|Bid||0.00 x 2900|
|Ask||0.00 x 1800|
|Day's Range||15.75 - 15.97|
|52 Week Range||15.42 - 19.94|
|PE Ratio (TTM)||20.45|
|Expense Ratio (net)||0.77%|
Trade tensions, especially between the world’s two largest economies, have been taking a toll not only on the equity world but also on the commodity space. In fact, the escalating tit-for-tat tariff threats pushed the Bloomberg Commodity Index, which measures the returns on 25 raw materials down by 8.9% from the latest peak in late May.Source: Shutterstock
China is the top consumer of raw materials and the tariffs will slowdown growth in its economy hurting commodities. As such, we have highlighted few commodity ETFs that are feeling the brunt.
Is a Valuation Rerating in the Cards for Vale Stock? Vale’s (VALE) base metal (DBB) production, including nickel and copper production, was in line with its decision to lower its footprint by putting non-competitive mines on care and maintenance. Vale’s strategy is to preserve its optionality in nickel in case of higher demand for nickel class I. Nickel production, therefore, reached 58,600 tons in the first quarter, a decline of 18% year-over-year and 25 sequentially.
Vale (VALE) is optimistic about the growing popularity of electric vehicles. Vale’s executive director of base metals, Jennifer Maki, said the market forecast suggests that electric vehicles could represent 7%–20% of the global auto market by 2025, up from 1% in 2017. The company wants to preserve its optionality in nickel ahead of the expected boom in electric vehicles (TSLA).
Strong chart patterns for key commodity-related ETFs suggest that this could be one of the only segments to withstand a continued sell-off.
Is the Sell-Off in US Aluminum Producers Justified? As we noted previously in this series, aluminum prices have seen downward pressure this year. Lower aluminum prices are negative for aluminum producers like Rio Tinto (RIO) and Norsk Hydro (NHYDY).
Can Vale Expect Significant Upside after 4Q17 Results? Vale’s (VALE) base metal (DBB) production, including nickel and copper, was flat to lower in 2017 compared to 2016. Its nickel production fell 7.3% year-over-year (or YoY) to 288,200 tons, which was in line with Vale’s commitment of a smaller nickel footprint.
As we kick off this new year please remember that markets don’t trade in a linear fashion even though 2017, as far as U.S. equities are concerned, in many ways displayed a record amount of linearity with 12 consecutive months of gains for the S&P 500 as represented by the SPDR S&P 500 ETF Trust (NYSEARCA:SPY). Yes keep the broader stock market trends of past years in mind for perspective, but do not let this derail you from respecting price action.
On Vale Day on December 6, 2017, Vale (VALE) pared back its production forecasts for nickel (DBB) for the next five years.
Vale’s base metals production rose in 3Q17, with copper production jumping 16.0% and nickel production climbing 10.2% sequentially.
There's a bewildering rally taking place within the commodities markets, and few on Wall Street are buying it. Base metals, a group that includes everything from copper to zinc to aluminum, have shot higher in 2017 despite a relatively dismal year for the broader commodity market.