Iron ore bottoms out and zinc prices continue a strong rebound, according to latest reports
Commodity Briefing Service Expands Coverage with Inaugural Iron Ore and Zinc Reports
"S&P Global Market Intelligence has been at the forefront of research and analysis in the mining and metals space," said Sanjay Saraf, Head of Metals & Mining Commodity Market Analysis at S&P Global Market Intelligence. "Adding key research on iron ore and zinc markets to the existing Commodity Briefing Service bolsters our offering and allows clients to access a unique 'mine-to-metal' view using our online database."
Findings from the Iron Ore Commodity Briefing Service
In its inaugural CBS report on iron ore, S&P Global Market Intelligence examined the prevailing market conditions. Iron ore prices bottomed out after a sharp four-month correction following the significant price rises recorded in 2016. Findings highlight the mixed H1 2017 output from the "big four" producers, with Vale and BHP recording year-over-year increases of 8.3% and 4.7%, respectively, while Rio Tinto and Fortescue Metals Group reported declines of 2.0% and 1.3%.
The CBS report follows the recent publication of "The Iron Ore Market 2017" by The United Nations Conference on Trade and Development (UNCTAD). Material for this report, which examines the market for iron ore in 2016, was provided by S&P Global Market Intelligence.
According to S&P Global Market Intelligence's mine operating-cost models, the mining industry as a whole now spends US$22/dmt less on producing iron ore than it did in 2013. This is attributed to tightened capital controls, renegotiated contracts and the exit of high cost supply. The production-weighted average cost for the seaborne iron ore market was only US$34/dmt in 2016.
Findings from the Zinc Commodity Briefing Service
Zinc prices continued to rebound strongly from the sub-US$2,500/t London Metal Exchange three-month lows seen in early- to mid-June, with a nadir of US$2,428/t on June 7. Zinc stocks decreased further in June, with total exchange inventories (LME and SHFE) down 45% year over year in the first half of 2017.
S&P Global Market Intelligence expects continued tightness in the global refined zinc market, driven by constrained concentrate supply and a seasonal uptick in metal demand.
To read S&P Global Market Intelligence's monthly CBS reports, and to learn more about our mining and metals sector coverage, please visit:
About S&P Global Market Intelligence
At S&P Global Market Intelligence, we know that not all information is important — some of it is vital. Accurate, deep and insightful. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuations and assess credit risk. Investment professionals, government agencies, corporations and universities globally can gain the intelligence essential to making business and financial decisions with conviction.
S&P Global Market Intelligence, a division of S&P Global (NYSE: SPGI), provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit: http://www.spglobal.com/marketintelligence
S&P Global Market Intelligence