If we look today at the global corporations tied to ORE MARKETS----we see only CLIFFS NATURAL RESOURCES based in Ohio with a very small ore market tying themselves to a steel manufacturing plant. The GORILLA-IN-THE-ROOM ore mining corporations are AUSTRALIAN/SOUTH AFRICAN/UK.
Who is mining US metals/minerals? Foreign global mining corporations. With whom are they partnered in most cases? Asian---mostly Chinese mining corporations. Where is America in world holdings of IRON ORE? Global banking 1% pols depleted much of our natural resources building FOREIGN ECONOMIC ZONES overseas these few decades. US has IRON ORE reserves----it must conserve these resources----being mined by global foreign corporations.
US TARIFF LAWS THROUGH EARLY 1900s WORKED TO PROTECT US CORPORATIONS AND MANUFACTURING. AFTER ROBBER BARON FRAUDS OF ROARING 20s-----TARIFFS WORKED TO KILL US DOMESTIC MANUFACTURING AND MINING.
The 4 Best Iron Ore Stocks for 2017's Second Half
With new infrastructure proposals in the United States, these four iron ore companies are poised for a big rest of the year.
Jul 22, 2017 at 7:07AM
Infrastructure growth usually means an increase in steel used, and an increase in steel means an increase in iron ore. With the excitement over increased infrastructure spending in America with President Trump's proposed budget and prices at $57 per ton (down from $94 in February), iron ore is an attractive buy at this time. Solid mining companies like Rio Tinto PLC (NYSE:RIO), BHP (NYSE:BHP), Vale SA (NYSE:VALE), and Cliffs Natural Resources (NYSE:CLF)are in a good position to capitalize on the low price of ore. What's more, these companies have posted tremendous gains during the past year, while iron ore futures remained volatile, showing the power these companies have in the broader industry.
Image Source: Getty Images
Top Iron Ore Stocks
Market Cap YTD Returns
Rio Tinto PLC (NYSE:RIO) $81.90B 15.91% 3.8%
BHP (NYSE:BHP) $99.34B 10.09% 3.55%
Vale SA (NYSE:VALE) $47.21B 20.54% 3.63%
Cliffs Natural Resources (NYSE:CLF) $2.8B -11.17% N/ASource: Yahoo! Finance. Return data as of 7/20/2017.
A diversified giant
RIO is one of the largest mining operations in the world, with assets equaling almost $90 billion. Even though iron ore has been in murky waters recently, Rio's recent promise to buy back $2.5 billion in outstanding debt is a welcome sign for investors. This debt buyback program is coming off the heels of a recently unveiled share buyback program, announced in February.
Even though investors are betting that continued growth in China and newly unveiled infrastructure plans in the USA will boost the metal higher, it's clear this debt buyback will protect Rio if iron ore prices stagnate. Despite the recent dip in iron ore, Rio is an attractive opportunity because it's a diversified mining operation. If iron ore doesn't rebound as most investors predict, they are the still in a good position to succeed due to their copper, aluminum, gold, and silver operations.
Large cap growth, with a healthy dividend
BHP is another company in the same boat as Rio Tinto. It is a diversified metal and mining company, with exposure to iron ore, copper, gold, and coal, so their success isn't only tied to iron ore's fluctuation. The highlight with BHP is the growth associated with the company. BHP released an operational review for nine months ending in March, announcing that iron ore operations grew 3% since March of 2016, one of their only endeavors to grow in that time (metallurgical coal also grew, while petroleum and copper saw losses). BHP has also seen its share price go up 33% in the past year, all while offering a healthy 3% dividend. It doesn't hurt that BHP is the largest mining operation in the world, so it's never a bad idea to back the top dog.
The world's largest iron ore producer
Even though Vale is not one of the larger overall mining corporations in the world, like Rio and BHP, the Brazilian company is the largest producer of iron ore pellets in the world. This means Vale is more prone to movement than the aforementioned stocks. The stock has been beaten up recently, mostly due to factors outside of Vale's control. Skepticism from China on iron ore futures have stalled the share price, and frequent corruption scandals in the Brazilian government haven't helped either. Despite these geopolitical factors, Vale shares have increased 114% in the past year. It's also predicting production of 380 million tons of iron ore this year, a 6% rise from 2016. If the price of iron ore rises to levels from six months ago, and their predicted growth is correct, Vale is in a great position to increase revenues and earnings going forward.
Small cap, big potential?
The final stock to keep an eye on in this sector is Cliffs Natural Resources. With the lowest share price on the list, Cliffs is an interesting play and an easy entry point for frugal investors. A little fish in a big pond, Cliffs does have an advantage in some regards in that it is a major US producer of iron ore. With promises from President Trump on using US companies for infrastructure growth, there is a chance that imported iron ore pellets could be subjected to higher tariffs. Also, the stock is down over 10% since the start of 2017, providing a palatable entry point for investors looking to maximize returns. A downside with Cliffs is the lack of a dividend, which is a deal breaker for some investors.
Pay the iron price?
In investing, it's often not a bad idea to simply back the top dogs. This is especially true with commodities, where large cap producers have a lot of sway over the market. Large cap producers like Rio Tinto and BHP will continue to produce in large quantities, and offer a stable approach due to the diversity in their operations, while companies like Vale and Cliffs are interesting as pure iron ore plays. Whatever your approach, any of these four companies should provide a good foothold for entry in this important industry.
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Here is an article showing what looks to be one of a few US steel and iron ore manufacturing connections CLIFFS NATURAL RESOURCES----with that smiling global banking 1% KASICH Republican of OHIO. The article states this small steel manufacturing employing a few hundred will pay $100,000----WOW who believes that?
The current market for pipe for pipeline gas/oil has been Chinese iron ore. We already see Chinese iron ore as steel pipes in projects across west coast. They are a gorilla-in-the-room to this CLIFFS NATURAL RESOURCES. Chinese steel manufacturing global factories enslaving brutal conditions----will not be hiring UNITED STEEL WORKERS UNION at $100,000 so this smiling guy will not be paying that either.
Below we see the FAKE ALT RIGHT ALT LEFT 'DEMOCRAT' claiming this steel plant a WIN for US steel workers.
'CLEVELAND - Cliffs Natural Resources has selected the Port of Toledo and East Toledo's Ironville site as a home for its new Hot Briquette Iron processing facility, Toledo Democratic Rep. Marcy Kaptur announced Thursday'.
This is just like the Wisconsin FOXCONN 'win' for US workers.
Cliffs Natural Resources to build first Midwest plant producing product used in steelmaking
Updated Jun 15, 2017; Posted Jun 15, 2017
Lourenco Goncalves, chairman, president and chief executive officer of Cliffs Natural Resources Inc. with Gov. John R. Kasich. Cleveland-based Cliffs is building a hot briquetted iron production plant in Toledo. "This is great news for Toledo, and we're pleased that Cliffs chose Ohio for their new investment," said the governor in a news release.(Cliffs Natural Resources Inc.)
By Olivera Perkins, The Plain Dealer
CLEVELAND, Ohio - Cleveland-based Cliffs Natural Resources Inc. will build the Midwest's first-ever plant producing hot briquetted iron, which is used in steelmaking, the company announced Thursday.
The $700 million project, which received $30 million in grants and other financial incentives, is expected to break ground in early 2018 on the Ironville site in East Toledo, a former brownfield.
$30 MILLION EVEN IF THIS PROJECT DOES NOT SUCCEED---NOT BAD PAY-TO-PLAY!
The plant is anticipated to begin production in mid-2020, the company said. The project is scheduled to create 1,200 construction jobs and 130 permanent jobs. Hourly jobs at the plant will pay about $100,000, said Lourenco Goncalves, chairman, president and chief executive officer of the 170-year-old mining and natural resources company. The plant will be Cliffs' first facility in Ohio.
He said Toledo was uniquely situated for the project.
"We got a site in the Port of Toledo that is extremely convenient," he said. "It is close to the clients and has easy access. Logistically, it is an extremely positive site for us receiving iron pellets from Minnesota to produce the HBI, or hot briquetted iron."
U.S. Rep. Marcy Kaptur, Democrat of Toledo, expressed similar sentiments.
"The confluence of a job-ready site and Toledo's excellent distribution and transportation network helped to put the Toledo Port site over the top, attracting major investment and the jobs that will come with it," she said in a news release.
Goncalves said a lot of the plant's back office operations will be done in Cleveland, creating additional jobs.
"We don't have a number to give you, but that is a very fair conclusion that there will be more jobs in Cleveland," he said.
Goncalves said the plant would meet a strong demand in the Midwest and the Great Lakes region for HBI, which is used in an electric arc furnace as part of the steelmaking process. He said partly because HBI isn't produced in the region, steelmakers primarily rely on scrap metal with some pig iron mixed in. The pig iron comes from places such as Russia and Venezuela.
Cliffs is relying on local production having an advantage in serving a customer base concentrated in Ohio and neighboring states.
"It will be the first HBI facility in the Midwest and the first one in the Great Lakes," Goncalves said. "We think of this as a great market opportunity that has been present for a long, long time, and now we can do it because in order to produce hot briquetted iron you need two things: iron ore, which we have plenty of, and affordable natural gas, which is something relatively new in the Midwest since the shale boom made natural gas affordable in the Great Lakes."
Just as today's global banking 1% pols are EXPORTING raw US chickens to be processed in China then sent back to US as IMPORTED CHICKENS----so too have these few decades of ROBBER BARON CLINTON/BUSH/OBAMA seen the same happening to our US iron ore/metals/rare earth minerals. China IMPORTS global iron ore ----processes that to steel products including pipe and global corporations inside FOREIGN ECONOMIC ZONES buy that finished product to build global corporate campuses across Asia. So, our US iron ore has been an EXPORT ------the product used overseas.
When we look at US TARIFF law these same few decades----with national media shouting against unfair TARIFFS against US -----this was why global banking CLINTON/BUSH/OBAMA did this......it was unfair to 99% US WE THE PEOPLE----but global corporations profiteered by having Chinese 99% enslaving steel factories produce steel products.
MOVING FORWARD US CITIES DEEMED FOREIGN ECONOMIC ZONES BUILDING INFRASTRUCTURE MANUFACTURING WILL SIMPLY REVERSE THESE TARIFFS ------TO BUILD IN MADE IN CHINA MADE IN AMERICA.
Why does US have far less iron ore resources than a Brazil or China? We allowed global banking 1% to export our raw natural resources to build FOREIGN ECONOMIC ZONES overseas? Was that legal? Was that a national security threat depleting a sovereign nations' natural resources to no value for that nation and its 99% of citizens?
Who exports raw US chickens just to have them processed in China to be imported back to US? 5% to the 1% global banking SOCIOPATHS. This is the same game.
December 7, 2017 / 11:31 PM / 3 months ago
China November iron ore imports soar to one of highest levels on record
SHANGHAI (Reuters) - China’s iron ore imports rebounded in November to one of the highest levels on record, with appetite in the world’s top buyer remaining strong even as Beijing forced steel mills to slash output as part of its war on winter smog.
FILE PHOTO: A labourers works at a steel market in Shanghai January 9, 2013. REUTERS/Aly Song/File
Shipments of the steelmaking material rose 18.9 percent to 94.54 million tonnes in November from the previous month and were up 2.8 percent from a year ago, data from the General Customs of Administration showed on Friday. That was the fifth highest on record.
Total arrivals for the first 11 months climbed 6 percent to 990.73 million tonnes from 935.08 million tonnes a year ago. That puts the country on track to top last year’s import record of 1.02 billion tonnes.
Output cuts by Chinese steelmakers have led to tighter supplies, pushing steel prices to multi-year highs and driving up prices of iron ore as mills and trades restock in anticipation for steel production recovery after March.
“This was partly driven by increased exports from Brazil because there’s a production ramp-up there from Vale’s VALE5.SA mines,” said Helen Lau, an analyst with Argonaut Securities in Hong Kong.
“Given that iron ore prices have been recovering, you should expect Brazil to take advantage and export as much as they can,” she said.
She said traders may also have started to accumulate inventory while prices were falling in anticipation of a ramp-up in demand once mills resume full operations after the stringent winter restrictions across the north are lifted in March.
Shanghai steel futures SRBcv1 rose 9.7 percent in November, while iron ore prices DCIOcv1 surged 16.5 percent over the month.
China’s iron ore demand is expected to climb 1.3 percent in 2017 to 1.122 billion tonnes, but dip 0.2 percent to 1.12 billion tonnes in 2018, according to a report published by China Metallurgical Industry Planning and Research Institute (MPI) on Monday.
China’s crude steel output is expected to grow 3 percent to 832 million tonnes this year, and by a further 0.7 percent in 2018.
China’s steel exports fell sharply to 5.35 million tonnes in November from 8.12 million tonnes a year ago. Year-to-date exports fell 30.7 percent to 69.83 million tonnes on-year, customs data showed.
Steel imports rose to 1.14 million tonnes from 0.95 million tonnes in October, but total January-November imports stood almost steady at 12.1 million tonnes compared with 12.02 million tonnes a year ago.