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Gold Miners Look Past Fed ‘Headwind’ to Stay Upbeat on Price

Posted on 22 September 2016 by VRS  |  Email |Print

Not even the prospect of the Federal Reserve raising interest rates is enough to crush gold executives’ enthusiasm. Prices will reach $1,385.63 an ounce by the end of the year, according to the average estimate in a survey of 16 participants at the Denver Gold Forum, the 27th annual gathering of mining executives, hedge funds, bankers and analysts that attracted more than 1,100 attendees. The forecast is 5.1 percent above Tuesday’s closing futures price.
Investors piled into gold in the first half of the year as yields fell below zero on more than $8 trillion of government debt in developed markets…………………………………….Full Article: Source

Global copper market sees deficit of 83k in June, 306K in H1: ICSG

Posted on 22 September 2016 by VRS  |  Email |Print

The global refined copper market for June showed an apparent production deficit of around 83,000 mt, mainly due to strong Chinese apparent refined copper demand, the International Copper Study Group said Tuesday.
When making seasonal adjustments for world refined production and usage, June showed a production deficit of about 47,000 mt, the ICSG said in its monthly report. The refined copper balance for the first half of 2016, including revisions to previous data, indicates a production deficit of around 306,000 mt, and a seasonally adjusted deficit of about 227,000 mt…………………………………….Full Article: Source

Iron Ore Prices: Will They Keep Falling?

Posted on 22 September 2016 by VRS  |  Email |Print

There appears to be an almost universal expectation that iron ore prices will start to retreat soon, after surging some 62% through April. The prices have since eased back, but are still up 28% on the year. Without doubt, much of iron ore’s gains in 2016 have been driven by strong demand from China, with imports up 9.3% to 669.65 million metric tons in the first eight months of the year from a year ago.
But prices in Qingdao lost 5.8% in the seven sessions through Wednesday. That was the longest run of daily declines since March, and while steel output remains robust, questions are again being asked as to how much longer prices can remain north of $55 per mt as yet more supply comes on-stream……………………………………Full Article: Source

How Are Silver And Copper Prices Impacting CME’s Metal Trading Volumes?

Posted on 21 September 2016 by VRS  |  Email |Print

CME Group ’s metal derivative trading volumes have seen a significant increase over the last two years. In addition to fluctuations in gold prices ( as discussed in a previous article ), the surge in volumes was partly driven by uncertainty surrounding the prices of copper and silver, which together account for about 40% of the exchange’s metal volumes.
Continued volatility in the silver and copper markets is likely to boost the exchange’s trading volumes further in the near future. Below we take a look at how silver and copper prices have impacted the exchange’s derivatives volumes………………………………………Full Article: Source

Zinc climbs on speculative buying, China outlook

Posted on 21 September 2016 by VRS  |  Email |Print

Zinc rose on Tuesday, climbing for a second day after two weeks of losses, supported by speculators betting on shortages and an uptick in Chinese demand for industrial metals. Zinc was the top performer on the London Metal Exchange with benchmark prices closing 2.2 percent up at $2,300 a tonne, building on gains of 1.6 percent on Monday.
Zinc is also this year’s favourite LME metal for investors with gains of 43 percent to date following the closure and suspension of mines. Commodity trading advisors (CTAs), which run speculative funds often run by computer programmes, were active buying on Monday and Tuesday, Dee Perera at broker Marex Spectron said………………………………………Full Article: Source

Zinc demand set to outpace production

Posted on 20 September 2016 by VRS  |  Email |Print

Global zinc demand growth is set to marginally outpace production growth between now and 2020, averaging 1.7% and 1.3%, respectively, advisory firm BMI Research said. Refined zinc production is slowing as weak prices and an ore shortage force major producers to curb output.
“We expect global mined zinc output to drop by 6.8% year-on-year; as such, we forecast global output to decline slightly this year by 0.9% and remain muted at an average yearly growth rate of 1.8% between 2017 and 2020,” BMI noted………………………………………..Full Article: Source

China’s iron ore imports stay robust, may delay price retreat: Russell

Posted on 20 September 2016 by VRS  |  Email |Print

There is an almost universal expectation that iron ore prices will start to retreat soon, reversing some of the 29 percent surge this year that has seen the steel-making ingredient become one of the unexpected commodity top performers.Much of iron ore’s gains in 2016 have been driven by strong demand from China, with imports up 9.3 percent to 669.65 million tonnes in the first eight months of the year from a year ago.
And as yet, there is no sign that China’s appetite for imported iron ore is waning, with vessel-tracking and port data suggesting September will be another strong month for the buyer of about two-thirds of global seaborne cargoes………………………………………..Full Article: Source

Copper Pulls Back as China Production Increases

Posted on 20 September 2016 by VRS  |  Email |Print

Copper prices fell on Monday, after a notable increase in output from China put pressure on the industrial metal. Copper for December delivery was recently down 0.5% at $2.1500 a pound on the Comex division of the New York Mercantile Exchange.
Copper tends to track economic data from China, as a major consumer and producer of the metal. China accounts for 45% of copper demand globally. Additionally, worries over the state of China’s real estate may weigh on copper demand, according to Commerzbank analysts………………………………………..Full Article: Source

Chinese Copper Output Jumps to Six-Month High as Capacity Grows

Posted on 20 September 2016 by VRS  |  Email |Print

China, the world’s top producer of refined copper, boosted output to the highest level in at least six months as domestic smelters expanded capacity amid favorable margins. Production climbed to 743,000 metric tons in August from 722,000 tons a month earlier and 663,000 tons last year, according to data from the National Bureau of Statistics on Monday.
China didn’t publish January and February data due to discrepancies caused by the Lunar New Year holiday. Output rose 8.7 percent to a record of 5.5 million tons in the first eight months, data showed………………………………………..Full Article: Source

Platinum: The Understated Precious Metals Opportunity?

Posted on 16 September 2016 by VRS  |  Email |Print

Platinum has had an ambivalent history as a precious metal. While it has been used sporadically through the centuries, it only came to be seen as a metal with value in the 1800s. Initially considered inferior to silver by the Spaniards (calling it Platina, or “little silver”), this special metal has seen an increase in demand since WWII.
While silver is known for its use in medicine and technology, platinum is the greenest of the precious metals. Since the 1970s the automobile industry has relied on platinum as the essential component in catalytic converters. These small devices fight air pollution and larger versions scrub the air in many industrial applications………………………………………..Full Article: Source

Where to next for the iron ore price?

Posted on 15 September 2016 by VRS  |  Email |Print

The direction the iron ore price takes has become a hot topic today following comments from the chief executive officer of US-based iron ore producer Cliffs Natural Resources. In a recent phone interview Lourenco Goncalves has said that bearish forecasts that predict iron ore prices dropping to $US40 or $US30 a tonne have been made by people that “don’t know anything” according to the Australian Financial Review.
Instead Mr Goncalves expects prices between US$50 and US$60 a tonne will be sustained thanks to stable demand from China and lower than forecast levels of new supply………………………………………..Full Article: Source

BHP bullish on Chinese steel despite forecasts

Posted on 15 September 2016 by VRS  |  Email |Print

BHP Billiton still expects China’s steel production to continue to grow despite almost all other forecasters and the Chinese industry itself saying peak production has already passed.
BHP chief commodities forecaster Huw McKay acknowledges Chinese steel production has fallen in recent times, with most analysts forecasting output will hover at 800-830 million tonnes a year. “We’re not convinced,’’ Mr McKay wrote in BHP’s corporate blog, Prospects. “We expect Chinese demand will rise modestly over the next decade.’’……………………………………….Full Article: Source

Nickel Leads Drop in Metals as Crude Oil Slide Saps Commodities

Posted on 14 September 2016 by VRS  |  Email |Print

Nickel capped its biggest two-day drop in a month, leading declines in industrial metals, as a decline in crude oil dragged down commodities and equities. A gauge of mining-company shares sagged to the lowest since July, paced by Freeport-McMoRan Inc.
Crude fell as much as 3.3 percent as the International Energy Agency said a surplus will last longer than previously thought. Lower energy prices help reduce production costs, deterring miners from trimming output amid ample supply of some metals. Equities also retreated following gains on Monday, which came after Federal Reserve Governor Lael Brainard damped expectations for an interest-rate increase at next week’s Fed meeting………………………………………..Full Article: Source

Copper MMI Takes a Dip in September; No Surprise

Posted on 14 September 2016 by VRS  |  Email |Print

Our Copper MMI fell 5% during the month of August. The price drop is no surprise. Copper has struggled near $5,000 per metric ton multiple times this year and as we pointed out last month, buyers could expect prices to retrace in August.
Weaker Chinese imports over the past few months and the bearish calls of some major banks have contributed to the recent price fall. Unlike other base metals, sentiment about copper is still sort of bearish, making this metal the worst performer among its peers this year. In our monthly outlook, we haven’t recommended buying copper forward yet………………………………………..Full Article: Source

Precious metals fall as investors position for higher rates

Posted on 13 September 2016 by VRS  |  Email |Print

Gold, silver, platinum and palladium all dropped for a fourth straight day as expectations grew that the U.S. will raise rates this year. The European Central Bank held off on extending stimulus and the Bank of Japan may do the same next week, said Jonathan Butler, a precious metals strategist at Mitsubishi Corp. in London.
Friday’s “move in gold is spilling over into the other metals as well,” Butler said by phone. “We’re not going to see ever-looser monetary policy and it’s not going to get ever-more attractive to hold precious metals into the future.”……………………………………….Full Article: Source

Copper, the global economic bellwether, hits a 2-month low

Posted on 13 September 2016 by VRS  |  Email |Print

Chinese manufacturing will show if metals sell-off is generic risk aversion or economic slowdown. One of the reasons the latest equity and bond wobble is quite a worry for some investors is that they reckon central banks are becoming more inured to the market’s emotional blackmail.
And, crucially, this is occurring amid some signs of further fretting over global demand. The US dollar was softer early on Monday, but buck-denominated industrial commodities were not immune to the broader angst. Oil prices continued to be choppy, while base metals struggled………………………………………..Full Article: Source

Graphite not a commodity bubble says Kibaran Resources

Posted on 13 September 2016 by VRS  |  Email |Print

Equity market concerns that the expansion of the graphite sector has been too rapid has been dismissed by ASX-listed graphite junior, Kibaran Resources. Kibaran Resources is the owners of the near-term US$77.5 million Epanko graphite mining venture in Tanzania.
MD Andrew Spinks, said graphite was “certainly not a bubble”. “Graphite is set to be a major global commodity – it is going to be one of the raw materials of the future - a major commodity - so talks of bubbles are premature.”……………………………………….Full Article: Source

Data supports ‘platinum cliff’ theory

Posted on 12 September 2016 by VRS  |  Email |Print

Investors don’t seem to be responding to the rhetoric of an impending platinum supply cliff. A few platinum sector CEOs – namely, Northam Platinum’s Paul Dunne and Impala Platinum’s Terence Goodlace – have recently warned of a looming structural deficit in the global platinum market as a result of diminishing supply and dwindling capital expenditure from South Africa.
Theoretically, this means the platinum price is all but guaranteed to shoot up quite dramatically because a global platinum shortage is inevitable, but history has shown that the dollar price of platinum is not necessarily responsive to demand and supply dynamics………………………………………..Full Article: Source

Biggest commodity surprise of 2016 is a windfall for miners

Posted on 12 September 2016 by VRS  |  Email |Print

The surprise surge in coal prices should provide an unexpected profit boost for the world’s biggest mining companies as they navigate a commodity downturn that sapped earnings.
Gains for coking coal, used with iron ore to make steel, accelerated in recent weeks and benchmark prices from top producer Australia jumped 9.5 per cent on Thursday, the most since at least 2013. At current prices, that would add almost $US5 billion ($A6.6 billion) to BHP Billiton’s underlying earnings before interest, tax, depreciation and amortisation in the year ending June 30, according to Liberum Capital………………………………………..Full Article: Source

Coal rises from grave to become one of hottest commodities

Posted on 12 September 2016 by VRS  |  Email |Print

For all the predictions about the death of coal, it’s now one of the hottest commodities in the world. The resurrection may have further to run. A surge in Chinese imports to compensate for lower domestic production has seen European prices jump to near an 18-month high, while Australia’s benchmark is set for the first annual gain since 2010.
At the start of the year, prices languished near decade lows because of waning demand from utilities seeking to curb pollution and amid the International Energy Agency’s declaration that the fuel’s golden age in China was over………………………………………..Full Article: Source

Biggest Commodity Surprise of 2016 Is a Windfall for Miners

Posted on 09 September 2016 by VRS  |  Email |Print

The surprise surge in coal prices should provide an unexpected profit boost for the world’s biggest mining companies as they navigate a commodity downturn that sapped earnings. Gains for coking coal, used with iron ore to make steel, accelerated in recent weeks and benchmark prices from top producer Australia jumped 9.5 percent on Thursday, the most since at least 2013.
At current prices, that would add almost $5 billion to BHP Billiton Ltd.’s underlying earnings before interest, tax, depreciation and amortization in the year ending June 30, according to Liberum Capital Ltd………………………………………..Full Article: Source

Coal Rises From the Grave to Become One of Hottest Commodities

Posted on 09 September 2016 by VRS  |  Email |Print

For all the predictions about the death of coal, it’s now one of the hottest commodities in the world. The resurrection may have further to run. A surge in Chinese imports to compensate for lower domestic production has seen European prices jump to near an 18-month high, while Australia’s benchmark is set for the first annual gain since 2010.
At the start of the year, prices languished near decade lows because of waning demand from utilities seeking to curb pollution and amid the International Energy Agency’s declaration that the fuel’s golden age in China was over. ……………………………………….Full Article: Source

China’s ferrosilicon prices stay high while offers move down in Japan

Posted on 09 September 2016 by VRS  |  Email |Print

While Chinese ferrosilicon offers remained high from rising Chinese semi-coke prices, offers heard have moved lower in Japan on thin trade, sources said. The Chinese 75% Si ferrosilicon price assessment was unchanged week on week at $1,000-$1,040/mt FOB China Thursday.
Meanwhile, Platts assessed spot Japanese import price of 75%-Si ferrosilicon at $950-$990/mt CIF Japan Thursday, down from $950-$1,050/mt last week………………………………………..Full Article: Source

China’s steel volumes seen as risk to world economy

Posted on 08 September 2016 by VRS  |  Email |Print

World leaders who attended the summit meeting of the Group of 20 advanced and emerging economies in Hangzhou, China, shared the view that the world economy is facing serious risks stemming from the excessive production of steel.
In a joint statement issued on Monday, the G-20 leaders said they would establish a new forum for steel manufacturing nations to address the issue. However, if member nations fail to come up with a solution and manufacturers continue to suffer from their downturn, there are concerns that it may aggravate the situation, such as causing the streamlining of manufacturers on a global scale………………………………………..Full Article: Source

Zinc drops as investors take a break from year’s best commodity

Posted on 08 September 2016 by VRS  |  Email |Print

Zinc dropped the most in a week as some investors closed out bullish bets on this year’s best-performing major commodity. The metal fell as much as much as 1.3% in London after touching a 15-month high on Monday. Zinc has rallied 45% this year on expectations of a supply shortage after mine closures from Australia to Ireland.
The advance pushed it near a technical level, suggesting to some traders that prices may be poised to retreat. “Perhaps some investors are taking profits,” Casper Burgering, an analyst at ABN Amro Bank NV in Amsterdam, said……………………………………….Full Article: Source

Australian Iron Exports Climb to Record as China Prices Drop

Posted on 08 September 2016 by VRS  |  Email |Print

Iron ore shipments from the world’s largest bulk-export terminal in Australia swelled to a record, offering fresh evidence of strong supply and underpinning forecasts of lower prices through the year-end. Futures in China slumped to the lowest in more than two months.
Exports from Port Hedland totaled 42.9 million metric tons in August from 38.7 million in July and 39.2 million a year earlier, data from the Pilbara Ports Authority showed Wednesday. Cargoes to China were 35.4 million tons, also an all-time high, from 32.5 million in July and 33.9 million in August 2015………………………………………..Full Article: Source

Cobalt – Tightness looms for the new 100,000 tonne market

Posted on 08 September 2016 by VRS  |  Email |Print

Global demand for refined cobalt will exceed the 100 kt mark for the first time next year and could exceed 150 kt by 2025. The rapid growth in demand is attributed to the increasing popularity of Li-ion batteries in electric vehicles and a range of modern electronic devices (mobile phones, tablets, portable PCs, power tools).
CRU forecasts cobalt demand for these applications to grow by 8% per annum for the next five years. If mining and refining capacity growth fails to keep pace we could see a considerable deficit opening in the market before the end of the decade………………………………………..Full Article: Source

Gold miners favoring mine-site over grassroots exploration: SNL

Posted on 06 September 2016 by VRS  |  Email |Print

Major gold miners have significantly shifted their exploration focus over the past decade, favoring increased mine-site exploration at the expense of grassroots exploration, SNL Metals & Mining said Monday.
SNL’s recently released profiles of the world’s top 20 gold producers show that from 2006 to 2015, the share of the group’s total gold exploration budgets devoted to near-mine work rose from 44% to 54%, while the share allocated to greenfields programs decreased from 40% to 22%………………………………………..Full Article: Source

Terence Goodlace warns of platinum supply cliff

Posted on 06 September 2016 by VRS  |  Email |Print

Supply of platinum from SA, the world’s largest producer, would drop “off a cliff” in the next decade after years of underinvestment. There was little chance of reversing that trend any time soon, CEOs and industry players warned.
In recent weeks, leading CEOs of platinum companies have flagged concerns about supply from SA, which is by far the biggest source of the metal used to make autocatalyst devices in vehicle exhausts to scrub out noxious elements, as well as for jewellery………………………………………..Full Article: Source

Yes, the uranium market is bad, but remember gold’s turn?

Posted on 06 September 2016 by VRS  |  Email |Print

Investors considering uranium should take heart from gold’s turn after the yellow metals ressurection off of last year’s lows, says Dev Randhawa, Chairman and CEO of Fission Uranium.
“Right now people are scared to be in uranium, but that’s where they should be,” says Randhawa who spoke to MINING.com at the Sprott Natural Resource Symposium in July. Fission Uranium is an exploration company working on projects in the Athabasca Basin………………………………………..Full Article: Source

Iron ore prices dip as G20 agrees to work on cutting back steel glut

Posted on 06 September 2016 by VRS  |  Email |Print

The iron ore price has dipped as China agreed to work on reducing steel exports after the G20 meeting in Hangzhou. Iron ore lost 0.3 per cent to $US58.80 overnight, according to The Steel Index, from $US59 the previous day. The commodity has risen only twice in the past nine trading sessions.
Global leaders at the G20 summit reached an agreement acknowledging that overcapacity in the steel industry is a global issue, although some nations continue to blame China for the bulk of the problem………………………………………..Full Article: Source

London copper near 2-mth low; outlook sluggish

Posted on 05 September 2016 by VRS  |  Email |Print

London copper hovered near its weakest in two months on Monday as the dollar gained ground and as investors bet that more mine supply would drag on prices for the rest of the year. A long weekend in the United States was set to keep trading in check.
“We are cautious about the near-term price outlook for copper and aluminium … in view of the pending U.S. Fed rate hikes, slower-than-expected capacity reduction in aluminium in China and a near-term oversupply threat in the global copper market” Argonaut Securities said in report………………………………………..Full Article: Source

The trouble with rising zinc prices

Posted on 05 September 2016 by VRS  |  Email |Print

Higher output and the increase in zinc prices are a good combination but rising output may also test the resilience shown by zinc prices. Hindustan Zinc Ltd’s investors may have mixed feelings about the increase in zinc prices. Since July, zinc’s spot price on the London Metal Exchange are up by 10%; in contrast, copper is down by 5.8% and aluminium is down by 4.8%.
A repeat of the June quarter may be underway, when zinc prices rose by 12.8%, doing much better than the other two metals. So why should Hindustan Zinc’s investors not be happy?……………………………………….Full Article: Source

Iron ore price lifts despite bearish forecasts

Posted on 05 September 2016 by VRS  |  Email |Print

The iron ore price has bounced back from a string of recent declines, despite a fresh warning that the commodity’s current level is unsustainable. Iron ore rose 1 per cent to $US59 in the most recent session, from $US58.40 the previous day, according to The Steel Index.
The increase marked only the second rise for the steelmaking ingredient in the last eight trading sessions, as it eases back from the recent three-and-a-half month peak of $US61.80 that it reached last month………………………………………..Full Article: Source

Iron ore finished last week on its highs

Posted on 05 September 2016 by VRS  |  Email |Print

Iron ore prices rebounded modestly on Friday, recovering the ground lost in the previous two sessions. According to Metal Bulletin, the spot price for benchmark 62% fines rose by 0.9% to $59.39 a tonne, leaving it at the highest level seen since August 25.
Year to date it has gained 36.3%. Metal Bulletin note the gain — the largest since August 16 — corresponded with the visit of policymakers to key industrial centres in China to check on the status of planned capacity cuts across steel and coal operators………………………………………..Full Article: Source

Zinc surges to 15-month peak as Chinese factories revive

Posted on 02 September 2016 by VRS  |  Email |Print

The price of zinc surged to its highest in more than 15 months on Thursday, with other metals also rallying, after upbeat factory data from top metals consumer China and a weak dollar spurred buying.
Tin prices jumped to a 19-month peak as inventories slid and lead climbed to its strongest in more than 14 months, though aluminium dropped to a one-month low on oversupply concerns. Activity in China’s manufacturing sector unexpectedly expanded at its fastest pace in nearly two years in August as construction boomed, suggesting the economy is steadying in response to stronger government spending………………………………………..Full Article: Source

Iron ore is hovering just below $60 a tonne

Posted on 01 September 2016 by VRS  |  Email |Print

Iron ore markets finished mixed on Tuesday with spot prices for higher grade ore pushing higher while lower grade ore tumbled. According to Metal Bulletin, the price for benchmark 62% fines rose by 0.29% to $59.31 a tonne, taking it’s year to date gain to 36.1%.
At the other end of the spectrum, the price for 58% fines slid by another 1.44% to $46.47 a tonne. It’s now fallen 3.83% since Friday, trimming its 2016 gain to 20.63%. Activity levels picked up on Tuesday, noted Metal Bulletin………………………………………..Full Article: Source

Iron Ore Dubbed ‘Least Favorite’ by Clarksons as Miners Sink

Posted on 01 September 2016 by VRS  |  Email |Print

Iron ore faces renewed pressure and prices may sink back below $50 a metric ton before year-end as rising supply offsets an improvement in Chinese demand, according to Clarksons Platou Securities Inc., which dubbed the raw material its least favorite commodity.
There’s been a pickup in exports this month after a weak performance in July, said Jeremy Sussman, an analyst at Clarksons Platou in New York. Even as steel output in the largest supplier is set to remain resilient this year, iron ore may sink into the high-$40s, he said in e-mailed comments………………………………………..Full Article: Source

Lower production in Chile pushes copper higher

Posted on 01 September 2016 by VRS  |  Email |Print

Copper edged higher in London on Wednesday, buoyed by news of lower supply in Chile and as funds covered short positions after more than a month of declines in the price of the metal.
Most analysts, though, believe that Wednesday’s gains will prove short-lived, as investors refocus on market fundamentals, including high supply, a strong dollar and the decelerating Chinese economy. The London Metal Exchange’s three-month copper contract was up 0.43% at $4,629 a metric ton in mid-morning European trade………………………………………..Full Article: Source

Base metals limp into end of August, more copper moves into Asia

Posted on 01 September 2016 by VRS  |  Email |Print

Base metals were consolidating in Wednesday’s LME premarket, which is typically the case ahead of keenly awaited data from China and the US. China will release its manufacturing PMI data on Thursday while blockbuster US non-farm payrolls are scheduled for Friday.
Market participants are increasingly convinced the US Fed will raise interest rates in September, which should push the dollar higher. A stronger greenback would weigh on commodities denominated in the US currency. Data from the EU disappointed……………………………………….Full Article: Source

Metals-Miners Run Out of Steam as Citigroup Cuts Outlook

Posted on 01 September 2016 by VRS  |  Email |Print

Shares of gold and base-metals producers, among the best-performing industries on the S&P 500 Index this year, are showing signs of fatigue. A stronger dollar and concerns over the prospect of higher U.S. interest rates are helping send a gauge of gold-mining companies tracked by Bloomberg Intelligence to the biggest monthly decline in more than a year, while a base-metals index slides toward its first such loss since May.
Citigroup Inc. cut its six-month stance on the industry to bearish, reversing an upgrade of the sector following the Brexit vote………………………………………..Full Article: Source

Base metals in “wait-and-see” mode ahead of China’s PMIs

Posted on 31 August 2016 by VRS  |  Email |Print

Base metals were under selling pressure last week with the exception of zinc and tin, which managed to set fresh year-to-date highs. Copper fell the most, down nearly four percent week-on-week, amid tangible signs of fundamental weakness combined with an unfriendly macro.
Precious metals also were weaker last week, with gold dropping the most, down 1.5 percent week-on-week, largely attributable to hawkish statements from Fed members and encouraging US macro data releases, prompting the market to reprice upwardly the path of Fed funds rates……………………………………….Full Article: Source

Manganese ore CIF China price halts uptrend after silicomanganese slides

Posted on 30 August 2016 by VRS  |  Email |Print

CIF China manganese ore prices for the first time in weeks halted an uptrend, after the rally in domestic silicomanganese ended and prices took a downturn. The S&P Global Platts weekly assessment for 44% ores was stable week on week last Friday, at $4.4/dmtu CIF Tianjin, while 37% manganese ores was also unchanged over the same period at $3.7/dmtu CIF Tianjin.
Trading activity was thin last week, according to market participants. “It’s quiet, most people are sold out for the month of September by now, and it’s too early for October prices,” a producer said, adding that offers for October would likely be announced in the first week of September………………………………………..Full Article: Source

Hedge funds bail on copper as Goldman sees ‘supply storm’

Posted on 30 August 2016 by VRS  |  Email |Print

Copper is stuck in a rut. While other metals have shined in 2016, copper has struggled to gain traction and last week erased its gains for the year. Demand in China, the world’s biggest user, is slowing just as Goldman Sachs Group predicts a “supply storm” will hit the market and drag prices even lower.
Stockpiles of the metal are ballooning, further pointing to a demand slowdown. Inventories monitored by the London Metal Exchange have jumped to a ten-month high. Supplies are likely moving out of China and into warehouses tracked by the LME, Commerzbank said in a report August 24. ……………………………………….Full Article: Source

Zinc lifts to 15-month high

Posted on 29 August 2016 by VRS  |  Email |Print

Zinc has hit its highest in 15 months as bearish speculators scrambled to close out positions, though some investors doubt that the hefty gains are entirely justified. Volumes were huge, with zinc turnover on the London Metal Exchange (LME) of more than 17,000 lots, more than double the activity in aluminium, one of the most active contracts.
“Shorts had been building up recently because people were expecting a setback lower, but when stops were triggered, that forced the shorts to cover,” said Gianclaudio Torlizzi, Partner at the T-Commodity consultancy in Milan………………………………………..Full Article: Source

Hedge Funds Bail on Copper as Goldman Predicts ‘Supply Storm’

Posted on 29 August 2016 by VRS  |  Email |Print

Copper is stuck in a rut. While other metals have shined in 2016, copper has struggled to gain traction and last week erased its gains for the year. Demand in China, the world’s biggest user, is slowing just as Goldman Sachs Group Inc. predicts a “supply storm” will hit the market and drag prices even lower.
Stockpiles of the metal are ballooning, further pointing to a demand slowdown. Inventories monitored by the London Metal Exchange have jumped to a 10-month high. Supplies are likely moving out of China and into warehouses tracked by the LME, Commerzbank AG said in a report Aug. 24. The hoard underscores why money managers are betting on more price declines………………………………………..Full Article: Source

Gold Believers From Soros to UBS Lose Faith in Mining-Share Gain

Posted on 26 August 2016 by VRS  |  Email |Print

The red-hot market for gold-mining companies has made the shares too expensive for some investors, even though they remain bullish on the outlook for bullion. Earlier this year, fund managers including George Soros had gobbled up shares of producers such as Barrick Gold Corp. and Newmont Mining Corp. in a bet that the surprise rally in the price of the metal would spark a surge in profit.
After a five-year slump marked by mine closures and losses, the companies were cheap. But now, many are worth twice what they were in 2015 — after rising at almost five times the rate of the commodity — so funds have begun unloading the equities while retaining or expanding holdings in physical gold………………………………………..Full Article: Source

Nickel hits six-week low as Philippines concerns ebb

Posted on 26 August 2016 by VRS  |  Email |Print

Nickel slumped to the lowest in over six weeks on Thursday after worries eased that an environmental crackdown on mines in the Philippines would create shortages of metal. Nickel had surged 32 percent from the beginning of June until it hit a one-year peak in early August as authorities in the Philippines launched a campaign to close mining operations that failed to meet environmental regulations.
“It did feel that the market got ahead of itself looking further ahead than it perhaps needed to,” said Caroline Bain, senior commodities economist at Capital Economics………………………………………..Full Article: Source

Copper Prices Fall to a 2-Month Low, Demand Still Stagnant

Posted on 26 August 2016 by VRS  |  Email |Print

Copper prices fell to their lowest level in two months on the London Metal Exchange Wednesday. Copper started the year bullish, but ever since prices have struggled near $5,000 per metric ton as investors seem unwilling to chase prices higher.
Weaker Chinese imports over the past few months and the bearish calls of some major banks have contributed to the recent price fall. Unlike other base metals, sentiment on copper is still sort of bearish, making this metal the worst performer among its peers this year………………………………………..Full Article: Source

Should you buy gold or gold miners?

Posted on 25 August 2016 by VRS  |  Email |Print

Gold has been all the rage in 2016. Amid rising inflation and growing global economic uncertainty, the price of the precious metal has risen over 25% since the start of the year. This rally would suggest that gold’s multi-year bear market has finally come to an end, and according to many analysts, the price of gold has yet to peak.
As a safe haven asset, gold is negatively correlated to price movements in the stock markets. This means investing in gold can help you diversify your investment portfolio so that you’re better protected when there’s a market crash. There’s a lot of uncertainty around, and gold can be a useful way to preserve capital during periods of market volatility………………………………………..Full Article: Source

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