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Iron Ore Metals Report Q2 2016

Iron Ore Metals Report Q2 2016

BMI View: Globally, iron ore prices will remain subdued due to weak demand growth in China andexpanding output by major miners in Australia and Brazil. China will see output slow as the country's ironore miners operate on the higher end of the global iron ore cost curve.

Latest Developments & Structural Trends

Supply:

Global iron ore production will grow minimally from 3,036 million tonnes (mnt) in 2016 to 3,165mnt by2020. This represents an average annual growth of 0.3% during 2016-2020, significantly lower than theaverage growth of 4.0% during 2011-2015. On the one hand, supply growth will be primarily driven byAustralia and Brazil due to expanding output by major miners, such as Rio Tinto, BHP Billiton, Valeand Fortescue Metals. On the other hand, miners in China, which operate on the higher end of the ironore cost curve, will be forced to cut output due to continued iron ore price weakness.

Australian producers, most notably Rio Tinto, BHP Billiton and Fortescue Metals Group, will takeadvantage of their low-cost sitting in the global cost curve and seek to capture more market share at theexpense of higher-cost producers. For instance, BHP Billiton, one of the country's main iron oreproducers, reported cash costs for 2015 at USD18.7/tonne, down from USD27.0/tonne in 2014. Rio Tintonoted production costs of USD15.0/tonne during 2015. BHP, Rio Tinto and Fortescue will continue toinvest in existing operations. According to Rio Tinto, 2016 capital expenditure (capex) is expected toremain under USD6.0bn.


BMI Industry View
BMI View
Table: Global Iron Ore Forecast
Latest Developments & Structural Trends
Price Forecast
Global - Iron Ore: Prices To Find Floor In 2016
Table: BMI Iron Ore Price Forecast
Table: Global - Iron Ore Production Forecasts
Global Trends In Supply, Demand & Trade |
Global - Iron Ore: Brazil & Australia To Feed Market Oversupply
Table: Global - Iron Ore Production Forecasts
Table: Select Countries - Crude Steel Production Forecasts (2014-2019)
Mine Supply: Iron Ore
Global - Iron Ore: Brazil And Australia To Defy Global Slowdown
Table: Select Countries - New Iron Ore Projects
Competitive Landscape
Global - Low Prices To Drive Consolidation
Table: Largest Listed Iron Ore Producers By Market Capitalisation
Company Profile
Global Company Strategy - Rio Tinto - Q2 2016
Company Overview
Company Strategy
Table: Rio Tinto - Key Projects
Latest Financial Results
Table: Rio Tinto - Key Financial Data
Global Company Strategy - Anglo American - Q2 2016
Company Strategy
Latest Results
Table: Anglo American - Financial Data
Fortescue Metals - Q2 2016
BHP Billiton - Q2 2016
Latest Financial Results
Table: BHP Billiton - Supply Chain Analysis
Table: BHP Billiton - Key Financial Data
Vale - Q2 2016
Company Overview
Company Strategy
Latest Results
Table: Vale - Key Financial Data
Company Details
Appendix
Table: Global - Iron Ore Production Forecasts
Table: Select Countries - Crude Steel Production Forecasts (2014-2019)

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