{"id":54521,"date":"2014-07-21T02:34:28","date_gmt":"2014-07-21T06:34:28","guid":{"rendered":"http:\/\/countingpips.com\/?p=54521"},"modified":"2014-07-21T02:34:28","modified_gmt":"2014-07-21T06:34:28","slug":"why-the-arrium-share-price-fell-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/07\/why-the-arrium-share-price-fell-today\/","title":{"rendered":"Why the Arrium Share Price Fell Today"},"content":{"rendered":"
July 21, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

What Happened to Arrium\u2019s Share Price?<\/h2>\n

\nThe share price of iron ore<\/a> producer Arrium Ltd [ASX:ARI]<\/strong> slumped by more than 3% today as the Australian stock market<\/a> inched ahead. Arrium shares have fought a losing battle this year \u2014 the stock price has retreated by more than 57% since peaking just after New Year\u2019s Day.\n<\/p>\n

Why Did This Happen to ARI Shares?<\/h2>\n

\nThis morning Arrium released its quarterly production report. The company sold a record 3.32 million tonnes of iron ore in the three months ending 30 June 2014. That would usually be cause for cheer\u2026but Arrium\u2019s average realised sales price collapsed by $US25 per tonne from the previous quarter\u2019s average price to just $US85 a tonne.<\/p>\n

Arrium blamed \u2018increased discounting related to additional supply, the tightening of credit in China and higher port stocks in China\u2019.<\/p>\n

The market seems disappointed by the scale of the discounting, which appears to relate to lower-grade iron ore blends. That\u2019s why Arrium shares have taken a hit today.\n<\/p>\n

What Now For Arrium Ltd?<\/h2>\n

\nChina<\/a> will continue to demand plenty of iron ore well into the future, and with its debt refinanced, Arrium looks well-placed to continue supplying it. The market is tough right now, but you can\u2019t keep stocks like this down forever. If you\u2019re a resource investor, this stock should stay on your watch list.<\/p>

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Cheers, Tim Dohrmann<\/strong>+<\/strong><\/a>
\nSmall-Cap Analyst, Australian Small-Cap Investigator<\/em><\/strong>
\nJoin Money Morning on Google+ <\/span><\/a><\/strong><\/p>\n

The post Why the Arrium Share Price Fell Today<\/a> appeared first on Stock Market News, Finance and Investments | Money Morning Australia<\/a>.<\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What Happened to Arrium\u2019s Share Price? The share price of iron ore producer Arrium Ltd [ASX:ARI] slumped by more than 3% today as the Australian stock market inched ahead. Arrium shares have fought a losing battle this year \u2014 the stock price has retreated by more than 57% since peaking just after New […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-54521","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/54521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=54521"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/54521\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=54521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=54521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=54521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}