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This is Goldman Sachs’ best bet in commodities right now

Posted on 22 July 2016 by VRS  |  Email |Print

While investors have been paying close attention to the gold and oil trade, the best bet right now in the commodity space is selling copper, the head of commodities research at Goldman Sachs said Thursday. That’s because there is a lot of supply coming on, Jeff Currie said.
“We like the idea of the revenge of the low-cost player, meaning Peru. Weakness in demand in China — it’s not in the sweet spot,” he said. “Put it all together, this market’s already in a surplus. Prices at $5,000 a ton — target $4,000.”……………………………………….Full Article: Source

Zinc starts to bubble as investors pile in (again): Andy Home

Posted on 22 July 2016 by VRS  |  Email |Print

Zinc is this year’s investment pick of the base metals traded on the London Metal Exchange (LME). The price of LME zinc for three-months delivery has risen by 42 percent since the start of January to a current $2,235 per tonne.
It is by a wide margin the strongest year-to-date performance among the LME pack and prices are now back at levels last seen in May last year. Also rising at a fast clip, though, is speculative interest on both the London and Shanghai markets………………………………………..Full Article: Source

July Lead Price Forecast: On the Up and Up

Posted on 22 July 2016 by VRS  |  Email |Print

To begin July, lead prices moved up nearly a quarter of 1% in futures trades as participants increased their positions due, in part, to a pick-up in spot market demand and a boost in base metals overseas. Meanwhile, according to a report from the Business Standard, lead for August delivery at the Multi-Commodity Exchange also grew by nearly .25%.
Our own Raul de Frutos reported just this week that lead prices have hit a one-year high despite neutral fundamentals. It’s been a year of fluctuation for lead, but three-month London Metal Exchange data has prices at $1,900 per metric ton………………………………………..Full Article: Source

Nickel Extends Advance to 11-Month High on Philippines Concern

Posted on 22 July 2016 by VRS  |  Email |Print

Nickel extended gains to a 11-month high on concern the Philippines crackdown on mines is disrupting supplies from the world’s top supplier of nickel ore. A gauge of mining stocks climbed for the first time in a week.
The new government in the Philippines has pledged to shut mines that fall short of environmental and welfare standards. Environment Secretary Gina Lopez said on Wednesday that the state plans to suspend shipments from an idled mine owned by the nation’s top refiner, Nickel Asia Corp., while the checkup is conducted………………………………………..Full Article: Source

Nickel and zinc prices hit multi-month highs

Posted on 22 July 2016 by VRS  |  Email |Print

Stronger demand in China emerges as the industrial metals face potential supply shortages. Prices for nickel and zinc rallied to multi-month highs on Thursday as investors bet on further supply disruptions for the industrial metals.
The price for zinc, which is used to galvanise steel, rose to its highest level in 14 months at $2,272.5 a tonne on the London Metal Exchange, while nickel touched an eight-month high of $10,745 a tonne. Nickel is used to make stainless steel………………………………………..Full Article: Source

Base metals edge higher in subdued trading ahead of ECB meeting

Posted on 22 July 2016 by VRS  |  Email |Print

Base metals apart from aluminium were in positive territory in a subdued LME trading session on Thursday morning – traders are on the sidelines ahead of today’s key European Central Bank (ECB) meeting. The ECB meeting, its first since the June 24 UK Brexit referendum, will be watched for signals on interest-rate moves although several traders believe it will follow the Bank of England’s decision to keep rates unchanged.
“With the true extent of the Brexit effect still unclear, and the euro on the weaker side (due to renewed expectations for a September Fed rate hike), the central bank is under no real pressure to act,” Swissquote said……………………………………….Full Article: Source

Copper Futures Slide as Chinese Production Climbs in First Half

Posted on 21 July 2016 by VRS  |  Email |Print

Copper retreated on concern that supply will keep outpacing demand as data showed rising output in China, the biggest producer and user of refined metal. A stronger dollar also hit commodities priced in the currency.
China’s production grew 7.6 percent in the first half, according to the National Bureau of Statistics Wednesday, as smelter margins improved. There will be a global surplus every year until 2020, Barclays Plc said in a July 19 note………………………………………..Full Article: Source

Commodities rally of 2016 leaves mining industry in “far better shape”

Posted on 20 July 2016 by VRS  |  Email |Print

Investec, the financial analyst service across the UK, South Africa and Australia, believes that the mining industry could represent a ‘key sector’ for asset allocation, with particular strength in gold commodities. The company, in a report released today, believes this is a result of strong commodity rallying and sustained cost cutting since the beginning of 2016.
“The turn of the year proved, in hindsight, to be the point of peak pessimism; since then, the mining industry has begun to heal itself and cleanse some of the sins of the past. We moved into cautious buy territory in April this year, by moving our Investec Mining Clock forward to 4 o’clock and have seen buying momentum continue, despite the recent Brexit vote,” said the company in a report………………………………………..Full Article: Source

Precious metals performers: Shiny but scary

Posted on 20 July 2016 by VRS  |  Email |Print

It’s expected of a fund tracking precious metals to experience volatility, with holdings in ETFs climbing almost 21% earlier this year and then gold prices jumped as much as 8.1% after U.K.’s Brexit vote, the most since the height of the global financial crisis in 2008, according to Bloomberg News.
Short-term data depicts just how essential a quick flood to the category can be. Those who selected gold, silver or other precious metal funds in light of recent market volatility have been able to profit handsomely all of the category’s top YTD performers raked in triple digit returns while the same funds over the long-term all experienced double-digit negative returns………………………………………..Full Article: Source

Zinc climbs to highest in more than a year on shortage worries

Posted on 20 July 2016 by VRS  |  Email |Print

Zinc extended its advance to the highest level in more than a year on concerns over a looming supply deficit. The metal used to galvanise steel rose as much as 1.3% to $2 246 a metric ton on the London Metal Exchange, the highest since May last year, and traded at $2 241 by 3:03pm Shanghai time.
It added as much as 2.4% to 17 340 yuan ($2 589) on the Shanghai Futures Exchange. Zinc has rallied 39% this year, outperforming other base metals, amid forecasts for a global shortage after supply cuts and mine closures. Zinc may rise to $2 500 over the next six months as production trails demand, Goldman Sachs Group Inc. said last week………………………………………..Full Article: Source

Bullish Q3 for base metals

Posted on 20 July 2016 by VRS  |  Email |Print

Sucden Financial said Tuesday it expected rising demand from China and global economic uncertainty as key drivers for the continued rally in the base metals complex. “EU uncertainties, UK uncertainties and Japanese yen strength are all contributing to a mixed macro outlook, but sentiment is improving and metals prices are stabilizing having built bases,” Sucden said in a quarterly report.
The base metals complex has suffered large sell-offs in recent years, along with large overcapacity and limited demand. Prolonged periods of low pricing are now beginning to bite into the market, in the form of cuts in mining, production cuts and a heavily destocked market, fueling recent rallies seen across the complex………………………………………..Full Article: Source

Why Lithium Will See Another Price Spike This Fall

Posted on 19 July 2016 by VRS  |  Email |Print

So far, lithium has been the hottest metal of 2016, beating out gold, with exponential demand expected over the coming years. Although the price trajectory of the metal has been subdued in recent months, the fundamentals behind the long-term trajectory suggest strong potential for long-term growth.
Price doubling from 2014/2015 was first seen in China and is now being felt worldwide, with lithium hydroxide prices from $16-20 and carbonate prices from $12-14 thousand USD per ton………………………………………..Full Article: Source

London Metal Exchange price exclusivity falls on global stage

Posted on 19 July 2016 by VRS  |  Email |Print

Globally, base metal trading has expanded since the sale of the London Metal Exchange (LME) to the HKEx. Taking the two main exchanges for base metals – the LME and the Shanghai Futures Exchange (SHFE) – the average monthly volume of the six main base metals rose 23.8% since July 2012.
At the same time, the LME share of the trading has fallen from 89.7% in July 2012 to 77.8% in June 2016, even taking out the double-counting of Chinese contracts. The LME has lost its position due both to self-imposed measures, the growth of other exchanges, and the shift in the globally center of manufacturing to East Asia………………………………………..Full Article: Source

Lithium gets second wind

Posted on 18 July 2016 by VRS  |  Email |Print

The lithium boom has been showing signs of maturing. In a winnowing process that all booms go through, there has been a natural floating to the top of those with the biggest and best lithium positions.
In the listed ASX space, the rise of Pilbara Mines (PLS) is a case in point. It is now a $700 million-plus company courtesy of the success it has had in outlining one of the world’s biggest hard-rock sources of lithium at its Pilgangoora ­deposit, 120km south of Port ­Hedland………………………………………..Full Article: Source

A global battle for trading supremacy in industrial metals

Posted on 18 July 2016 by VRS  |  Email |Print

China has loomed large over the world of industrial raw materials for many years. The prices of metals from aluminum to zinc have long swayed to the beat of the world’s largest manufacturing country. But this is the year that China has emerged from the limelight to take centre-stage in the trading of those metals.
On one day alone, March 10, trading volumes on the Dalian Exchange iron ore contract exceeded one billion tonnes, more than the combined annual output of the world’s biggest three producers, Rio Tinto, BHP Billiton and Brazil’s Vale………………………………………..Full Article: Source

Rare earth metals pay the price of previous excess: Andy Home

Posted on 15 July 2016 by VRS  |  Email |Print

For every action there is a reaction and never more so than when it comes to industrial commodity supply chains. Japanese automotive giant Honda and its technology partner Daido Steel have just announced a materials breakthrough in the electric motors used in hybrid vehicles.
Starting with the next generation of “FREED” minivan due to go on sale later this year, Honda will be using a motor that doesn’t need heavy rare earth metals. Specifically, it will be the world’s first hybrid engine, one combining a gasoline and electric motor, to dispense with terbium and dysprosium………………………………………..Full Article: Source

Nickel near eight-month high as metals gain on stimulus speculation

Posted on 15 July 2016 by VRS  |  Email |Print

Nickel resumed a rally and industrial metals advanced on expectations that policymakers will increase efforts to spur economic growth. Mining stocks climbed, led by Anglo American and Rio Tinto Group.
Some economists expect the Bank of England to cut interest rates today and Japanese Prime Minister Shinzo Abe has promised more fiscal stimulus to charge up a stuttering economy. Nickel is near the highest in eight months on potential supply disruptions in the Philippines, the world’s top miner, and falling stockpiles………………………………………..Full Article: Source

Japan’s aluminium association head sees metal price at $1,500-$1,700/T

Posted on 15 July 2016 by VRS  |  Email |Print

Aluminium prices are likely to hover between $1,500 and $1,700 per tonne for the later half of this year as oversupply will cap further gains, Akio Hamaji, the new chairman of the Japan Aluminium Association said on Thursday.
“With uncertainty over the European economy after Brexit, it is unlikely to see a strong pickup in global economy,” Hamaji told a small group of reporters. “So I don’t expect sharp gains in the metal prices,” he said, adding aluminium supply is expected to exceed demand in the global market this year which will weigh on the market………………………………………..Full Article: Source

Metals’ Investors Forget About Brexit: Bull Market Continues

Posted on 15 July 2016 by VRS  |  Email |Print

The U.K.’s decision to leave the E.U. hasn’t really scared investors away from industrial metals. The metal complex continues to rally. As we explained in a webinar yesterday, Brexit had little to no impact on the supply and demand dynamics of industrial metals.
On the demand side of the equation, it is — not the U.K or even Europe — that is the world’s biggest consumer of industrial metals. Supply cuts amid low prices and this year’s boost in Chinese demand for industrial metals, thanks to stimulus measures, continue to be the key factors to watch………………………………………..Full Article: Source

China Aims to Be Metals Price Setter, Not Just Largest Consumer

Posted on 15 July 2016 by VRS  |  Email |Print

China, this year, is becoming more than just the world’s largest metals consumer, it’s also taking a larger role in setting metals prices. While oil prices have crept up this summer, another selloff could be caused when refined products in storage finally come to market.
China is Taking a Bigger Role in Setting Metals Prices. The prices of metals from aluminum to zinc have long swayed to the beat of the world’s largest manufacturing nation, Reuters’ Andy Home writes………………………………………..Full Article: Source

Platinum: Demand Up, Supply Down

Posted on 14 July 2016 by VRS  |  Email |Print

Platinum demand has increased and is set to keep on rising compared to last year according to industry analysts, whereas supply is falling. Total demand for the metal, which finds its single largest use by industry in catalysts to help clean emissions from diesel engines, is set to grow by 2% compared to 2015, while total supply shrinks 3% according to the Platinum and Palladium Focus 2016 from leading precious metals consultancy Metals Focus.
Last year’s total supply of platinum was just over 8 million Troy ounces, with total demand reaching 8.2moz, says the report. That marked a 17% and 9% increase respectively from 2014………………………………………..Full Article: Source

Iron ore prices in China at 3-month peak

Posted on 14 July 2016 by VRS  |  Email |Print

Rally comes after reduction in capacity across nation’s bloated steel industry. Iron ore prices in China have climbed to their highest level in almost three months, supported by a production clampdown in the country’s steel capital and expectations of further economic stimulus.
The most actively traded iron ore futures contract on the Dalian Commodity Exchange closed up 4 per cent at 457.5Rmb a tonne after producers in Tangshan were ordered to cut output for the rest of the month to help improve air quality………………………………………..Full Article: Source

Goldman Sachs Revises Base Metals Outlook

Posted on 14 July 2016 by VRS  |  Email |Print

Goldman Sachs has revised its base metal outlook for the year and Alcoa, Inc., has opened earnings season by reporting lower-than-expected Q2 profits. Goldman Sachs on Monday raised its outlook for zinc, aluminum and nickel prices anticipating supply inequalities to continue across the metals sphere throughout the second half of the year.
“In our view, the impact of the prior stimulus is still set to result in sufficient demand growth such that we will continue to see supply differentiation across the metals space during the second half of 2016,” the bank said in a note to investors………………………………………..Full Article: Source

China Aims to Be Metals Price Setter, Not Just Largest Consumer

Posted on 14 July 2016 by VRS  |  Email |Print

China, this year, is becoming more than just the world’s largest metals consumer, it’s also taking a larger role in setting metals prices. While oil prices have crept up this summer, another selloff could be caused when refined products in storage finally come to market.
The prices of metals from aluminum to zinc have long swayed to the beat of the world’s largest manufacturing nation, Reuters’ Andy Home writes. But this is the year that China has emerged from the limelight to take center-stage in the trading of those metals………………………………………..Full Article: Source

Mounting copper stocks could weigh on price

Posted on 13 July 2016 by VRS  |  Email |Print

Warehouses licensed by the London Metal Exchange show 18% jump in metal storage this week. Copper has been flowing into warehouses in Asia, fuelling speculation about demand in China, the world’s biggest consumer of industrial metals, and the outlook for prices.
Copper sitting in warehouses licensed by the London Metal Exchange has jumped by 18 per cent this week to the highest level since February, totalling 234,750 tonnes, up from 140,000 tonnes in April………………………………………..Full Article: Source

All change in the world of industrial metals trading?

Posted on 13 July 2016 by VRS  |  Email |Print

China has loomed large over the world of industrial raw materials for many years. The prices of metals from aluminium to zinc have long swayed to the beat of the world’s largest manufacturing nation. But this is the year that China has emerged from the limelight to take centre-stage in the trading of those metals.
On one day alone, March 10, trading volumes on the Dalian Exchange iron ore contract exceeded one billion tonnes, more than the combined annual output of the world’s biggest three producers, Rio Tinto, BHP Billiton and Brazil’s Vale………………………………………..Full Article: Source

Platinum and palladium to find price support from deficits in 2016: Citi

Posted on 12 July 2016 by VRS  |  Email |Print

Supplies of platinum and palladium, key ingredients in autocatalysts, are forecast to be in deficit for full-year 2016, with the dollar platinum price averaging $985/oz this year and $1,040/oz in 2017, Citi said Monday.
Strategist at the bank David Wilson said platinum is likely to register a 172,000 oz deficit with palladium short by 847,000 oz. “We expect platinum to average $1,120/ounce in 2018. For palladium, we expect $570/oz (up 7% from previous estimates), $640/oz (up 2%), and $690/oz (unchanged) in 2016, 17, and 18 respectively,” he said………………………………………..Full Article: Source

Metal prices lift on demand hopes

Posted on 11 July 2016 by VRS  |  Email |Print

Copper and other industrial metals have gained after better-than-expected US jobs data bolstered hopes for economic growth and metals demand. Copper recovered from the lowest levels in nearly two weeks and other metals extended gains after data showed US nonfarm payrolls marked up their largest increase since last October.
The data, however, was not conclusive enough to cause the Federal Reserve to abandon its cautious stance about raising interest rates………………………………………..Full Article: Source

Copper surrenders gains, down fourth day on rising stockpiles

Posted on 08 July 2016 by VRS  |  Email |Print

London copper futures gave up modest gains to trade lower for a fourth day running on Thursday as inventories of the industrial metal hit a five-month high, reflecting slow demand. Nickel also surrendered early gains, falling nearly 2 percent after earlier topping $10,000 a tonne amid continuing concerns about potential disruptions to the supply of nickel ore from top exporter Philippines to China.
Three-month copper on the London Metal Exchange was down 0.4 percent at $4,732 a tonne by 0707 GMT, closing in on Wednesday’s one-week low. The most-traded September copper contract on the Shanghai Futures Exchange slid 1.3 percent to 36,910 yuan ($5,522) a tonne………………………………………..Full Article: Source

US hot-rolled steel coil buyers see availability; prices holding

Posted on 07 July 2016 by VRS  |  Email |Print

Hot-rolled coil availability was no longer a concern, US buy-side sources said on Tuesday, though mills were maintaining current offer prices amid slower post-holiday transactions.
One service center source said he anticipated pressure to remain on HRC orders placed in July and “scrap stepping down would increase that pressure. Material for August delivery should be very widely available.” A second service center source said he had felt the stress in the market………………………………………..Full Article: Source

Iron ore price dips as bearish forecasts weigh on commodity

Posted on 06 July 2016 by VRS  |  Email |Print

The iron ore price has inched lower but remains above government forecasts, despite yet another analyst prediction that the commodity is set to fall over the second half of the year.
Iron ore slipped 0.2 per cent to $US55.80 a tonne overnight, according to The Steel Index, a whisker lower than the previous day’s close of $US55.90. Meanwhile, Metal Bulletin pegged the latest price at $US55.93 a tonne, a 0.5 per cent fall from the prior day………………………………………..Full Article: Source

Nickel price swings wildly as it records a nine-month peak

Posted on 06 July 2016 by VRS  |  Email |Print

Fears of lower output from the Philippines has given prices a further boost. The price of nickel swung wildly on Tuesday, rising to its highest level in nine months on worries about possible mines closures in the Philippines before it was hit by flurry of profit-taking and fell by more than 3 per cent.
The metal, which is used to make stainless steel, has been one of the worst-hit commodities during the recent price rout. Weakening demand in China and excess supply saw the price tumble 40 per cent last year and left most of the industry struggling to turn a profit………………………………………..Full Article: Source

Copper slides on producer hedging, rising stocks

Posted on 06 July 2016 by VRS  |  Email |Print

Copper slid on Tuesday after producer hedging, a firm dollar, profit-taking and rising inventories sparked a sharp sell-off, but further losses are likely to be limited due to funds waiting to buy at lower prices.
Benchmark copper on the London Metal Exchange ended down 1.5 percent at $4,817 a tonne. The metal used in power and construction hit a two-month high of $4,960 on Monday, a rise of seven percent since June 9. Traders said higher prices had encouraged producers to take the opportunity to sell future output………………………………………..Full Article: Source

Zinc rockets to one-year high

Posted on 04 July 2016 by VRS  |  Email |Print

Zinc is proving to be an outlier among industrial metals whose 2016 outlook looks dim due to supply overhangs and lagging economic growth. The price for the metal used for rustproofing steel is outperforming copper, aluminum and iron ore as banks and traders anticipate price gains due to a shortage.
On Friday the London Metal Exchange benchmark price hit US$2,104.5 a tonne, but earlier in the day prices reached US$2,116, the highest level since July 15, 2015………………………………………..Full Article: Source

Iron ore seen boxed below $50 in H2 as glut persists

Posted on 01 July 2016 by VRS  |  Email |Print

After an unexpected rally in the first months of 2016, iron ore should fall back below $50 a tonne in the second half of the year as more of the bulk commodity hits an oversupplied market, a Reuters poll showed.
But prices should still be up on the year, analysts say, thanks to an early-year rally in Chinese steel futures that spread to iron ore and helped the raw material recover from a three-year slide. Iron ore emerged largely unscathed from the selloff that hit financial markets last week after Britain voted to exit the European Union………………………………………..Full Article: Source

Basic Materials: Recent Commodity Rallies Leave Few Opportunities

Posted on 01 July 2016 by VRS  |  Email |Print

Optimism continues to reign in the basic materials sector year to date, but investors are overestimating the sustainability of recent commodity price rallies. The basic materials sector remains severely overvalued, with a market-cap weighted price/fair value estimate of 1.26 as of May 31.
The reasons for rallies in steel, iron ore, and gold differ, but we don’t expect any of the price gains to hold. Limited impact from steel trade cases and significant oversupply will bring pain to steelmakers and iron ore miners, respectively, in the second half of 2016. The recent Brexit vote helped extend the 2016 gold rally as interest rate hikes are potentially delayed through the second half of the year……………………………………….Full Article: Source

Cautiously optimistic about nickel price

Posted on 30 June 2016 by VRS  |  Email |Print

Base metals have enjoyed a solid 2016 so far with only lead (-3%) in negative territory for the year. While the likes of zinc (+28%) and tin (+16%) have rallied and steelmaking raw materials iron ore (+24%) and coking coal (+12%) have come back strongly, nickel remains stuck in the doldrums.
On the LME nickel jumped back above $9,000 on Wednesday, but hasn’t been in five-digit territory for nearly a year and is worth half of what it was early in 2014 when Indonesia’s ban on ore exports led many to believe the volatile metal is entering a bull market……………………………………….Full Article: Source

Copper hits eight-week peak as Brexit fears fade, dollar dips

Posted on 30 June 2016 by VRS  |  Email |Print

Copper and nickel climbed to the highest levels in nearly eight weeks on Wednesday, bolstered by a softer dollar and fading fears about Britain’s vote to exit the European Union. Zinc and lead touched three-week highs as the dollar gave up some of its gains made since the Brexit vote last week.
Three-month copper on the London Metal Exchange hit a peak of $4,847.50 a tonne, the highest since May 5, building on a 2.3 percent gain in the previous session. It failed to trade in closing open outcry activity and was bid at $4,838, up 0.4 percent……………………………………….Full Article: Source

Gold Retreats, Copper Climbs as Post-Brexit Markets Stabilize

Posted on 29 June 2016 by VRS  |  Email |Print

Gold fell back and copper soared as global markets stabilized on speculation that policy makers will do more to curb the post-Brexit fallout. Bullion fell after its biggest two-day surge in seven years as European and U.S. equities and the pound climbed for the first time since the U.K. voted to leave the European Union.
Concern that an exit will disrupt the global economic recovery had caused market turmoil and boosted gold by 5.4 percent in just two days as investors sought a haven………………………………………..Full Article: Source

Copper touches 2-month peak as dollar eases

Posted on 29 June 2016 by VRS  |  Email |Print

Copper hit its highest level in almost two months on Tuesday as the US dollar weakened and hedge funds and speculators slashed their bets on lower prices. Data from the London Metal Exchange showed money managers had reduced their short position in copper to just over 86,600 lots on Friday, down from 107,600 lots a week before.
The report came in the wake of figures published late on Friday that showed a reduction in the record short copper position on Comex, the US futures exchange………………………………………..Full Article: Source

What Brexit Means For Metal Prices

Posted on 28 June 2016 by VRS  |  Email |Print

One of them is the referendum, especially when it’s done in a period of instability. When people are unhappy, they look for what they think is a short-term solution to their problem, overlooking what’s really best for the country. The Brexit is a perfect example of this.
The British people are unhappy because their economy isn’t doing so well, blaming foreigners that cross its borders as part of the European Union and the regulations imposed on member states by Brussels. Referendums can also distill complex issues into a simplistic choice………………………………………..Full Article: Source

Why Aluminum Is A Suitable Commodity For Long-Term Investors

Posted on 27 June 2016 by VRS  |  Email |Print

The development of the global automotive industry has a positive impact on aluminum prices. The current perspectives of the global automotive industry assume a significant growth in aluminum demand in the mid-term. The decline in aluminum production and its warehouse levels are positive catalysts for the growth of aluminum prices.
One of the features of the aluminum market is that the biggest share of aluminum imports belongs to the United States: it amounted to 10.8% of total imports in 2015. The reason is that aluminum is mainly used in the construction and automotive industries, and their activities are spread all over the world………………………………………..Full Article: Source

Iron ore holds steady amid global volatility

Posted on 27 June 2016 by VRS  |  Email |Print

The iron ore price has edged lower, escaping much of the volatility that shook global financial markets in the wake of British voters’ historic decision to leave the European Union. Iron ore fell 0.6 per cent to $US51.40 a tonne in the most recent session, according to The Steel Index, from $US51.70 the previous day.
The relatively muted move contrasts with sharp swings in other commodities. The day after the vote, oil prices sank around 5 per cent, while safe haven asset gold soared 4.7 per cent in its largest one-day gain since September 2013………………………………………..Full Article: Source

Copper Is Just a Bystander in Commodities’ Best Start Since 2008

Posted on 24 June 2016 by VRS  |  Email |Print

The best start to a year for commodities since 2008 is leaving copper in the dust. The metal is one of the weakest of the 22 raw materials in the Bloomberg Commodity Index of returns this year and the worst of the major metals.
“If you look at where iron ore, coking coal or oil have gone this year, copper really has lagged,” Tyler Broda, an analyst at RBC Capital Markets in London, said by phone. “There is no question that right now copper is relatively tenuous in terms of the outlook. We’re definitely picking up a more neutral near-term outlook on copper than previously.”……………………………………….Full Article: Source

Molybdenum price is on tear

Posted on 24 June 2016 by VRS  |  Email |Print

While base metals have enjoyed a good 2016 so far with only lead (-5%) in negative territory for the year and the likes of zinc (+27%) and tin (+18%) entering bull markets, molybdenum is making a star turn.
A metric tonne of molybdenum on the London Metal Exchange fetched $16,500 on Thursday after customs data from China showed imports of concentrate and oxides surged 131% in May. Over the first five months of the year, China imported 8,851 tonnes of molybdenum concentrates and oxide, up 89% year on year………………………………………..Full Article: Source

China’s supply-side reforms bring silver lining to rare metals

Posted on 22 June 2016 by VRS  |  Email |Print

After a long downtrend, prices of some rare metals have been recovering since the beginning of the year. Driving the change is China, the leading supplier, where government-led moves are underway to consolidate producers, slash output and build up reserves.
To address excessive production, Beijing has recently been promoting supply-side reforms. And while those efforts have struggled to make progress in the steel, coal and aluminum industries, they are gradually bearing fruit in the rare metals industry………………………………………..Full Article: Source

Copper Rises on Risk Appetite, Weaker Dollar

Posted on 21 June 2016 by VRS  |  Email |Print

Copper prices gained on Monday, boosted by an increased investor appetite for risk and a weaker U.S. dollar. Copper for July delivery was recently up 1.9% at $2.0895 a pound on the Comex division of the New York Mercantile Exchange.
The WSJ Dollar Index, which measures the greenback against 16 other currencies, was down 0.7% at 85.45. A weaker dollar tends to help dollar-denominated commodities like copper, which becomes cheaper for other currency holders as the dollar falls………………………………………..Full Article: Source

Scrap metal shortage adds to steel sector woes

Posted on 21 June 2016 by VRS  |  Email |Print

Steel producer Scaw Metals has called for swift action to address the shortage of scrap metal, which recently brought its operations to a standstill in South Africa.
“We are strong advocates for trying to introduce a Price Preference System that works or overall some type of tariff on scrap [exports] or an outright ban on scrap [exports]…It will not only benefit us, Scaw Metals, it will actually benefit the industry at large…it will also benefit some of our competitors…and benefit the foundry industry at large,” said Scaw CEO Markus Hannemann………………………………………..Full Article: Source

Is China the de facto, unwitting OPEC for metals?

Posted on 21 June 2016 by VRS  |  Email |Print

Is China doing for metals markets what Saudi Arabia used to do for crude oil? The world’s largest producer and consumer of industrial metals may be acting as a de facto, if unwitting, type of OPEC for metals, adjusting supply in response to price signals and balancing the market.
While not as obvious as the role Saudi Arabia played as the market balancer for crude in the previous glory days of the Organization of the Petroleum Exporting Countries (OPEC), the dynamics for China and metals may be somewhat similar………………………………………..Full Article: Source

Iron ore inches higher

Posted on 20 June 2016 by VRS  |  Email |Print

The iron ore price has edged higher despite another projection that the commodity could fall sharply over the second half of the year and remain at depressed levels until 2020. Iron ore rose 1 per cent to $US50.70 a tonne in the most recent session, according to The Steel Index.
Credit Suisse analysts have joined the latest chorus of commentators predicting the price will head lower as the market remains well oversupplied. The bank reaffirmed its forecast that prices fall to $US40 a tonne in the second half of calendar 2016, holding at that level until the end of 2020………………………………………..Full Article: Source

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