Thu, Apr 24, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Category | Metals and Minerals more

Aluminium production reaches new high

Posted on 24 April 2014 by VRS  |  Email |Print

Global aluminium production reached a new high in March despite cuts to capacity by the biggest manufacturers. Companies such as Alcoa, Rusal and Rio Tinto have been shutting smelters over the past two years in an effort to tackle oversupply, as depressed prices continue to weigh on the industry. But surging output in China has more than offset these cuts.
Production of the lightweight metal rose to 4.329m tonnes last month, a 5 per cent year-on-year increase, according to the International Aluminium Institute. The previous monthly high, of 4.255m tonnes, was achieved in October………………………………………..Full Article: Source

Copper industry fears overblown

Posted on 24 April 2014 by VRS  |  Email |Print

The price of copper has fallen by about 10% in 2014, and it recently hit a four-year low at about $6,550 per ton on the London Metal Exchange. Surprisingly, though, the talk at the conference was rather upbeat.
One explanation is that, even at current prices, the major producers aren’t suffering. Take the world’s largest producer, Chile’s Codelco. Yes, its costs have risen at twice the global rate – 60% versus 30% – since 2007. But at around $3,600 per ton, Codelco’s costs still leave room for a comfortable profit margin………………………………………..Full Article: Source

US steel sheet market continues to see offer prices creeping up

Posted on 24 April 2014 by VRS  |  Email |Print

The US steel sheet market continued to report offers from producers above published minimum base prices, as mills look to keep upward pressure on pricing amid supply tightness. Buy-side sources reported higher offers from multiple mills for both hot-rolled and cold-rolled coil, with one Midwest buyer having been offered 450 st of HRC for June delivery at $710/st from an integrated producer.
The buyer, however, noted that another major integrated producer in the region had yet to start offering above the published minimum base price of $685/st. The buyer also said that in the last three weeks the book price has been almost same, regardless of volume………………………………………..Full Article: Source

Tin cancelled warrants rise; support for prices continues - Standard Bank

Posted on 24 April 2014 by VRS  |  Email |Print

Tin cancelled warrants on the London Metal Exchange have risen markedly in recent days, and now account for more than 50% of total inventory in listed warehouses for the first time since 2012, according to Leon Westgate, commodities strategist at Standard Bank.
“The warrant cancellations have helped lend support to outright tin prices, while the nearby spreads have also tightened up appreciably, with tom-next flaring out to $8 backwardation [on Tuesday],” Westgate said in a note………………………………………..Full Article: Source

Zinc-output deficit widens as China buys more stuff: Commodities

Posted on 23 April 2014 by VRS  |  Email |Print

Record spending by Chinese consumers on new refrigerators, cars and laptops is boosting zinc demand, creating the biggest production shortfall for the metal in eight years.
Demand for zinc used in everything from steel auto parts and brass plumbing fixtures to rubber and sunscreen will exceed output by 117,000 metric tons this year, almost double the 2013 deficit, the International Lead and Zinc Study Group estimates. Morgan Stanley predicts prices in London will rise more than any other industrial metal in 2015………………………………………..Full Article: Source

Global tin prices may fail to keep momentum

Posted on 23 April 2014 by VRS  |  Email |Print

Global tin market is facing a shortfall since 2010. According to the Hindu Business line, the condition will prevail for the coming years. The regulations imposed by the Indonesian government on tin trade are the main reason behind the deficit of the metal. This is due to the minimum bid price set by a committee for Indonesian tin each week which is above LME price.
Experts say that the traders cannot cope up with that price as long as there is limited availability of tin in other exchanges. Global Tin demand is expected to remain strong in the forthcoming years. However, many experts analyze that the prices of the metal will lose its momentum………………………………………..Full Article: Source

World crude steel production rises 2.7pct in March

Posted on 23 April 2014 by VRS  |  Email |Print

World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 141 million tonnes (Mt) in March 2014, an increase of 2.7% compared to March 2013. In the first three months of 2014, Asia produced 274.0 Mt of crude steel, an increase of 2.6% over the first quarter of 2013.
The EU produced 43.8 Mt of crude steel in the first quarter of 2014, up by 6.7% compared to the same quarter of 2013. North America’s crude steel production in the first three months of 2014 was 29.9 Mt, an increase 0.8% compared to the first quarter of 2013. The C.I.S. produced 26.3 Mt of crude steel in the first three months of 2014, a decrease of -2.8% over the same months of 2013………………………………………..Full Article: Source

Copper one of the major underperformers, selling recommended

Posted on 22 April 2014 by VRS  |  Email |Print

Copper had been one of the major underperformers among base metals in 2014, having declined over 10% and during the past week, it closed near the $6650 / MT mark. It was lower last week as well having declined over $20 from its previous close. Overall, major reason behind fall in past week and recently had been the Chinese economic growth.
China released its GDP andindustrial production numbers which just managed to stand in-line with estimate though monetary growth number disappointed. By looking at the equity market performance last week Chinese Shanghai equity index declined over 1.50% while rest of the world traded on a positive note………………………………………..Full Article: Source

BMO: PGMs, nickel could buck 2Q seasonal trend; 2014 gold forecast revised to $1,263/oz

Posted on 17 April 2014 by VRS  |  Email |Print

This could be the year that certain industrially oriented metals rise in the second quarter, thereby bucking their seasonal trend, said BMO Capital Markets.
“Nickel and the PGMs (platinum group metals) are experiencing specific supply disruptions that, if sustained, could maintain upside price support through a traditionally weak season and potentially over the longer term,” the firm said. Copper has underperformed for the year to date but could improve as prices normalize to reflect a tight market this year, the bank said………………………………………..Full Article: Source

The invincible precious metal bears

Posted on 17 April 2014 by VRS  |  Email |Print

A year ago today saw one of the largest declines in COMEX Gold and Silver futures in the last several decades. For those who argued that an electronic futures market– where an entire years worth of silver production can be bought or sold in one day– would always and everywhere be able to shrug off strong physical demand and set prices however futures traders saw fit, last April was vindication.
Coupled with a soaring stock market, the near destruction of the gold and silver bulls sent a powerful message to small savers: invest with Wall Street, or else………………………………………..Full Article: Source

Goldman Sachs upgrades nickel forecast on Indonesian export ban

Posted on 17 April 2014 by VRS  |  Email |Print

US investment bank Goldman Sachs said Wednesday it has upgraded its three-month and six-month nickel price forecasts on the back of the Indonesian ban on nickel ore exports.
The bank notes that following a fragmented Indonesian election result, the lack of a clear majority means it appears less likely the new president and coalition government will moderate their policies relating to the ongoing ore export ban………………………………………..Full Article: Source

Gold miners suffer as bullion price dips

Posted on 16 April 2014 by VRS  |  Email |Print

Gold miners suffered declines as the price of the precious metal sank below its 200-day moving average and began Tuesday on track for its biggest one-day fall since October.
Shares in half a dozen gold producers that trade in New York and Toronto fell in early trade while the S&P/TSX Global Gold Index shed almost 2 per cent on the day to close at 182.86………………………………………..Full Article: Source

Dr. Doom is calling for an economic crash — How will precious metals be affected?

Posted on 16 April 2014 by VRS  |  Email |Print

Apocalyptic predictions are usually the stuff of TV shows like “The Walking Dead,” but last week Marc Faber, a noted contrarian investor and publisher of the Gloom, Boom & Doom Report, made one of his own.
Faber, often not-so-affectionately called “Doctor Doom,” said Thursday on CNBC’s Futures Now program that the stock market is headed for a crash worse than the one seen in 1987. “I think it’s very likely that we’re seeing, in the next 12 months, an ‘87-type of crash,” he commented. “And I suspect it will be even worse.”……………………………………….Full Article: Source

Nickel drops most in two weeks on China demand concerns

Posted on 16 April 2014 by VRS  |  Email |Print

Nickel prices in London fell for the first time in two weeks, snapping the longest rally since 2010, as industrial metals slumped amid concern that the economy will falter in China, the world’s biggest consumer.
A report due tomorrow probably will show China’s gross domestic product expanded 1.5 percent in the first quarter, down from 1.8 percent in the fourth quarter, according to a Bloomberg News survey. Copper fell as much as 2.5 percent to below $3 a pound in New York, and aluminum dropped the most in more than a month in London………………………………………..Full Article: Source

Copper price leads metals lower while nickel eyes $18,000/t

Posted on 16 April 2014 by VRS  |  Email |Print

The nickel price finished an active Monday LME session firm and around a 14-month high but the rest of the complex were sideways to lower in Tuesday’s Asian session. The markets will be closely watching data out of China this week, as Beijing is set to release half of its monthly data this week.
In US data, March retail sales rose 1.1 percent against a forecast 0.8-percent increase, while February business inventories were up 0.4 percent. Little impact was seen from the releases on the metals, although it did help US stocks markets to bounce from the previous week’s slump………………………………………..Full Article: Source

With commodities surging take a look at industrial metals

Posted on 16 April 2014 by VRS  |  Email |Print

Stocks have been taking a beating and the dreaded “correction” has been tossed around a lot. There is one group of assets however that are squarely in the middle of their own bull market – metals. Sure, gold and silver grab all the headlines, but industrial metals can make for some great investment plays too.
Jonathan Hoenig of CapitalistPig.com weighed in on Breakout. “Even in the first quarter of 2014 a lot of the commodities in general have been in legitimate bull markets,” he says before listing the likes of tin, nickel, zinc, copper, and lead as potential boons………………………………………..Full Article: Source

Global coal demand growth slows slightly: IEA

Posted on 15 April 2014 by VRS  |  Email |Print

Tougher Chinese policies aimed at reducing dependency on coal will help restrain global coal demand growth over the next five years, the International Energy Agency (IEA) says in its annual Medium-Term Coal Market Report.
Despite the slightly slower pace of growth, however, coal will meet more of the increase in global primary energy than oil or gas – continuing a trend that has been in place for more than a decade………………………………………..Full Article: Source

China deal shows optimism over copper prices

Posted on 15 April 2014 by VRS  |  Email |Print

It might not look like the time to be buying into copper: The price of the commodity has fallen 9.6% since the start of the year, in part because of concerns about China’s slowing economic growth. So why is a consortium led by a unit of China Minmetals Corp., a state-controlled miner, paying at least $5.8 billion for Glencore Xstrata PLC’s Las Bambas mine in Peru, one of China’s biggest mining acquisitions in years?
For one, China is taking a longer-term view. The nation consumes around 40% of world copper supply, a commodity used to make computers, refrigerators, cars, plumbing equipment and power lines, to name just a few applications………………………………………..Full Article: Source

Nickel extends longest rally in 42 months after Goldman forecast

Posted on 15 April 2014 by VRS  |  Email |Print

Nickel prices rose, extending the longest rally in 42 months, as Goldman Sachs Group Inc. said the price is poised climb an additional 12 percent because of limited supplies.
The price may climb as high as $20,000 a ton, Goldman said. Nickel gained 28 percent this year after Indonesia, the world’s top producer from mines, barred exports of raw mineral ores in January. Russia, home to OAO GMK Norilsk Nickel, the leading producer of refined metal, might face more sanctions from the U.S. and Europe amid turmoil in Ukraine………………………………………..Full Article: Source

China iron ore mountain a risk as financing crackdown bites

Posted on 15 April 2014 by VRS  |  Email |Print

A crackdown in China on financing backed by commodities risks unleashing a flood of iron ore sales from tens of millions of tonnes of the raw material sitting at Chinese ports, raising the prospect of a renewed price slump.
Investors who have raised funds against mostly unhedged iron ore could be at risk in the event of a price fall due to sluggish steel demand, leading to forced sales as banks wind back loans against the raw material, analysts and traders warned………………………………………..Full Article: Source

As commodities surge take a look at industrial metals: Hoenig

Posted on 15 April 2014 by VRS  |  Email |Print

Stocks have been taking a beating and the dreaded “correction” has been tossed around a lot. There is one group of assets however that are squarely in the middle of their own bull market - metals. Sure, gold and silver grab all the headlines, but industrial metals can make for some great investment plays too.
Jonathan Hoenig of CapitalistPig.com weighed in on Breakout. “Even in the first quarter of 2014 a lot of the commodities in general have been in legitimate bull markets,” he says before listing the likes of tin, nickel, zinc, copper, and lead as potential boons………………………………………..Full Article: Source

China group buys $6bln Glencore Peru copper mine

Posted on 14 April 2014 by VRS  |  Email |Print

A Chinese consortium is buying Glencore Xstrata’s copper mine in Peru in a $6bn (£3.6bn) all-cash deal, marking one of China’s largest mining acquisitions. The consortium is led by MMG Limited and includes China’s Citic Metal.
The acquisition is subject to regulatory approvals but all parties expect the deal to be done by the end of September. Analysts expect Glencore to use the proceeds from the sale to reduce its debt………………………………………..Full Article: Source

Non-ferrous metal trade could suffer from US, EU sanctions on Russia

Posted on 11 April 2014 by VRS  |  Email |Print

The effects of any US and European Union (EU) sanctions on the non-ferrous metals trade with Russia could be significant, based on the volumes of metals traded.
The EU and the US agreed to work on the imposition of sanctions against Russia on Wednesday March 26. A four-party meeting involving the EU, US, Ukraine and Russia is to be staged next week to discuss the crisis………………………………………..Full Article: Source

Nickel market will be in deficit in H2 2014 – Macquarie

Posted on 11 April 2014 by VRS  |  Email |Print

The nickel market will be in deficit in the second half of 2014 with no end to the deficit in sight, analysts at Macquarie said, revising their initial prediction that the market would remain in a surplus this year.
The nickel market will then see “enormous deficits” in 2015-18 on the Indonesian ore export ban, the analysts said in a note. Indonesia enforced a ban on unprocessed raw materials exports on January 12, causing higher prices for nickel ore, rising costs for nickel pig iron (NPI) and higher prices and premiums for refined nickel………………………………………..Full Article: Source

Precious metals: Extreme long term leverage play

Posted on 10 April 2014 by VRS  |  Email |Print

The strategy discussed below may play a very significant role for a portfolio hedger who wishes to use relatively little capital for the purpose being achieved (assuming the inverse relationship between silver and equities), while offering speculators what may be the single greatest expression of very long term leverage that I have ever seen in my 32 years in the industry, including the other major silver troughs, as well as the Japanese, Shanghai and New York summits.
Two other simultaneously written reports illustrate the confluence of events in the other major asset classes that are supportive and consistent with the here-contemplated Wave-3 eruptions in the precious metals………………………………………..Full Article: Source

Thomson Reuters GFMS: Copper to remain under pressure; supply surplus expected

Posted on 10 April 2014 by VRS  |  Email |Print

Copper prices are likely to remain under pressure in 2014 as the market posts a moderate supply/demand surplus, said Thomson Reuters GFMS Tuesday.
The consultancy released its GFMS Copper Survey 2014, the fifth edition of the report on the copper market, during CESCO Week copper convention in Santiago, Chile. Analysts said they look for the annual average price to be below $7,000 per metric ton in 2014 for the first time since 2009, with a rest of $6,000 likely over the second half of the year………………………………………..Full Article: Source

World apparent steel use to rise 3.1pct to 1,527 Mt in 2014

Posted on 10 April 2014 by VRS  |  Email |Print

The World Steel Association (worldsteel) has released its Short Range Outlook (SRO) for 2014 and 2015. worldsteel forecasts that global apparent steel use will increase by 3.1% to 1,527 Mt in 2014 following growth of 3.6% in 2013. In 2015, it is forecast that world steel demand will grow further by 3.3% and will reach 1,576 Mt.
Chairman of worldsteel Economics Committee, Mr Hans Jürgen Kerkhoff said “In 2013 world steel demand grew higher than our previous forecasts due to a stronger than expected performance in the developed world in the second half of the year………………………………………..Full Article: Source

Iron-ore bear market deepens as Aussie mines expand: Commodities

Posted on 10 April 2014 by VRS  |  Email |Print

The world is mining more iron ore than steelmakers need. Australia, the largest supplier, sent 504 ships from Port Hedland during the first quarter carrying enough iron-ore exports to build more than 700 Golden Gate Bridges. Shipments jumped 35 percent to the biggest buyer, China, where inventories have ballooned to the highest ever.
After companies including BHP Billiton Ltd. and Rio Tinto Group expanded capacity to meet surging steel demand, output is climbing just as China’s economy slows to the weakest since 1990………………………………………..Full Article: Source

In defense of coal

Posted on 09 April 2014 by VRS  |  Email |Print

The coal industry has a public-relations problem: Although coal remains the biggest source of fuel for generating electricity in the U.S., its adversaries say it’s just too dirty and just too damaging to the environment.
Peabody Energy Corp.’s Gregory Boyce, chief executive of the largest U.S. coal producer, sees things differently. In an interview with Wall Street Journal Assistant Managing Editor John Bussey, Mr. Boyce argued that reducing emissions isn’t the only thing the world should be worrying about………………………………………..Full Article: Source

Global zinc demand could rise by 1.9 mln mt over next three years: IZA

Posted on 09 April 2014 by VRS  |  Email |Print

The global zinc market has potential to add a further 1.9 million mt of demand from new initiatives over the next three years, according to Stephen Wilkinson, director of the International Zinc Association Tuesday.
Speaking at the Metal Events 6th International Zinc conference in Dubai Wilkinson said that zinc is essential for human health and that one of the key areas of demand will come from the addition of zinc to fertilizers. He laid out data that showed vastly improved crop yields when zinc is added to the fertilizer blend………………………………………..Full Article: Source

Copper price expected to fall, possibly test $6 000/t as supply surges – GFMS

Posted on 09 April 2014 by VRS  |  Email |Print

The global copper market is expected to post a moderate surplus this year, resulting in copper prices expected to remain under pressure, the fifth instalment of Thomson Reuters’ ‘GFMS Copper Survey 2014’ had found.
The average yearly price was expected to fall below $7 000/t in 2014 for the first time since 2009, with a test of the $6 000/t level deemed likely over the second half, the report had found………………………………………..Full Article: Source

Copper output surge adds to price pressure

Posted on 09 April 2014 by VRS  |  Email |Print

A surge in mine production could send copper prices down to $6,000 a tonne later this year – a level last seen in the immediate aftermath of the global financial crisis, according to a leading metals consultancy.
The price of the red metal has already fallen 10 per cent this year, to $6,675 a tonne, on concerns about a slowdown in China, which accounts for 40 per cent of global copper demand. But in its annual copper survey, Thomson Reuters GFMS predicts further price weakness and more pain for producers………………………………………..Full Article: Source

Zinc could hit $4,500/mt by end of the decade: CRU

Posted on 08 April 2014 by VRS  |  Email |Print

The price of zinc could get up to $4,500/mt by the end of the decade as supply is outstripped by increasing demand, CRU analyst Helen O’Cleary said Monday. The analyst — speaking at the Metal Events 6th International Zinc conference in Dubai — said that supply is likely to be outpaced by demand leaving a hole in the market propelling zinc to the lofty highs last seen in 2006/2007 of around $4,000-4,500/mt.
Three-months zinc priced on the London Metal Exchange closed the April 4 kerb session at $2,004/mt, it opened January 2, 2014, at $2,060/mt………………………………………..Full Article: Source

Worldsteel publishes major technical report on raw materials improvement

Posted on 08 April 2014 by VRS  |  Email |Print

The World Steel Association (worldsteel) has published a major technical report on raw materials improvement in the steel industry. The report, which is the result of a project undertaken by worldsteel member companies and with the co-operation of raw materials and equipment suppliers, addresses the key challenges faced by the steel industry in the management of raw material quality.
The study provides a broad assessment of raw materials reserves across the world and an analysis on the use of different quality raw materials with related technologies………………………………………..Full Article: Source

LME may not launch aluminium premium contract until 2015

Posted on 08 April 2014 by VRS  |  Email |Print

The London Metal Exchange may not launch its new aluminium premium contract until early next year, the exchange’s top executive said on Monday, months after a competing product from U.S. rival CME Group Inc is expected to go live.
The distant date for the new LME contract will stir the debate over its ability to resolve the years-long issue of backlogs and inflated physical prices that U.S. end users say are costing the industry $6 billion each year………………………………………..Full Article: Source

World copper market will be in surplus this year

Posted on 07 April 2014 by VRS  |  Email |Print

After four consecutive years of apparent deficit, the world copper market could witness a production surplus relative to demand in 2014, according to projections made by International Copper Study Group (ICSG). Demand this year is expected to lag production. So, world production of refined copper is expected to exceed demand for refined by about 400,000 tonnes.
Interestingly, another surplus year could occur in 2015. Although growth in usage is expected to continue, owing to an increase in refined output that exceeds the expected growth in usage, a surplus is likely again………………………………………..Full Article: Source

Falling prices put pressure on high-cost copper miners

Posted on 07 April 2014 by VRS  |  Email |Print

High-cost copper miners face a stark choice between cutting production and sustaining losses for the first time in a decade following last month’s sharp fall in prices. The red metal, which is used extensively in construction and electrical goods, fell to a three-year low in March amid concerns about global oversupply and slowing Chinese demand.
At current prices analysts estimate that miners responsible for 10 per cent of global production are losing money………………………………………..Full Article: Source

Should it be Dr. Copper or Pinocchio?

Posted on 04 April 2014 by VRS  |  Email |Print

Many observers have pointed to the recent weakness of the copper price as an indication of a forthcoming decline in commodity prices generally. Copper is said to have a Ph.D. in economics, hence, the “Dr. Copper” title, because it is regarded as a sensitive indicator of business activity. But is that still true?
Looking at the first chart, one cannot escape the conclusion that the price of the red metal has completed what we technicians call a head-and-shoulders top. The vertical blue arrow on the left calculates the maximum depth of the pattern, which is then used to establish a price objective when applied at the point of breakdown………………………………Full Article: Source

ICSG: Copper likely to swing to surplus in 2014

Posted on 04 April 2014 by VRS  |  Email |Print

The global copper market could show a production surplus relative to demand in 2014 ending four consecutive years of deficits, the International Copper Study Group said Thursday after a meeting in Lisbon, Portugal. According to ICSG projections, world production of refined copper is expected to exceed demand for refined copper by about 400,000 metric tons, as demand will lag behind the growth in production.
The world refined copper balance in 2013 showed a production shortfall relative to demand of around 280,000 tons mainly due to constrained growth in refined production and growth in China’s apparent demand, said the group………………………………Full Article: Source

ILZSG: Global zinc, lead markets to be in deficit again in 2014

Posted on 04 April 2014 by VRS  |  Email |Print

Demand is expected to continue to outstrip supply in the global markets for zinc and lead in 2014, the International Lead and Zinc Study Group said Thursday. The group, which met in Lisbon, Portugal this week, said the world market for refined lead metal will remain in modest deficit with the extent of the shortage estimated at 49,000 metric tons.
It added that global demand for refined zinc metal will likely exceed supply in 2014 by 117,000 tons. The ILZSG expects that global demand for refined lead metal will increase by 4.4% in 2014 to 11.73 million tons. “This will be driven mainly by growth in China where usage is forecast to increase by 7.4%,” it said. In 2013, China accounted for 45.2% of total global lead usage………………………………Full Article: Source

Metals warehousers to tread warily despite UK court ruling

Posted on 04 April 2014 by VRS  |  Email |Print

Big warehouse owners, under regulatory scrutiny for tying up huge amounts of aluminium in profitable storage, are unlikely to risk seeking a fresh influx of metal even though a UK court ruling last week set back attempts to rein them in.
But access to aluminium will remain tight as existing backlogs increase in the global network of warehouses overseen by the London Metal Exchange (LME) following the court decision, analysts and industry sources said………………………………Full Article: Source

LME Metals shrug off Chinese stimulus moves

Posted on 04 April 2014 by VRS  |  Email |Print

Base metals on the London Metal Exchange barely reacted Thursday to the latest economic stimulus from China. Some disappointing economic figures from the large consumer nation have weighed on metals prices in recent weeks as investor concerns deepened about subdued demand. China is responsible for around 40% of global copper consumption.
“The main development overnight has been the announcement in China of $24 billion worth of stimulus to the railway system in less-developed regions, but this does not seem to have boosted metals,” noted FastMarkets head of research Will Adams………………………………Full Article: Source

Why are platinum and palladium not meeting analyst expectations?

Posted on 02 April 2014 by VRS  |  Email |Print

While every now and again some analyst or other comments that perhaps palladium is outperforming gold, or platinum is, on the year to date both the pgms have moved up pretty well pari passu with gold overall.
All three metals are around 7-8% up since the beginning of the year. Indeed gold moved up substantially further during the height of the Ukraine crisis and while the pgms followed they did not quite do so to the same extent. As gold has fallen back though, the pgms have caught up again………………………….Full Article: Source

Nickel prices to average $16,000 per ton in 2014, $17500 in 2015

Posted on 02 April 2014 by VRS  |  Email |Print

Natixis has forecasted $16,000 per ton for nickel in 2014 and risin to $17500 per ton in 2015 on Indonesia export ban on nickel ore and possible fall in supples. However, the market has substantial surplus in 2014 thus weakening the prospects of a bullish trend emerging.
The decision by Indonesian authorities, on 12 January, to ban exports of low-grade ore came as a major shock to the nickel market. Since then, as the market has digested the full implications of this move, nickel prices have rallied sharply, increasing to a high of over $16,000/tonne in March. …………………………Full Article: Source

Zinc prices to average $2185 per ton in 2014, $2450 in 2015

Posted on 02 April 2014 by VRS  |  Email |Print

Zinc prices will average $2,185 per ton in 2014, rising to $2,450 per ton in 2015 as the market progressively acts to ration near-term demand for the metal, as well as incentivising mining companies to increase investment in new mines over the coming years.
Zinc entered 2014 with some of the best fundamentals among the base metals. Exchange stockpiles declined by 380,000 tonnes last year, reflecting both an improvement in demand for zinc as well as constrained supply. International miners are struggling to raise zinc output against a backdrop of investment cutbacks and zinc mine closures. …………………………Full Article: Source

How mining companies have underperformed commodities markets

Posted on 02 April 2014 by VRS  |  Email |Print

Mining companies, providing basic materials to fuel economies around the world, are unquestionably valuable economic contributors. But despite widespread demand for their products, mining companies may not be good investments for some investors. A common belief is that owning these companies gives shareholders exposure to growing commodities markets, a close proxy for the expanding global economy.
But in reality, mining companies’ profits don’t always track price gains in commodities markets, given the unpredictable operating costs and ongoing capital expenditures of running a mining business………………………….Full Article: Source

Why this base metal is weathering the rout

Posted on 28 March 2014 by VRS  |  Email |Print

Amid a brutal rout in base metals this year, one commodity is standing out from the crowd and has even further to run this year, analysts told CNBC. Prices of nickel, a metal used in the production of stainless steel, have been soaring in recent months, up roughly 17 percent year to date and trading at $16,300 per metric ton on Thursday.
Its peers however, including copper, iron ore, aluminum and zinc, have been tanking alongside. Copper, for example, has lost around 12 percent year to date, as worries over the use of copper in Chinese trade financing deals panicked investors………………………………Full Article: Source

China’s commodity speculation: From copper to gold

Posted on 27 March 2014 by VRS  |  Email |Print

Investors should always be cautious about recommendations from Goldman Sachs. There is a saying on the Street: The firm always takes the other side of the trade it is recommending to clients, as it did with subprime mortgages.
Now, Goldman thinks it’s a good idea to sell gold. “We see potential for a meaningful decline in gold prices … and reiterate our year-end $1,050 gold price forecast,” reads a recent report. In yet another report, Goldman digs into the mystery of Chinese commodity speculation and comes to the same conclusion. However, the logic is unsound…………………………………Full Article: Source

Copper sends bad news

Posted on 27 March 2014 by VRS  |  Email |Print

Dr. Copper is signaling that more danger is ahead. Copper, which is consumed for a wide variety of uses including manufacturing and construction, is said to have a Ph.D. in economics because of its ability to forecast economic activity. Hence the Dr. Copper moniker.
When prices of the red metal drop it often presages slower economic activity and lower stock prices. Benchmark contracts for copper have tumbled from around $3.38 a pound at the beginning of the year to about $3.00 recently. But that’s only part of the story…………………………………Full Article: Source

Why nickel may be just beginning a major breakout move

Posted on 26 March 2014 by VRS  |  Email |Print

Governments around the world especially in the emerging economies are now beginning to worry about inflation and currency devaluation. Turkey and India have taken emergency measures to increase rates and the U.S. is tapering as there are growing concerns about significant declines in their respective fiat currencies.
Even the Russians and Chinese are concerned. The ruble and yuan are hitting new lows. Paper currencies may be on the verge of failing. Eventually, a new currency backed by gold or silver could be established to restore trust……………………………….Full Article: Source

banner
banner
April 2014
S M T W T F S
« Mar    
 12345
6789101112
13141516171819
20212223242526
27282930