Metals & Mining Monitor | Iron Ore Prices Reach to 3-Month High; Anglo American Extends BHP Bid Deadline After Rejection

Moomoo News AU joined discussion · May 27, 2024 15:13

Metals & Mining Monitor | Iron Ore Prices Reach to 3-Month High; Anglo American Extends BHP Bid Deadline After Rejection

Hello mooers! Check out the latest market dynamics of the metals and mining industry over the past week.
•Base metals: Copper pullback from record high
•Precious metals: Gold prices dropped on hawkish Fed, US data
•Bulk commodity: Iron ore prices climbed to 3-month high on China's support measures

Spot Price Snapshot

Key Price Moves

Iron ore futures surged to a three-month high on Monday as traders reacted positively to China's latest measures to support its struggling real estate sector, which is a major consumer of iron ore. The September iron ore contract on China's Dalian Commodity Exchange (DCE) closed 1.1% higher at 894.50 yuan ($123.72) per metric ton, with earlier trading seeing the contract peak at 906 yuan, the highest level since February 20th. As of last Friday, the spot price increased by 2.2% to $120.6 per tonne compared to the previous week.

$Copper Futures(MAY5) (HGmain.US)$ prices hit an all-time high above $11,000/t last Monday on the London Metal Exchange, marking a significant surge in benchmark copper future prices. However, prices plummeted 4.3% on Wednesday to $10,396/t due to diminished Fed rate cut expectations, China's demand being dragged down by high prices, and long position profit-taking. Despite this midweek slump, copper prices have maintained a robust upward trend, boasting a 21% increase this year to date.

$Gold Futures(JUN5) (GCmain.US)$ and $Silver Futures(MAY5) (SImain.US)$ traded sharply lower last Thursday, extending losses into a third straight session, following the release of Federal Reserve minutes showing that some policymakers were willing to raise interest rates to fight inflation. The minutes sparked concerns that the Fed could start raising interest rates sooner than expected, which would increase the opportunity cost of holding non-yielding assets like gold.

As of last Friday, the spot price of gold fell by 2.5% to $1,843 per ounce, while the price of silver saw a 3.1% increase to $30.6 per ounce compared to the previous week.

Top Company News

Anglo American Spurns Third BHP Offer, Deadline Extended

$ANGLO AMERICAN (AAUKF.US)$ has rejected $BHP Group Ltd (BHP.AU)$'s improved $50 billion takeover proposal, citing its complexity and undervaluation of prospects. However, the London-listed mining company has agreed to enter talks with BHP, potentially paving the way for the largest-ever mining deal. Under UK takeover rules, Anglo has extended a deadline for BHP to make a firm offer until May 29th. BHP will need to decide by then whether to make a new bid.

Rio Tinto and BHP Team Up for Battery-Electric Truck Trials in Australia

$Rio Tinto Ltd (RIO.AU)$ and BHP have announced plans to collaborate on battery-electric haul truck trials in the Pilbara region of Australia. The mining companies will test large battery-electric haul trucks from manufacturers Caterpillar and Komatsu, with BHP trialing two Cat 793 haul trucks from the second half of 2024 and Rio Tinto trialing two Komatsu 930 haul trucks from 2026. The companies will share the outcomes of the trials.

Cameco Announces $500 Million Private Placement of Senior Unsecured Debentures

$Cameco (CCJ.US)$ has announced a private placement of $500 million in senior unsecured debentures. The debentures will consist of 4.94% Senior Unsecured Debentures, Series I with a maturity date of May 24, 2031. The offering is expected to close on May 24, 2024.

SQM Reports Drop in Lithium Sales

$Sociedad Quimica Y Minera De Chile (SQM.US)$, a Chilean lithium producer, has reported a significant decrease in sales for the quarter, with a 52.12% drop in sales compared to the same period last year. The company reported quarterly earnings of $0.80 per share, which beat the analyst consensus estimate of $0.73 by 9.59%. However, quarterly sales of $1.084 billion missed the analyst consensus estimate of $1.130 billion by 4.10%.