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Copper price: Don’t expect any 2017 fireworks

Posted on 09 November 2016 by VRS  |  Email |Print

Copper has risen during 11 of the last 12 trading sessions, adding nearly 11% in two weeks. While other industrial metals and steelmaking raw materials have jumped in value this year, the bellwether metal has advanced a more modest 8% this year.
The copper price hit six year lows in January following a 26% decline in 2015, the fourth year in a row of price erosion. While the price of copper appears to have found a floor above $2.00 a pound a new note by BMI Research, a Fitch company, says that any gains going into 2017 would be modest…………………………………….Full Article: Source

Why copper is winning votes this election season

Posted on 08 November 2016 by VRS  |  Email |Print

Copper is on a roll — rallying more than 10.5 percent in two weeks. The industrial metal has been having its best winning streak in four years — in the runup to the presidential election, and some analysts believe it could continue to break out.
While the election is not necessarily the factor driving copper, strategists have watched the weaker dollar in the last two weeks as a positive for the metal, which is also viewed as a proxy for global growth. The dollar slumped as the prospects for Democrat Hillary Clinton were clouded by a new FBI probe………………………………………Full Article: Source

Zinc and gold poised to break free of commodity slump

Posted on 04 November 2016 by VRS  |  Email |Print

Seasoned investors know that commodity cycles are long and slow affairs that build up to a really great party that ends with a long, lingering hangover. Right now, for most commodities, we are in the hangover phase.
Plenty of culprits can be blamed for the pain. We face a mine overcapacity, as operations that were financed in the boom times are now up and running. An aging population in most of the developed world is responsible for slowing consumption. Developing economies have slowed, headlined by China, which has been increasingly counted on as a global engine………………………………………Full Article: Source

Zinc hits five-year high on softer dollar, speculative buying

Posted on 04 November 2016 by VRS  |  Email |Print

Zinc prices climbed to their highest level in more than five years on Thursday, supported by a weaker dollar and buying from computer-driven speculative funds that also helped copper to a three-month high.
More reports on FBI investigations into U.S. presidential candidate Hillary Clinton helped to send the dollar index lower, reflecting a weakening that makes dollar-priced commodities cheaper for buyers using other currencies. Benchmark zinc on the London Metal Exchange closed at $2,487 a tonne, up 2.5 percent, having earlier touched $2,494, its highest since August 2011………………………………………Full Article: Source

Copper Could Be Forming A New Bull Market

Posted on 04 November 2016 by VRS  |  Email |Print

The copper chart is attracting our attention, and it could be setting up for an enticing investment opportunity sooner rather than later. Copper is doing something it hasn’t done in a very long time: it is consolidating in a tight price range. Check out copper’s chart below. The key price level to watch is $2.30, and it is only 3 percent above today’s price level.
From a secular perspective, copper’s price is clearly in a downtrend. However, this potential bottom formation, which was triggered after touching secular support early 2016, could result in a tactical bull market………………………………………Full Article: Source

Shadowy margin lending fuels China commodity futures boom

Posted on 03 November 2016 by VRS  |  Email |Print

Grey market loans feed speculation in ‘ferrous complex’ of steel, coal and iron ore. Chinese hedge funds are providing margin finance for leveraged bets on the country’s booming commodity futures market, in an echo of the practices that led to last year’s stock market boom and bust.
Futures prices for the so-called ferrous complex of steel, iron ore, coking coal and coke have risen sharply this year as Chinese fiscal and monetary stimulus has produced a revival of construction activity in real estate and infrastructure…………………………………….Full Article: Source

South Korea aluminum premiums climb $2/mt on Chinese imports

Posted on 03 November 2016 by VRS  |  Email |Print

South Korea’s aluminum premiums rose $2/mt week on week to be assessed at $67-$70/mt plus LME cash, CIF Busan, Wednesday, up from $65-$68/mt last week.
Most of the support came from China, which is importing P1020 following a dramatic surge in domestic aluminum prices in the last two weeks. On average, China has been paying premiums of $85-$90/mt CIF Shanghai for imported metal, sources said. “Everyone is moving South Korean stocks to China,” a Western trader said…………………………………….Full Article: Source

Iranian steel sheet prices rise amid shortage

Posted on 03 November 2016 by VRS  |  Email |Print

As a result of an improvement in flat steel demand, especially for thicker material, prices are increasing steadily on both the Iran Mercantile Exchange and the off-exchange market, S&P Global Platts learned from IME and market sources.
Some 88,000 mt of sheet produced by Mobarakeh Steel Company was traded on the IME on Tuesday, indicating a strong level of demand. Different sizes of MSC-produced hot rolled coil traded at Rial 16.54 million-17.34 million/mt ($456-$479/mt), which is about 6% more than last week’s trade levels. CRC traded at Riyal 20.87 million/mt, a 10% increase week on week…………………………………….Full Article: Source

New European metal trade platform for spot delivery launched

Posted on 03 November 2016 by VRS  |  Email |Print

A new trading platform for buying and selling of base metals for immediate physical delivery was launched in October by German company Metalprodex GmbH, with the most initial trading liquidity in aluminum and lead, the company’s head said.
Newly established Metalprodex is offering an electronic trading platform enabling delivery of physical metal within two days. “We are in the phase of building up liquidity,” Metalprodex’s Managing Director Janko Linhart told Reuters in an interview for the LME Week…………………………………….Full Article: Source

Zinc hits 5-yr high on supply woes; copper near 1-month high

Posted on 02 November 2016 by VRS  |  Email |Print

London zinc rose for a fourth consecutive session on Tuesday to its highest in more than five years, on expectations of tight supplies after Glencore said it had closed one of its mines in Australia. Copper traded near its highest in a month, supported by an improved demand outlook in China.
Analysts said a higher cost of production following a rally in coal prices was underpinning base metals. “This round of rally is driven by coal prices which has made expensive the cost of producing electricity,” said Chris Wu, an analyst at CRU……………………………………Full Article: Source

Chinese policy opens window of opportunity for miners

Posted on 02 November 2016 by VRS  |  Email |Print

Renewed liquidity in early 2017 will support demand for next 12 months. Base metal and bulk commodities are in the midst of a mini-renaissance. While supply always gets focus, it is the demand side of the equation that has been more influential in pushing prices higher this year.
And, as with most things in commodities, the incremental shift has come from China. There is always a tendency to focus on supply in commodity markets, as this is the area of greatest visibility. However, this has done more or less as we expected at the start of the year; falling across many markets because of a lack of growth projects……………………………………Full Article: Source

Zinc rallies to five-year high on supply constraints

Posted on 01 November 2016 by VRS  |  Email |Print

Zinc rallied to its highest in five years on Monday, lifted by expectations that availability of the metal would remain tight after Glencore said it had shuttered one of its Australian mines. Glencore’s Black Star Open Cut mine in Queensland, part of the Mount Isa Mines complex, has been put on care and maintenance after mining out its existing reserve, the company said in a statement on Monday.
Zinc, widely used in alloys, is one of this year’s best performers among industrial metals, having benefited from supply shortages and a squeeze in the concentrate market…………………………………….Full Article: Source

Copper industry turns to bond sales to boost expansion

Posted on 01 November 2016 by VRS  |  Email |Print

As the copper industry continues to grow, its biggest players are turning to bond sales to back expansion. Having managed this successfully, Southern Copper is an example for other firms.
As time marches on, the copper industry is continuing to develop, improve and become more sophisticated than in years gone by. Over the past few years, there has been a clear trend towards lower costs, which has significantly reduced the average cash cost for the industry. This transition has also heralded a significant improvement in the competitiveness of overall mining costs…………………………………….Full Article: Source

Big Miners at Odds Over Whether Worst Has Passed

Posted on 01 November 2016 by VRS  |  Email |Print

Global mining companies face an urgent dilemma in the grip of a prolonged commodities downturn: whether to bet heavily on new projects absent firm signs of an upturn—or wait until a recovery in prices gathers pace.
At the heart of each company’s decision is whether China is finished as an engine of torrid resources demand, or about to ramp up spending, this time on consumer goods such as air conditioners and refrigerators. If the latter, it will require commodities not at the forefront of China’s industrialization so far…………………………………….Full Article: Source

Iron ore price leaps to six-month high

Posted on 31 October 2016 by VRS  |  Email |Print

The iron ore price has jumped to a six-month high, seemingly defying gravity amid fresh analyst calls for the commodity to drop back below the $US50 level. Iron ore rose 1.3 per cent to $US63.10 a tonne in the most recent session, according to The Steel Index, from $US62.30 the previous day.
The commodity is at its highest point since April 29, when it settled at $US65.20. Despite taking a breather late last week, iron ore has been rallying recently, falling only once in the last 15 sessions……………………………………..Full Article: Source

The ailing financial superpowers of Dr Copper

Posted on 31 October 2016 by VRS  |  Email |Print

Our round-up of the week’s best comment and analysis from the Financial Times focuses on the ailing powers of “Dr Copper”, a 19th century re-run for bond markets and anti-globalisation trends battering the Mexican peso and City of London. Copper got its nickname in the early 1980s as an accurate forecaster of US recessions and this reputation was enhanced as China became the world’s biggest consumer of the red metal.
“Is Dr Copper sick? Despite Beijing trying to turbocharge the economy with credit, the copper price is only up about 5 per cent [this year] to $4,700 a tonne, even though it is widely used in construction and property……………………………………..Full Article: Source

Coal price rally comes to the rescue of commodity trading giants

Posted on 31 October 2016 by VRS  |  Email |Print

An unprecedented surge in coal prices in the past few months to more than double their June levels is a big fillip for Glencore and Noble, who are among the biggest traders of thermal coal, which is used to produce electricity.
They are taking advantage of their mine production, storage facilities and shipping fleets to provide users of coal with cargoes at short notice and at premium prices, sources familiar with recent deals told Reuters. They are also striking longer-term supply deals, also on rich terms, the sources said…………………………………..Full Article: Source

Metals Surge on Improving Demand

Posted on 28 October 2016 by VRS  |  Email |Print

Aluminum in Shanghai jumped to its highest level in almost two years, extending a rebound on speculation that transport bottlenecks may have created a shortage for some users in China. Prestige Economics Chief Economist Jason Schenker discusses the outlook for metals on “Bloomberg Markets: Middle East.”.………………………………….Full Article: Source

Dr Copper’s ability to take China’s temperature is limited

Posted on 28 October 2016 by VRS  |  Email |Print

Using metal as a reliable indicator of the country’s economy is a fraught exercise. Is Dr Copper sick? The metal first won its reputation — and nickname — in the early 1980s as an accurate forecaster of US recessions.
It swooned ahead of the downturn that hit the US in 1981, according to John LaForge, head of real asset strategy at the Wells Fargo Investment Institute. “At the time the US was very manufacturing-driven, so everyone kind of linked the two,” he says……………………………………Full Article: Source

Is The Bear Market Over For Uranium? (Video)

Posted on 28 October 2016 by VRS  |  Email |Print

Uranium has been under pressure, currently trading at 12-year lows, but one executive in the sector thinks the bear market may be coming to an end.
Speaking with Kitco News on the sidelines of the New Orleans Investment Conference, Uranium Energy CEO Amir Adnani says he sees a lot of similarities in the uranium space as he did in 2004, before prices rallied. ‘I think the picture today is set up a lot more in a bullish way and reminds me a lot more of 2004.’…………………………………..Full Article: Source

Recent global copper supply growth ‘unsustainable’

Posted on 27 October 2016 by VRS  |  Email |Print

The recent growth in global copper output is unsustainable now that most of the new projects have been completed and copper prices have remained low, Freeport-McMoRan President and CEO Richard Adkerson said Tuesday.
Speaking to investors and analysts in a third-quarter conference call, Adkerson acknowledged that copper supply had risen substantially in recent years, mainly due to new production projects at mines and mills. “We were a big part of that; we had three big projects we started in the 2010 timeframe that have been completed now,” he said…………………………………Full Article: Source

Metals Jump on Economic Optimism as Rand Strengthens With Miners

Posted on 27 October 2016 by VRS  |  Email |Print

Metals are regaining their luster, a sign the global economy is becoming more resilient, helping to boost stocks and currencies of commodity-producing nations. Iron ore surged by the daily limit of 6 percent on the Dalian Commodity Exchange and rising steel prices in China spurred a rally from aluminum to zinc.
Currencies of resource-exporting nations, South Africa and Australia, led gains versus the dollar. The Stoxx Europe 600 Index headed for its strongest close in three weeks as earnings reports fueled optimism about the profitability of the region’s companies. Spanish and Italian bonds outperformed top-rated German bunds as the region’s improving political and economic outlook sapped demand for haven assets………………………………….Full Article: Source

Base metals winners and losers 2016 to date

Posted on 27 October 2016 by VRS  |  Email |Print

The price trend for all LME-traded base metals so far this year has been higher, apart from in copper. Largely shrugging off uncertainty about the global economy and geopolitics, most of the metals peaked in August, although copper set its high in March and tin and zinc set multi-month highs this week.
Zinc is the best performer in the complex – as of the close of Tuesday October 25, it was up 47% from the start of the year. The three-month LME price peaked at $2,418 per tonne in October, rising from $1,610 in January………………………………….Full Article: Source

Metals jump on economic optimism

Posted on 26 October 2016 by VRS  |  Email |Print

Metals are regaining their luster, a sign the global economy is becoming more resilient that’s helping to boost stocks and currencies of commodity-producing nations. Iron ore surged by the daily limit of 6% on the Dalian Commodity Exchange and rising steel prices in China spurred a rally from aluminum to zinc.
Currencies of resource-exporting nations, South Africa and Australia, led gains versus the dollar. The Stoxx Europe 600 Index headed for its strongest close in three weeks as earnings reports fueled optimism about the profitability of the region’s companies. Spanish and Italian bonds outperformed top-rated German bunds as the region’s improving political and economic outlook sapped demand for haven assets…………………………………..Full Article: Source

Copper prices not so accurate a predictor of US recessions, Wells Fargo says

Posted on 26 October 2016 by VRS  |  Email |Print

With copper prices down over 50 percent from 2011 peaks, and the metal’s reputation as a harbinger for the health of the economy, is there a U.S. recession on the horizon? Not according to Wells Fargo, which said in a recent note that it was “not convinced that copper deserves a MD (doctor of medicine) but that it deserves a PhD in economics” instead.
Three-month copper on the London Metal Exchange is trading around $4,650 a metric ton, which is 0.8 percent lower year-to-date but 10 percent lower from a year ago. And Goldman Sachs forecast recently that the metal would see some significant price pressures in the coming months due to a”wall of supply”…………………………………..Full Article: Source

Gold Miners Forecast for 2017

Posted on 25 October 2016 by VRS  |  Email |Print

The gold mining space performed incredibly well in the first half of 2016. But will the gold space perform as strongly in 2017? The charts, unfortunately, say no. The WSJ was quite optimistic earlier this year, with this bullish gold miners forecast.
And if we had to believe this analyst on CNBC, he would have already flashed a buy signal a couple of weeks ago, as his gold miners forecast was based was based on the Market Vectors Gold Miners ETF testing its 50 day moving average, a technical indicator which averages prices of the previous 50 trading days. Though technical indicators are not a bad thing as such, its value is really limited as a stand-alone indicator…………………………………..Full Article: Source

Copper isn’t the predictor of economic doom that everyone thinks

Posted on 25 October 2016 by VRS  |  Email |Print

Copper is not a good doctor. Investors believe that the metal’s price is a reliable way to gauge the health of the global economy, and have nicknamed it “Dr. Copper” for this reason. Copper is found in things like electrical cables, roofing, and other components of the largest capital projects undertaken anywhere.
And so, if copper prices fall because demand is weak, it’s seen as showing a deeper rut elsewhere in the global economy. John LaForge, head of real asset strategy at Wells Fargo Investment Institute, said copper helped predict three of the past five recessions in the US — in 1981, 2001, and 2007…………………………………..Full Article: Source

Average global aluminum output hits record on China gains

Posted on 21 October 2016 by VRS  |  Email |Print

Daily average primary aluminum output hit a record high in September, driven by buoyant output in top producer China, data from the International Aluminium Institute (IAI) showed on Thursday. The global daily average rose to 164,600 tonnes from 159,800 in August while total Chinese output for the month increased to 2.75 million, the highest in 15 months.
“The rally in Shanghai aluminum prices so far this year has improved profitability and is encouraging restarts. There are also ongoing additions to capacity,” said Caroline Bain, senior commodities economist at Capital Economics in London…………………………………….Full Article: Source

Chinese aluminum: Japan’s Chinese ADC12 alloy import market lackluster

Posted on 21 October 2016 by VRS  |  Email |Print

The Japanese spot import market for Chinese aluminum alloy ADC12 was lackluster in recent sessions after the yen weakened against the dollar, Japanese trade and consumer sources said Tuesday.
S&P Global Platts assessed the spot export price of Chinese-origin auto diecasting (ADC12) aluminum alloys at $1,680-$1,720/mt FOB China Tuesday, unchanged from a week ago. Chinese producers mostly offered at $1,700-$1,730/mt CIF Japan for December loading. There was a handful of producers in south China offering $1,690-$1,695/mt CIF Japan but volumes were limited…………………………………….Full Article: Source

China Says It Needs 18% More Copper by ‘20 as Economy Shifts

Posted on 20 October 2016 by VRS  |  Email |Print

China has mapped out its non-ferrous metals needs through to the end of the decade, projecting that while annual growth rates for demand may slow as the economy shifts gears, the world’s largest user is still expected to need far greater volumes than at present.
Demand for ten metals, including copper, aluminum and zinc, will rise at an average rate of 4.1 percent a year from 2016 to 2020, compared with 10 percent in the prior five years, the Ministry of Industry and Information Technology said in a five-year development plan posted on its website…………………………………..Full Article: Source

Cobalt Prices On The Rise Amidst Ethical Concerns

Posted on 20 October 2016 by VRS  |  Email |Print

Cobalt, as we reported previously, is the secret ingredient in lithium ion batteries. Battery-electric vehicles like Tesla’s contain approximately 50kg, or about 10% of the total battery weight, in every car. As we had anticipated, the price of cobalt went up by more than 20% over the past six months (from around $10.80/lb to now $13.40/lb).
In addition to an increase in demand, recent reports of unsafe conditions and child labor emerged in a report by Amnesty International, shocking a customer base with firm environmental and ethical values……………………………………Full Article: Source

China sees shift in metals demand to niche markets in five-year plan

Posted on 20 October 2016 by VRS  |  Email |Print

China’s demand for minor metals used in renewable fuels and electric vehicles will continue to rise over the next four years, as consumption of base metals slows, the government said in the latest update of its five-year industry plan.
Demand for zinc, used in construction and infrastructure to protect steel from rusting, could even hit a peak by end-2020, the Ministry of Industry and Information Technology (MIIT) said in a statement released late Tuesday……………………………………Full Article: Source

China Sept coal output falls ahead of Beijing’s step to boost supplies

Posted on 20 October 2016 by VRS  |  Email |Print

China’s coal output output fell 12.3 percent last month, extending a prolonged period of government-enforced cuts before Beijing gave the go-ahead for producers to reopen shuttered capacity amid a surge in prices.
Output in September fell to 277 million tonnes from a year ago, according to the National Bureau of Statistics on Wednesday. Production has fallen every month since at least July last year, government data shows. For the first nine months, output was down 10.5 percent to 2.46 billion tonnes, the bureau said……………………………………Full Article: Source

How Will the Election Outcome Impact Precious Metals?

Posted on 19 October 2016 by VRS  |  Email |Print

Metals investors wonder what this presidential election will mean for gold and silver markets. Since Nixon closed the gold window in 1971 and the years of price inflation that followed, presidents have largely ignored gold, the Federal Reserve, and other issues related to sound money.
Today, the devaluation of the Federal Reserve Note – the explosion of debt and the eternal deficits which enrich bankers and the political class at the expense of the rest of us – is getting harder to ignore…………………………………Full Article: Source

Nickel Leads Gains in Industrial Metals as Chinese Credit Surges

Posted on 19 October 2016 by VRS  |  Email |Print

Nickel led gains in industrial metals as a surge in new credit in China pointed to a stabilizing economy in the world’s biggest commodities buyer.
Aggregate financing of 1.72 trillion yuan ($255 billion) in China last month exceeded a median estimate of 1.39 trillion yuan in a Bloomberg survey. Metals also advanced as the dollar weakened, making materials priced in greenbacks cheaper for buyers using other currencies…………………………………Full Article: Source

Copper to remain under stress next year after dismal performance in 2016

Posted on 19 October 2016 by VRS  |  Email |Print

Copper is also inversely related to US dollar since copper is traded in US currency so any appreciation in US dollar will have negative impact on copper prices. In 2016, MCX Copper has rallied by 1.85% while COMEX copper has rallied by 3%, making it the worst performing base metal, while commodities like zinc and lead have appreciated by 55% and 42%.
Other base metals like aluminum and nickel all have posted double-digit gain this year. Copper has been underperformer this year and sentiment may remain sluggish next year also on back of China’s decline in refined imports as their domestic production of copper is increasing…………………………………Full Article: Source

Commodity’s 2016 Champ Extends Rally as Met Coal Output Squeezed

Posted on 19 October 2016 by VRS  |  Email |Print

Metallurgical coal is extending the record-breaking run that’s made it the best-performing commodity this year. Spot hard coking coal rose $6.30, or 2.8 percent, to close at $232.60 a metric ton on Monday, according to data from The Steel Index.
That’s a record high for the index that started in January 2013. RBC Capital Markets this week raised its price forecasts for 2017 and 2018 by more than 50 percent on a shortage that’s estimated to extend until rebalancing occurs in three years…………………………………Full Article: Source

Chinese government calls the shots in mining

Posted on 19 October 2016 by VRS  |  Email |Print

Investec has released a note in which it says China, and in particular, Chinese government policy is the main driver in the recovery of the mining sector along with selected commodities this year.
The broker cited coal as a particular example where Chinese ’supply restrictions’ have had a material impact on prices. Metallurgical coal is the best performing commodity this year, easily outstripping the performance of gold and silver…………………………………Full Article: Source

Metals to see buying till Q4, gold may hit $1,300/ounce: SocGen

Posted on 18 October 2016 by VRS  |  Email |Print

Metals like zinc and nickel could retain gains due to possible supply side pressures but others like aluminium and copper might slip into negative due to increased supplies, says Robin Bhar of Societe Generale.
Metals like zinc and nickel could retain gains due to possible supply side pressures by end of calendar year but others like aluminium and copper might slip into negative due to increased supplies, says Robin. “Copper supplies are expected to increase as more mines open up, while in aluminium idle capacities are expected to come on board,” Bhar said………………………………….Full Article: Source

Copper falls on China trade activity concerns

Posted on 17 October 2016 by VRS  |  Email |Print

Weakening demand for metals hits shares of largest mining companies. China’s latest trade data have raised concerns about weakening demand for metals, casting a shadow over the sector and knocking the price of copper.
Data showing a 10 per cent fall in China’s exports last month and a greater-than-expected drop in imports sent copper down nearly 3 per cent on Thursday before a slight recovery on Friday. “The drop in exports is negative for industrial commodities raising concerns about weakness in the manufacturing sector,” said Caroline Bain, an analyst at Capital Economics…………………………………….Full Article: Source

China Trade Fizzle Divides Metals as Copper Drops and Gold Gains

Posted on 14 October 2016 by VRS  |  Email |Print

Copper dropped and gold gained as weak Chinese trade data undermined confidence in the global economy. Chinese exports unexpectedly shrank the most since February, while imports also declined. The figures signaled slower growth in the world’s second-largest economy just as the U.S. prepares to raise interest rates, boosting gold’s appeal as a haven.
“The Chinese data was disappointing to the industrial metals and pushing the asset protection side of precious metals,” George Gero, a managing director at RBC Wealth Management, said in a telephone interview……………………………………Full Article: Source

London zinc bounces, pares losses from Peru supply boost

Posted on 13 October 2016 by VRS  |  Email |Print

London zinc partly recovered on Wednesday after posting its sharpest daily fall in more than 10 months after a major miner said it planned to double output next year, which pummelled zinc prices in Shanghai.
Zinc prices have been expected to climb into next year, after large mines such as Century in Australia and Lisheen in Ireland dried up, with no major new projects on the horizon……………………………………..Full Article: Source

The key to the commodity surge puzzle

Posted on 12 October 2016 by VRS  |  Email |Print

The continuing surge in commodity prices is causing some head-scratching, as resource sector executives and analysts try to come to conclusions about its sustainability. The oil price hit a year-high of $US52.92 a barrel overnight, as the prospects of an OPEC-led production cut, or at least freeze, appeared to strengthen.
Coal prices have soared, with metallurgical coal above $US200 a tonne and thermal coal above $US80 a tonne. The iron ore price rose 2.6 per cent to $US55.80 a tonne overnight……………………………………….Full Article: Source

BofA Merrill Revised Nonferrous Metals Price Forecast for 2016

Posted on 12 October 2016 by VRS  |  Email |Print

Bank of America Merrill Lynch (BofA Merrill) said October 7 it revised price forecast for major nonferrous metals in 2016, according to wenhua.com. It expects the average copper price to be $4,734 per tonne in 2016, compared to $4,828 per tonne it had expected earlier. The bank lowered its price forecast for aluminum from $1,597 to $1,589 per tonne in 2016.
Price forecast for zinc was revised upwardly from $1,987 to $2,061 per tonne, and that for nickel was revised from $9,269 to $10,019 per tonne. Lead prices are expected to average $1,855 in 2016, compared to $1,814 per tonne it had expected earlier……………………………………….Full Article: Source

Miners recover after commodity prices rise

Posted on 11 October 2016 by VRS  |  Email |Print

The big miners may still be reluctant to call the bottom of the resources cycle but some big companies have made the call and are grabbing assets today at what may prove to be bargain prices tomorrow. Having been in the gutter not so long ago, all of a sudden the sector is the centre of bottom-feeding corporate activity.
The rally in stock prices shows the corporate activity has missed the lows, but clearly there is plenty left to go at the start of what may be a new cycle. The increased takeover activity has pushed mining services company stocks to 52-week highs in recent weeks — close to double the lows hit either last year or early this year………………………………….Full Article: Source

Industrial Metals Bull Market Extends Into Q4

Posted on 10 October 2016 by VRS  |  Email |Print

Industrial metals rose in the first half. In Q3 they took a break, but momentum is starting to pick up again. The industrial metals exchange-traded fund, which tracks the performance of four base metals, recently hit a 14-month high.
This is important because when money is flowing into the industrial metals complex, every metal gets a tailwind. Recently, we witnessed particularly strong momentum in lead, zinc and tin: Lead prices skyrocketed last week, despite a supply surplus this year. Zinc rose to new ground last week. Despite being up 60% on the year to date, the metal continues to move up……………………………………….Full Article: Source

China’s metal imports to moderate after improving in 1H

Posted on 07 October 2016 by VRS  |  Email |Print

Chinese iron ore production forecasted to decline by 10%. China’s metal imports will decelerate over the years due to weakened demand from the country’s slowing economy, says BMI Research. In H116 imports were strong as government stimulus in the housing sector boosted demand for metals used in construction.
The housing stimulus measures were a combination of easing credit conditions, lower down payments and tax cuts. As a result, positive sentiment surrounding the property market and China’s economy, and improving domestic housing data led to increased steel demand, which translated into a sharp rally in steel prices……………………………………….Full Article: Source

Metals lack impetus, lead/zinc off highs as tightness eases

Posted on 07 October 2016 by VRS  |  Email |Print

Base metals continued to trade sideways-to-lower on the LME on Thursday, October 6 while investors remained sidelined ahead of key data and economic news.
Markets will first look to see if the European Central Bank (ECB) will taper its monetary-easing measures – there is talk of cuts to its bond-buying scheme from 80 billion ($89.5 billion) euros per month. The dollar index continues to hold above 96 after largely stronger-than-expected economic data from the US. It was recently at 96.25, up 0.05 percent……………………………………….Full Article: Source

Nickel touches two-week low as supply concerns ease

Posted on 07 October 2016 by VRS  |  Email |Print

Nickel touched a two-week low as concerns about supply restrictions eased and the US dollar strengthened. Indonesia is finalising revisions to regulations that will allow exports of processed metal concentrates for a further three to five years and may permit sales of low-grade nickel ore.
There has also been speculation that Philippine mines may avoid shutdowns after a government audit. After entering a bull market last week, the London Metal Exchange’s index of base metals has retreated as the dollar rebounded……………………………………….Full Article: Source

Aluminium, copper prices to remain flat in near term: ICRA

Posted on 05 October 2016 by VRS  |  Email |Print

Ratings agency ICRA today said it maintains the outlook for a range bound movement in aluminium and copper prices, hovering around their current levels in the near term.
“Moreover, the upward movement in zinc prices, witnessed in the last six months or so, is also likely to flatten and remain at around its current level at least over the next three months or so,” it said in a statement…………………………………….Full Article: Source

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