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Iron-Ores Rally Could Present an Opportunity for Investors -- SECFilings.com
Redondo Beach, California--(Newsfile Corp. - September 24, 2018) - SECFilings.com, a leading f...
About this update from Black Iron Inc.
[{"type":"text","content":"Iron-Ores Rally Could Present an Opportunity for Investors -- SECFilings.comRedondo Beach, California--(Newsfile Corp. - September 24, 2018) - SECFilings.com, a leading financial news and information portal offering free real time public company filing alerts, announces the publication of an article covering Black Iron Inc. (TSX: BKI) (OTC Pink: BKIRF) (FSE: BIN).There's no doubt that commodity prices have been under pressure this year.Silver and copper are both down nearly 20 percent, platinum is down more than ten percent, gold prices are down more than eight percent, and palladium is down more than five percent since the beginning of the year. Rising interest rates have taken a toll on precious metals and the U.S.-China trade war has taken a toll on industrial metals.Iron-ore prices are an exception to these trends with tightening supply and growing demand—especially for high-value forms such as pellets and lump, and high iron content concentrates that are more environmentally-friendly than conventional iron-ore.Investors may want to pay close attention to these trends and consider iron-ore companies that are involved in the higher value market segments. High Grade Iron Ore Prices on the RiseThe gap between benchmark and high-grade iron-ore has nearly tripled over the past two years. Currently, benchmark 62% iron-ore trades at about $70 per ton and high grade 65% iron-ore trades at over $97 per ton, according to the China Iron Ore Spot Price Index, which amounts to a nearly $30 premium. These trends are driven by China's increasingly strict environmental standards that are impacting steelmakers throughout the country.Local authorities in Tanshan recently issued a draft document on off-peak production during the autumn-winter period. The plan would classify steelmakers into four categories based on their emissions standards, transportation structure, and product value. Steel mills that fall into the highest category that produce the lowest emissions will be exempted from restrictions, while the rest will need to cut production rates by anywhere from 30 to 70 percent.Similar environmental inspections have occurred across at least ten Chinese regions, including the top steel-making province of Hebei, resulting in production cuts and reduced demand for iron-ore. With utilization rates already relative high for re...