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Iron Ore Prices Tumble to a Decade Low (Part 3 of 7) (Continued from Part 2) Brazil iron ore exports
Brazil accounts for about 25% of the global market share of iron ore’s trade volume. After Australia, Brazil is the second-largest iron-ore-exporting country in the world. Brazil is home to one of the largest mining companies, Vale (VALE). In 2014, Brazilian iron ore exports accounted for 18% of China’s overseas purchases compared to 19% in 2013.
Brazilian iron ore exports are thus a key metric for investors to watch, along with shipments out of Australia. The Brazilian Ministry of Development, Industry, and Foreign Trade releases this data on a monthly basis.
Volumes reach three-month high in March
Brazil exported 30.8 million tons of iron ore in March 2015. This figure represents a three-month high export volume. This is an increase of 6.3 million tons year-over-year. It is also 21.9% higher month-over-month. Such a strong volume is the result of increasing volumes by Vale, which is the major iron ore exporter from Brazil.
Impact on companies
Though overall iron ore consumption is weak in China, Brazilian iron ore exports are losing more ground than Australian ones are, which hurts Vale (VALE) more than BHP Billiton (BHP) and Rio Tinto (RIO).
A decrease in prices due to a supply glut negatively impacts other producers such as Cliffs Natural Resources (CLF). It also negatively impacts the iShares MSCI Global Metals & Mining Producers ETF (PICK). BHP makes up 17.9% of PICK’s holdings. The SPDR S&P Metals & Mining ETF (XME) also invests in some of these stocks.
Continue to Part 4 Browse this series on Market Realist:
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CLIFFS Natural Resources
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PRODUCER |
CODE : CLF |
ISIN : US18683K1016 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
CLIFFS Natural Res is a iron producing company based in United states of america. CLIFFS Natural Res produces iron, coal in Australia, in Brazil and in Canada, and holds various exploration projects in Canada. Its main assets in production are WABUSH MINE, EMPIRE AND TILDEN MINES, HIBBING TACONITE, NORTHSHORE MINE, UNITED TACONITE, OAK GROVE MINE, GREEN RIDGE MINE and PINNACLE MINE in Canada, AUSTRALIAN IRON ORE and SONOMA in Australia and AMAPA in Brazil and its main exploration properties are MT JACKSON J1 in Australia and DIAGNOS, WAWA, FREEWEST, MC FAULD'S LAKE, MACFADYEN, WAWA CLAIMS and BIG DADDY in Canada. CLIFFS Natural Res is listed in France, in Germany and in United States of America. Its market capitalisation is US$ 3.4 billions as of today (€ 3.1 billions). Its stock quote reached its highest recent level on May 16, 2008 at US$ 99.17, and its lowest recent point on January 15, 2016 at US$ 1.20. CLIFFS Natural Res has 297 400 968 shares outstanding. |