain and
Europe.
6
Daily
Thursday 16, October 2014
Overall, Tata employs 30,500 people in
Europe, including 17,500 in Britain.
Tata Steel had in August stated that it is
taking steps to restructure operations and cut
costs by producing more high- value products
and cutting jobs. It said on Wednesday it has
decided to focus on strip products.
According to the memorandum of
understanding
signed
with
Genevaheadquartered Klesch, Tata will sell UK-based
assets including Scunthorpe Steelworks, mills in
Teesside, Dalzell and Clydenbridge in Scotland,
as well as operations in France and Germany, if a
final deal is struck.
"We have decided to concentrate our
resources mainly on our strip products activities,
where we have greater cross-European
production and technological synergies," said
Karl Koehler, chief executive of Tata Steel's
European operations.
The two sides will "now move into detailed
due diligence and negotiations, though no
assurance can be given about the outcome," he
said.
The Klesch Group, headquartered in Geneva
is a global industrial commodities business, with
three divisions specialising in the production
and trading of chemicals, metals and oil.
Unions oppose sale
Unions have reacted with anger to the
news that Tata Steel is in discussions to sell
its European long product division centred in
Scunthorpe, UK.
In a joint statement the Community, Unite
and GMB union said they were opposing the sale
at this stage and would call on the government
to intervene to ensure a future for the assets.
They expressed disappointment over the
fact that they had only been made aware of the
plan two days before.
7
Daily
Thursday 16, October 2014
“The unions have been treated with contempt
in this process as the level of consultation we
would expect ahead of such a major strategic
announcement has not taken place.”
Unions are set to meet next week to decide
their next potential steps. “The fact that Tata
Steel wants to abandon half of its European
operations and pull out of an entire strategic
market does not bode well for the future and
ends Tata Steel’s vision to be a global steel
player,” they added.
CEO of Tata Steel’s European operations Karl
Kohler said the long process of consulting with
stakeholders including employees and unions
was only just beginning. “Before that point I
wouldn’t see what there would be to consult
about.”
IFCI invokes one lakh shares
of Bhushan Steel
Financial institution IFCI has invoked one lakh
shares of Bhushan Steelthat were pledged by the
debt-ridden company's promoter Neeraj Singal.
Singal is also Vice Chairman & Managing
Director. In a filing to the BSE, Bhushan Steel
said that company's one lakh shares, that were
pledged by Singal, have been invoked by IFCI Ltd.
As per the filing, 36,732 shares were pledged
on October 7 and 27,330 on October 9. Again
5,059 shares were pledged on October 10,
followed by 30,879 on October 13.
The CBI in August had arrested Singal in
connection with alleged Rs 50 lakh bribery
scandal involving CMD of Syndicate Bank S K
Jain.
Meanwhile, the company has denied that
lenders are looking at selling it. "Bhushan Steel
is a standard account. Hence, the question of
lenders looking at selling it does not arise in
this situation," a company spokesperson said
reacting to media reports.
Essar Gr raises $450 mn to
expand Minnesota project
The Essar Group owned by the billionaire
Ruia brothers have achieved financial closure
for the $1.8 billion Minnesota Mining project
making some headway six years after the asset
was acquired. The group has raised $450 million
from a clutch of New York based funds to fund
the expansion of the mine.
Essar Steel Minnesota had raised $450
million from banks, but returned the funds after
securing what it called was a better deal from
funds based in New York, Madhu Vuppuluri,
president and CEO of Essar Minnesota said.
The Essar Group, the promoters of the $1.8
billion project have committed $750 million as
equity. About $700 million debt has been raised
from Indian banks. The American hedge funds
are investing $450 million in high yield bonds for
six years which can be repaid before maturity.
Iron Ore prices to remain at
an average of $85 by 2015 UBS
Global iron ore suppliers are locked in a
battle for market share as a surplus expands,
according to UBS AG, which cut price forecasts
for 2015 and 2016 while sticking with a call
for an end-of-year rally this quarter. The steelmaking raw material will average $85 a metric
ton in 2015 and $82 in 2016, analysts including
Daniel Morgan said in a report received today.
Previously, the outlook for both years was an
8
Daily
Thursday 16, October 2014
average of about $103 a ton. Iron ore will rally
toward $100 this quarter as mills restock, the
bank said.
Iron ore tumbled 39 percent this year after
companies including Rio Tinto Group (RIO), BHP
Billiton (BHP) Ltd. and Vale SA raised low-cost
output in Australia and Brazil, spurring a glut.
The global market is in the midst of a transition
without precedent in recent commodity history
as supply surges and some higher-cost mines
are displaced, according to Macquarie Group
Ltd.
“The iron ore game has changed from a
growth opportunity into a battle for market
share,” the UBS analysts wrote. “Seaborne
producers will try to displace high-cost
domestic supply in China, but a core will likely
remain competitive. The majors also continue
their aggressive expansion plans.”
Ore with 62 percent content delivered to
Qingdao, China dropped 1.5 percent to $82.55
a ton yesterday, according to data from Metal
Bulletin Ltd. The price fell to $77.97 on Sept. 29,
the lowest level since September 2009.
“In a declining price environment, the
winners should be those with high-quality ore,
delivered at low cost to China,” the analysts
said. “Here the majors Rio Tinto and BHP Billiton
appear best placed.”
Global seaborne output will exceed demand
by 26 million tons this year and 41 million tons
in 2015, according to UBS. The glut is seen at 105
million tons in 2016 and will rise to 223 million
tons by 2018, according to the bank.
Fortescue Metals Group Ltd. (FMG) said that
shipments rose 66 percent in the three months
to Sept. 30 as it expanded output from Western
Australia mines. The world’s fourth-biggest
exporter expects to ship 155 million to 160
million tons in the year through June, it said.
Global iron ore suppliers are locked in a
battle for market share as a surplus expands,
according to UBS AG, which cut price forecasts
for 2015 and 2016 while sticking with a call
for an end-of-year rally this quarter. The steelmaking raw material will average $85 a metric
ton in 2015 and $82 in 2016, analysts including
Daniel Morgan said in a report received today.
Previously, the outlook for both years was an
average of about $103 a ton. Iron ore will rally
toward $100 this quarter as mills restock, the
bank said.
Iron ore tumbled 39 percent this year after
companies including Rio Tinto Group (RIO), BHP
Billiton (BHP) Ltd. and Vale SA raised low-cost
output in Australia and Brazil, spurring a glut.
The global market is in the midst of a transition
without precedent in recent commodity history
as supply surges and some higher-cost mines are
displaced, according to Macquarie Group Ltd.
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