Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Cap Falls in Chile as Security Says Sell on China Outlook

Oct. 24 (Bloomberg) -- Cap SA, Chile’s largest producer of iron-ore, sank after Grupo Security SA recommended selling the stock, forecasting lower demand for the steel-making ingredient in China and a decline in prices.

Cap dropped 2.2 percent to 10,775 pesos at the close of trading in Santiago. It was the worst performance among the 21 members of the MSCI Chile index, which retreated 0.6 percent.

Grupo Security restarted coverage of Cap with an “underweight” recommendation and set an 18-month target price of 11,000 pesos. The financial services company said growth in steel production in China will probably slow to 4 percent in 2015 from an average 15 percent annually over the past decade. The slowdown will come while iron-ore prices fall as new mines open, analyst Luis Felipe Galleguillos wrote in a note to clients.

“Lower iron-ore prices and higher costs will have an effect on Cap’s operating margins,” he wrote. Expansions at Cap’s iron mines will produce the material at a higher average cost than its current sites because of steeper energy costs, according to Galleguillos.

Cap has fallen 33 percent in 2013, the worst performance among members of the MSCI Chile index after fertilizer producer Soc. Quimica y Minera de Chile SA.

To contact the reporter on this story: Eduardo Thomson in Santiago at

To contact the editor responsible for this story: David Papadopoulos at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.