Wed, Jul 29, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Metals and Minerals more

Copper Prices Rebound From Six-Year Low on Zambia Supply Threat

Posted on 29 July 2015 by VRS  |  Email |Print

Copper futures gained the most in two weeks on concern that power restrictions in Zambia will cut supplies there and have ripple effects at global mines. First Quantum Minerals Ltd. said on Monday that Zambia’s state-run power company declared force majeure for supply of electricity to its Kansanshi operation.
The power cut could lower copper output in the second half of the year, and also threatens the company’s progress at its Cobre Panama project in Latin America because of a potential liquidity squeeze, Greg Barnes, a Toronto-based analyst at TD Securities Inc., said in a report on Tuesday. Copper is rebounding after touching a six-year low on Monday as slowing demand in China increased concerns over a glut………………………………………..Full Article: Source

Copper Drops to Lowest in Six Years Amid Chinese Slowdown

Posted on 28 July 2015 by VRS  |  Email |Print

Copper slid to the lowest level in six years as the biggest selloff in Chinese equities since 2007 added to concern that the economy will worsen. The Shanghai Composite Index plunged 8.5 percent. China’s industrial profits fell in June, and data on Friday showed a private gauge of manufacturing unexpectedly declined in July to the lowest level in 15 months, boosting speculation that demand is slowing in the country.
China accounts for about 40 percent of the world’s copper consumption. “A rout resumption in Chinese equities prompts more scattered selling in most metals seen this morning,” Michael Turek, the head of base metals at BGC Partners Inc. in New York, said in an e-mail. “They just can’t catch a break or a breath, that is despite all the efforts to stabilize the Chinese markets up until now.”……………………………………….Full Article: Source

Chinese spot alumina prices hold steady despite smelter cuts

Posted on 28 July 2015 by VRS  |  Email |Print

Chinese spot alumina prices held steady Monday despite smelter cuts over the past week, industry sources said. However, with further cutbacks expected in the near term prices may be pressured lower, sources said.
There has been increasing talk of planned smelter in the past month on the back of prevailing weak domestic metal prices, with an estimated 600,000-700,000 mt/year of capacity expected to be reduced in the near term. But to date, only one smelter, Beijing Xinheng Group, has confirmed cutting capacity………………………………………..Full Article: Source

Commodities in a meltdown, but coal, uranium offer some hope

Posted on 27 July 2015 by VRS  |  Email |Print

From super-cycle to commodity meltdown was the way one group of analysts titled a report last week. “Sentiment toward commodities as an asset class has rarely, if ever, been more negative,” added Capital Economics.
Copper has hit a six-year low and closed on Friday at a dispiriting $US5238 a tonne, down 6 per cent on the week and with Goldman Sachs forecasting the red metal reaching $US4500/tonne by the end of 2016. Nickel took another hit, ending at $US11,255/tonne while lead shed more value to close at $US1716/tonne………………………………………..Full Article: Source

The nickel price can only go up

Posted on 27 July 2015 by VRS  |  Email |Print

It’s a strange time to be in mining. Irrational exuberance has been replaced by irrational despondency. Just four-five short years ago even the flimsiest prospect or project could look forward to lavish funding and a fat market cap.
Today even those juniors doing the right thing at the right time still cannot attract investors to take it to the next level. Early stage explorers are being shunned altogether, most investors demand permits in place before taking an interest and even companies with projects near production struggle to attract interest………………………………………..Full Article: Source

Chinese magnesium spot export offers slip on weak buying, domestic prices

Posted on 24 July 2015 by VRS  |  Email |Print

Spot export offers for Chinese magnesium ingot on a FOB basis slipped on prevailing weak overseas demand and lower domestic prices, industry sources said Thursday. Platts lowered its magnesium ingot (minimum 99.8%) price assessment to $2,120-$2,160/mt FOB China Thursday, down from $2,120-$2,180/mt on lower indications heard from the market.
The Chinese magnesium die-cast alloy price assessment was also lowered to $2,400-$2,440/mt FOB China from $2,400-$2,480/mt last week. “After weeks of holding steady at the floor price of Yuan 13,000/mt ($2,094/mt) ex-works, the domestic price finally gave in to pressure from weak demand and slipped to Yuan 12,900-Yuan 13,320/mt,” said a north China-based analyst………………………………………..Full Article: Source

With Base Metals Leading Commodities Down, Prepare for More Market Volatility

Posted on 24 July 2015 by VRS  |  Email |Print

Commodities have been in a falling market since 2011, but, so far, this year has been more of a flat market for commodities. We expect to see some movement soon. The rising US dollar has been a key factor in driving commodities down and although the dollar still strong, it has been taking a break for the past seven months from its meteoric rise while posting a flatter trajectory.
Both, the dollar index (in green) and commodity Index (in blue) are within their one-year range. For the last couple of months, however, commodities are starting to fall again, approaching record lows while the dollar is rising again………………………………………..Full Article: Source

Commodities plunge to 13 year-low dragged down by mining shares

Posted on 23 July 2015 by VRS  |  Email |Print

Commodity prices continue to plunge, as falling mining shares dragged a commodity index down to its lowest point since 2002. Bloomberg’s commodity price index, tracking gold, crude oil and other raw materials, has plunged by 40 per cent since 2011. Today the index fell to 95.5 points, its lowest point in 13 years.
Mining shares are down sharply, with Glencore falling five per cent, and Anglo-American 6.5 per cent. Commodities have underperforming, with gold recently down to its lowest level since 2010. Oil has continued to slide, with prices down 60 per cent over the year. Global benchmark Brent crude is trading at $56 a barrel, and US benchmark WTI has dipped below $50 every day this week………………………………………..Full Article: Source

Palladium under siege but strong fundamentals may end carnage

Posted on 23 July 2015 by VRS  |  Email |Print

Palladium investors are keeping record bets on a further slump in the market as broad-based weakness plagues the precious metals complex, but some analysts say the metal’s slide to 3 1/2-year lows is overwrought and a supply deficit will help the metal reclaim lost territory.
Spot prices of palladium, mainly used in emissions control systems for cars, trucks and other vehicles, have dropped more than 22 percent this year – the most among precious metals. Gold has fallen 7.6 percent, silver is down 6.1 percent and platinum has tumbled 20 percent. The commodity backlash has been fuelled by the prospect of higher U.S. interest rates, a stronger dollar and weaker Chinese demand. Short positions in palladium futures on the New York Mercantile Exchange have hit all-time highs since June………………………………………..Full Article: Source

Copper’s slump hints at extended weakness for commodities

Posted on 23 July 2015 by VRS  |  Email |Print

A measure of demand for copper, the metal used in everything from power lines to electronics, is at the weakest in more than two years, signalling the meltdown that’s sweeping through commodity markets could get even worse.
The number of requests to withdraw copper from London Metal Exchange warehouses relative to the level of global inventories tracked by the bourse dropped this week to the lowest since March 2013. That shows consumption has almost dried up for the stockpiles that have doubled over the past year………………………………………..Full Article: Source

Copper miners to keep churning out metal despite price slide

Posted on 22 July 2015 by VRS  |  Email |Print

Copper’s production costs have fallen in the wake of lower oil prices and weaker local currencies, which means most miners will continue to pump out metal despite a recent slide in prices. Benchmark copper on the London Metal Exchange tumbled nearly a fifth between early May and earlier this month when it touched the lowest in six years at $5,240 a tonne.
It has since recovered about $300, but confidence is fragile as investors worry about the global economy and an expected market surplus this year in the metal. Despite weak prices, however, there is little incentive to cut output as prices are still well above costs at most mines………………………………………..Full Article: Source

Asteroid passing by Earth may hold $5 trillion in precious metals

Posted on 21 July 2015 by VRS  |  Email |Print

Forget the Pluto flyby. Metals bugs were buzzing Monday after a metallurgically rich asteroid rocketed past Earth on Sunday evening, boasting an out-of-this-world cache of precious metals. Astronomers speculated that the asteroid, known as 2011 UW-158, which passed about 1.5 million miles from Earth, might have carried as much as $5.4 trillion worth of precious metals and minerals, according to Slooh, which connects telescopes to the Internet.
Slooh quoted Astronomer Bob Berman as saying this in a news release: “Can it be mined someday, perhaps not too far in the future?” Mining.com reported that scientists believe the half-kilometer-wide asteroid contains up to 90 million metric tons of platinum and other precious metals………………………………………..Full Article: Source

A Bottom In Copper?

Posted on 21 July 2015 by VRS  |  Email |Print

Experienced investors know that commodities and equities move in cycles, and understanding where copper, iron ore, nickel and zinc are in the cycle can result in much smarter decisions than blindly following the pack.
In this interview with The Gold Report, Salman Partners Vice President of Commodity Economics Raymond Goldie brings some perspective to the charts and names the junior mining companies that could ride the inevitable waves up………………………………………..Full Article: Source

Worst is over for base metals firms

Posted on 20 July 2015 by VRS  |  Email |Print

Prices could start looking up, led by measures taken by China and stability in Euro zone and West Asia, feel experts. Prices of base metals have seen some recovery in the past week, after most of these visited their two-six year lows, following the Greece crisis and sharp fall in the Chinese equity market.
However, things are stabilising and the Iran nuclear deal has given further relief to the markets. While aluminium, copper, nickel and tin fell to six-year lows last week, zinc has bounced from a 22-month low and lead from a five-year low. But, prices are still lower six-eight per cent compared to the beginning of the financial year………………………………………..Full Article: Source

Are the shares of gold mining companies a ‘buy’?

Posted on 17 July 2015 by VRS  |  Email |Print

A gold mine is a hole in the ground with a liar standing on top of it.”- unverified quote attributed to Mark Twain. Gold can’t seem to catch a break. Despite a parade of potential market roiling news, the reaction of the shiny yellow metal has been one of benign indifference.
After Federal Reserve Chair Janet Yellen’s testimony about the likelihood of an interest rate increase sometime this year, gold fell for a fourth consecutive day. Gold now trades at about $1,142 an ounce. Aside from a three-day stretch in November 2014, gold hasn’t been below $1,150 since 2009………………………………………..Full Article: Source

Rebounding rhodium bests nearly any other investment

Posted on 17 July 2015 by VRS  |  Email |Print

The best asset over the past week is a metal you’ve probably never heard of: rhodium. Rhodium, one of the rarest precious metals, soared 29 per cent in five days, beating every single stock in the MSCI World Index, all currencies and major commodities. While the market for rhodium is tiny and doesn’t trade on an exchange, a fund that holds the physical metal is up 23 per cent since July 9, and shares of producers are climbing.
Low prices are attracting companies that use rhodium for catalytic converters in cars, according to Jonathan Butler, a precious-metals strategist at Mitsubishi Corp. in London. The metal plunged to an 11-year low earlier this month on forecasts that South Africa, the biggest producer, is increasing production at the fastest pace in two decades………………………………………..Full Article: Source

Palladium Price Forecasts Keep Falling

Posted on 16 July 2015 by VRS  |  Email |Print

While palladium performed much better than its sister metal platinum last year, the white metal hasn’t been immune to a fall in the broader precious metals complex so far in 2015.
The palladium price has lost 10.75 percent in the past month and has fallen 18 percent, or $148, since the start of the year; it is now at about $656 per ounce. Platinum has lost 13 percent year-to-date, and is currently sitting dangerously close to $1,000 per ounce at about $1,032………………………………………..Full Article: Source

China copper: CIF import offers inch up on ‘normal fluctuation,’ trades thin

Posted on 16 July 2015 by VRS  |  Email |Print

Spot import offers for London Metal Exchange-registered brands of copper cathode on a CIF China basis inched up due to “normal price fluctuation” despite thin trade on the prevailing weak import interest, industry sources said Wednesday. Platts lifted its CFR China copper premiums assessment to $60-70/mt Wednesday, from $55-65/mt last week on higher indications heard in the market.
A Southeast Asian trader indicated the CIF China premiums at $60-70/mt, up around $5/mt from last week, as he had seen a slight pickup in demand from China market participants due to a brief arbitrage opportunity between the LME and Chinese copper prices. A second Southeast Asian trader, however, heard steady premiums around $65/mt………………………………………..Full Article: Source

Rare earth protest fuels shadow lending fears

Posted on 16 July 2015 by VRS  |  Email |Print

Hundreds of frustrated Chinese investors protested this week outside a rare earth metals exchange in the south after it was unable to return their money, highlighting the risk of shadow lending in the country.
Investors said the Fanya Metal Exchange gradually refused to pay out on investment products — that had promised annual returns of 10 per cent or more — following a collapse in the price of rare metals, which were used as collateral against the customers’ funds………………………………………..Full Article: Source

Iron ore, commodities to fall: Citi third quarter outlook takes bearish view

Posted on 15 July 2015 by VRS  |  Email |Print

Citi expects iron ore prices to fall into the $US30s in the second half of 2015, with the prices of other commodities – coal, oil and grain – also expected to weaken. Citi’s third quarter outlook, titled Sorting through the asset market bargain bin, stated that “rebounding Australian exports, lower Chinese steel production, mine re-starts and ramp up of new supply are expected to push iron ore prices below $US40 per tonne.”
Iron ore was most recently trading at $US50.30 per tonne after falling to $US44.59 earlier in the month. “The iron ore market continues to suffer from the three Ds: weak Chinese steel demand, cost deflation, and deleveraging among traders and steel mills.”……………………………………….Full Article: Source

Metal prices fall as investors worry China’s growth is slowing down

Posted on 15 July 2015 by VRS  |  Email |Print

Industrial metals have hit new lows amid fears that their biggest consumer, China, may be growing at a slower pace. Nickel led industrial metals lower on Tuesday ahead of data that may show China expanded at the weakest pace since 2009.
The economy of the world’s biggest consumer of industrial metals grew 6.8pc in the second quarter, less than the 7pc recorded in the first three months, according to a Bloomberg survey of economists. A market rout that has wiped almost £2.6 trillion from Chinese shares since mid-June may also curb expansion in the third quarter, a separate survey showed………………………………………..Full Article: Source

Copper Sags as U.S. Retail-Sales Drop Fuels World Growth Concern

Posted on 15 July 2015 by VRS  |  Email |Print

Copper fell for the second time in three sessions as an unexpected decline in U.S. retail sales added to global growth concerns amid signs of slowing in China, the world’s biggest metals consumer.
Purchases at U.S. retailers dropped 0.3 percent in June, trailing the 0.3 percent average gain estimated in a Bloomberg survey of economists. China’s economy grew in the second quarter at the weakest pace since 2009, according to analysts surveyed before data to be released Wednesday………………………………………..Full Article: Source

China’s faltering economy may hit Indian metals industry

Posted on 14 July 2015 by VRS  |  Email |Print

Adverse economic developments in China, which accounts for 40 per cent consumption of major metals globally, will negatively impact the metals industry in India, says a rating agency. “Adverse economic developments in China may have a directionally negative impact on the Indian metals industry as well as on sectors with an export focus,” India Ratings and Research (Ind-Ra) said in a statement.
Given the soft demand scenario in China, base metals prices declined in the range of 2-21 per cent in the first six months of 2015, said the domestic arm of global credit rating agency Fitch. On an year-to-date basis, Chinese domestic hot roll coiled steel prices have declined by 21 per cent, London Metal Exchange (LME) nickel prices by about 12 per cent, LME copper metal prices by 9 per cent and China alumina prices by about 10 per cent………………………………………..Full Article: Source

Miners’ focus shifts from investor returns to survival

Posted on 13 July 2015 by VRS  |  Email |Print

Hit hard by the accelerated downturn in metal prices in recent months, global mining companies preparing to report results are likely to announce another round of austerity measures to cut costs and convince investors to remain committed to the sector. With investors looking for evidence of continued capital discipline while credit ratings and dividends are pressured by a rout in prices for anything from iron ore to platinum, reductions in capital expenditure, operational costs and jobs could all be on the cards.
It comes as little surprise, therefore, that miners have been among the worst performers on London’s FTSE 100 index of blue-chip companies so far this year. The FTSE 350 mining index has fallen by about 15 percent since the start of the year………………………………………..Full Article: Source

Copper Bears Rewarded as Economic Threats Spur Metal Rout

Posted on 13 July 2015 by VRS  |  Email |Print

Investors are hastening their retreat from copper, unnerved by the threats to global economic growth. The metal slumped to a six-year low last week as Greece’s efforts to reach a deal with creditors stumbled and Chinese equities plunged. Europe and China consume about two-thirds of the world’s copper. Goldman Sachs Group Inc. and Societe Generale SA see little prospects of a rebound anytime soon.
Speculators are holding their biggest bearish bet on copper in almost 16 months, with Barclays Plc forecasting that supply will flip from shortages to surpluses from this year. The International Monetary Fund cut its global economic-growth forecast and the Federal Reserve released minutes that showed policy makers saw risks to the economy from the turmoil in Europe and China………………………………………..Full Article: Source

Iron ore prices: the worst is yet to come

Posted on 10 July 2015 by VRS  |  Email |Print

While analysts say waning demand for steel in China and surging supply is set to push the iron ore price lower, Australia’s biggest iron ore miners are looking at the future with rose tinted glasses.
Rio Tinto’s CEO, Andrew Harding, told The Australian Financial Review on Thursday that volatility will recede and the iron ore price “is moving around its long-term average after coming off an unprecedented high that was never sustainable”. He maintains that the “long-term picture for iron ore remains sound”, and the commodity will “continue to be a wealth generation machine for Australia” BHP Billiton’s head also forecasts declining volatility………………………………………..Full Article: Source

Why is the iron ore price dropping?

Posted on 10 July 2015 by VRS  |  Email |Print

Iron ore hit its lowest price this decade on Wednesday night as oversupply concerns wracked a market already wary from financial crises in Greece and China as well as US plans to begin raising interest rates.
The iron ore benchmark price has haemorrhaged since the middle of June. On Wednesday night alone it lost 10 per cent, bringing the total lost in the last month to more than a third of its June price. “Commonwealth Bank economist Scott Rundell described this week’s decline as iron ore taking “the entire rusty cutlery set to the neck last night, including the cake server firmly in the jugular”………………………………………..Full Article: Source

When China sneezes, metals catch a cold

Posted on 09 July 2015 by VRS  |  Email |Print

A sharp fall in Indian metal shares on Wednesday—the S&P BSE Metal Index was down 3.9%—raises fears of more trouble ahead. The fall follows plummeting global metal prices, which, in turn, is a reaction to the meltdown in Chinese equities.
What’s the connection? Beijing’s clumsy handling of the situation in Chinese equities appears to have caused panic that is spreading to other assets. There’s also a worry that falling stocks could have knock-on effects on the Chinese economy………………………………………..Full Article: Source

China’s equity rout sparks metal meltdown

Posted on 09 July 2015 by VRS  |  Email |Print

The $3tn rout of Chinese equities has spilled over into commodities, pushing nickel, zinc and iron ore into bear market territory and sending copper to its lowest level since the financial crisis.
With more than half of companies on equity markets now suspended, traders in China are increasingly turning to commodities and industrial metals to raise cash to meet margin calls from share losses. Others are increasing their bearish bets as concerns about slowing economic growth in the world’s biggest commodity consumer intensify………………………………………..Full Article: Source

Copper, Zinc Jump on Bets Skid in Industrial Metals Was Overdone

Posted on 09 July 2015 by VRS  |  Email |Print

Copper jumped the most in five months and zinc posted the biggest gain in a year on speculation that the slump in industrial metals to the lowest since the global financial crisis was overdone.
Bellwether copper’s 14-day relative-strength index, a gauge of price momentum, fell below 30 on Tuesday, with other metals around the threshold. That’s a signal to analysts who study charts that metals may have fallen too fast. Traders with bearish bets have been making purchases to unwind those positions, Bank of China International Ltd said………………………………………..Full Article: Source

Industrial Metals Drive Commodities Down on China, Greece Woes

Posted on 08 July 2015 by VRS  |  Email |Print

Copper tumbled to a six-year low and nickel plummeted the most since 2010 as industrial metals led a plunge in commodities after China’s equity rout and turmoil in Greece eroded prospects for raw-material demand.
The Bloomberg Commodity Index of 22 prices fell 1.5 percent to close at 97.6 after touching 96.48, the lowest since March 18. Aluminum and lead entered bear markets. Freeport McMoRan Inc., the world’s top publicly listed copper producer, posted the fifth-biggest drop among companies in the Standard & Poor’s 500 Index. Glencore Plc, the largest commodity trader, slumped to a record in London………………………………………..Full Article: Source

China sees surge in precious metal trading

Posted on 08 July 2015 by VRS  |  Email |Print

China recently saw trades of precious metals hit new highs and several companies introduced new investment products that are more accessible to average investors, according to the Guangzhou Daily. The Shanghai Gold Exchange (SGE) posted a record trading volume of 48.33 million grams in a single day in late June, even though global gold prices remain bearish, the paper said.
In early July, gold was still hovering around the three and a half month low of US$1,168 per ounce on uncertainty created by the Greek debt crisis. Several precious metals trading platforms in China have also witnessed a rebound and record trading volumes since mid-May, the newspaper reported. The Guangdong Precious Metals Exchange said the number of institutional investors more than tripled from a year earlier, while trading volume in June nearly doubled from last year………………………………………..Full Article: Source

India: Base Metal Industry to Grow 8-10% Annually: Moody’s

Posted on 08 July 2015 by VRS  |  Email |Print

India’s base metals industry is expected to grow by 8-10 per cent annually over the next three years on the back of increased demand from the power, construction and automotive sectors, rating agency Moody’s said on Tuesday. “We expect India’s consumption of base metals to increase by 8-10 per cent annually over the next three years, driven primarily by demand from three sectors, power, construction and automotive,” Moody’s vice president-senior credit officer Alan Greene said here.
“Our projections reflect domestic GDP growth - forecast at 7.5 per cent in fiscal year 2016 and 7.6 per cent in fiscal 2017 - and the government’s efforts to boost infrastructure spending,” he added………………………………………..Full Article: Source

China alumina prices rangebound as market eyes clearer direction

Posted on 08 July 2015 by VRS  |  Email |Print

The Platts ex-works Henan alumina spot price continued rangebound Tuesday at Yuan 2,380/mt ($389) for 70:30 cash and credit payment terms. Buyers and sellers are now caught in a stand-off amid prevailing market volatility, as more market participants hold the view that spot alumina prices may have bottomed out.
“Refiners are not willing to lower offers anymore, but buyers are still insisting on lower prices, and nobody is willing to budge, so there’s not much trade being done,” a Northeast China consumer said. “Spot alumina is very near costs now, so it’s unlikely to fall much further, but it’s hard to tell for sure — it can still swing either way.”……………………………………….Full Article: Source

Tin ‘worst performer among base metals’ in H1 – Triland

Posted on 07 July 2015 by VRS  |  Email |Print

Tin has been “the worst performer among the base metals” on the London Metal Exchange in the first half of this year, according to brokerage Triland’s quarterly metals report. The category I LME member has therefore revised its 2015 price forecast to an average of $16,000-19,000 per tonne, down from $18,000-21,000 per tonne previously.
“Towards the end of the second quarter, prices were trading at the lowest level since September 2009, and real support has yet to be found,” Triland said in the report. Tin shipped out of Indonesia dropped year-on-year in May, and year-to-date exports were down 6.6% to 31,019 tonnes. ……………………………………….Full Article: Source

Copper hit by China equity swings

Posted on 07 July 2015 by VRS  |  Email |Print

Copper was hit hard by China’s volatile stock market on Monday, sliding to its lowest level in five months as prices of other commodities tied to the world’s biggest consumer were also pressured.
The Bloomberg Commodity Index that includes energy, agricultural commodities and metals, fell 2.2 per cent, its biggest one-day drop since February and a sign that mounting losses for Chinese equity investors are spilling over into other financial sectors. In London, shares of copper miners fell, with Glencore and Antofagasta both down 1.5 per cent………………………………………..Full Article: Source

ETPs promise easy exposure to metals

Posted on 07 July 2015 by VRS  |  Email |Print

The advent of commodity exchange-traded products (ETPs) has revolutionised the way in which investors access commodity markets, providing exposure to both physical spot prices and future returns.
Physical commodity ETPs are backed by a specific quantity of a commodity and provide exposure to movements in underlying spot prices. Synthetic commodity ETPs, on the other hand, generally track indices comprised of underlying commodity futures contracts that continuously reset, or roll, and give exposure to price movements………………………………………..Full Article: Source

Precious metals lack lustre

Posted on 06 July 2015 by VRS  |  Email |Print

Has gold lost its sheen? For most of this year, it has been trading in a range around $1,200, and analysts expect the price to drop in the third quarter. “The worst is to come for gold,” says Suki Cooper, head of metals research at Barclays in New York. She says the gold price could drop to an average of $1,150 in the third quarter. The world’s largest gold ETF, SPDR Gold Shares, was down 0.82% year-to-date at the end of May, and trading at $112 at the end of June, compared with a peak of $129 over the previous 12 months.
Part of the drop is due to seasonal demand, but also as a result of a stronger dollar and a Fed interest-rate hike on the cards. “Other asset classes are just more interesting – particularly for Chinese investors,” says one gold trader. Even with concerns about Greece, the price of gold cannot seem to get upward momentum………………………………………..Full Article: Source

Metals investors look for miners to cut supplies to lift prices

Posted on 06 July 2015 by VRS  |  Email |Print

Investors in industrial metals will keep a close watch on miners’ results in coming weeks for possible announcements of production cutbacks that could bolster weak prices. “What will be very important over the next few weeks is whether we start to see some supply responses emerging during the corporate results period,” said Nicholas Snowdon, metals analyst at Standard Chartered in London.
Iron ore, aluminium and zinc will get the most attention after a slide in prices that is pressuring the bottom line of some mining groups. “Over the past six months Vale, BHP and Rio have independently suggested either cuts to existing production, holding back sales and/or the slower ramp up of growth volumes,” Citi analyst Heath Jansen said in a note………………………………………..Full Article: Source

Citi says counter-cyclical mining M&A only for the brave

Posted on 06 July 2015 by VRS  |  Email |Print

Citi’s metals and mining team has poured cold water on any chance that the big miners may embark on a counter-cyclical merger and acquisition spree, saying deals may be restricted to the mid-tier sector. In a note to clients on Monday morning, Citi said subdued metal prices and weak share prices had left investors wondering whether the sector was set for another M&A cycle.
“We are skeptical,” the analysts told clients. “We do not anticipate a return of large-cap M&A – substantial impairments and increased shareholder pressure for returns are preventing current management from acting and are likely to lead to further divestments (’births’), in our view. ……………………………………….Full Article: Source

Palladium prices bounce from oversold levels

Posted on 03 July 2015 by VRS  |  Email |Print

Precious metals had a volatile day – at the day’s lows they were down 0.9 percent on average, with silver off 1.7 percent at one stage, while they ended the day mixed with palladium up 0.9 percent, while gold, silver and platinum prices closed down 0.5 percent, with gold at $1,173.50.
Many of the base metals spiked lower on Tuesday; at the day’s lows prices were down an average of 3.9 percent, skewed by an 8.5 percent drop in nickel and a 6.9 percent drop in tin. The sell-offs turned into spikes with the complex closing down an average of 0.6 percent, with nickel closing the day up 1.8 percent, while tin closed off 3.3 percent………………………………………..Full Article: Source

Iron ore in biggest daily fall since March

Posted on 03 July 2015 by VRS  |  Email |Print

Iron ore suffered its biggest one day percentage drop since March, falling by more than 5 per cent, as shipments of the steelmaking ingredient heading to China continued to pick-up. Iron ore was one of the top performing commodities in the second quarter rising more than 20 per cent. One trigger for the rally was a late buying spree by Chinese steel producers ahead of the peak summer demand period. But another factor was lower than expected volumes from Australia.
Analysts believe a prolonged wet season in the Pilbara region of Western Australia affected output, in particular at mines owned by Rio Tinto, the world’s second-biggest producer of iron ore………………………………………..Full Article: Source

Secondary rhenium supply growth to cater for new demand: Roskill

Posted on 03 July 2015 by VRS  |  Email |Print

Rising demand for rhenium in aero engines is likely to be satisfied by increasing supply of secondary rhenium contained in “engine revert” produced from end-of-life gas turbine parts, UK-based consultancy Roskill Information Services said Thursday.
“At the recent Paris Air Show the big three aero engine manufacturers, GE Aviation, Rolls-Royce and Pratt & Whitney, announced billions of dollars of new sales,” Roskill said. “This was excellent news to rhenium suppliers since rhenium consumption is dominated by the nickel-based superalloys that are used in gas turbine aero engines and also, to a lesser extent, in industrial gas turbines.”……………………………………….Full Article: Source

Aluminium, zinc rebound on hopes for demand, Greek deal

Posted on 02 July 2015 by VRS  |  Email |Print

Most base metals rebounded on Wednesday on brighter prospects for a Greek bailout deal and after solid U.S. economic data that spurred hopes for stronger demand. Many investors scrambled to close out short positions after profiting from sharp falls over the past two days when some metals hit multi-year lows.
“The short-term downtrend has been broken,” said Gianclaudio Torlizzi of consultancy T-Commodity in Milan. “Aluminium, zinc and lead look nice on the charts, they will likely see nice short-covering over the next few weeks,” he told Reuters Global Metals Forum………………………………………..Full Article: Source

Basic Materials: China Slowdown Weighs on Commodities (With One Exception)

Posted on 01 July 2015 by VRS  |  Email |Print

We expect coal, copper, and iron ore prices to remain below long-term averages as China continues to shift away from an investment-led economy. The basic materials sector is trading close to our aggregate fair values at a median price/fair value of 0.97 compared with a market price/fair value of 0.99.
Mined commodity prices tied to China’s sun setting infrastructure and housing boom are unlikely to recover, but we see uranium as an exception to this story as China builds out its fleet of nuclear reactors. While we expect China’s housing market to eventually falter, the outlook for U.S. residential construction is better than most think, with implications for lumber and coatings companies………………………………………..Full Article: Source

Nickel Slides to 6-Year Low as Shanghai Eases Constraint

Posted on 01 July 2015 by VRS  |  Email |Print

Industrial metals from aluminum to tin capped the longest run of quarterly losses since 2001 on concern that a sputtering economy will erode demand in China, the world’s top consumer, while turmoil in Greece mounts.
This quarter, the London Metal Exchange’s gauge of six prices fell 5.5 percent, the fourth straight decline and the longest slump since September 2001. On June 27, China’s central bank cut its benchmark lending rate to a record and lowered reserve-requirement ratios for some lenders after equities plunged and local government bond sales drained liquidity………………………………………..Full Article: Source

Copper benefits from equity margin calls

Posted on 30 June 2015 by VRS  |  Email |Print

The abrupt reversal in China’s stock market has produced one unlikely beneficiary: copper. Though heavily tied to the fortunes of the Chinese economy, copper was the only major industrial commodity that rose on Monday. That may reflect Chinese hedge funds scrambling to buy back bearish bets against the metal, as they faced rising margin calls from the equity market.
Many Chinese funds had bet that a slowing economy would weigh on copper while a subsequent loosening of monetary policy would boost equities, leading them to take opposing positions in the two markets………………………………………..Full Article: Source

Gold Miners’ Strike No Cure for Price Woes

Posted on 29 June 2015 by VRS  |  Email |Print

Languishing gold prices could get some help as miners in South Africa enter wage negotiations with the industry’s labor unions. But it’s unclear how much difference even a significant strike will mean to prices.
South Africa, at one time the world’s top gold producer, is no longer the heavyweight it once was, but it remains a major player. Unions representing more than 80% of the country’s gold workers are demanding as much as double their current wages in negotiations that began June 22. Industry watchers predict the two unions will settle for much less but not before striking and reducing the country’s gold output. The potential for such an event could edge gold prices higher in weeks ahead………………………………………..Full Article: Source

$8 Trillion Alternative Energy Boom Is A Win For Copper

Posted on 29 June 2015 by VRS  |  Email |Print

Here’s a bit of energizing news: In 2014, for the first time in four decades, the global economy grew along with energy demand without an increase in global carbon emissions. That’s according to energy policy group REN21’s just-released Renewables 2015 Global Status Report, which attributes this stabilization to “increased penetration of renewable energy and to improvements in energy efficiency.”
What this means is that as the world’s population continues to grow, and as more people in developing and emerging countries gain access to electricity, the role alternative energy sources such as wind, solar and geothermal play should skyrocket. Between now and 2040, a massive $8 trillion will be spent globally on renewables, about two thirds of all energy spending, according to Bloomberg New Energy Finance. Solar power alone is expected to draw $3.7 trillion………………………………………..Full Article: Source

Metals complex the killing fields, but bravehearts press on

Posted on 29 June 2015 by VRS  |  Email |Print

Short iron ore, avoid rare earths, steer clear of alumina and time to worry about zinc going off the boil — quite a week on the commodities front. A quick check on the mood as gauged a year ago by Pure Speculation shows that not all that much has changed in the past 12 months.
In mid-2014 we dismissed the “happy days are here again” mantra from many of the more bullish forecasts, adding that “yes, things have improved, but not nearly enough to guarantee we shall see sustained and balanced growth”. And there’s still a way to go before we see such improvement………………………………………..Full Article: Source

banner
July 2015
S M T W T F S
« Jun    
 1234
567891011
12131415161718
19202122232425
262728293031