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Is The Silver Price Destined To Sit Around $19?

Posted on 25 August 2016 by VRS  |  Email |Print

The first half of the year was an incredible time for silver as the precious metal saw massive gains. However, more recently, we’ve seen declines. Now, the price of the precious metal seems to be sticking around the $19 per ounce mark.
However, is the precious metal destined to stick around this level for long? In my opinion, the answer is no! Today, we’ll talk about what causes movement in the value of silver, why the precious metal has seen declines recently, and what I’m expecting to see ahead………………………………………..Full Article: Source

All hail iron ore, the top performing commodity so far in 2016

Posted on 25 August 2016 by VRS  |  Email |Print

Iron ore is the top performing commodity so far in 2016. Yes, that’s not a misprint. It’s a statistic few would have thought possible, let alone plausible, given the raft of negative headwinds that saw prices plunge by close to 80% from the highs seen in 2011.
Like Lazarus being raised from the dead, iron ore staged a spectacular rally from the depths seen in mid-December last year, leaving it up more than 40% from the start of 2016………………………………………..Full Article: Source

Here’s why copper is sitting out a big rally by industrial metals

Posted on 25 August 2016 by VRS  |  Email |Print

The performance of industrial metals, particularly copper, is often touted as a guide to the outlook for the global economy, but nowadays, that view is a bit clouded.
Copper this week erased their 2016 gain—and are now down nearly 3% in the year to date—while other industrial metals have seen a surge in prices. On the CME, zinc futures have gained about 44%, iron-ore futures jumped 53% and silver has rallied by 34% since the end of 2015, while lead futures are up 8% and aluminum has gained 3%. Copper had dipped into negative year-to-date territory in July as well………………………………………..Full Article: Source

Precious metal funds dominate after gold price surge

Posted on 25 August 2016 by VRS  |  Email |Print

A gold price surge has pushed precious metal funds to the top of this year’s performance charts, reports the Financial Times. Having fallen by 40 per cent from a 2011 peak of $1,920 an ounce in the closing months of 2015, gold has risen by 25 per cent so far this year to above $1,330 an ounce, defying predictions it would tumble to below $1,000.
For brief periods this summer, it even spent time above $1,360 an ounce. Other precious metals have also performed well. Funds that in one way or another seek exposure to these hard commodities now make up “all 10 best-performing mutual funds in both the US and Europe”………………………………………..Full Article: Source

Forget gold, these three metals are soaring ahead

Posted on 24 August 2016 by VRS  |  Email |Print

Silver has been the best-performing raw material in 2016 so far; its dollar-denominated price grew by 42.6 per cent year-on-year, followed by zinc, up 40.7 per cent, and platinum with a price increase of 32 per cent.
In comparison, the price of gold increased by only 26.1 per cent over the year, which is the same price increase that tin experienced. The bottom performers were uranium, which shed 27 per cent, and among the ’soft’ commodities corn, which lost 10.6 per cent, and cocoa, which fell by 5.5 per cent………………………………………..Full Article: Source

This ‘Hot Commodity’ Is Destined to Cool Off Soon: Citigroup

Posted on 24 August 2016 by VRS  |  Email |Print

Iron ore, dubbed by Citigroup Inc. as one of the hot commodities of 2016, looks set to cool off. Prices may soon sag as supply rises and steel demand fades, the bank said, adding to a chorus of forecasters who are calling time on an unexpected rally.
The raw material will average $51 a metric ton in the final quarter and $45 in 2017 under the base-case scenario, analysts led by Ed Morse said in a report received Tuesday. That compares with Metal Bulletin Ltd.’s 62 percent content price of $61.75 a dry ton on Tuesday, and a year-to-date average of $53.64………………………………………..Full Article: Source

Gold Mining Industry Needs the Dollar Gold Price at $3,000 per ounce

Posted on 23 August 2016 by VRS  |  Email |Print

In our paper from March 23, 2016 we concluded that JPM [J. P. Morgan] in cooperation with the BIS [Bank of International Settlements] controls the dollar gold price by using their very dominant position in gold derivatives in the US Banking System.
JPM held during 1999 – 2014 an average of 3.262 paper metric tons gold (derivatives) available for interventions on the development of the dollar gold price with the BIS as counterparty. Furthermore we concluded that the paper volume sets the dollar gold price and that there is almost no influence on the dollar gold price from the physical supply and demand. Overall the conclusion is that there is no free market for gold………………………………………..Full Article: Source

Iron ore price continues to defy naysayers

Posted on 22 August 2016 by VRS  |  Email |Print

The iron ore price has inched higher as the commodity continues to defy warnings that the effect of Chinese stimulus spending so far this year may not last. Iron ore added 0.3 per cent to $US61 a tonne in the most recent session, according to The Steel Index, from $US60.80 the previous day.
The commodity’s strength over the course of 2016 is surprising many analysts, raising hopes that the market may have bottomed after prices dropped below $US40 a tonne in December 2015………………………………………..Full Article: Source

Mining companies sweat the big and small stuff

Posted on 22 August 2016 by VRS  |  Email |Print

As big as houses and capable of carrying more than 200 tonnes of ore, giant haul trucks are the workhorses of vast mines from Mongolia to Chile. Chief executives have found a new use for the yellow monsters made by Caterpillar and Komatsu: as proof of the narrow focus and limited horizons of today’s global mining industry.
The captains of a sector that was ablaze with dealmaking at the height of the commodities boom, from 2006 to 2012, have firmly turned away from grandiose ambitions. In today’s depressed commodities environment, with persistent doubts over the direction of prices, mining companies’ leaders are determined to show they can sweat the small stuff — or in the case of haul trucks, the large stuff………………………………………..Full Article: Source

Iron ore price hovers above $US60 a tonne

Posted on 19 August 2016 by VRS  |  Email |Print

The iron ore price has slipped further but continues to hold above the $US60 a tonne threshold, despite a fresh prediction from ratings agency Moody’s that the commodity is set to fall from its current elevated level.
Iron ore lost 0.5 per cent to $US60.80 a tonne overnight, according to The Steel Index, from $US61.10 the previous day. Moody’s noted the recent volatility in iron ore prices, after the commodity fell to a trough in the high $US30s in late 2015 before bouncing off its lows and remaining stronger during 2016. ……………………………………….Full Article: Source

Copper price is going nowhere

Posted on 19 August 2016 by VRS  |  Email |Print

New report says base metal prices have bottomed, but there’s hardly any upside – and that includes the zinc price. Credit ratings agency Moody’s warned at the beginning of the year that the current downturn in raw materials was like no other and that defaults among mining and metals companies could reach levels last seen during the height of the financial crisis.
As a result, Moody’s embarked on a sector-wide review of the 87 global mining majors that it covers. The review started off with a bang in January when the agency dropped the world’s biggest listed copper mining company Freeport-McMoRan deep into junk territory………………………………………..Full Article: Source

After years of pain, coal becomes one of the hottest commodities of 2016

Posted on 18 August 2016 by VRS  |  Email |Print

Less than a year after the coal industry was declared to be in terminal decline, the fossil fuel has staged its steepest price rally in over half a decade, making it one of the hottest major commodities.
Cargo prices for Australian thermal coal from its Newcastle terminal, seen as the Asian benchmark, have soared over 35 per cent since mid-June to more than one-year highs of almost $70 a tonne, pushed by surprise increases in Chinese imports………………………………………..Full Article: Source

Premium of zinc over lead retreats after hitting 9-year peak

Posted on 18 August 2016 by VRS  |  Email |Print

The premium of the zinc price over sister metal lead is due to extend its decline in coming weeks after touching a high of close to $500 last week, the strongest since 2007. Zinc is expected to struggle to hit fresh peaks as investors worry about possible restarts of closed mines at the same time lead moves into its strongest seasonal period for demand.
Prices of the two metals, usually found in the same mines, are often used as the basis for trading strategies using either the spread or the ratio………………………………………..Full Article: Source

The Crash in Iron Prices is Just Weeks Away, Metals Bear Says

Posted on 18 August 2016 by VRS  |  Email |Print

Axiom Capital’s Gordon Johnson, a noted bear on iron ore and steel–and the stocks of companies like U.S. Steel (X) and Cliffs Natural Resources (CLF) that produce them–sees a crash in iron-ore prices coming as soon as the next four to eight weeks.
He explains why: With: (a) more iron ore supply coming in 2H16 and 2017, (b) speculation in China’s iron ore futures trading market (via the Dalian stock exchange) at a record high (and likely to end soon), (c) what appears to be a peak in China’s port stocks (which has been a crucial harbinger of price pressure over the past several years), and (d) demand for iron ore on the decline (measured by China crude steel output), we see the next crash in iron ore prices as 4-to-8 weeks out………………………………………..Full Article: Source

Looking to precious metals? Watch these trends

Posted on 17 August 2016 by VRS  |  Email |Print

The depreciation of the Chinese renminbi and its impact on precious metals has gone largely unnoticed, says Scott Vali, vice-president of equity for CIBC Asset Management. But, “[China] continues to depreciate that currency, and that’s a deflationary shock [to] the global system,” says Vali, who manages the Renaissance Global Resources Fund.
However, “we’re still fairly constructive on gold. There are always gyrations in the near term but [gold’s] well supported as we look out.” The U.K. referendum and threat of Brexit has also affected the bullion market. “Brexit has increased the uncertainty around growth rates not only in the U.K., but has also now put question marks around the sustainability of the Eurozone and [its] growth,” says Vali………………………………………..Full Article: Source

Mining sector outlook improves despite losses and Brexit

Posted on 17 August 2016 by VRS  |  Email |Print

With mining company BHP Billiton reporting a record loss for the past year, you could be forgiven for thinking it was all doom and gloom for the sector. But all is not as it seems. In fact, data from the FTSE 100 shows quite the opposite. The seven mining companies account for close to 5.5% of the value of the index.
“At the end of 2015 they accounted for around 2.5%, so they’ve more than doubled in a year, which is impressive,” says Jeremy Wrathall, mining team leader at Investec. The reversal in the fortunes of the sector is shown clearly by diversified mining company Anglo American’s experience………………………………………..Full Article: Source

London Metal Exchange may need to look to China

Posted on 16 August 2016 by VRS  |  Email |Print

Middle Kingdom may offer LME liquidity and volume as it adjusts to commercial operations. If it’s been a tough time for commodity traders, it hasn’t been any easier for the exchanges on which they trade and hedge their exposures.
The London Metal Exchange was bought in 2012 by Hong Kong Exchanges and Clearing for what seemed to many like an eye-watering sum of £1.4bn. Most of that went to its members, in direct proportion to the number of shares they held; the amounts received varied from around £30m-odd to approximately £100m for those who had the foresight to mop up the available shares as members quit the LME in prior years………………………………………..Full Article: Source

UBS Says Nickel Among Most Preferred on Mining Crackdown, Demand

Posted on 15 August 2016 by VRS  |  Email |Print

Nickel will feel the full impact of mine shutdowns in the Philippines only next year, when exports may fail to ramp up as usual, according to UBS Group AG, describing the metal as one of its most-preferred commodities with prices to be supported by rising demand and global deficits.
The government’s audit of standards in the mining sector is a front-of-mind risk that’s already shut down about 2 percent of world supply, analysts including Daniel Morgan wrote in a note. Ores shipments from the top supplier could fall to 314,000 metric tons next year from 410,000 tons last year, it said………………………………………..Full Article: Source

Nickel, tin retreat from highs as speculators book profits

Posted on 12 August 2016 by VRS  |  Email |Print

Nickel, zinc and tin fell on Thursday, retreating from fresh peaks hit in the previous session as speculators booked profits from strong rallies so far this year. All three metals on the London Metal Exchange rallied on Wednesday to their highest since 2015 as a weaker dollar and a greater risk appetite spurred buying in the metals that have the brightest fundamental outlooks for this year.
“It’s a relatively quiet day in terms of the macro side and the metals have had a very good run since the start of the year, so it’s not too surprising to see some of them off today,” said Sergey Raevskiy, analyst at boutique investment bank SP Angel………………………………………..Full Article: Source

Platinum metals join the precious rally

Posted on 11 August 2016 by VRS  |  Email |Print

Demand from car producers means sector fundamentals are supportive. Implied benchmark borrowing costs dribble ever lower. The 10-year gilt yield fell through 0.55 per cent amid the Bank of England’s fresh largesse.
Meanwhile, the dollar’s latest rally seems to have stalled. This is a good environment for gold. By mid-session on Wednesday, the yellow metal was back above $1,350 an ounce and eyeing the two-year high of $1,375 hit last month. Its rally has energised the whole precious metals sector. Silver is back above $20 an ounce and the platinum group metals are joining in the fun………………………………………..Full Article: Source

Palladium futures settle at highest level in over a year

Posted on 11 August 2016 by VRS  |  Email |Print

Palladium futures rallied Wednesday to settle at their highest level in more than a year, with strong vehicle sales in China implying strong demand for the metal used in car-making.
A weaker U.S. dollar provided support to the broad dollar-peg precious-metals complex. Gold and silver futures notched a second straight session of gains as some traders bet on a potential rise in Asian demand for the yellow metal………………………………………..Full Article: Source

Zinc and tin hit fresh 2016 highs, zinc stocks surge in New Orleans

Posted on 11 August 2016 by VRS  |  Email |Print

Base metals were all trading in positive territory on Wednesday morning on the LME – technical buying supported the complex after few of the metals have broken out of their recent ranges, traders said.
Zinc and tin were the outperformers this morning – both metals climbed to their highest in over a year. As well, metals prices are being supported by a weaker dollar, market participants noted. The dollar index was last slightly weaker at 95.60 after data from the US Labour Department on Tuesday showed second quarter productivity in the US falling 0.5 percent, making it the third consecutive quarter of decline………………………………………..Full Article: Source

Industrial Metal ETFs: Time to Shine Like Precious Metal Rivals?

Posted on 11 August 2016 by VRS  |  Email |Print

The rally in metals exchange traded products this year has been stoked by precious metals, namely gold and silver with some solid contributions from palladium and platinum. By comparison, industrial metals, such as copper, have been obvious laggards.
Many industrial metals and miners rallied on the belief that China would support growth through stimulus measures, augmenting demand for metals while enticing investors to jump back in. Moreover, the depreciating U.S. dollar made USD-denominated resources cheaper for foreign buyers. The ongoing global low-yield environment also pushed investors toward more attractive assets, like commodities………………………………………..Full Article: Source

Gold Rush Fuels ‘Best Year Ever’ for Precious Metals Funds

Posted on 10 August 2016 by VRS  |  Email |Print

Investors worldwide have poured a total of $51 billion into commodity-focused ETFs and similar investment products, Barclays estimates. The bulk of that total, $28.8 billion, went to precious metals funds. Last summer, the commodities sector was frozen in a half-decade long bear market with few signs of a thaw in the near future.
Now, it’s hot once again, with gold and silver funds set to see record-breaking inflows of cash. “Precious metals, and gold in particular, have been the most favored commodity sector,” according to a recent report from Barclays, which estimated flows into and out of commodity funds worldwide………………………………………..Full Article: Source

Goldman and Barclays Warn Of Long-Term Bear Market in Copper

Posted on 10 August 2016 by VRS  |  Email |Print

Goldman Sachs Group Inc. (GS) forecasts that copper prices may slump to $4,000 a metric ton over the next 12 months, as supplies from mines is picking up at rapid pace. Compared to the present day price of around $4,800 per metric ton, Goldman predicts that prices will progressively drop to $4,500 in three months, then to $4,200 in six months before finally settling at around $4,000 in a year’s time.
This would translate to a steep decline of around 17% over the next 12 months. While prices of other base metals like nickel and zinc have appreciated based on forecasts of global shortage, an increased supply has been reported in copper during the first half of 2016. Nickel and zinc prices surged by around 20% and 40%, respectively, while copper’s stagnated at around 2%………………………………………..Full Article: Source

Metals up

Posted on 10 August 2016 by VRS  |  Email |Print

Mining metals and affiliates were up on average by 3.9% last week, according to RBC, with molybdenum leading the charge and fellow steel-making ingredients coal and iron ore hot on its heels. The strengthening and hardening agent was up 11.7% for the week, while metallurgical coal was up by 10% and iron ore by an analyst-defying 8.8%.
Thermal coal continued to grow on the back of forced shut downs in China, up 8.1%, while uranium showed some long-overdue form to move up by a solid 4%………………………………………..Full Article: Source

Copper Climbs as ‘Good News’ From G-8 Overshadows China Concern

Posted on 09 August 2016 by VRS  |  Email |Print

Copper and other industrial metals advanced as signs of economic resilience in Germany and the U.S. outweighed demand concerns from China. In Germany, the largest copper user behind China and the U.S., industrial production increased in June, government data showed Monday, signaling Europe’s largest economy gained momentum ahead of the U.K.’s vote to exit the European Union.
In the U.S., data released Friday showed employment jumped in July for a second month and wages climbed. Those reports overshadowed a decline in China’s copper imports to an 11-month low in July………………………………………..Full Article: Source

Base metals firm, Chinese copper import drop priced in

Posted on 09 August 2016 by VRS  |  Email |Print

Base metals were mostly higher during Monday’s pre-LME trading shrugging off disappointing Chinese data, albeit in quiet trading conditions. Chinese July trade figures had showed overall exports and imports falling 4.4 percent and 12.5 percent respectively, both on a year-on-year basis in US dollar-denominated terms. The decline in imports was the biggest decline since February.
Meanwhile, China’s imports of unwrought copper and copper products fell 14.3 percent month-on-month to 360,000 tonnes in July, according to preliminary data published by the country’s General Administration of Customs on Monday………………………………………..Full Article: Source

Iron ore price spikes to a fresh 3-month high

Posted on 08 August 2016 by VRS  |  Email |Print

The iron ore price has jumped back above the $US60 threshold, reversing the previous day’s dip to close at a fresh three-month high and boosting the share prices of Australia’s London-listed major miners.
Iron ore added 3.4 per cent to $US60.90 a tonne, according to The Steel Index, from $US58.90 in the previous session and $US60.70 the day before that. The gains buoyed the mining sector in London trade, sending BHP Billiton shares up 3.2 per cent and Rio Tinto 2.6 per cent higher………………………………………..Full Article: Source

London Metal Exchange cuts fees after pressure from members

Posted on 08 August 2016 by VRS  |  Email |Print

Parent group HKEx in climbdown after chief had said group was not ‘ripping off’ customers. The London Metal Exchange has bowed to pressure from disgruntled members and slashed fees for one of its most popular trades in an attempt to stem falling activity.
The move is a climbdown for the world’s centre for metals trading and its parent company Hong Kong Exchanges and Clearing, which bought the 139-year-old exchange for £1.4bn in 2012. Charles Li, chief executive of HKEx, had defended the LME’s fee structure as recently as June, saying its charges were not excessive and it was not “ripping off” its members………………………………………..Full Article: Source

Commodity rebound boosts Indonesian miners

Posted on 05 August 2016 by VRS  |  Email |Print

Indonesian mining shares have been enjoying a rally in recent months on the back of price rises for major commodities such as coal, gold and nickel. The Indonesia Stock Exchange’s mining index has risen 26% since the beginning of June, outperforming the benchmark Jakarta Composite Index, which rose 11% in the same period.
Major Indonesian miners Adaro Energy, Aneka Tambang and Tambang Batubara Bukit Asam led the increases. Coal miner Adaro earlier this week proudly announced that its share price “has risen back to our IPO [initial public offering] level.” Falling coal prices over recent years had dragged down the share price, which hit its lowest level in January………………………………………..Full Article: Source

Zinc Prices Have Exploded In 2016, But Is The Party Already Over?

Posted on 05 August 2016 by VRS  |  Email |Print

Zinc has proved to be the base metals complex’s star performer so far in 2016. Bellwether metal copper — so-called because of its wide use across a variety of industrial applications — has gained just 5% since the bells rang in New Year’s Day, the commodity gaining on the back of a weak US dollar and Chinese stimulus measures.
By comparison, zinc has seen its value rocket 51% in the same period thanks to production setbacks. Three-month metal at the London Metal Exchange was recently changing hands around $2,260 per tonne………………………………………..Full Article: Source

2016 Gold Mining Margins Jump 150%

Posted on 04 August 2016 by VRS  |  Email |Print

Gold Mining shares slipped from 3-year highs as bullion prices stalled near mid-July’s two-year Dollar highs on Wednesday, while Asian stockmarkets closed sharply lower once more but Japanese government bonds steadied from the last 3 days’ sell-off.
Western equities also stabilized as European banking shares rallied. US crude oil held below $40 per barrel. Silver retreated 1% from yesterday’s pop to 1-month highs at $20.78 per ounce. “Gold prices have improved, but gold miners do not yet believe in its longevity,” CNBC quotes analyst Alexander Hacking at US financial services giant Citi………………………………………..Full Article: Source

Zinc Prices Calm, But Metals Remains Top Performing Commodity as Supply Shrinks

Posted on 04 August 2016 by VRS  |  Email |Print

Zinc remains the top performer of the 22 raw materials tracked by the Bloomberg Commodity Index, and is up over 41% this year. It is also the top performer of London Metal Exchange traded metals, with zinc stores monitored by the bourse down 30% from their last September peak. The metal is finding support at $2166 and is meeting resistance at $2294.
Even with its outstanding performance, investors remain bullish on the metal with open interest climbing to its highest since October. The reason for the rapid turnaround in the metal is a changing supply chain, with supply cuts and mining closures changing the market fundamentals, with a deepening deficit now expected………………………………………..Full Article: Source

Platinum, Palladium May be New Focus in Precious Metals Rally

Posted on 03 August 2016 by VRS  |  Email |Print

Gold prices have rallied sharply this year, but it may be time for other precious metals to shine. According to some analysts, platinum and palladium are starting to look more attractive to funds hoping to ride the precious metal rally this year.
The two metals recently closed out their best months in years. Platinum for October delivery rose 12% to $1,150.60 last month, its largest monthly percentage increase since January 2012. Palladium for September delivery rose or 19% to $709.75 for its highest monthly percentage increase since February 2008………………………………………..Full Article: Source

Metals outlook relies on China stimulus

Posted on 03 August 2016 by VRS  |  Email |Print

Debate over credit or fundamentals is driving gains for zinc, nickel and aluminium. Very few investors expected to see metals prices outperform other commodities this year. Now, the big question is whether the stellar gains seen for the likes of zinc, nickel and aluminium mark the start of a new bull cycle.
Debate over the outlook for metals prices largely reflects whether China’s current stimulus is more credit driven or based on fundamental demand. Last month Goldman Sachs warned that demand growth this year “is purely driven by China’s credit stimulus”………………………………………..Full Article: Source

Chile copper producers continue to cut costs amid price drop

Posted on 03 August 2016 by VRS  |  Email |Print

Costs in Chile’s mining industry, which supplies almost a third of the world’s copper, are continuing to fall as producers continue to adapt to sharply lower prices for the red metal, a government report showed Tuesday.
According to the study by the Chilean Copper Commission, C1 cash costs at Chile’s 19 largest mines fell to an average of $1.285/lb during the first three months of the year, down 13% from the same quarter of last year. The sample included mines operated by BHP Billiton, Antofagasta Minerals, Codelco, and Teck and represented 88% of Chilean copper production during the period………………………………………..Full Article: Source

Palladium Tops Precious Metals Gains as China Car Sales Advance

Posted on 02 August 2016 by VRS  |  Email |Print

Palladium is leaving other precious metals in the dust. The commodity used in pollution-control devises for gasoline-fueled vehicles climbed to the highest since October on Monday. It has jumped 20 percent this quarter, almost seven times the pace of gains for gold. Palladium is benefiting from improving car sales in China and signs of resilience in the U.S. economy, Citigroup Inc. analysts wrote in a report Monday.
Traders aren’t the only ones taking notice. Hedge funds and other large speculators boosted their net-long positions on palladium by 38 percent to 15,281 contracts in futures and options in the week ended July 26, the highest since June 2015, government data released three days later showed………………………………………..Full Article: Source

Platinum, palladium prices are exploding

Posted on 02 August 2016 by VRS  |  Email |Print

While most industrial metals and minerals have enjoyed a good week and month, including unlikely candidates such as thermal coal and iron ore, precious metals is still where the action is. After underperforming gold in 2016, platinum has now overtaken the yellow metal with a year to date advance of a shade under 34%.
A chunk of those gains came just the last week with the spot price climbing 6%. The precious metal was up 12.7% in July and started August with a bang to exchange hand $1,162 an ounce in early afternoon trade on Monday, making it the best monthly performance since 2012………………………………………..Full Article: Source

This is what a broad-based metals and mining rally looks like

Posted on 02 August 2016 by VRS  |  Email |Print

Gold may be grabbing the headlines with its best year-to-date performance in decades and silver’s 48% surge in 2016 to above $20 an ounce is a big swing even for such a volatile metal, but this year’s rally in commodities is broad-based and becoming more so.
After underperforming gold in 2016, platinum has now overtaken the yellow metal with a year to date advance of a shade under 34%. A chunk of those gains came in July, the metal’s best monthly performance since 2012. Sister metal palladium has also enjoyed its best month for nearly a decade, soaring 21.1% in July………………………………………..Full Article: Source

Investors in Metals Look Past Gloomy View of the Economy

Posted on 02 August 2016 by VRS  |  Email |Print

Not even the dimming global growth outlook is enough to scare away investors in metals and mining. Money is pouring into industrial metals and the companies that produce them. Those investors seems undeterred by World Bank and International Monetary Fund forecasts of sluggish economies after the U.K.’s decision in June to leave the European Union added to uncertainty.
The enthusiasm for metals comes as expectations mount that policy makers around the world will take stronger action to counter the slowdown. The market also is beginning to look beyond Brexit and turn its attention toward the rising demand for key metals and slower production………………………………………..Full Article: Source

Two Metals Forge Ahead in Face of Commodity-Rally Fatigue

Posted on 01 August 2016 by VRS  |  Email |Print

As the commodities bull market that started last month shows signs of fatigue, silver and zinc, this year’s best performers in the Bloomberg Commodity Index, are extending gains. Tightening supplies are helping boost the metals, buffering them from demand concerns that have sapped momentum in other raw materials.
Silver output from mines will fall for the first time since 2011 this year, according to CPM Group, while analysts expect zinc production to trail demand………………………………………..Full Article: Source

Goldman Sachs says oil market fundamentals ‘fragile,’ oil prices to stay flat until mid-2017

Posted on 29 July 2016 by VRS  |  Email |Print

Crude oil prices will remain in the $45-$50-a-barrel range till mid-2017, with little to change the global supply and demand situation, Goldman Sachs said. The investment bank’s analysts ran through the many scenarios that would keep the oil market in stasis.
“The improvement in oil fundamentals remains fragile and continues to feature large offsetting forces: wildfires have helped offset surprisingly strong Iran production, slowing demand growth in India and China in 2H16 will help offset production issues in Nigeria and Venezuela and finally product builds have offset crude draws,” they said………………………………………..Full Article: Source

Coal’s Lead in Commodity Rally Seen Overdone as Demand Falls

Posted on 29 July 2016 by VRS  |  Email |Print

Investors in European coal, the year’s best-performing commodity, should strap in for a bumpy ride as demand for the fuel wanes.
Coal for delivery in Europe in 2017 will fall about 11 percent by December, taking the gloss off the longest rally in year-ahead prices since 2010, according to a survey of traders and analysts by Bloomberg. The mineral’s 48 percent jump this year is more than double crude oil’s advance………………………………………..Full Article: Source

Platinum, palladium chase down gold’s stellar showing

Posted on 29 July 2016 by VRS  |  Email |Print

The lesser known precious metals have had a stellar month, catching up with gold. Platinum has eclipsed gold’s performance this year and palladium is close to doing so, after demand from the car industry and investor appetite sent the two precious metals on a blistering rally this month.
Palladium is set for its best monthly performance in over eight years, leaving it just shy of the 26 per cent rise in gold this year. Platinum and palladium, which are used in auto catalysts, are trading at their highest levels in more than a year………………………………………..Full Article: Source

Platinum takes limelight from gold with best month in four years

Posted on 29 July 2016 by VRS  |  Email |Print

A surprise rally in gold and silver caught the eyes of investors in the first half of the year. Now, platinum and palladium are shining brighter. Platinum is up 12% in July, putting prices on track for the best month since 2012. Palladium is even better, jumping 17%, the most since 2008. By comparison, gold added less than 2% in July as it lost momentum after gains in the first half.
The two lesser-known precious metals, used in devices that control toxic car emissions, are benefiting from better auto sales in China, concern over labour in South Africa and loose monetary policy from central banks around the world………………………………………..Full Article: Source

Metals M&A fall to lowest in two years – PwC report

Posted on 29 July 2016 by VRS  |  Email |Print

The metals deals market remained sluggish in the second quarter of 2016, with mergers and acquisitions activity down to its lowest level in two years, according to a report by PwC. While some metals commodity prices rebounded, metals prices, global demand, and production all generally remained low during the quarter, and companies continued to be challenged by global economic uncertainty and volatility, the report noted.
However, PwC said it was cautiously optimistic that improvement will be seen in the second half of 2016. “Growth in US gross domestic product and continued improvement in relevant end-use sectors like automotive, aerospace, and construction are expected to begin to drive increased demand for metals, and in turn, increased production and stabilisation in the industry,” PwC said………………………………………..Full Article: Source

Base metal mining market - infrastructure development activities to be key enabler of growth

Posted on 28 July 2016 by VRS  |  Email |Print

Global estimates entail that nearly 40% of the world economy is directly or indirectly affected by the mining industry. Consistent supply of base metals such as copper, zinc, nickel, aluminum, and tin is central to the development of sectors such as infrastructure, construction, manufacturing, transportation, equipment, and utilities. Flourishing growth across these sectors in the past few years, especially in developing regions such as Asia Pacific, is the major demand driver of base metals in the global market.
The European Union has significantly increased its investment aimed at the development of the region’s energy infrastructure, to make it more complaint with renewable energy sources, in the past few years. Transportation, construction, and equipment industries, which are some of the principal consumers of a number of base metals, are also expanding at a plausible rate across the globe. (Press Release)

Japan’s spot aluminum premiums fall as stocks rise in Asia

Posted on 28 July 2016 by VRS  |  Email |Print

S&P Global Platts assessed spot premiums for aluminum imports into Japan at $76-$77/mt plus LME cash CIF Japan Wednesday, down from $79-$80/mt the day before, under pressure from rising stocks in Asia.
An international trader bought 1,000 mt of ingot at $76-$77/mt plus LME cash CIF Japan last week. The metal was 99.7% purity-guaranteed material excluding Russian, Indian, Malaysian, Egyptian, and Iranian origins. Continuing downward pressure was likely to result in a further fall in premiums, buyer and seller sources said………………………………………..Full Article: Source

How Investor Appetite for Risk Impacts Precious Metals

Posted on 27 July 2016 by VRS  |  Email |Print

Gold has seen a downward swing and has extended its first back-to-back weekly drop since May. Gold and silver have seen trailing-five-day losses of 0.9% and 2.7%, respectively. The reason behind the fall in the precious metals is the buoyancy of the equity markets and the gains in the US dollar. Both factors have significantly hurt the precious metals.
The holdings of the SPDR Gold Shares (GLD), the world’s largest gold-backed ETF, fell 0.22% to 963.1 tons on Thursday, July 21. The physical demand from the giant gold-consuming markets, India and China, has also been slowing down………………………………………..Full Article: Source

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