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Time For Equities To Crash And Precious Metals To Spike?

Posted on 25 June 2014 by VRS  |  Email |Print

There is a distinct possibility that equities could move down into an intermediate bottom and at roughly the same time gold could bottom. Equities have rocketed in the last 3 years while precious metals have plummeted.
We are quickly approaching an inflection point in the markets. Soon, market forces will overpower government and central bank interventions………………………………………..Full Article: Source

Emerging markets firms to lead global mining sector: PwC

Posted on 25 June 2014 by VRS  |  Email |Print

Emerging market mining companies outperformed their peers from traditional markets on profitability and on dividend yield in 2013 and continue to do so this year, the latest study released by PwC shows. In its Global mining report 2014, the experts note that net profits from progressing economies-based miners reached $24 billion in 2013, compared to a net loss of $4 billion for developed market firms.
According to the analysts, results in upcoming elections to be held in India, Brazil, Indonesia and South Africa may further alter the influence of emerging markets on mining. This will especially affect coal and iron ore, and potentially gold and potash, which incidentally contributed the most to decline in profitability………………………………………..Full Article: Source

Collateral Damage in China’s Commodity Pileup

Posted on 24 June 2014 by VRS  |  Email |Print

The mysterious case of missing metals at a Chinese port is a headache for the global banks involved. It is also an omen of more widespread risks in the country’s financial system.
Several foreign banks including Citigroup Inc. and Standard Chartered PLC are investigating whether the same stocks of copper and aluminum, stored by a trading company at a Qingdao port, were pledged to all of them as collateral for loans. Deepening the intrigue, a major state-owned enterprise, Citic Resources Holdings Ltd. , says some metals that it has stored at the Qingdao port can’t be located………………………………………..Full Article: Source

Platinum Down, Palladium Up After End to South African Miners’ Strike

Posted on 24 June 2014 by VRS  |  Email |Print

Prices for platinum and palladium shuffled between gains and losses Monday, as concerns about supplies of the precious metals persisted despite the apparent end of a five-month-old strike by South African miners.
Platinum for July delivery, the most actively traded contract, settled down 0.1%, or 70 cents, at $1,456.60 a troy ounce after trading between $1,441.20 and $1,459.40 an ounce. Palladium for September delivery closed up 0.1%, or 45 cents, at $822.65 a troy ounce. The September contract had slid to a low of $810.50 an ounce………………………………………..Full Article: Source

Why Precious Metals Remain Attractive

Posted on 23 June 2014 by VRS  |  Email |Print

They say the third time’s a charm - and if the narrowed range that has confined silver over the past two years is any indication, those participants patient enough should be rewarded handsomely for their extended stay on the long side of the field. Going into this month, silver was presenting a third iteration of the patterned reversal - with all of the positive momentum trappings that had defined the previous two.
Adding fuel to the fire and despite the fact that silver had maintained a bid above last years low, those late to the short-side of the tracks or holding more dogmatic persuasions had built up a dangerously large short position almost 50% above last years record congregation………………………………………..Full Article: Source

China Metal Probe Weighs on Copper Outlook

Posted on 23 June 2014 by VRS  |  Email |Print

Hedge funds and other money managers are increasing their bets against copper, according to U.S. data, amplifying pressure on prices following allegations of fraudulent metal-backed financing in China.
The wagers are likely to further weigh on the outlook for one of the world’s most heavily traded metals, as the effects of an official probe on stockpiles in the eastern Chinese port of Qingdao continue to ripple across global markets. The port’s operator has confirmed that Chinese authorities are investigating allegations of fraud relating to stockpiles of metals, though the government hasn’t commented publicly……………………………………….Full Article: Source

China scandal weighs on iron ore price

Posted on 23 June 2014 by VRS  |  Email |Print

Hopes of a recovery in the iron ore price could be dashed by reports that a financing scandal has put the brakes on imports of iron ore and copper at key Chinese ports. Just days after iron ore minnow Termite Resources shuttered its Cairn Hill iron ore mine in South Australia, reports in the Wall Street Journal suggest that banks are examining allegations that a Chinese trading company pledged metal as collateral to more than one lender.
Chinese traders have long used commodities such as iron ore and copper as collateral to borrow from overseas, thus avoiding both China’s capital controls and its higher interest rates………………………………………..Full Article: Source

2014 gold mine capital cost to peak at US$2,400/oz - SNL Financial

Posted on 20 June 2014 by VRS  |  Email |Print

The cost of building a mine has increased significantly over the last decade, from US$560 per ounce of gold production capacity in 2004 to more than $2,300/oz last year, says a new report by SNL Metals & Mining. Based on data from mines currently under construction, capital costs are expected to peak this year at almost $2,400/oz, according to an article by SNL metals analyst Kevin Murphy.
“The three-year-running-average capital cost of capacity follows behind the trend set by the gold price,” said the SNL report, Strategies for Gold Reserves Replacement. “When gold prices increased sharply in 2006, producers responded by approving construction of more capital-intensive projects, which began at earlier gold prices.”……………………………………….Full Article: Source

Rare Earth Metals Staging a Comeback?

Posted on 20 June 2014 by VRS  |  Email |Print

The market for rare earth metals represents the ultimate paradox. Rocketing prices a few years ago sent manufacturers scrambling for lower-cost alternatives, causing the bottom to fall out of virtually every rare earth mining stock.
The weakest junior miners were forced to shutter their doors. But a 60% spike in praseodymium prices is a surefire signal that demand is back. Hold your applause, though…While much higher prices make the handful of surviving rare earth explorers immensely attractive, another pricing panic could simply lead to demand destruction all over again………………………………………..Full Article: Source

Probe May Hit China’s Imports of Copper, Iron Ore

Posted on 20 June 2014 by VRS  |  Email |Print

China’s imports of copper and iron ore may drop due to an alleged financing scandal, as banks withhold credit and customs officials tighten checks on incoming shipments, metals traders say.
Western banks are looking into allegations that a Chinese trading company illegally pledged metals as collateral to more than one lender. The operator of Qingdao Port, the eastern Chinese port where the metals are stored, has confirmed that Chinese authorities are investigating allegations of fraud relating to stockpiles of metals………………………………………..Full Article: Source

Copper demand to overtake surplus by 2019: Zimtu

Posted on 20 June 2014 by VRS  |  Email |Print

Demand for refined copper will overtake the current surplus by 2019, says Zimtu analyst Derek Hamill. “Copper supplies are likely to exceed demand in 2014 and 2015; we further expect this situation to persist for 2016 and 2017,” Hamill writes in a report titled Multi-Year Global Copper Market Outlook.
Copper demand is intensifying due largely to continued urbanization and industrialization in Asia, particularly China and India. Hamill also notes that copper mining economics are “changing dramatically” because of rising operating costs, higher regulatory hurdles and declining grades, and that should increase prices………………………………………..Full Article: Source

Forget gold, time to buy searing hot ‘white metals’

Posted on 19 June 2014 by VRS  |  Email |Print

While gold has been climbing higher recently as investors seek safety due to the deteriorating conditions in northern Iraq, the ‘white metals’ as they are called have been searing hot.
Palladium is near five-year highs after tailing off a smidge, and platinum’s been on fire the past few months. The prescient Jonathan Hoenig of the Capitalist Pig Hedge Fund was on Breakout two months ago, banging the table telling viewers to buy these metals. In the attached video, he says the trade’s still on and you still have time to play it…………………………………..Full Article: Source

At last! Scientists glimpse Earth’s most abundant mineral

Posted on 19 June 2014 by VRS  |  Email |Print

Earth’s most abundant mineral lies deep in the planet’s interior, sealed off from human eyes. Now, scientists for the first time have gotten a glimpse of the material in nature, enclosed inside a 4.5-billion-year-old meteorite. The result: They have characterized and named the elusive mineral.
The new official name, bridgmanite, was approved for the mineral formerly known by its chemical components and crystal structure — silicate-perovskite. The magnesium-silicate mineral was named after Percy Bridgman, a 1946 Nobel Prize-winning physicist, according to the American Geophysical Union blog…………………………………..Full Article: Source

Copper Advances on Bets Demand Will Climb in China, U.S.

Posted on 17 June 2014 by VRS  |  Email |Print

Copper futures rose for the second straight session on signs that demand will pick up as economies gain in China, the world’s top consumer of industrial metals, and the U.S., the second-biggest.
China’s central bank extended a cut in reserve requirements to some national lenders as officials try to support the economy without broader stimulus. In the U.S., industrial output increased more than forecast in May, while the Federal Reserve of New York’s Empire manufacturing report unexpectedly climbed this month as orders jumped………………………………………..Full Article: Source

2013 Top 10 Copper Producing Countries

Posted on 17 June 2014 by VRS  |  Email |Print

In terms of copper production, it’s Chile who accounts for the lion’s share of world output by far. However, there are still several other countries with significant operations, including neighbouring Peru, as well as China, the U.S. and Russia.
The United States Geological Survey released its most recent set of data on copper-producing countries, and Copper Investing News took a look to see who made the top ten. Below is a list of the top ten copper producing countries as reported by the USGS, ordered by total production………………………………………..Full Article: Source

Iron ore price nears $US90 a tonne

Posted on 16 June 2014 by VRS  |  Email |Print

The iron ore price is flirting with the crucial $US90 a tonne threshold after inching even lower over the weekend as weakened steel demand in China continued to weigh on the commodity. Benchmark iron ore for immediate delivery to the port of Tianjin in China is trading at $US90.90 a tonne, a decline from $US91.50 in the previous session.
The commodity is closing the gap between its current price and its $US86.9 a tonne trough during September 2012, and currently sits at its lowest point since September 7, 2012, when it traded at $US89 a tonne………………………………………..Full Article: Source

Metals Maneuver May be Losing Shine

Posted on 13 June 2014 by VRS  |  Email |Print

Spiraling violence in Iraq and a possible resolution to South Africa’s mining strikes are adding a fresh element to a profitable metals trade. For the last several months, some investors struck a delicate balance using commodities whose prices were moving in opposite directions: buying futures in platinum and palladium, while betting against gold, several traders and brokers said.
Platinum and palladium were surging on a prolonged miners strike in South Africa, a key producer of both metals. Gold was losing ground, as a stabilizing U.S. recovery and buoyant stock markets eroded the need for the metal as a hedge against uncertainty………………………………………..Full Article: Source

Platinum, palladium sink as S. African strike nears end

Posted on 13 June 2014 by VRS  |  Email |Print

Palladium posted its biggest daily losses in almost a year on Thursday after South African producers struck a deal with the union to end a crippling five-month strike, and violent conflict in Iraq burnished gold’s safe haven status.
Taking a step closer to resuming operations after the longest strike in the 130-year history of South Africa’s mines, Amplats, Implats and Lonmin reached an agreement in principle with the Association of Mineworkers and Construction Union (AMCU) about wages………………………………………..Full Article: Source

Gold Much Harder Sell, Palladium Looking Strong (Video)

Posted on 13 June 2014 by VRS  |  Email |Print

Which precious metal will most likely prevail this coming year? Palladium says Philip Newman, director of Metals Focus, to Kitco News at the IPMI Conference. “I think, in terms of palladium, the underlying supply-demand picture is very strong from a price point of view,” he says. “I think we’ll see gold and silver struggle relative to the PGMs.”
Newman says gold and silver prices will most likely remain range-bound for the next few months and even into early next year. “This year, we’re not seeing mass liquidations, that is really behind us, but at the same time we’re not seeing a great deal of net new demand from the investment community coming in.” ……………………………………….Full Article: Source

China Won’t Sink Copper’s Ship

Posted on 13 June 2014 by VRS  |  Email |Print

In China’s latest metals-for-loans scandal, it is easy to make mountains out of molehills. As far as copper is concerned, investors should try to see the issue for what it is—a medium-size molehill.
Copper spot prices have slumped 4% since reports that Chinese authorities are cracking down on traders who use metals such as copper as collateral for loans. The case is complicated by evidence that a trader may have used metal stored at the northeastern port of Qingdao as collateral for multiple loans, possibly defrauding several Western banks, including Standard Chartered and Citigroup……………………………………….Full Article: Source

Lenders Fear Spread of Chinese Commodities Fraud Case

Posted on 12 June 2014 by VRS  |  Email |Print

Large banks and trading firms are frantically trying to determine whether they have fallen victim to a suspected commodities fraud emanating from the giant Qingdao Port in northeast China.
Citigroup and several other large Western banks are concerned that their loans may lack the appropriate collateral, big stockpiles of copper and aluminum at the port. The banks have inspectors on the ground who are trying to assess whether enough of the metals are there………………………………………..Full Article: Source

Shift metals in China to secure warehouses, banks tell clients

Posted on 12 June 2014 by VRS  |  Email |Print

At least two global banks involved in commodity financing in China have asked some clients to shift copper and aluminium, used as collateral for loans, to better regulated warehouses, three sources with direct knowledge of the matter said.
Banks and trading houses have been making urgent checks on the security of metal holdings in China, sparked by a suspected fraud at Qingdao Port, the world’s seventh biggest. Police are investigating the duplication of warehouse receipts by a third-party firm on metal cargos used to obtain financing………………………………………..Full Article: Source

Why Metals Buyers Should Worry About China’s Commodity Trade Financing Game

Posted on 12 June 2014 by VRS  |  Email |Print

Chinese companies are getting caught up in commodity trade finance trouble, as borrowers are securing loans using warehoused aluminum and copper as collateral – and allegedly using the same collateralized stock multiple times for multiple loans. Should Industrial Metals Buyers Worry About This?
Surely, it is an internal Chinese matter; if a few Western banks have got themselves caught up in it and get burned as the clients default, the underlying commodity proves to not be there or pledged elsewhere, well, some may say, that’s their fault for lending in such an unregulated market………………………………………..Full Article: Source

Palladium holds near 3-1/2-year high; gold ticks higher

Posted on 12 June 2014 by VRS  |  Email |Print

Palladium held near its highest level in more than three years in a volatile session on Wednesday, underpinned by physical demand for the precious metal, as well as a five-month strike in South Africa.
Palladium often tracks sister metal platinum, which has risen nearly 8 percent this year on supply concerns after the strike over wages took out 40 percent of global platinum output and hit South Africa’s economy………………………………………..Full Article: Source

Palladium Futures Hit 13-Year High on Supply Concerns

Posted on 12 June 2014 by VRS  |  Email |Print

Palladium prices closed at the highest level in 13 years, propelled by investors’ worries that supplies of the precious metal are dwindling amid a nearly five-month-old miners’ strike in South Africa.
Palladium for September delivery, the most actively traded contract, rose $5.60, or 0.7%, to $860.15 a troy ounce on the Comex division of the New York Mercantile Exchange. It was the highest close since February 2001. Palladium for June delivery also rose 0.7%, ending $5.80 higher at $860.70 an ounce………………………………………..Full Article: Source

China construction vs copper price – something’s gotta give

Posted on 12 June 2014 by VRS  |  Email |Print

Chinese copper imports tumbled 16% in May. Year to date China is still importing refined copper at a record setting pace – up a whopping 34% over 2013 to 2.1 million tonnes. This at a time when the Chinese economy is expanding at is slowest pace in more than two decades.
The mismatch is ascribed to the popularity in credit-starved China of the red metal as collateral in trade financing agreements. But May’s sharp drop indicates these deals may be unwinding at a more rapid rate than previously thought………………………………………..Full Article: Source

Nickel Declines Amid Closing Out of Wagers on Price Gains

Posted on 12 June 2014 by VRS  |  Email |Print

Nickel fell in London to the lowest level in almost four weeks amid closing out of some bets on rising prices. A speculative long position contracted for a second week to 58 percent of nickel futures outstanding on the London Metal Exchange, according to Marex Spectron Group.
Prices are still up 33 percent this year after surging as much as 56 percent following January’s ban on raw-ore exports by Indonesia, the world’s biggest nickel-mining nation………………………………………..Full Article: Source

LME Aluminium may rebound to $2000/ton on falling inventory

Posted on 12 June 2014 by VRS  |  Email |Print

Aluminium prices which had hit a four-and-a half year low in February at London Metal Exchange (LME) but recovered 14% from those lows. According to United Company Rusal Plc, world’s leading aluminium producer, prices may peak to $2000 per ton in the coming months due to bullish physical and technical factors.
Angel Commodities noted in a monthly report that Chinese aluminum smelters are restarting some idled capacity after prices of the metal rebounded from five year lows hit in March, also taking advantage of lower power costs………………………………………..Full Article: Source

Deutsche Bank Sees Industrial Metals Outperforming Precious Metals, Energy

Posted on 12 June 2014 by VRS  |  Email |Print

Deutsche Bank looks for industrial metals to outperform precious metals and energy. “We view the macro environment as remaining hostile to the (precious) sector and specifically gold given our belief that the S&P 500 will hit fresh highs, U.S. long-term real yields are set to move higher and the possibility that divergent monetary policies between the Fed and the ECB (European Central Bank) trigger a more meaningful turn in the U.S. dollar during the second half of the year,” Deutsche Bank says.
“Industrial metals have been the best-performing sector on a total returns basis during the second quarter. A snapback in U.S. GDP growth as well as the Fed preparing the groundwork for a turn in U.S. monetary policy should be supportive for industrial metal prices over the coming year. ……………………………………….Full Article: Source

LME Aluminium may rebound to $2000/ton on falling inventory

Posted on 11 June 2014 by VRS  |  Email |Print

Aluminium prices which had hit a four-and-a half year low in February at London Metal Exchange (LME) but recovered 14% from those lows. According to United Company Rusal Plc, world’s leading aluminium producer, prices may peak to $2000 per ton in the coming months due to bullish physical and technical factors.
Angel Commodities noted in a monthly report that Chinese aluminum smelters are restarting some idled capacity after prices of the metal rebounded from five year lows hit in March, also taking advantage of lower power costs. ……………………………………….Full Article: Source

Iron Ore prices soften as more supplies hit market

Posted on 11 June 2014 by VRS  |  Email |Print

Iron ore prices softened in May as more supplies hit the market and prices fell to $90 levels for 62% Fe fines. The Steel Index (TSI) in a monthly report pointed out that the precipitous fall in iron ore prices comes despite a relatively healthy steel sector in China where mills have been back in the black for some time and while trader’s steel inventories are falling.
TSI’s monthly average of 62% Fe fines benchmark price used to settle May derivatives and futures contracts as well as monthly physical contracts was US $100.56/dry metric ton, down 12.2% month-on-month………………………………………..Full Article: Source

Copper bets cut most in a month

Posted on 10 June 2014 by VRS  |  Email |Print

Hedge funds cut bullish copper bets by the most in a month on concern that a supply surplus will return as demand growth slackens in Europe and China.
Money managers trimmed their net-long position by 24% to a four-week low. A probe into inventories in China spurred speculation that imports by the biggest consuming nation will drop, while the European Central Bank took unprecedented steps to combat deflation. Barclays Plc anticipates that global supply will outpace demand from the fourth quarter………………………………………..Full Article: Source

Fund Managers Cut Overall Exposure To Precious Metals, Go Short Silver

Posted on 10 June 2014 by VRS  |  Email |Print

Another price drop for most precious metals encouraged large speculators to continue reducing their net-long positions across the board in precious metals futures and options positions on the Comex division of the New York Mercantile Exchange and Nymex.
Fund managers cut bullish exposure to gold and the platinum group metals in disaggregated and legacy weekly commitments of traders report from the Commodity Futures Trading Commission, while turning net-short silver for both reports. In copper they cut bullish positions in the disaggregated report and added to bearish trades in the legacy report. The data is as of June 3………………………………………..Full Article: Source

Copper Bets Cut Most in Month as Metal Leads Losers: Commodities

Posted on 09 June 2014 by VRS  |  Email |Print

Hedge funds cut bullish copper bets by the most in a month on concern that a supply surplus will return as demand growth slackens in Europe and China.
Money managers trimmed their net-long position by 24 percent to a four-week low. A probe into inventories in China spurred speculation that imports by the biggest consuming nation will drop, while the European Central Bank took unprecedented steps to combat deflation. Barclays Plc anticipates that global supply will outpace demand from the fourth quarter………………………………………..Full Article: Source

Singapore push to become metals hub bears fruit

Posted on 09 June 2014 by VRS  |  Email |Print

Some 150 people gathered at the Fullerton Bay Hotel rooftop for drinks on a Wednesday night recently to meet fellow members of the mining industry in Singapore. The crowd was so large that the organisers, the Singapore Mining Club, had to turn away another 50 who were interested because of space constraints, a reflection of how much the Singapore metals sector has grown in breadth and depth from an insignificant presence five years ago.
“When we were here five years back, Geneva was the trading hub,” said Dhaval Shah, UIL Singapore head of non-ferrous metals. “All the trading houses have now moved their base to Singapore because this is where they see the growth coming in the future.”……………………………………….Full Article: Source

Nickel, Aluminium prices may gain on supply crunch, production cuts

Posted on 06 June 2014 by VRS  |  Email |Print

Nickel and aluminium are expected to trade higher on supply crunch and production cuts. Angel Commodities said in monthly report that aluminium prices may gain on production cuts by the global producers Alcoa and Rusal which may shift the market balance into deficit. The metal would benefit from global sale of cars and light commercial vehicles which accounts for 20% of metal use.
Vehicle sales are expected to rise 5% in 2014 to a record 88.4 mn vehicles, thereby boosting the demand. Further, delivery delays at warehouses monitored by the LME exceed two years; will act as a positive factor for prices. With strong demand side fundamentals for Nickel, prices will trade on a positive note taking cues from the supply crunch that is likely to intensify as the Chinese higher grade ores stocks are about to exhaust in a month………………………………………..Full Article: Source

2013 global mine profits lowest in a decade - PwC

Posted on 06 June 2014 by VRS  |  Email |Print

“2013 was a year that forced the global mining industry to realign expectations in one of the most difficult operating environments for years,” said PwC in its latest Mine report published Thursday. Led by gold’s greatest decline in three decades, commodity prices decreased significantly and mining stocks fell 23% in 2013.
Coupled with record impairments of $57 billion last year, global mining’s net profits plunged 72% to a decade low of $20 billion in 2013. Gold miners endured another particularly bad year, losing $110 billion off market capitalization, accounting for almost 40% of the overall reduction in market capitalization last year. “Five gold companies fell out of the Top 40 in 2013, exacerbating this drop in value,” PwC noted………………………………………..Full Article: Source

Metals financing concerns rise in China

Posted on 06 June 2014 by VRS  |  Email |Print

One of China’s busiest ports is investigating whether aluminium and copper stocks have been used multiple times as collateral against loans, reigniting concerns about financing activity in the world’s biggest commodity consumer. The case, which could have implications for western banks and trading houses, comes amid a crackdown on shadow financing and corruption in China.
A private Chinese metals company is alleged to have pledged the aluminium and copper stocks stored at warehouses in Qingdao as collateral for loans more than once………………………………………..Full Article: Source

Is There a Cleaner Way to Make Metals?

Posted on 06 June 2014 by VRS  |  Email |Print

Making metal is a dirty business, and we don’t just mean in terms of getting your hands dirty. Creating useable metals from the ores that are dug from the ground is a heavily polluting endeavor—but it might be about to get a whole lot cleaner.
Most metals are created in a two-step process. First, the excavated ores are ground down and filtered to get rid of the obvious junk and intruder metal ores, leaving just the metal oxides—metallic atoms bound up with other elements including oxygen, as opposed to in its pure form………………………………………..Full Article: Source

In a falling precious metals market, palladium shines

Posted on 05 June 2014 by VRS  |  Email |Print

Palladium has turned out to be a standout metal in recent days and has outperformed other precious metals, especially gold and silver which are steadily falling. While strong demand and weak supply have combined to push palladium prices to new highs, the performance of platinum has been somewhat weak.
Platinum prices fell, but surely not as much as that of either gold or silver. If anything, the price differential between platinum and gold is widening and currently stands at around $200 an ounce. Prolonged strike in South Africa from early this year has provided support from the supply side to the two industrially-oriented precious metals………………………………………..Full Article: Source

Iron ore rebounds, but more drops could be coming

Posted on 05 June 2014 by VRS  |  Email |Print

The iron ore price bounced back overnight as Chinese steel mills dipped into the market, but observers are not convinced the bulk commodity has found its bottom. The spot price for iron ore jumped 2.2 per cent to $US94.60, moving further away from a 20-month low hit on Friday. The commodity is still down nearly 30 per cent since the start of the year.
The spot rise came on the back of cargo purchases from Chinese mills, traders said. The purchases remained relatively small due to the oversupply of iron ore in May………………………………………..Full Article: Source

China, US to ‘rescue’ copper

Posted on 05 June 2014 by VRS  |  Email |Print

Copper prices are expected to rebound on the international market on the back of increased activity in the construction and utility sectors in China and the United States. Stanbic Bank managing director Charles Mudiwa said the demand for copper in China and the USA will require Zambia to increase its copper production.
He, however, said increased copper production to meet the growing demand in China and the USA will depend on reliable electricity supply………………………………………..Full Article: Source

Coal And Iron Ore Companies Heading Lower?

Posted on 04 June 2014 by VRS  |  Email |Print

Although the current proposal is not law and still has some work to be done before it is finalized, we are trying to put together a long-term plan for how to invest in this new world of lower carbon emissions. We are not of the school of thought that the E&P names will be impacted in the near future with emissions or carbon taxes but we do think that the utilities and certain commodity producers could see some significant upside in the years to come from this proposal.
Right now everyone will focus on solar, wind and other renewables but we think that the big growth in the pie will be in either natural gas or nuclear. We will have to wait until everything is finalized to see what the government is trying to incentivize utilities to trend towards, but the truth of the matter is that we have all been warned that change is on the way………………………………………..Full Article: Source

Silver price is ready for recovery

Posted on 03 June 2014 by VRS  |  Email |Print

The silver price, which at £11.205 (US$18.76) is less than half of its high of $48 an ounce set in 2011, could be set for a rebound according to industry players. A research report out today from ETF Securities, a London-based investment firm focused on exchange-traded funds and commodities, argues that with industrial demand increasing, supply falling and inventories declining, the gold price stable and price volatility at a decade low, conditions are building for a silver price rally.
The report also cites the fact that in the first quarter of 2014 Chinese demand showed a 22% year-on-year increase in silver imports, the largest quarterly gain since the second quarter of 2010. In addition, demand from China was up 17% year-on-year………………………………………..Full Article: Source

Here’s An Unexpected Jump in Base Metals Prices

Posted on 03 June 2014 by VRS  |  Email |Print

There’s been increasing uncertainty in base metals markets lately. Zinc may be headed for under-supply as key mines globally shut down. Copper demand in China has been somewhat erratic of late. And data last week suggest that yet another metal may also be seeing some big changes.
Aluminum. Black China Blog reports that aluminum premiums in Japan have been surging of late. With buyers here being asked to pay premiums of up to $410 per tonne for the third quarter of the year. That’s a significant rise from the previous quarter. Representing a 9% increase………………………………………..Full Article: Source

4 Reasons Gold Miners Look Poised For A Summer Rally

Posted on 02 June 2014 by VRS  |  Email |Print

We’re all well aware of the bearish summer seasonality (June and July) for the precious metals sector. However, there are suddenly a few reasons to believe that this summer will break the mold of what investors have become accustomed to:
The sell-off came early this year with a 10%+ decline in Market Vectors Gold Miners (ARCA:GDX) between May 5th and May 28th. Moreover, the bullish divergence between the gold price and the senior producers became quite pronounced in recent days:……………………………………Full Article: Source

Why Precious Metals May Be On The Verge Of A Big Move

Posted on 02 June 2014 by VRS  |  Email |Print

Precious metals experienced a wave of selling this past week as bullish investors shunned safe haven assets and bid U.S. equities to all-time highs. Expectations of stimulative action by the European Central Bank next week caused the U.S. dollar to rally against the euro, which also contributed to the precious metals selloff.
For the past year, gold and silver have remained within a trading range after plunging in the first half of 2013 in expectation of the tapering or gradual ending of the Fed’s QE3 program. Both metals appear to be forming a type of wedge pattern that could foreshadow a sharp “breakout” move in either direction when the next important catalyst eventually presents itself…………………………………….Full Article: Source

Iron ore swaps curve signals limit to price decline: Investec

Posted on 02 June 2014 by VRS  |  Email |Print

The iron ore swaps forward curve moving into contango shows signs the recent price drop for physical cargoes may have reached its limit, suggested Investec Bank Friday.
The iron ore forward curve has long been in backwardation, with contracts for settlement farther out at a discount to nearby months and quarters. However, the sustained move into contango in the latter period of this month suggested the front of the curve has come under severe unsustainable pressure, Investec said…………………………………….Full Article: Source

Citigroup Really Dislikes Gold Miners, But If You Insist On Buying Them, Buy These

Posted on 30 May 2014 by VRS  |  Email |Print

To call Citigroup bearish on gold miners like Gold Fields (GFI) and Harmony Gold (HMY) would be like saying a New York Yankees fan dislikes the Mets: It goes beyond simple dislike. But if you’re going to insist on buying gold stocks, they recommend Goldcorp (GG), Barrick Gold (ABX) and Newmont Mining (NEM).
The past year’s developments have exposed the industry’s intrinsically bad fundamentals. Companies cannot change these, but can merely attempt to position themselves better than peers. We believe a shift from “short termness” to longer term value is needed. We have yet to see this happen………………………………………..Full Article: Source

Scotiabank positive on nickel - coal and uranium at rock bottom

Posted on 30 May 2014 by VRS  |  Email |Print

“Indonesia’s ban on the export of all unprocessed nickel-containing ores will turns today’s world supply & demand balance from ‘surplus’ to ‘deficit’ by early 2015,” says Scotiabank economist Patricia Mohr.
In the latest edition of the Scotiabank Commodity Price Index published Wednesday, Mohr observed that Chinese stainless steel producers’ inventories of Indonesian ore “will largely be depleted by year-end.” As a result, Chinese mills urgently boosted imports of FeNi (nickel & iron) by 70% during the first quarter of this year………………………………………..Full Article: Source

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