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Aluminum Deficit to Deepen Fourfold as Metals Healthiest

Posted on 02 October 2014 by VRS  |  Email |Print

Aluminum, the biggest gainer among base metals on the London Metal Exchange last quarter, will fall into a deficit almost four times larger than previously estimated as demand grows faster than expected, according to Standard Bank Plc.
Global consumption will outstrip production by 806,000 metric tons this year, more than a previous estimate of 217,000 tons, the bank’s analysts including Walter de Wet and Leon Westgate said……………………………………….Full Article: Source

No rebound in copper till after 2016

Posted on 02 October 2014 by VRS  |  Email |Print

The falling copper price — which has held its value much better this year than its metal peers, down just 8 per cent so far — will not bounce back any time soon, due to a series of one-off developments in China, which consumes 40 per cent of the world’s production.
That is the verdict of Michael Komesaroff, a leading Australian expert on China’s mining industry — a former Rio Tinto executive in Asia, who then worked for a major Chinese resource corporation — writing in new analysis for China-based GavekalDragonomics………………………………………..Full Article: Source

Can Precious Metals Have A Solid Last Quarter In 2014?

Posted on 01 October 2014 by VRS  |  Email |Print

Spare a thought for gold and silver, the assets left behind in a summer of gung-ho action for several indices, currencies and shares. A bad 2013 has now been consolidated, with growth in the spring months reversed and gold headed perilously close to a new low for the year (hit on January 1st).
For silver, the picture is even worse and at $1840 the metal is (at time of writing) at its lowest point for over four years. Overall, gold is down over 25% from the beginning of last year, and silver 40%; they have dropped 8% and 16% respectively since July 1. And this bad run of form has come during a summer filled with events that would traditionally have been a boon for safer investments………………………………………..Full Article: Source

Palladium price fizzles as Russia tensions ease

Posted on 01 October 2014 by VRS  |  Email |Print

Palladium prices are more or less back to square one. Earlier this year fears of sanctions or retaliatory measures in the Russia-Ukraine crisis drove palladium from the $700-$750/oz range, where it had comfortably sat for some time, to just over $900/oz in early September. Russia is the world’s top palladium and it was widely theorized broader sanctions - which have yet to materialize - might cut that supply and drive palladium prices higher.
But with fears of a wider conflict diminished as negotiations unfold in Eastern Ukraine amidst a tenuous ceasefire, palladium prices have come crashing down through most of September. In recent days the spot palladium price dropped well below $800/oz; at presstime the spot palladium price was creeping just over $765/oz, or more or less where it traded before fighting in Eastern Ukraine began………………………………………..Full Article: Source

Iron ore price hits five-year low in poor month for commodities

Posted on 01 October 2014 by VRS  |  Email |Print

Iron ore led the way down in a shocking month for Australia’s key commodities, crashing to a fresh five-year low overnight on Monday. Australia’s most lucrative export dived 1.2 per cent to $US77.70 a tonne, taking the month’s losses to 8 per cent.
But it’s not just the Pilbara feeling the pinch. Wheat crops from Dimboola to Dubbo are also feeling the pinch of lower prices. Booming wheat production across the globe has hammered the price of the grain – Australia’s sixth biggest export, which was worth about $6 billion in 2013 – to a four-year low. ……………………………………….Full Article: Source

End of the Iron Age

Posted on 01 October 2014 by VRS  |  Email |Print

Iron is one of the most abundant elements on earth but pulling it out of the ground efficiently can be a daunting undertaking. Snaking through the low, green hills of southern Brazil is a 530km pipeline, the decisive link in Anglo American’s $8.2bn Minas-Rio project to extract iron ore in the Brazilian interior and ship it from a new Atlantic port.
Way over its original $3.6bn budget and two years late, Minas-Rio is finally close to the point of “first ore on ship”. For years, huge mining projects such as these have formed the backbone of global economic expansion. The world’s most important commodity after crude oil, iron ore has been devoured by Chinese steel mills, emerging as the raw material for an infrastructure-led growth spurt………………………………………..Full Article: Source

Nickel pulls back but still looks really good - Mohr

Posted on 01 October 2014 by VRS  |  Email |Print

Although LME nickel prices retreated to US$7.80 per pound in late September, Scotiabank economist Patricia Mohr forecasts “the supply & demand balance for nickel in China is still expected to tighten noticeably by early 2015 and we have maintained our price forecast for 2015 & 2016 at a strong US$10 and US$12 respectively.”
In the September 29, 2014, edition of the Scotiabank Commodity Price Index, Mohr noted that the index declined 5.4% in August, adding “the broad-based strength of the U.S. dollar is creating headwinds for precious metal & other dollar-denominated commodity prices.”……………………………………….Full Article: Source

Russia is making a comeback on the global rare earth metals market

Posted on 01 October 2014 by VRS  |  Email |Print

In the next three years, the Urals will launch production using new technology to extract rare earth metals from uranium ore. Scientists expect the project to help Russia return to a market that not so long ago was completely dominated by China.
Scientists from the Ural Federal University have developed a unique technology to extract rare earth metals from uranium ore. Their scientific acumen lies in the creation of a sorbent that makes the extraction possible. Pilot production will be set up using this technology in the near future. According to the scientists, this will slash the Russian market’s need for rare earth metals by a third, reduce the dependence of many industrial sectors on imports and put pressure on China, which has a monopoly on the world rare earth metals market………………………………………..Full Article: Source

Nickel Prices Enter Bear Market Amid Record Inventories

Posted on 30 September 2014 by VRS  |  Email |Print

Nickel entered a bear market as stockpiles reached a record, signaling ample global supplies even as Indonesia bans its exports of the mined metal.
The shipment restrictions in Indonesia, the world’s largest producer of the unrefined ore, drove prices as much as 56 percent higher in 2014 to a two-year high in May. The metal has since fallen more than 20 percent as banks including Credit Suisse Group AG said supplies weren’t as tight as expected………………………………………..Full Article: Source

Iron Ore Heads for Record Run of Losses as Global Surplus Builds

Posted on 30 September 2014 by VRS  |  Email |Print

Iron ore will complete a third straight quarterly decline today to post the longest losing run on record as a slowdown in China’s economy curbs demand growth in the largest buyer and worsens a global surplus. China lost 17 percent this quarter to $77.97 a dry metric ton, the lowest price since September 2009, according to data from Metal Bulletin Ltd. That follows a 19 percent drop between April and June and 13 percent retreat in the first three months. The steel-making ingredient is headed for the longest stretch of quarterly losses since the data series began in 2009………………………………………..Full Article: Source

Precious metals fall

Posted on 29 September 2014 by VRS  |  Email |Print

Platinum has fallen to a near-five-year low and gold ended at its weakest price so far in 2014, hit by the combination of a rising US dollar and concerns about global demand. The greenback gained ahead of data next week that include gauges the Federal Reserve will be watching, such as monthly employment numbers. At the same time, worries that slow growth in Europe, China and Japan would curb demand for cars hit platinum prices. Platinum and its sister metal, palladium, are key components in car exhaust filters.
Gold for December delivery, the most actively traded contract, fell 0.5 per cent to $US1,215.40 a troy ounce on the Comex division of the New York Mercantile Exchange, its lowest close since December 31, 2013……………………………………….Full Article: Source

Time to buy uranium? The best ways to play it

Posted on 29 September 2014 by VRS  |  Email |Print

Patience could finally start to pay off for investors waiting for a revival of the uranium market that imploded in the aftermath of Japan’s nuclear disaster in 2011. After the spot price hit a nine-year low of $28 (U.S.) this spring on oversupply concerns, dragging uranium equities down with it, many investors believe the commodity used to fuel nuclear power plants has finally hit bottom, as the demand picture brightens.
The price has risen about 30 per cent in recent weeks, to $36.50, driven by additional U.S. and European sanctions against Russia, a major uranium supplier, in its conflict with Ukraine. That threatens to put pressure on the global uranium supply, alongside a recent two-week strike at Cameco Corp.’s McArthur River and Key Lake operations in Saskatchewan………………………………………..Full Article: Source

Gold price tipping point threatens mining operations

Posted on 26 September 2014 by VRS  |  Email |Print

The price of gold, down more than a third in three years, is approaching the tipping point where the mining industry would see a spike in the number of producers reducing output or even shutting down operations.
Several mines globally have already suspended output in the past 18 months, but not as many as industry watchers expected as producers focused on slashing costs and reworking mine plans to extract more profitable, higher-grade ounces………………………………………..Full Article: Source

Capital Economics Sees $1,400 Platinum At Year-End, $1,500 By End-2015

Posted on 25 September 2014 by VRS  |  Email |Print

Capital Economics has lowered its end-of-year platinum forecast to $1,400 an ounce but listed an upbeat outlook for the medium term, calling for $1,500 platinum by the end of 2015. “Disappointing growth in demand at a time of high stocks is weighing on the price of platinum,” the firm said in a report Wednesday.
“We expect lower prices to encourage some buying, notably of jewelry, but a sustained recovery is only likely when stocks are depleted, possibly some time next year.” October platinum futures settled at $1,319.40 an ounce on the New York Mercantile Exchange Wednesday………………………………………..Full Article: Source

Zinc price rises on growing global demand

Posted on 24 September 2014 by VRS  |  Email |Print

The price value of zinc exceeded the highest value point; which was in the year 2009, in the first better half of this year. The main reason behind this unexpected rise in the metal is stated to be the increase of global demand over the global production. The squeeze further tightens as the US Mint boosts its production to 7.5 billion pennies this year, which is a 14 percent increase and will require more than 18,000 metric tons of zinc for the production.
Zinc has grown to become an essential element in our day to day life, and is being used in manufacturing most of the commodities starting from coins to sunscreen, where as in the US economy, the price of this metal is climbing up………………………………………..Full Article: Source

World Steel output surges 1.4% in Aug, India sees 5.2% growth

Posted on 24 September 2014 by VRS  |  Email |Print

India’s steel production witnessed an increase of 5.2% in August compared to the same month 2013. In August 2014, India produced 7.0 Mt of crude steel against 6.6Mt in August 2013, World Steel Association said. World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 135 million tonnes (Mt) in August 2014, an increase of 1.4% compared to August 2013.
China’s crude steel production for August 2014 was 68.9 Mt, up by 1.0% compared to August 2013. Elsewhere in Asia, Japan produced 9.3 Mt of crude steel in August 2014, an increase of 2.2% compared to August 2013. South Korea produced 5.3 Mt of crude steel in August 2014, up by 8.0% on August 2013………………………………………..Full Article: Source

Metal prices weaken on global macro factors

Posted on 24 September 2014 by VRS  |  Email |Print

September is proving to be a rough month for the metals sector. In the first half of the month, prices of steel and base metals have fallen further on poor demand and weaker raw material costs. The strengthening dollar has made matters worse for base metals and internationally prices of aluminium are expected to correct further.
With demand from China cooling off and raw material prices coming down on over-supply, prices of steel and other base metals are expected to remain under pressure. Prices of Export HRC (FOB Black Sea) have drifted down to $540 a tonne, while Chinese HRC sheets declined to $498 a tonne. ……………………………………….Full Article: Source

Great American Group Analysts See Prices Rise for Many Base Metals

Posted on 24 September 2014 by VRS  |  Email |Print

Analysts with GA Advisory and Valuation Services, LLC, a division of Great American Group, Inc. report that pricing has increased for a number of non-ferrous metals in recent months amid tight physical supplies, despite lackluster demand in certain segments. In particular, pricing for aluminum, zinc, and lead climbed higher than expected.
“Stockpiles are dwindling and supply deficits are expected for these metals,” noted Michael Petruski, Executive Vice President of Great American Group’s Advisory and Valuation Services division. “Zinc prices have jumped nearly 25% over the year, as zinc production is slated to fall short of demand for the first time in seven years.” (Press Release)

Canadian miners struggle amid oversupply, price collapse

Posted on 24 September 2014 by VRS  |  Email |Print

The world is flooded with metals. Years of expensive expansions have left the market awash with iron ore, metallurgical coal and copper. For more than a decade, China’s growing economy fuelled the bull market in commodities. Mining companies spent billions on acquisitions and new projects around the world, adding waves of new supply to keep the country’s steel mills and factories humming.
Then China’s economic growth slowed and the good times stopped. Now the mining industry around the globe is suffering amid a price collapse for some key metals. Iron ore has lost more than half its value since the boom days, trading at $80 (U.S.) a tonne from a high of $190 in 2011………………………………………..Full Article: Source

Gold Mining “Hurt Long-Term”, Output “Peaking in 2014″

Posted on 23 September 2014 by VRS  |  Email |Print

Gold mining output worldwide is set to peak and then “plateau” in 2014, according to the leading data analysts, as today’s lower prices force producers to cut exploration spending in a bid to boost profit margins. “It seems inevitable,” says the new Gold Survey 2014 Update from Thomson Reuters GFMS, that the mining industry’s response to 2013’s gold price crash “will be detrimental to mine supply levels in future years.”
Forecasting a 10% drop in the average market price to $1270 per ounce for full-year 2014 (currently at $1290), “The mining sector is increasing production this year,” says the consultancy, “with a number of important projects coming into production and/or ramping up to full capacity, having benefited from investment flows in earlier years when prices were much higher.”……………………………………….Full Article: Source

Nickel Prices Decline to Five-Month Low on China Outlook

Posted on 23 September 2014 by VRS  |  Email |Print

Nickel tumbled to a five-month low on concern that demand will ebb in China, the world’s biggest user of industrial metals. Economic growth in China, Asia’s largest economy, faces downward pressure, Finance Minister Lou Jiwei said.
He affirmed that there won’t be major policy changes in response to individual economic indicators, damping prospects for a stimulus boost. Nickel has dropped as much as 22 percent from a 27-month high in mid-May………………………………………..Full Article: Source

Zinc Reaches For The Sky in The Months Ahead

Posted on 23 September 2014 by VRS  |  Email |Print

My goal is to keep readers ahead of the curve in the commodities markets. Several months ago, I told readers that zinc would be the next base metals superstar. Sure enough, The Wall Street Journal just reported that zinc is trading at a three-year high – nearly $2,400 per metric ton, or $1.10 per pound.
The best part is that all signs are pointing to a continued rise. Ultimately, zinc is a classic tale of supply and demand, and there are a few companies that appear to be the heroes of this story………………………………………..Full Article: Source

Concerns over slower growth in China pull metal prices lower

Posted on 23 September 2014 by VRS  |  Email |Print

The base metals generally ended last week on a weak footing having failed to feel that the Chinese stimulus package, or FOMC statement had improved the outlook. Given the run up in many of the metals prices over the summer, which at the time looked as though prices were running ahead of the fundamentals, it now looks as though it is correction time with fund long liquidation generally weighing on prices.
The base metals ended Friday mixed with copper off 0.1 percent at $6,828 having been up as high as $6,992 on Tuesday. Aluminium and nickel were off around 0.5 percent, while zinc was up 0.6 percent, lead was up 0.7 percent in price and tin was up one percent………………………………………..Full Article: Source

Precious metals may get more precious regardless of price

Posted on 22 September 2014 by VRS  |  Email |Print

The silver market is always one day from panic. The same could be said for the bond market or the dollar. In the age of electronic price discovery and massive reckless monetary imbalance anything can happen - and it probably will.
It will happen whether by virtue of just in time delivery practices of the user or the massive (and very real short) concentration within the large commercial category of traders on the most important world price discovery exchange. The lower the price, the less produced; from mining to scrap recycling. It gets worse because the expectations of the future are distorted by the fictions of the present………………………………………..Full Article: Source

Iron ore price at new five-year low

Posted on 22 September 2014 by VRS  |  Email |Print

The price of iron ore has again sunk to a five-year low, falling to its lowest level since September 2012 on continued fears of a supply-demand imbalance. Benchmark iron ore for immediate delivery to the port of Tianjin in China is currently trading at $US81.70 a tonne, down 1.6 per cent on its $US83 closing mark in the previous session and below the previous five-year low of $US81.90 set on September 11.
The latest move marks four straight red sessions for the commodity after it jumped 3.9 per cent on Monday to a level above $US85 a tonne………………………………………..Full Article: Source

Palladium market will witness record deficit this year: Barclays

Posted on 19 September 2014 by VRS  |  Email |Print

The palladium market is poised to deliver a record deficit this year and the market is likely to remain in deficit next to the magnitude of 811koz, according to a Barclays report. The prices are likely to average $850/oz in the final quarter of this year and $890/oz next year, the report said.
The report says price correction is likely to be short-lived for palladium for three reasons. First, despite the largest daily ETP outflow, prices have remained resilient. Second, Russian shipments into Switzerland have eased again after the pickup earlier in the year. Third, underlying auto demand looks robust……………………………………..Full Article: Source

Steel industry on subsidy life-support as China economy slows

Posted on 19 September 2014 by VRS  |  Email |Print

Subsidies accounted for four-fifths of the profits reported by Chinese steel companies in the first half of this year, a dramatic increase in reliance on state support that illustrates starkly the industrial weakness that is an increasing drag on the economy.
The headwinds faced by China’s massive steel sector - falling profit margins and growing dependence on handouts - are shared by other key industrial and infrastructure-related sectors, including aluminium, cement and coal. A Reuters analysis of first-half financial statements from 77 listed Chinese steel, aluminium and cement companies revealed a sharp deterioration in profitability……………………………………..Full Article: Source

Can aluminium prices sustain their rally?

Posted on 18 September 2014 by VRS  |  Email |Print

This year has seen a revival in aluminium prices along with prices for a number of other base metals, such as zinc and nickel. Whereas the strength in zinc and nickel prices has been mainly supply - driven, the picture for aluminium is more nuanced.
Aluminium is the second most produced metal in the world and is used in a wide range of applications, from construction and cars to packaging. The industry has been suffering from oversupply since 2007, mainly due to large capacity increases in China and the Middle East. Prices have been falling since 2011, leading to shutdown of smelters…………………………………….Full Article: Source

Citi buys Deutsche’s base metals trading book: report

Posted on 18 September 2014 by VRS  |  Email |Print

Deutsche Bank has sold its global base metals trading book to Citigroup Inc, the U.S. bank’s latest move to expand its commodities trading business, according to a report by SparkSpread.
The deal is the second by Citi since Germany’s largest bank and one of the biggest financial players in commodities said it would stop trading energy, agriculture, base metals, coal and iron ore. It has retained its precious metals desk…………………………………….Full Article: Source

Profitability Is Gold Mining’s Biggest Issue – Randgold’s Mark Bristow

Posted on 17 September 2014 by VRS  |  Email |Print

Without batting an eye, Randgold Resources Ltd.’s Mark Bristow, chief executive officer, bluntly said profitability is the biggest issue facing the mining industry today. Speaking with Kitco News at the 25th Denver Gold Forum, Bristow didn’t hold back when asked on where the blame should be spread as the sector struggles with profitability.
“It’s going to be tough, right now we’ve seen the fund managers looking to management to fix it,” he said. “I think, to a large degree, the fund managers are joined in how we got there, culpable like management………………………………………Full Article: Source

Gold industry needs ‘cleansing’ of weakest miners

Posted on 16 September 2014 by VRS  |  Email |Print

The gold industry, recovering from the worst slump in prices in 30 years, needs more mergers to help improve investor returns and eliminate unprofitable mines, Fidelity Investments said. About a third of gold production is probably money-losing when the price of the metal is lower than $1,250 an ounce, said Joe Wickwire, who manages more than $1.8 billion of assets including the Fidelity Select Gold Portfolio.
With gold trading at about $1,230, it “might not be a bad thing” if the number of producers was reduced by a third. “It’s part of the life cycle of industries that every so often you need to have a cleansing of that which is not working,” Wickwire said in a phone interview last week from Boston, where Fidelity is based………………………………………..Full Article: Source

Uranium: Not if but when

Posted on 16 September 2014 by VRS  |  Email |Print

Presenters at a uranium seminar organised this week by the London branch of Women in Mining, and sponsored by Fission Uranium, from a broad spectrum of the industry were all in agreement that uranium prices would likely rise substantially, but perhaps not yet - only in the medium to long term.
And medium to long is just another way of saying ‘jam tomorrow’, although in this case ‘tomorrow’ will undoubtedly come but price rises may not be significant until perhaps the end of the decade………………………………………..Full Article: Source

China alumina price rises to Yuan 2,700/mt despite lower metal prices

Posted on 16 September 2014 by VRS  |  Email |Print

The Platts ex-works Henan alumina assessment rose Yuan 60 from Friday to Yuan 2,700/mt ($439/mt) on Monday for 70:30 cash and credit payment terms on limited spot availability and in anticipation of seasonal restocking in the fourth quarter despite lower domestic metal prices, sources said.
The current price was also up Yuan 100/mt from a week earlier, and up Yuan 230/mt month on month. Offers in Henan were heard between Yuan 2,700-2,730/mt cash to partial credit terms, with buyers’ ideas pegged at Yuan 2,650-2,680/mt cash………………………………………..Full Article: Source

Copper price hits three-month low

Posted on 16 September 2014 by VRS  |  Email |Print

Copper futures have fallen to their lowest level in nearly three months as investors bet that slower economic expansion in China will weigh on demand for the industrial metal. The most actively traded contract, for December delivery, settled US2.10c, or 0.7 per cent, lower at $US3.0855 a pound on the Comex division of the New York Mercantile Exchange.
This was the lowest settlement since June 19. On Monday, investors had their first chance to react to weaker Chinese industrial production data, released over the weekend. In August, China’s value-added industrial production posted its slowest increase since December 2008, climbing just 6.9 per cent from a year earlier………………………………………..Full Article: Source

Iron Ore Rebound Seen by Morgan Stanley as Vale Sees $100

Posted on 16 September 2014 by VRS  |  Email |Print

Iron ore is heading for an end-of-year rally as some high-cost supplies are closed and steel demand picks up, according to Morgan Stanley, which said prices may first extend losses by a few more dollars before rebounding.
The steel-making raw material will drop into the $70s-a-ton range in the near term, then rally toward $90 a ton by the end of the year, analyst Joel Crane said in a report today. The commodity, which slumped to the lowest level in five years this month, last traded at less than $80 a ton in September 2009………………………………………..Full Article: Source

Chinese Investors Look for Rare Earth Metals in Greece

Posted on 15 September 2014 by VRS  |  Email |Print

The Greek subsoil and its rare earth metals have attracted the interest of Chinese investors. On the occasion of the ERES international conference hosted in Greece from September 4 to 7, a delegation from China, which is considered the absolute leader in the earth metals field, visited Greece.
It is estimated that 17 valuable minerals associated to the high-tech industry are present in Greece. The majority lies in the underwater area of ​​the northern Aegean Sea and in Thrace. Indications of rare minerals appear in the areas of Rhodope, Thessaloniki, Chios, Kilkis, and in the coastal and underwater area of Strymonikos Bay, and bauxites on the Greek mainland………………………………………..Full Article: Source

Zinc: World running out and shortage hits pound in your pocket

Posted on 15 September 2014 by VRS  |  Email |Print

Prices for the rust-resistant metal zinc soared to a three-year high last week as exhausted mines across the world close, but it is with the pound in our pocket that we are likely to feel the soaring cost most acutely. One and two-pound coins are made up of as much as 25 per cent zinc and analysts are predicting the Royal Mint may have to follow the example of the US Mint and take cost-cutting measures.
The news that zinc prices had spiked on Monday came only days before Chancellor George Osborne launched a competition to create an image that will be emblazoned on the “tails” side of the £1 coin………………………………………..Full Article: Source

Industrial Metals Fall After China Data Signals Slowing Economy

Posted on 15 September 2014 by VRS  |  Email |Print

Copper lead most industrial metals lower after factory and retail-sales data signaled further slowing in China, the world’s biggest user. Copper in London fell as much as 0.8 percent, while zinc and lead also declined. Industrial-output growth in China was the weakest in August since the global financial crisis while investment and retail sales moderated, figures released Sept. 13 showed.
Factory data due today from the U.S., the second-biggest metals user, will probably indicate activity in August slowed from the previous month, according to a Bloomberg News survey………………………………………..Full Article: Source

China’s Global Mining Play Is Failing to Pan Out

Posted on 12 September 2014 by VRS  |  Email |Print

A $10 billion iron-ore mine that has taken more than eight years to develop near this remote Australian port is a glaring example of how much has gone wrong with China’s decadelong push to buy up raw materials around the world.
Citic Pacific’s Sino Iron mine cost roughly four times its initial budget, and analysts who track the project say it likely will lose hundreds of millions of dollars in 2014, its first full year of production. Citic Pacific, a Hong Kong-listed subsidiary of Chinese state-owned behemoth Citic Group, and its contractors made a series of blunders, from thinking they could import workers at Chinese pay levels to a botched bet on currencies that forced the company to seek a $1.5 billion bailout from its parent………………………………………..Full Article: Source

Industrial Metal ETFs To Buy Amid Weak Global Trends

Posted on 12 September 2014 by VRS  |  Email |Print

Industrial metals, in particular nickel, aluminum and zinc, have been showing strength and are gaining enough investor interest despite the recent broad commodity sluggishness and strengthening dollar.
The positive sentiment was mainly driven by increasing industrial demand and limited supplies from existing mines and absence of new development projects. Since industrial metals are used in a number of applications in construction and manufacturing businesses, rising global population, urbanization of other Asian countries and increasing need from developed countries will continue to create unprecedented demand for industrial metals………………………………………..Full Article: Source

Copper outlook not supportive of price rebound: VTB Capital

Posted on 11 September 2014 by VRS  |  Email |Print

The outlook for copper is “not convincing” enough to sustain a price rebound, with London Metal Exchange open interest waning, VTB Capital analyst Andrey Kryuchenkov said Wednesday. “This week saw heavy losses for copper, with the red metal erasing early September gains in a single stroke and tumbling towards support at August lows,” Kryuchenkov said in a research note.
He noted that persistently disappointing macroeconomic data is weighing on the LME complex, “with slack interest for most metals and specifically for copper, where improving supply side dynamics in the long run go in hand with short-term macro jitters and concerns over Chinese consumption.”……………………………………….Full Article: Source

China to export more steel

Posted on 11 September 2014 by VRS  |  Email |Print

“The mills in China have been consistently overproducing. The major reason for this is the strong profitability of the industry – the price of both the ingredients (iron ore, coal, freight, fluxes etc.) and the finished steel has decreased, but the costs of producing a ton of steel fell more, so the profit margins have actually improved.
“For overproduction, steel is either stockpiled or it is exported. A quick look at the inventory numbers (nominal or seasonally adjusted) reveals that steel has actually been drawn out of stockpiles, not added. Hence we are left with the export option………………………………………..Full Article: Source

Goldcorp Inc CEO says gold price plunge to $900 would be an opportunity, not a disaster

Posted on 10 September 2014 by VRS  |  Email |Print

The chief executive of Goldcorp Inc. is not fretting over lower gold prices this year and says he would view any price declines as an opportunity to buy assets. In an interview with the Financial Post on Friday, Charles Jeannes, president and CEO of Goldcorp, spoke about the company’s growth prospects in the next year.
Gold prices have steadily pulled back since 2011, when they reached a record intraday price of US$1,909 an ounce. Prices for the precious metal closed Friday at US$1,268.81 an ounce………………………………………..Full Article: Source

China alumina prices rise further on strong sentiment

Posted on 10 September 2014 by VRS  |  Email |Print

China’s spot alumina prices firmed further across the country Tuesday on continued strong sentiment, as the market returned from an extended weekend to celebrate the Mid-Autumn Festival. China was closed September 6-8 for the national holiday.
The Platts ex-works Henan alumina price was Yuan 2,600/mt ($423/mt) for 70:30 cash and credit payment terms, up Yuan 20/mt from Friday. Spot trades were scarce Tuesday as domestic metal prices slipped, but sentiment stayed strong for the near term on anticipated restocking demand ahead of the winter during the fourth quarter and firmer imported alumina prices recently, several market sources said………………………………………..Full Article: Source

Eight facts you should know about copper

Posted on 10 September 2014 by VRS  |  Email |Print

The other day, I was eating lunch with a friend and colleague, and he mentioned that copper can increase the risk of cancer. This was not the first time I had heard something scary about copper. Last year, another friend (a medical doctor) also mentioned copper’s association with cancer, especially hormonal types. How could something so integral to our body be so bad I wondered?
I researched it. Just like I suspected, copper is essential to good health. We don’t need a lot of copper, but certain healthy amounts are vital and essential to our health and well-being. It’s all about balance!……………………………………….Full Article: Source

Iron ore price at new five-year low

Posted on 10 September 2014 by VRS  |  Email |Print

The price of iron ore has again failed to find support in overnight trade, slipping further away from the $US85 a tonne mark. Benchmark iron ore for immediate delivery to the port of Tianjin in China is currently trading at $US83.20 a tonne, down half a per cent from its $US83.60 closing mark in the previous session. The current price represents its lowest level since September 23, 2009 on the back of falls in the order of 40 per cent this year.
The commodity has barely paused for breath during a remarkable retreat over the past two-and-a-half weeks, with just one positive trading session in the last 16 as investors fret about surging supply from majors BHP Billiton, Rio Tinto and Vale at a time when Chinese demand is showing signs of fatigue………………………………………..Full Article: Source

Palladium Hits 13-Year High

Posted on 10 September 2014 by VRS  |  Email |Print

The geopolitical stand-off between Russia and the West over the Ukraine issue hit most headlines this year. The U.S. and the European Union (EU) initially imposed minor bans on some Russian diplomats as a protest against Russian activity toward Ukraine.
However, in July, the U.S. forbade Russia’s all-important energy , banking and defense sectors with the European Union and Canada also introducing similar sanctions………………………………………..Full Article: Source

Private Equity’s Quest for Mines Foundering as Commodities Slide

Posted on 10 September 2014 by VRS  |  Email |Print

The push by private equity funds to acquire mining assets is slowing as investors struggle to land major deals while commodity prices slide. The funds have raised $1.1 billion for investments in mining and metals this year, compared with about $8.8 billion in 2013, according to data compiled by Bloomberg.
Less than $2 billion has been spent by the funds on mining assets in the past two years, according to Bloomberg Intelligence research. “When private equity make an investment they say they want to be out in three to five years,” David Williams, managing director of corporate adviser Kidder Williams Ltd., said……………………………………….Full Article: Source

Zinc Deficiency Gives Investors a Jolt

Posted on 09 September 2014 by VRS  |  Email |Print

The world is running low on zinc, sending some investors scurrying to buy mining-company shares and forcing the U.S. Mint to redouble cost-cutting efforts in search of a cheaper penny. Prices for the metal have soared to three-year highs. Investors are betting prices will continue to climb as some of the world’s largest zinc mines run dry just as demand is ramping up.
Zinc is used in everything from steel coatings to car tires to sunscreen, and the metal has few substitutes. The U.S. Mint reduced manufacturing costs to offset higher prices for zinc, which makes up 97.5% of every penny………………………………………..Full Article: Source

Nickel Leads Metals Lower as Rally to 3-Month High Seen Overdone

Posted on 09 September 2014 by VRS  |  Email |Print

Nickel lead industrial metals lower, dropping for the first time in five days on speculation that a price rally to a three-month high was excessive.
The metal in London fell as much as 1.1 percent after closing yesterday at the highest since May 19. Nickel’s 14-day relative strength index rose to near 68 yesterday, signaling prices may have climbed too quickly. A level above 70 typically means a market is overbought………………………………………..Full Article: Source

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