Sun, May 24, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Metals and Minerals more

Aluminum financing to continue in non-registered LME warehouses: Macquarie

Posted on 22 May 2015 by VRS  |  Email |Print

The financing of aluminum will continue in non-registered London Metal Exchange warehouses, Colin Hamilton, head of global commodity research at Australian investment bank Macquarie said Thursday. “Essentially given where the contango is, it makes more sense, if you’re sitting with material in those off market warehouses, especially with the contango we’ve seen in recent weeks, we’ll certainly see financing coming back,” Hamilton said at presentation at the bank’s offices in London to launch its commodities outlook.
Basis the LME official prices, the cash-threes spread was in a $40/mt contango (when the spot price is lower than the forward price) May 21, having been in a deep and prolonged backwardation (when the forward price is lower than the spot price) for most of the first quarter………………………………………..Full Article: Source

Turkish ferrous scrap import prices slide on lower indications

Posted on 22 May 2015 by VRS  |  Email |Print

Platts’ daily assessment of Turkish ferrous premium heavy melting scrap I/II (80:20) imports slipped $2/mt to $286.50/mt CFR Thursday on lower indications and a cheaper deal. A US East Coast-origin cargo was heard sold Wednesday comprising 25,000 mt of HMS I/II (80:20) at $285/mt CFR and 15,000 mt of shred at $290/mt CFR.
The seller had the option to load some of the material in Puerto Rico, which sell-side sources said lowered the value of the cargo somewhat. Platts partially factored the cargo into its assessment, and normalized it to $287-$288/mt CFR, taking into account the Puerto Rican-origin scrap — the methodology specifies 80:20 of premium USEC origin or equivalent………………………………………..Full Article: Source

Iron ore price sheds 2.4 per cent as Vale shakes up supply

Posted on 21 May 2015 by VRS  |  Email |Print

Iron ore delivered to the Port of Qingdao has shed another 2.4 per cent as the world surveys the repercussions of Vale’s $US4 billion deal with China to pump up supply. The price of the commodity sipped $US1.41 to $US57.12 on Wednesday as it continued to give up recent gains.
The week has brought a flurry of bad news for those hoping for a sustained iron ore price recovery. On Monday, China steel prices slid to their lowest in 12 years, while on Wednesday, China and Vale unveiled a deal that will boost supply of iron ore into an already saturated market………………………………………..Full Article: Source

Société Genéralé: Nickel Is the Best Commodity During El Niño

Posted on 20 May 2015 by VRS  |  Email |Print

Commodity markets are bracing themselves for the El Niño phenomenon, a cyclical meteorological occurrence associated with above average water temperatures in the central and eastern Pacific region, like Southeast Asia and Australia.
El Niño last emerged from 2009 to 2010, causing droughts and damaging crops in Australia and Southeast Asia, thereby wreaking havoc on agricultural commodity prices. “Potential shocks to commodities markets tend to shape the risk profiles of market participants,” Mark Keenan head of commodity research for Asia at Société Genéralé, said………………………………………..Full Article: Source

Iron ore price inquiry ‘good and normal’ says Andrew Forrest

Posted on 20 May 2015 by VRS  |  Email |Print

As most Australians know, the price of iron ore has fallen massively, losing more than 60 per cent in the past year and a half and blasting a hole in the nation’s finances. That’s because demand from China has fallen. But the market is still heavy with supply.
Andrew Forrest, the chairman of Fortescue Metals Group, is accusing the big miners, BHP and Rio Tinto, of taking advantage of the situation and flooding the market further to drive the price down so smaller competitors like him collapse. He’s calling for a parliamentary inquiry into the iron ore price, something the Government last week appeared to favour but from which it’s since stepped back………………………………………..Full Article: Source

Iron ore price below $US60 a tonne as declines accelerate

Posted on 20 May 2015 by VRS  |  Email |Print

Iron ore has recorded its sharpest fall in weeks, as Canberra continues to mull whether or not to hold an inquiry into the activities of BHP Billiton and Rio Tinto. The price of iron ore delivered to the Port of Qingdao fell $US2.32, or 3.5 per cent, to $US58.53 per tonne on Monday.
The fall came as China steel prices slid to their lowest in 12 years as the iron ore hungry nation’s peak construction season began to ebb. Since May 11, when iron ore hit $US62.88 per tonne, the commodity has been gradually giving up gains made after BHP in April said it would slow production growth………………………………………..Full Article: Source

Chinese metals hedge funds aim to lure Western investors

Posted on 20 May 2015 by VRS  |  Email |Print

Chinese hedge funds, blamed for several routs in the metal markets in the past 18 months, are developing relations with Western investors as they stretch out beyond their home turf, an executive at London Metal Exchange broker Sucden said.
Chinese metals funds, including Shanghai Chaos Investment Co, were believed to be behind an 8 percent plunge in the copper price over three days in March 2014 and were active as the metal crashed to a six-year low this year………………………………………..Full Article: Source

When will platinum react to its fundamentals?

Posted on 19 May 2015 by VRS  |  Email |Print

Platinum, trading just shy of six-year lows and out of favour with investors, continues to defy logic given a fundamental supply deficit. Many delegates at this week’s London Platinum and Palladium Week here will therefore hope there are better times on the horizon.
One hot topic is likely to be when the shortfall might finally be reflected in the price or if above-ground stocks will continue to cap any gains. And for producers, labour disputes and inadequate energy supplies in a market already dealing with rising costs and falling demand will again be at the forefront. ……………………………………….Full Article: Source

LME nickel inventories at ‘turning point’: Norilsk Nickel

Posted on 19 May 2015 by VRS  |  Email |Print

Russian metal producer Norilsk Nickel said Monday it expects high LME nickel inventories to be at a ‘turning point’ with a likely decrease in the near term. “We believe the stocks are going to come down and that this is going to drive the prices,” Norilsk Nickel First Deputy CEO Sergey Dyachenko said in an interview with Platts Monday.
LME nickel stocks have grown significantly over the last year, hitting record high levels above 435,000 mt. According to exchange data out Monday, global LME warehouse nickel inventories currently stand at 443,622 mt. Norilsk Nickel said that around 40% of the increase was a result of the relocation of metal from Chinese bonded warehouses………………………………………..Full Article: Source

Aluminum Leaves Commodities Party Early

Posted on 18 May 2015 by VRS  |  Email |Print

Aluminum is leaving the commodities party early. Unloved through much of the commodities boom in the first decade of the 2000s, mainly because of the high supply coming from China, aluminum had been performing strongly this year, along with other metals such as copper, zinc and lead.
But since hitting a five-month high on May 5 of $1,978 a metric ton on the London Metal Exchange, prices for the benchmark three-month aluminum futures have slid 6.3% through Friday, while other commodities have extended their gains. LME three-month aluminum futures ended Friday at $1,853 a ton………………………………………..Full Article: Source

Iron ore pricing inquiry to go ahead, but won’t ‘interfere with free market’, says Abbott

Posted on 18 May 2015 by VRS  |  Email |Print

Dramatic drop in iron ore price leads to accusations that BHP Billiton and Rio Tinto are flooding the market and trying to push out smaller producers. Tony Abbott has signalled his intention to press ahead with a parliamentary inquiry into the price of iron ore but has stressed that his government isn’t one “that interferes with free markets”.
Mining giants BHP Billiton and Rio Tinto have been accused of flooding the market with iron ore, thus lowering its price, in order to hurt smaller rivals. Iron ore is Australia’s largest commodity export but its price per tonne has dropped dramatically from $120 just two years ago. The government’s latest budget bases its forecasts of iron ore at $48 a tonne………………………………………..Full Article: Source

Zinc’s Rally Is Not Just Speculation

Posted on 15 May 2015 by VRS  |  Email |Print

The prices of some commodities, such as oil and iron-ore, may remain depressed in the near term, but zinc appears poised for growth. The price of the base metal, which is used mainly to galvanize steel and mixed with copper to make brass, has climbed by 20% since mid-March to last week’s peak of $2,400 per tonne.
Overall, zinc has climbed 7% this year at the London Metals Exchange, and could continue going higher. The recent increase in prices is due in part to the growth in speculative interest. As per LME’s most recent Commitments of Traders Report dated May 8, traders held 98,417 lots of net long positions in zinc - that’s equivalent to more than one-fifth of the total number of futures contract. No other base metal at the LME has higher long positions…………………………………..Full Article: Source

Nickel falls as inventories rise, Shanghai futures slide

Posted on 15 May 2015 by VRS  |  Email |Print

Nickel fell on Thursday on concern about excess supply after a rise in inventories increased, with further pressure coming from a slide in Shanghai futures. Most other metals also declined, but losses were limited by a weaker dollar and the possibility that China could step up stimulus measures to boost economic growth.
Three-month nickel on the London Metal Exchange closed down 1.9 percent at $13,780 a tonne. LME nickel inventories MNISTX-TOTAL rose 2,310 tonnes to 443,352, close to a record high set at the end of last month, while lead stocks also increased MPBSTX-TOTAL, weighing on that metal’s price…………………………………..Full Article: Source

Aluminium: The story of a base metals contango on the LME

Posted on 14 May 2015 by VRS  |  Email |Print

Aluminium premiums have been dropping sharply this year but what enabled the financing deals that locked up metal in the first place? Over the next few days, Metal Bulletin will be running a series of articles on the history of the LME aluminium contract and particularly the spread between nearby prices and those further out.
Aluminium premiums have sunk this year. Since the start of 2015, the cost of obtaining nearby delivery has seen its sharpest fall since the financial crisis, and many are now forecasting further falls throughout the rest of the year as Chinese exports and former warehouse stocks saturate the market…………………………………….Full Article: Source

Precious metals looking up

Posted on 13 May 2015 by VRS  |  Email |Print

Imports of gold, silver, and platinum jewelry to the United States continued to grow in the first quarter of the year, rising 14.9%, 6.9% and 6.7%, respectively, on a volume basis from year ago levels. In value terms, precious metals jewelry imports were up 6.6% in the three-month period from year ago levels.
This increase is in contrast to the 5% decline in jewelry store sales in the country in the first two months of the year, according to U.S. Census Bureau data. Lower precious metals prices and a stronger U.S. dollar continued to encourage stock building among wholesalers of foreign-made jewelry. While domestic retail sales appear to have disappointed to the downside in the first few months of the year, likely due to adverse weather, positive expectations for better demand seems to remain intact………………………………………..Full Article: Source

Investors return to zinc but are they chasing shadows?

Posted on 13 May 2015 by VRS  |  Email |Print

Investors are stampeding back into the London zinc market. Their return has triggered a super-charged rally in prices. On the London Metal Exchange (LME), three-month metal has soared from under $2,000 per tonne in mid-March to last week’s highs above $2,400 per tonne.
Spreads have tightened as shorts scramble to cover positions in the face of a dominant long position controlling somewhere between 40 and 50 percent of non-cancelled LME stocks. LME stocks, meanwhile, continue to fall at a steady pace. They are now down by around 35 percent, or 239,000 tonnes, since the start of the year………………………………………..Full Article: Source

Japanese used aluminum can prices track weak ingot import premiums lower

Posted on 13 May 2015 by VRS  |  Email |Print

A fall in Japanese aluminum ingot import premiums has dampened domestic used beverage can prices, while other aluminum scrap prices have remained stable over the past month, local scrap brokers said Tuesday, May 12. The sales price of used beverage cans to secondary aluminum alloy smelters was around Yen 160-Yen 170 ($1.33-$1.41)/kg on a delivered basis this week, said scrap dealers in Nagoya and Tokyo.
In Nagoya, deals were done at around Yen 160/kg delivered, down Yen 5/kg from April and down Yen 20/kg from earlier in the year, a local dealer said. “The final users of used beverage cans are aluminum rolling mills making cansheets, and the rolling mills usually cite the import premiums [when negotiating feedstock prices],” the dealer said………………………………………..Full Article: Source

Copper declines after China’s stimulus support

Posted on 12 May 2015 by VRS  |  Email |Print

Copper slid a second day, shrugging off China’s bid to boost growth with a third interest rate cut in six months in the world’s largest consumer of the metal. Copper entered a bull market last week and rose to the highest since December amid speculation China’s policy makers would add stimulus and on signs that supply is tightening.
While prices slipped 0.6 percent in the last two days, the metal has rallied 18 percent from a five-year low in January. “With the slowing data, the market is just going to stand back,” said David Lennox, a resource analyst at Fat Prophets in Sydney. “The import numbers were quite weak. Any rate cut now won’t start to impact demand until beyond next month.”……………………………………….Full Article: Source

Zinc to lead improvement in base metals prices

Posted on 12 May 2015 by VRS  |  Email |Print

After indications of consolidations during the previous month, base metals prices improved during the previous month. Lead prices outperformed others with a gain of 17.5% to US$2125/ tn followed by zinc, which rose by 13.5% to US$2356/ tn.
Aluminium rose 6.7% to US$1910/ tn and copper prices gained by 3.2% to US$6245/ tn Sharp rise in lead prices and zinc prices along with fall in USD index can also be attributed to the sharp fall the inventory levels. Lead inventory fell by 25%, while zinc inventory fell by 8% and aluminium inventory fell 3%. Copper inventory rose by 2% MoM……………………………………….Full Article: Source

Hedge funds lift bullish copper bets to August high

Posted on 12 May 2015 by VRS  |  Email |Print

Hedge funds and other speculators raised their net long position in copper to the highest level since August, the latest data show, as China cut interest rates for the third time in six months. Net long positions rose by 17,731 lots to 31,654 lots, the latest data from the Commodity Futures Trading Commission show, writes Henry Sanderson, commodities reporter.
Copper for July delivery, the most actively traded contract, slipped 0.48 per cent Monday on the New York Mercantile Exchange, despite the news of further monetary easing from China. It has risen 3.8 per cent this month………………………………………..Full Article: Source

Copper prices soft but oulook positive

Posted on 11 May 2015 by VRS  |  Email |Print

Copper was softer on Friday, but signs of robust demand from top consumer China helped support prices, while the tin market focused on expectations of tighter supplies due to Indonesian export cuts. Three-month copper on the London Metal Exchange was untraded at the close, but bid at $US6,385 a tonne from Thursday’s close at $US6,400.
China’s copper imports fell 4.4 per cent year-on-year in April. But arrivals of anode, refined copper, copper alloys and semi-finished copper products stood at 430,000 tonnes in April, the highest monthly imports since April 2014 and up 4.9 per cent from 410,000 tonnes in March………………………………………..Full Article: Source

Rally in base metal prices might not be sustainable

Posted on 11 May 2015 by VRS  |  Email |Print

Base metal prices have rallied very strongly lately but are the gains sustainable? Metal Bulletin Research (MBR) has its doubts. The move started with lead and zinc, and these two are up 28 per cent and 20 per cent, respectively, from mid-March lows. But the rest have joined since late April, with copper and aluminium reaching fresh 2015 highs in recent days.
On the whole, currency markets, more so than the metal markets’ own fundamentals, have been the main driving force. Better economic data out of Europe, combined with softer data from the US, has seen the dollar retreat to its weakest level in two months against the euro and other major currencies. Easing concerns about euro zone deflation and a more dovish Federal Reserve have been factors, too………………………………………..Full Article: Source

Nickel bulls’ focus on LME stocks a risky strategy

Posted on 11 May 2015 by VRS  |  Email |Print

For the nickel market, it’s a case of once bitten, twice shy. Analysts are finding ever more evidence that the Indonesian ban on nickel ore exports introduced at the start of 2014 is finally starting to impact China’s massive nickel pig iron (NPI) sector.
Chinese stocks of nickel ore are falling. So too, everyone agrees, is actual NPI production, although the scale and pace of decline is difficult to pinpoint in what is a notoriously opaque part of the nickel supply chain. China’s imports of nickel are trending higher, particularly those of ferronickel, the most obvious substitute for NPI. Yet the market remains decidedly unenthused by these developments………………………………………..Full Article: Source

Tin may make a smart comeback

Posted on 11 May 2015 by VRS  |  Email |Print

Metal prices are in a meltdown globally and tin is no exception. Tin has been the worst performer among metals, falling 20 per cent so far this year. The metal now trades near a seven-year low of about $16,000 a tonne — lower than its production cost.
After touching a low of under $16,000 due to increased export from Myanmar to China, prices stabilised, thanks to the drastic output cuts announced recently by Indonesia, a major tin producer. What’s more, after a bleak performance in the last few years, analysts expect a turnaround aided by reduction in supply, and robust demand from the electronics industry in the coming years………………………………………..Full Article: Source

China magnesium: Spot export trades remain lackluster, offers steady

Posted on 08 May 2015 by VRS  |  Email |Print

Spot export trades for Chinese magnesium ingot on a FOB basis remained lackluster on the dearth of overseas buying interest, while offers continued to hold steady, industry sources said Thursday. Platts kept its weekly magnesium ingot (minimum 99.8%) price assessment steady at $2,180-$2,230/mt FOB China Thursday, unchanged from the previous weeks as bids and offers were heard within the range.
The Chinese magnesium die-cast alloy price assessment was also maintained at $2,460-2,530/mt FOB China, unchanged from last week. “I am not hearing any movement in both the domestic and export offers after the implementation of the minimum domestic offer of Yuan 13,000/mt ($2,095/mt) in Shaanxi,” said a North China-based analyst, who heard steady offers at Yuan 13,000-Yuan 13,300/mt ex-works and $2,200-$2,250/mt FOB China………………………………………..Full Article: Source

Iron Ore Trade Boom Shows China Bid for Commodities Clout

Posted on 08 May 2015 by VRS  |  Email |Print

China’s bid for greater influence over commodity prices is intensifying as record trade in its iron ore futures dwarfs its nearest rivals. Derivatives volumes on the Dalian Commodity Exchange more than doubled to 18.6 million contracts last month, or 1.86 billion metric tons, bourse data show.
Trading in contracts on the Singapore Exchange Ltd. totaled 78.2 million tons. UBS Group AG forecasts global demand at 2.04 billion tons in 2015. The world’s biggest consumer of metals, energy and grains is seeking to tighten its grip over prices with its own contracts for raw materials from tin to coal………………………………………..Full Article: Source

Copper slips from near 2015 peaks

Posted on 07 May 2015 by VRS  |  Email |Print

Copper and most other industrial metals retreated on Wednesday from recent peaks as copper demand in China falters. Some investors also regard the base metals sector’s recent strong gains as outpacing supply and demand fundamentals.
The index of six base metals traded on the London Metal Exchange had rallied 13 per cent from lows in mid-March until Tuesday, when zinc hit its highest price in eight months and copper its strongest since mid-December. “I do think in general they’ve moved a bit too far too soon. The sector is overdue a correction,” said Stephen Briggs, metals strategist at BNP Paribas in London………………………………………..Full Article: Source

Iron Ore Trade Boom Shows China Bid for Commodities Clout

Posted on 07 May 2015 by VRS  |  Email |Print

China’s bid for greater influence over commodity prices is intensifying as record trade in its iron ore futures dwarfs its nearest rivals. Derivatives volumes on the Dalian Commodity Exchange more than doubled to 18.6 million contracts last month, or 1.86 billion metric tons, bourse data show. Trading in contracts on the Singapore Exchange Ltd. totaled 78.2 million tons. UBS Group AG forecasts global demand at 2.04 billion tons in 2015.
The world’s biggest consumer of metals, energy and grains is seeking to tighten its grip over prices with its own contracts for raw materials from tin to coal. While bourses from London to New York maintain a hold on global commodity benchmarks, iron ore traders look to the Dalian market for direction, according to Clarkson Plc, a broker………………………………………..Full Article: Source

Silver Market Update: Could A Reversal Be On The Way?

Posted on 06 May 2015 by VRS  |  Email |Print

Silver’s long bear market, from its 2011 highs, is believed to be “nested” within a larger bull market, along with gold’s, as discussed in more detail in my parallel Gold Market update, to which the reader is referred. This is an echo of what happened in the 70s, when both gold and silver went into a heavy correction in 1975 and 1976 that was taken at the time to be a new bear market, but ended up leading into a massive parabolic ramp that took silver to dizzying heights as the Hunt brothers attempted to corner the silver market.
The second major upleg of this bull market should take silver to levels that dwarf those of the 70s peak, and this is not some deluded fantasy but based on a sound assessment of the trends in currencies and debt now extant………………………………………..Full Article: Source

Copper bulls take charge on supply, China bets

Posted on 06 May 2015 by VRS  |  Email |Print

Copper’s longest rally in almost a decade pushed the metal into a bull market on signs that supplies are tightening just as speculation mounts that demand from China will rebound. Glencore, the world’s third-biggest copper-mining company, said output of the metal slid 9 per cent last quarter partly as ore grades fell.
The Baar, Switzerland-based company’s results add to supply concerns after a disruption in February from an electrical failure at a site owned by BHP Billiton. Almost a 10th of global output is at risk of being lost due to labor disruptions this year, Barclays estimates………………………………………..Full Article: Source

Zinc and copper rally on the LME

Posted on 06 May 2015 by VRS  |  Email |Print

Zinc hit its highest price in eight months on Tuesday and copper its loftiest since mid-December thanks to a combination of concern about supply shortfalls and optimism over the global economy. All the metals on the London Metal Exchange (LME) attracted buying, which also pushed nickel to a six-week high, as the market reopened following a British public holiday on Monday.
‘Commodities are bouncing back up, led by oil and iron ore. Base metals seem to be following the herd,’ said Richard Fu, director of Asian commodities trading for Societe Generale Newedge in London………………………………………..Full Article: Source

Base metal miners climb back

Posted on 06 May 2015 by VRS  |  Email |Print

Damage undone: base metal equities largely back to where they started the year before copper’s rout. Early this year copper prices dropped hard and fast. They went from about $3/lb to, briefly, under $2.50/lb in late January. Asian traders took a sudden bearish view of copper on the back of routs in oil and iron ore and drove the price down.
With the crashing copper price so went the miners, no surprise here. Mining equities with key copper operations tumbled heavily. The likes of Lundin Mining and Hudbay lost a quarter or so of their share price over the course of a few days back in mid-January. As noted back then, the copper rout seemed overdone. In contrast to iron ore, copper did not (and does not) suffer the same bearish outlook of a pervasive and sizeable long-term oversupply………………………………………..Full Article: Source

Global iron ore prices recover in April 2015; reverse price fall trend of past months

Posted on 06 May 2015 by VRS  |  Email |Print

Global iron ore prices staged a recovery last month reversing a trend that witnessed a sharp fall in past months. Prime grade ore with iron content of 62% (Fe 62% grade) rose nearly 10% to $56.2 per tonne, in what markets term a relief rally on a month on month basis in April. Ore with Fe content of 58% gained 2.1%. However, domestic iron ore prices fell due to higher availability. This is expected to add stability to steel prices according to analysts.
Ore prices had shrunk to an almost ten year low in beginning of April 2015. The upturn, close to the biggest gain in prices in nearly two years was led by Australian giant BHP Billiton announcing a slower pace of expansion. Last week, Brazilian mining major Vale announced production cuts to contain price fall in iron ore………………………………………..Full Article: Source

4 Industrial Metal ETFs Leading the Space Rally

Posted on 06 May 2015 by VRS  |  Email |Print

Metal ETFs persistently gave a weak performance for much of 2014 and the initial phase of 2015. The combination of a stronger greenback, a slumping China, the oil price rout and the adverse demand-supply imbalance have put a hold over several industrial metals in recent times.
However, since the last one month, a huge reversal in the space is being noticed, as many metals in the segment have started to see bumper trading. In fact, the metal space has seen Pure Beta Lead ETN ( LEDD ) returning as high as 21% in the last four-week period. A dovish Fed which is in no hurry to hike key rates in the U.S. and the resultant moderation in the greenback lent a hand in pushing the space higher………………………………………..Full Article: Source

All eyes are on iron-ore rally

Posted on 05 May 2015 by VRS  |  Email |Print

By last month iron-ore prices stood at just a third of their 2011 highs, according to the World Bank’s latest quarterly Commodity Markets Outlook, which was released last week. The iron-ore market has been savaged as new, low-cost supplies have come online — mainly from Australia but also from Brazil — while Chinese demand growth is reducing as China’s economy slows. The steel industry consumes almost all of the world’s iron-ore output and China now produces half of its steel.
Not surprisingly, then, the market hangs on every twist in the Chinese economic saga — which is why speculation in recent weeks that China’s authorities might take extra steps to stimulate the economy has helped to cause a sharp bounce in the iron-ore price globally, and an even sharper jump domestically in the share price of SA’s largest iron-ore producer, Kumba Iron Ore………………………………………..Full Article: Source

Outside money start to pour into mining M&A

Posted on 05 May 2015 by VRS  |  Email |Print

Mick Davis hasn’t spent a cent of his $6bn, but private money and non-mining players’ share of M&A has already doubled in less than three years. In 2014 the number of mergers and acquisitions in the mining and metals industry doubled from the year before according to data from research company SNL Metals & Mining.
It was far from a bumper year though. At $21 billion deal values were less than half 2012’s tally according to the authors of the report Nick Wright and Mark Ferguson. It also pales against the heady pre-financial crisis days when mining M&A came within shouting distance of the $100 billion mark………………………………………..Full Article: Source

Goldman Sachs May Sell Coal Mines –Energy Journal

Posted on 05 May 2015 by VRS  |  Email |Print

Goldman Sachs Group Inc. is in talks to sell its Colombia coal mines at a loss, according to people familiar with the negotiations, Ianthe Jeanne Dugan reports. Goldman faced protests, falling coal prices, an environmental law and the Federal Reserve considering limits on the ways commercial banks can produce, store and sell raw materials, as it struggled to make the investment pay off.
A deal in the wake of Goldman’s sales of power plants and an aluminum-storage business would mark the end of the bank’s rough experience as a producer of raw materials. But it plans to continue trading raw materials and related financial instruments and making a market in commodities for its clients. Its commodities operations represented about $1.5 billion in revenue in 2013, down from about $3.4 billion in 2009………………………………………..Full Article: Source

Gold equities may be better bet than physical metal

Posted on 04 May 2015 by VRS  |  Email |Print

While the price of gold has meandered in a narrow range this year, gold equities have improved somewhat and an analysis of relative performance suggests they may have further to rally. Spot gold ended Thursday’s trade at $1,183.85 an ounce, largely unchanged from $1,183.55 at the end of 2014, as the precious metal battles the competing influences of a firmer dollar and concerns over a Greek exit from the eurozone.
However, major gold miners have shown some improvement, with the S&P TSX Global Gold Index gaining 14% so far this year. The Toronto Stock Exchange-based index groups together the world’s top gold producers, including No 1 Barrick Gold Corp, which is up 20.5% this year in US dollar terms, and No.2 Newmont Mining Corp, which has gained 40%………………………………………..Full Article: Source

Silver miners moving up the endangered list

Posted on 29 April 2015 by VRS  |  Email |Print

Pure-play silver miners, a niche investment market popular with retail investors, are moving up the endangered list. Buffeted by a 68 percent plunge in the price of silver since 2011, miners who traditionally made most of their money from silver are increasingly diversifying into gold, buying mines that have been put up for sale and looking to acquire more.
In addition to spurring deals in the precious metals space, the trend is reducing investment avenues for those wanting to take a bet on a commodity that often outperforms gold when bullion is rising. ……………………………………….Full Article: Source

Good news for platinum industry

Posted on 29 April 2015 by VRS  |  Email |Print

New commercial vehicle sales in the 28-member European Union bode well for platinum producers in South Africa. Sales figures for March released in Brussels by the European Automobile Manufacturers Association showed a 20.7% increase on last year.
Even though the region produces less than a quarter of the world’s new vehicles, European demand accounts for just over a third of global platinum demand for use in autocatalysts. The March 2015 year-on-year sales growth was the highest since December 2013, following gains of 8.3% y/y in February and 7.6% y/y in January………………………………………..Full Article: Source

Where to next for the iron ore price?

Posted on 29 April 2015 by VRS  |  Email |Print

Iron ore rose to its highest level since March last night at $US59.09, and is now up 25 per cent for the month. The rise, which follows BHP Billiton’s decision last week to slow the pace of its $US2 billion expansion plan in the Pilbara, comes after the iron ore price suffered its largest quarterly loss since 2009 in the three months through March and fell to a decade-low of $US47.08 a tonne earlier this month. Steel demand in China was down 5 per cent year-on-year during the March quarter.
The biggest question facing the industry is whether BHP’s slowdown will be matched by Rio, Gina Rinehart’s Roy Hill project or Vale, which is halfway through a $US19 billion expansion in Northern Brazil………………………………………..Full Article: Source

Iron ore rally: Mere dead cat bounce?

Posted on 29 April 2015 by VRS  |  Email |Print

A breath-taking rally in iron ore prices in recent weeks has put the sector back in bull market territory, but strategists warn that the upside may be short-lived. The beleaguered commodity has recovered 25 percent since hitting a ten-year low of $46.70 per metric ton earlier this month; a 20 percent gain from recent lows is typically considered in bull market territory.
Spot prices traded just below $60 a ton on Tuesday, extending a two-and-a-half week run and pushed Australia’s benchmark stock index to seven-year highs on Monday………………………………………..Full Article: Source

Should You Applaud Recent Surge in Metal ETFs?

Posted on 29 April 2015 by VRS  |  Email |Print

The commodity markets saw a choppy 2014, with the metals and mining ETF space being one of the most hurt spaces. A rising greenback amid QE-wrap in the U.S., concerns of further Fed tightening, global growth worries, deflationary fears and last but not the least the Chinese economic slowdown caused metal ETFs to see their worst days in several years.
However, to many investors’ surprise, metal ETFs received a fresh lease of life and logged refreshing returns in the last five days (as of April 27, 2015) along with several other commodity ETFs. In fact, metal and mining ETFs have been displaying a pretty nice trend lately healing their year-to-date bloodbath to a large extent……………………………………….Full Article: Source

For hard-hit silver miners, gold is the silver lining

Posted on 28 April 2015 by VRS  |  Email |Print

Pure-play silver miners, a niche investment market popular with retail investors, are moving up the endangered list. Buffeted by a 68 percent plunge in the price of silver since 2011, miners who traditionally made most of their money from silver are increasingly diversifying into gold, buying mines that have been put up for sale and looking to acquire more.
In addition to spurring deals in the precious metals space, the trend is reducing investment avenues for those wanting to take a bet on a commodity that often outperforms gold when bullion is rising………………………………………..Full Article: Source

Why Nickel is Your Best Bet for Resource Gains This Year

Posted on 28 April 2015 by VRS  |  Email |Print

A huge event is playing out in the commodities markets right now. Most people don’t know about it. It’s not gold. It’s not oil. And it’s not iron ore. This is an event taking place close to Australia’s borders that’s set to impact one key — and niche — area of the resources sector.
And if I’m right about the importance of this event, it could see the demand for this one key commodity take off, as soon as June this year. What am I talking about? Let me explain…This is a story about nickel. Most people have heard of nickel, but many have no idea about its importance. The most important thing you need to know about it is that China is hungry for high-grade nickel………………………………………..Full Article: Source

Japanese aluminum industry divided on Chinese export tax removal

Posted on 28 April 2015 by VRS  |  Email |Print

China’s plan to remove an export tax on aluminum bars and rods from May 1 has the Japanese market divided, sources said Monday, April 27. Although rods and bars are a small market — China exported 2,114 mt to Japan in 2014 — the products have a wide range of uses in the cable, construction and automotive sectors. So the end of China’s export tax could have ripple effects, they said.
Japan’s 2014 imports included those by an extruder that used Chinese rods and bars to produce window frames and sliding doors for high-rise buildings………………………………………..Full Article: Source

Uranium outlook positive but perhaps not outstanding unless…

Posted on 24 April 2015 by VRS  |  Email |Print

Uranium has been one of the best performing commodities over the past year, but only because it was rising from such a low level. So now what lies ahead? While the uranium price may well have been one of the best performing over the past nine months or so, it should be remembered that this is as a recovery from an all-time low price in real terms – but then such times may well prove to have provided the best opportunity to get back into the commodity.
Thus the uranium round table panel event at the London 121 Mining Investment conference was well attended as investment professionals sought to get a handle on the latest prospects for the nuclear metal. It is worth recalling that the price reached an all-time high at a time when lack of investment in new projects, together with run down user inventories, created a huge supply/demand imbalance price spike in 2007 to reach around $135/lb – albeit briefly as is the nature of price bubbles of this type…………………………………..Full Article: Source

Bullish Traders Are Turning To Rare Earth Metals

Posted on 24 April 2015 by VRS  |  Email |Print

This past week many momentum traders have turned their attention to a niche corner of the commodity markets – rare earth metals. Companies that explore and or process rare metals are of specific interest to traders because of strong moves in a couple of the sector’s key players. Based on their respective chart patterns, active traders will likely add these stocks to their watch lists because they could be setting up for a continued move higher.
Molycorp, Inc. (MCP) is one of the most popular rare earth players available in the public markets and it is a favorite amongst many who are interested in the sector. Recently, the company announced that it will supply rare earth metals for use in Siemens AG’s (SIEGY) wind turbine generators over the next 10 years. This news could be enough of a catalyst to continue to send prices higher over the coming weeks and months…………………………………..Full Article: Source

China’s aluminum set to worsen glut as export taxes removed

Posted on 24 April 2015 by VRS  |  Email |Print

China, the world’s largest aluminum producer, may worsen a global glut of the metal as the government scrapped export duties for some products. The removal of fees to ship certain aluminum products may encourage further exports from the country that accounts for about half the world’s production. Global prices may sink as the move encourages producers to shift China’s aluminum glut overseas, according to Bloomberg Intelligence.
“The policy will improve China’s aluminum market by encouraging exports and reducing domestic oversupply, but will increase global aluminum supply,” said Ma Kai, a Beijing-based analyst at China International Capital Corp. “Overseas aluminum premiums will be damped, while rising Chinese exports will also have a negative impact on LME aluminum prices.”………………………………….Full Article: Source

Aluminum leads metals lower as China manufacturing contracts

Posted on 24 April 2015 by VRS  |  Email |Print

Aluminum fell the most in almost a month as most industrial metals retreated after a gauge of manufacturing strength slid to a 12-month low in China, the world’s biggest consumer. Aluminum lost as much as 1.2%, the biggest drop since March 27. HSBC Holdings and Markit Economics’ preliminary Purchasing Managers’ Index for Chinese manufacturing was at 49.2 for April, below the median estimate in a Bloomberg survey and the second month of contraction. Factory data for the euro region are due later in the day.
“The fundamental economy is not improving” in China, said Helen Lau, a metals and mining analyst at Argonaut Securities Ltd. in Hong Kong. “It is a little worrying. We’re close to the bottom. Before that happens, the government should continue with stimulus until there is a rebound.”………………………………….Full Article: Source

banner
banner
May 2015
S M T W T F S
« Apr    
 12
3456789
10111213141516
17181920212223
24252627282930
31