as well. Usually follows along the lines of X. Might give a temp boost to s/p depending on terms.
Not to babble, but it absolutely baffles me as to why we seem to be the only "free" market member in this supposedly "global marketplace" that plays by free market rules. And does little to protect the manufacturing/production of product and all the economic benefits that go with it - you know, the ones that built the USA into the economic powerhouse it was. Why can't our leaders recognize the rest of the world (ok, a few exceptions) don't believe as we do and are working overtime to destroy us? Or are they already embedded inside.
IMO there seems to be a disconnect among CLF shareholders (and others) as to where exactly the detrimental import steel comes from. I am not convinced that putting 1000% tariffs on China steel imports would do anything meaningful to steel imports. As much now comes from Turkey as from China, not to mention Brazil and Canada.
IMO, their forward guidance for 2016 leaves a bit to be desired. There are only three scenarios possible for 2016: (1) it get better, (2) it remains the same, (3) it gets worse. X's guidance is negative in relation to #1 & 2, and only marginally positive covering #3.
Need to remember that the rail cost was/is a real killer (It's a RIO company) and that CLF was in the process of partnering with others, including Quebec, to build a new line to be more cost effective. Or perhaps at least to bluff to get better rates.
Red, we've both been here a long time and have had similar thoughts at times on what happens to s/p at earnings. IMO, the usual - a beat will equal a run that gets capped quickly so the s/p doesn't trigger covering and gets slowly walked back down. Until there is capitulation (either shorts or longs) with a 25-30m+ trading day, CLF remains "under control" The uptick for me, is one of these days something has to give and at this s/p, IMO, it will be sooner now rather than later. Commodities can only be pushed so low before something breaks.
-0.09 on 499m rev. And LG says just enough to drop bond prices some more. He's running out of time for wiping debt- possibly only one qtr left before s/p and bonds rise.
Massive? that's only half a load for a valemax. It will hurt Vale only IF Aussies grab some of Vale's market share with China. IMO, there is no current shortage of I/o - anywhere. It may possibly offer some stability to I/o pricing, but Roy Hill is going to affect seaborne capacity soon as well.
You are probably correct in your assumption as to Essar, but CLF needs to be wary of others getting that property.
Coincidentally, anyone note this line out of RIO's production #'s
" The Iron Ore Company of Canada also demonstrated much improved operational performance. Its 4Q15 production rose by 20% YoY. This was due to improved haul truck and mill availability and enhanced productivity rates."
And does it portray any significance on nominations for CLF?
There were no rail I/o shipments to Essar during the time frame you specified. There is no rail link for IOC I/o shipment out of Sept Iles.
Not a moot point at all, but will certainly agree shipment by rail over boat is much more expensive - that's why I/o is shipped by boat if at all possible. Your statement indicated it was by rail during this time frame - which is not true.
I am not an insider privileged to know what Essar's agreements with other suppliers are, therefore I would not be able to state that it's costing Essar a fortune. I would like to believe if it's spot, it would be higher than CLF's contract price. But again, I don't know those figures other than the claims/statements Essar has been making.
IMO, the shipping costs rise in relation to the distance and logistics from Essar's dock. It appears CLF out of Marquette w/b least expensive, by boat or rail.
"Essar's current procurement of very expensive spot market priced, rail shipped pellets from US Steel and Iron Ore of Canada "
Rail shipped? Where do you get that from? Essar has been receiving pellets from both X and IOC by boat during this time span. Out of Duluth/Superior, Two Harbors and Sept Iles. Also, there is no rail that even runs from IOC to Essar. Are you Surf?
lucky for Walsh - keeps him from getting his pay cut for mismanagement. On another note related to ESSAR Algoma, I believe SOO locks close for the season tomorrow, though it doesn't necessarily rule out I/o from western Lake Superior. (Essar Algoma's dock is just west of the locks)
cube, you might want to do a little research. Names like Erie, Hanna, Pickards Mather and LTV come to mind. CLF was not the largest I/o supplier until they became one of the few left standing after the steel co consolidations and bks in the 80's and 90's. That's not that long ago.