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BHP - BHP Group

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Thats right the Boom is not over.

High prices are not over either!

There is still massive demand from China, and India's economy is growing even faster!

Iron ore prices will probably go up even higher next year

Just wait until early 2007 and then you will see even higher base metal prices.

BHP down today. A buying oppurtunity!

The MiningGuru
 
MiningGuru said:
Thats right the Boom is not over.

High prices are not over either!

There is still massive demand from China, and India's economy is growing even faster!

Iron ore prices will probably go up even higher next year

Just wait until early 2007 and then you will see even higher base metal prices.

BHP down today. A buying oppurtunity!

The MiningGuru
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Nono, prices will come down as time goes by, because supply will grow faster than demand, in the ST/MT prices will go up yes because demand is larger then supply

Also when you say base metals, which ones?

thx

MS
 
In the long term yes prices will gradually come down, but that is years away.

As it is taking so long for new capicity to come on stream, and demad is growing not only from China, but from India, Brazil, Argentina, Mexico, Vietnam and a host of other countries I can't see supply catching up with demand for around 5 years at the earliest.

The average mine takes three years at the absolute mininum to get up and running.

That is why prices will stay higher for longer, as those in the know, eg Chip Goodyear have been saying for a while.

The Mining Guru
 
Article in the fin review in relation to BHP and RIo tinto was that they didn't invest enough in funding future growth.

As a result they are running above 100% capacity to meet demand.

They said this may have been a mistake looking back, but it was better to be runnings at 100% capacity than over comitting on expansion.

They also said this would keep commodities at higher levels for longer as opposed to trying to make as much cash as they could fast, which would result in a sharp crash in commodities.

They said that with there resources for production supply would overtake demand. It would be a case of demand dropping.

If you held BHP and rio for 3 years and they were $27 and $78 you would be pretty stiff i would have thought. Possible but stiff....

anyone disagree?

if so why?
 
dallee said:
Hi. I'm curious to know from where this sort of information is available. Is there a newsletter that one can subscribe to that lists all the broker recommendations?

Dallee
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Dallee

As Kennas has said, subscribing to FNArena will give you this information.
Imo it's good value for money. Less than $200 p.a. gives you complete market news service, monthly super stock report, plus daily broker call which publishes all recommendations put out by all brokers every week day.

Even if you don't put much store by the analysts' recommendations, obviously it's pretty likely that if six brokers all come out with a Buy on a stock then it's going to be bought by enough people to make a difference to the SP.

www.fnarena.com

Julia
 
BHP closed the week at $27.53...

Do you guys think that there is any prospect for these shares hitting $37 in the next 12 months? ($37 is a stock recommendation from Citigroup)

As with commodity prices - of course there supply demand issues... I heard somewhere that China is building up their steel mills - and may lower the price of steel - does that have any impact on BHP's business?
 
TraderPro said:
BHP closed the week at $27.53...

Do you guys think that there is any prospect for these shares hitting $37 in the next 12 months? ($37 is a stock recommendation from Citigroup)

As with commodity prices - of course there supply demand issues... I heard somewhere that China is building up their steel mills - and may lower the price of steel - does that have any impact on BHP's business?
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Maybe so, but what has a far greater impact on BHP's business and sp is the price of oil.
 
They can predict to a certain extent, but unexpected interest rate rises, oil shocks, terrorism, and outside effects can be a factor.

If there was a 100% chance of it getting there, people would not be selling the stock for $27.53.

A target price is just that....
 
MiningGuru said:
In the long term yes prices will gradually come down, but that is years away.

As it is taking so long for new capicity to come on stream, and demad is growing not only from China, but from India, Brazil, Argentina, Mexico, Vietnam and a host of other countries I can't see supply catching up with demand for around 5 years at the earliest.

The average mine takes three years at the absolute mininum to get up and running.

That is why prices will stay higher for longer, as those in the know, eg Chip Goodyear have been saying for a while.

The Mining Guru
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Yes thats very general, but you need to look at the live numbers at the shop floor

http://www.basemetals.com/stocks.aspx
http://www.kitcometals.com

How can you say copper supply hasnt caught up to demand when there has been alot of "ins" recently at LME?

thx

MS
 
Actually where can I check LME price ?? Is there a website to check these commodities prices ?
 
Fab said:
Actually where can I check LME price ?? Is there a website to check these commodities prices ?
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where the **** have you guys been??? ;)

http://www.basemetals.com/stocks.aspx
http://www.kitcometals.com

lmeuy6.jpg


Also you need to understand what the above 2 sites mean, so do you understand it?

thx

MS
 
Julia said:
Dallee

As Kennas has said, subscribing to FNArena will give you this information.
Imo it's good value for money. Less than $200 p.a. gives you complete market news service, monthly super stock report, plus daily broker call which publishes all recommendations put out by all brokers every week day.

Even if you don't put much store by the analysts' recommendations, obviously it's pretty likely that if six brokers all come out with a Buy on a stock then it's going to be bought by enough people to make a difference to the SP.

www.fnarena.com

Julia
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Ta for the link, Julia, I've signed up for the free trial.

Dallee
 
BHP cracking $28.00 making it's first higher high for a while and going through resistance at this level. Significant move. Perhaps officially going into an up trend. Day isn't over yet though...
 

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kennas please refrain from putting pressure on BHP..

a 2% loss decrease was filth!

bhp should be booming they are the kings of uranium and ERA are catching them at a fast rate. i can't see ERA keeping it up! either way good for RIO tinto....


BHP your share price should be $30 +, sort it out!
 
BHP and RIO are up over 3% atm in London! :D

Does anyone know where I can get free LME prices? I know there might not be live sites but I'll settle for delayed prices.
 
stoxclimber said:
scsl: www.kitcometals.com
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Thanks mate!

I just had a look: Cu down 0.07%, Ni up 1.62%, Al up 0.06%

BHP's flying atm, while there isn't too much movement in base metals prices. :confused:

I guess it could be the FTSE doing well in general, pulling the miners up with it.
 
What happened to resources late in trading last night? Despite BHP/RIO being up a lot on the LSE when I went to bed, they're both down on the ASX...
 
stoxclimber said:
What happened to resources late in trading last night? Despite BHP/RIO being up a lot on the LSE when I went to bed, they're both down on the ASX...
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I think we're just following the DJIA's lead atm. There's been some weak economic data coming out in the US, such as weaker than expected GDP, manufacturing almost coming to a halt. It's the same old story, with investors over there worried about future corporate profits etc.

My feeling is that the DJIA might pull-back very soon, which will give us an opportunity to jump on BHP.
 
scsl said:
Thanks mate!

I just had a look: Cu down 0.07%, Ni up 1.62%, Al up 0.06%

BHP's flying atm, while there isn't too much movement in base metals prices. :confused:

I guess it could be the FTSE doing well in general, pulling the miners up with it.
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iron ore sentiment is bullish, predictions have recently moved from price rollovers from 1 Apr to at leat a 10% increase.
 
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