News Wrap

IN THIS morning’s News Wrap: Shenhua among six parties in race for Rio coal; BHP iron ore shipments affected by China blast; and commodity markets overreacting to falling yuan, says UBS.

Lou Caruana

Shenhua among six parties in race for Rio coal

Six parties including China-backed Shenhua Group have been in the data room for Rio Tinto's Hunter Valley coal business, adding more competitive tension to what was expected to be a two-horse race between Glencore and Mick Davis’ X2 Resources, according to the Australian Financial Review.

Rio is hoping to fetch as much as $US4 billion ($A5.4 billion) in a sale of its thermal coal business, with chief executive Sam Walsh confirming last week that he would be open to a sale at the right price.

BHP iron ore shipments affected by China blast

Australian iron ore miners are suffering multiple impacts from the giant explosion at the Chinese port of Tianjin on Thursday, with iron ore futures rising and BHP confirming shipments to China had been affected, according to the Sydney Morning Herald.

Tianjin is one of several major import destinations for commodities into China, and most Australian miners land their products there.

Commodity markets overreacting to falling yuan: UBS

UBS says China's shock move to devalue the yuan is sparking fears over the country's growth outlook, but it will only have a minor impact on demand for commodities, and equity markets are “overreacting” to the move, according to the Sydney Morning Herald.

China's play will have a small impact on global commodity markets, UBS commodities analyst Daniel Morgan said.

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