Mon, Sep 1, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Category | Metals and Minerals more

Mining M&A activity subdued despite strong deal pipeline

Posted on 12 August 2014 by VRS  |  Email |Print

Multinational professional services group, Ernst & Young, which nowadays likes to be known as EY, has just produced its latest quarterly Mergers and Acquisitions analysis for the mining sector. This shows that there were around 112 deals in the sector during Q2 this year totaling US$9.5b.
Deal volume was down 21% on the previous quarter and down 41% on the same quarter in 2013. Total deal value was up 33% on the previous quarter, primarily due to the US$3.6 billion acquisition of Osisko Mining Corp. by Yamana Gold and Agnico Eagle. Similarly, H1 comparisons show total deal values down 69% year-on-year to US$16.7 billion from US$53.8 billion in H1 2013, the fourth consecutive year of decline…………………………………..Full Article: Source

Aluminum vs Steel - Is the Lighter Metal Closing the Gap?

Posted on 08 August 2014 by VRS  |  Email |Print

From a standpoint of metals evolution, aluminum seems to have encroached on its main adversary, steel, in the booming global automobile industry, as lower costs, greater flexibility, and lightness have had a salutary effect on ever-increasing gasoline bills.
When analyzing typical materials content of manmade automobiles and light trucks, iron and molded steel still dominate with 55%. High strength steel makes up another 15%, while aluminum and plastics each comprise 10%. The final 10% consists of copper, titanium, etc………………………………………..Full Article: Source

Copper: Investing Essentials

Posted on 08 August 2014 by VRS  |  Email |Print

One of the very first metals ever taken out of the earth and used was copper. As early as 8000 B.C., it was used in coins and ornaments. By 5000 B.C., it was used to form tools that helped mankind emerge out of the Stone Age. Since that time, the metal has become ubiquitous, as copper is used now in building materials, power generation, plumbing, money, and even in electric vehicles.
The mining industry extracts copper ore from the earth, and prepares it to be used as a feedstock to produce copper-based products. Copper is found in large deposits. In its most basic form, copper ore comes in two types: sulfide ores and oxide ores. Each type requires a different method of extraction and processing by the copper industry………………………………………..Full Article: Source

Palladium weakens as bulls head for exit

Posted on 07 August 2014 by VRS  |  Email |Print

The top performing precious metal of 2014 is beginning to come under pressure. Since reaching its highest level in almost 14 years three weeks ago, palladium, used in catalytic converters that clean car exhausts, has dropped more than 4 per cent. It fell as much as 0.9 per cent to $835.90 a troy ounce on Wednesday, underperforming sister metal platinum as well as gold and silver.
Analysts say there is no fundamental reason for the recent weakness other than profit-taking by investors who have built large positions in palladium, a byproduct metal produced from platinum and nickel mines………………………………………..Full Article: Source

3 Reasons Why Silver Miners Should Be in Every Investor’s Portfolio

Posted on 07 August 2014 by VRS  |  Email |Print

Precious metal prices remain volatile and this has seen the precious metals mining sector fall out of favour with investors. But there are signs that a sustained rally in precious metal prices is imminent. For the year to date both gold and silver prices have remained relatively flat. But with growing demand along with supply shortages, geopolitical instability in Europe and the Middle East, and Wall Street making big bets on precious metals, I expect to see a sustained rally shortly.
Typically, the preferred means of gaining exposure to precious metals is to invest in gold, but for a variety of reasons I believe silver is a superior investment at this time, offering investors superior potential upside………………………………………..Full Article: Source

Miners face increasing risk of default with volatile commodity prices

Posted on 07 August 2014 by VRS  |  Email |Print

A Moody’s report reveals a rising risk of default for some smaller miners, amid volatile commodity prices. The report cites recent defaults by Mirabela Nickel and Midwest Vanadium as examples of the risk factors afflicting smaller miners.
Moody’s warns that gold miner St Barbara has the highest risk, out of the companies it rates, of defaulting on its debt, with a Caa1 negative rating. The ratings agency says the main risk factors are challenges with getting projects completed on time and on budget, the unpredictable nature of ore bodies, having one or two major customers, limited cash reserves and volatile markets………………………………………..Full Article: Source

Zinc positioning shows investor bullishness

Posted on 06 August 2014 by VRS  |  Email |Print

The shift in investor sentiment that has helped propel the price of zinc to a near three-year high has been highlighted by a new report from the London Metal Exchange that details long and short positioning in industrial metals.
Figures from the exchange’s Commitment of Traders Report, published for the first time on Tuesday, shows money managers held a long position of nearly 135,900 futures contracts in zinc as of August 1 – nearly 30 per cent of open interest, or total number of outstanding contracts………………………………………..Full Article: Source

Copper lower on slowing China service sector growth

Posted on 06 August 2014 by VRS  |  Email |Print

Copper prices slipped on Tuesday, under pressure from data showing growth in China’s services sector slowed to its lowest level in nearly nine years, raising concerns about the demand outlook from the world’s top metals consumer.
Three-month copper on the London Metal Exchange (LME) ended at $7,055 a tonne, down 1.05 percent. The metal, used in power cables and construction, is down more than 4 percent in the year to date, weighed down by expectations of rising supplies this year and lacklustre demand………………………………………..Full Article: Source

Metals Still Bearish Despite Shaky Markets

Posted on 06 August 2014 by VRS  |  Email |Print

The metal markets have been looking very bearish as of late, and this is a little surprising given the recent activity in global markets. Last weeks Argentinian debt default had some minor impact on the markets. Was it a shock? No, markets knew well in advance that the possibility of a default was very realistic and they even knew the day it was going to happen; probably why it didn’t make massive headlines.
On top of this American markets disappointed as data was weaker than expected; unemployment data was the worst as the unemployment rate lifted to 6.2%, and non-farm payroll came in at 209K verse an expected 230K, well below what was anticipated by markets………………………………………..Full Article: Source

Nickel rises as stockpile concerns recede

Posted on 05 August 2014 by VRS  |  Email |Print

Nickel bounced from a one-month low on Monday as analysts said concerns about rising stockpiles outside China had been overplayed. Nickel for delivery in three months on the London Metal Exchange rose 0.4 per cent to $18,496 a tonne.
The metal, used to make stainless steel, has been the standout industrial metal this year, rising as much as 56 per cent as traders bet on shortages after Indonesia banned the export of unprocessed mineral ores in January………………………………………..Full Article: Source

Iron surge imminent

Posted on 05 August 2014 by VRS  |  Email |Print

Shipping rates are poised to rally in the second half of the year as Vale SA, the world’s largest iron ore producer, drives up exports of the raw material, according to Commodore Research & Consultancy.
Vale will sell 321 million metric tons of the raw material used in steel this year, the Rio de Janeiro-based miner said in a July 31 earnings statement. That implies its second half shipments will jump 22% compared with the first six months and increase demand for vessels, Jeffrey Landsberg, managing director of Commodore, a New York-based adviser to ship owners, said………………………………………..Full Article: Source

Like gold, base metal stocks offer huge investment opportunities

Posted on 04 August 2014 by VRS  |  Email |Print

Base metals stocks, like gold stocks, nowadays offer some enormous investment opportunities. They fell so low, along with most base metals prices that, particularly with the improved economic recovery in the U.S. and in some other nations, and with China showing some positive growth indications again, there is relatively little downside remaining.
Indeed base metals stocks have been some of the best performers so far this year as they have risen off their nadirs. And in the junior sector in particular, selective stock picking – i.e. those with good projects, the finances to survive any continuing price malaise and successful management teams – should, like similarly placed gold juniors, ultimately pay off in spades………………………………………..Full Article: Source

Goldman Sachs says copper to underperform other base metals

Posted on 04 August 2014 by VRS  |  Email |Print

Goldman Sachs said it expects copper to underperform other base metal prices over the next 12 months, citing the red metal’s heavy exposure to China’s property sector, which it expects to remain bearish this year and next. The bank also said copper has entered a once-in-20-year supply cycle, which started in the second half of 2012 and is set to last through to 2016/17, following a decade of high capital expenditure investment in the industry, raising trend supply growth to about 4-5 percent from about 2 percent over the past decade.
Goldman lowered its 2015 average copper price forecast to $6,400 per tonne from $6,600, in a note to clients dated July 23. The investment bank also cut its 2016 outlook to $6,600 per tonne from $7,000 partly due to expectations of lower marginal production costs. Goldman Sachs, however, said it is bullish for nickel, zinc and aluminium on a 12-month view………………………………………..Full Article: Source

Copper clash

Posted on 04 August 2014 by VRS  |  Email |Print

The surcharge that copper buyers are expected to pay to secure the metal in Europe declined to a 15-month low amid weak summer demand and ample supply, according to three people who trade the market. The spot premium is about $90 a metric ton delivered to Rotterdam in the past month, said the people, who asked not to be identified because they aren’t authorized to speak to the media.
That compares with $110 as of July 4. The surcharge, which ranged as low as $75 and as high as $100, is the lowest since April 2013. Traders cited slow demand in Europe as factories shut for summer vacations. Better availability of scrap metal further curbed demand for refined copper, they said………………………………………..Full Article: Source

Doubts creeping in over stellar zinc price run

Posted on 04 August 2014 by VRS  |  Email |Print

While the aluminum price was the strongest price performer among industrial metals in July, zinc again enjoyed a stellar month, rising almost 8% over June. The price of zinc rose to a near-three year high of $2,416 a tonne last week as the base metal continues to benefit from expected supply cuts due to the scheduled closures of Australia’s Century, Namibia’s Skorpion and the Lisheen mine in Ireland.
Lisheen and Black Mountain, both controlled by London-listed Vedanta, also suffered production disruptions this year, further boosting the price of the base metal………………………………………..Full Article: Source

After China port fraud probe, messy legal fight chills metal trade

Posted on 04 August 2014 by VRS  |  Email |Print

As global banks and trading houses fire off lawsuits over their estimated $900 million (534 million pounds) exposure to a suspected metal financing fraud in China, the tangled legal battle to recoup losses is set to drag on for years and hinder a swift recovery in metal trade.
HSBC is the latest bank to launch legal action since Chinese authorities started a probe into whether the firm at the centre of the allegations, Decheng Mining, used fake warehouse receipts to obtain multiple loans………………………………………..Full Article: Source

London platinum/palladium fixes seek third-party admin, in wake of silver/gold

Posted on 01 August 2014 by VRS  |  Email |Print

The world of precious metals price setting was once again in the spotlight Thursday on the back of news that The London Platinum and Palladium Fixing Company Limited is looking for a third party to administrate the daily London platinum and palladium fixes.
The news came hot on the heels of an announcement Tuesday that The London Gold Market Fixing Limited and the London Bullion Market Association are seeking proposals from third parties to “assume administration” of the future London gold fix. The entire London “fixing” process has been in the spotlight for many months on the back of increased regulatory scrutiny………………………………………..Full Article: Source

Don’t ignore precious metals

Posted on 01 August 2014 by VRS  |  Email |Print

What is hard about investing? It’s not the simple mechanics of investing. Nowadays if you have the money, it’s easy to open an online trading account and start trading. You don’t even have to talk to anyone usually, just mail in a check to the broker and off you go. So the how or mechanics of investing is not hard.
Is finding what to trade hard? This is an interesting question. I would submit that finding what to trade is not the hard part about investing either. Studies have shown that selecting stocks at random, a.k.a. monkeys throwing darts at a dartboard, have outperformed market averages in a wide variety of years. But this is only because stocks as an asset class tend to move in the same direction, creating bull and bear market trends over time………………………………………..Full Article: Source

Bargains abound in rebounding base metals sector

Posted on 01 August 2014 by VRS  |  Email |Print

After a brutal reckoning, the base metals sector is starting to generate some cautious optimism amid early indications of an uptrend. While any optimism for mining stocks has generally been punished over the past three years, the demoted sector now features some discount valuations. And now that many fears over China have eased, and the U.S. economy is perking up, base metals prices have begun to advance, drawing some renewed investor attention.
“This is an industry that was absolutely savaged. It’s not unlike what happened with American banks,” said Terry Shaunessy, president and portfolio manager at Shaunessy Investment Counsel………………………………………..Full Article: Source

Robust copper price prompts switch to aluminum

Posted on 31 July 2014 by VRS  |  Email |Print

In New York trade on Wednesday copper rallied after much stronger than anticipated US GDP figures, reaching a high of $3.2625. Defying market expectations, the copper price dug itself out of a near four-year low struck mid-March of $2.92 a pound and has gained more than 7% since early June. The metal is now down only 4% in 2014.
The copper price is highly correlated with economic growth thanks to the widespread use of the metal in the construction, transport and power industries, and the robustness of the red metal is prompting industry to switch to much cheaper aluminum for some applications………………………………………..Full Article: Source

Shrinking mining professional ranks may impact investors - HSBC

Posted on 31 July 2014 by VRS  |  Email |Print

“A well-established feature of the precious metals market is the apparent inability for producers to raise production levels when demand and prices rise,” said HSBC analysts James Steel and Howard Wen.
“The paucity of trained professionals’ expertise helps explain—along with other factors—the weak supply response by producers to the surge in precious metals prices in 200-2012,” observed HSBC. “This is important to investors because it arguably contributed to the height and longevity of the precious metals rally; it also implies that future rallies are unlikely to be cut short by a rapid increase in mine output.”……………………………………….Full Article: Source

HK expected to stay ahead as Asian precious metals hub

Posted on 30 July 2014 by VRS  |  Email |Print

Hong Kong will maintain its status as an Asian precious metals hub in the face of competition from Shanghai and Singapore, according to Brink’s Co, which is opening a new vault in the city. The Richmond, Virginia-based maker of surveillance systems and armored trucks should finish the vault early in the fourth quarter, Guy Bullen, senior vice-president for Asia Pacific, said in an interview last week. That will double Brink’s gold and silver handling capacity in the city, Mr Bullen said, without elaborating.
China overtook India as the largest gold consumer last year, according to the World Gold Council. Singapore Exchange Ltd will introduce a physical gold contract this year while Shanghai will start international gold trading in the fourth quarter, a government official had earlier said………………………………………..Full Article: Source

Zinc, lead buoyed as value hunters tune into global growth story

Posted on 30 July 2014 by VRS  |  Email |Print

Zinc prices matched three-year highs hit the session before on Tuesday and lead inched to a new 17-month top as investors ploughed into metals that have lagged this year and appear undervalued on prospects of reviving global growth.
Manufacturing growth in the world’s top metals user China expanded at its fastest clip in 18 months in July, an initial survey showed, while in general the U.S. economy has gathered pace, with a brightening picture seen in its labour market………………………………………..Full Article: Source

Aluminium gains industrial lustre

Posted on 30 July 2014 by VRS  |  Email |Print

When it comes to conductivity, copper is king of the industrial metals. Thanks to its low level of resistivity – how strongly a material opposes the flow of current – the red metal’s main use is in electrical applications.
Aluminium is copper’s closest rival, albeit an inferior one by most measures. When the prices of the two metals were similar, as at the start of 2002, the choice of copper for cabling in everything from power lines to automotive wiring was a no-brainer………………………………………..Full Article: Source

Global mining sector on the way up, but recovery still slow

Posted on 30 July 2014 by VRS  |  Email |Print

Global mining activity showed steady signs of improvement in the first half of the year, but recover is still expected to be slow, the latest study by SNL Metals Economics Group published Tuesday shows.
Its closely watched Pipeline Activity Index (PAI)— one of the most trusted indicators of the global exploration sector’s overall health — recovered a bit in May after an all-time low in April, but still sits at low levels, SNL notes………………………………………..Full Article: Source

Mining industry confidence at five year low

Posted on 30 July 2014 by VRS  |  Email |Print

As the mining boom ends, confidence in the industry has hit a new five year low. An annual study of mining bosses has found they think the industry is out of their control, raising the prospect of a big shake up. Commodity prices and Chinese demand are expected to keep falling.
The mining executives that we have been interviewing have extremely low confidence in their future, and particularly when they look at the main factors that are going to affect their businesses in the next one to three years………………………………………..Full Article: Source

Goldman unit eyes foray into China amid metals financing scandal

Posted on 30 July 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc’s metals warehousing unit is exploring its first foray into China, and privately held C Steinweg has expanded capacity there, sources said, as a financing scandal in a major Chinese port fuels a scramble for market share.
The alleged scam - in which a Chinese trading firm is suspected by local authorities of fraudulently using a single cargo of metal as collateral for multiple loans - has shaken the confidence of banks and merchants in Western metals storage firm that rely on local agents to oversee warehouse operations………………………………………..Full Article: Source

Smart phones, tablets, electric vehicles help Lithium demand soar

Posted on 28 July 2014 by VRS  |  Email |Print

Demand is soaring for lithium, which is used in rechargeable batteries for smartphones, iPads and electric vehicles. Weeks ago I wrote in this article that “Despite the lithium sector being in a correction for six weeks, attention should be paid to this dynamic sector which may be just on the verge of breaking out higher.” The lithium ETF was trading below $13 when that article was written testing the 200 day moving average.
Now the lithium ETF is poised to make a powerful breakout at new 52 week highs at $14. A game changing event occurred last week when Albemarle paid over $6.2 billion to buy the world’s largest publicly traded lithium producer Rockwood Holdings………………………………………..Full Article: Source

Zinc extends rally

Posted on 28 July 2014 by VRS  |  Email |Print

Zinc prices extended a rally to a 35-month high as speculation mounted that global demand will exceed supplies. Lead rose to the costliest this year.
Zinc inventories monitored by the London Metal Exchange have tumbled 30 percent this year to 653,900 metric tons, the lowest since December 2010. Goldman Sachs Group Inc. forecasts a global production deficit will widen to 154,000 metric tons next year………………………………………..Full Article: Source

Water scarcity and rising energy costs threaten mining industry

Posted on 28 July 2014 by VRS  |  Email |Print

Access to water has become one of the most significant business risks for miners, says a report that also highlights the threat to the sector from rising energy costs in some resource-rich areas.
EY, the consultancy, said affordable water and energy should now be viewed as one of the 10 biggest problems for miners. The threat was particularly acute in South America and Africa, it said. These continents are significant in the global supply of many metals, particularly copper………………………………………..Full Article: Source

SocGen: Precious-Metals Traders Continue To Monitor Ukraine-Russia Tensions

Posted on 25 July 2014 by VRS  |  Email |Print

Participants in precious metals markets are watching to see if geopolitical tensions put more of a risk premium into gold and boost palladium again, says Robin Bhar, metals analyst with Societe Generale. Prices spiked last week when a Malaysian jetliner was reportedly shot down by pro-Russian separatists, but have since pulled back.
“However, with all eyes on (Russian President Vladimir) Putin, aside from some price volatility here and there, the majority of investors seem to cautiously sit on the sidelines watching the action in the political spectrum unfold,” Bhar says………………………………………..Full Article: Source

Goldman Sachs says copper to underperform other base metals

Posted on 25 July 2014 by VRS  |  Email |Print

Goldman Sachs said it expects copper to underperform other base metal prices over the next 12 months, citing the red metal’s heavy exposure to China’s property sector, which it expects to remain bearish this year and next.
The bank also said copper has entered a once-in-20-year supply cycle, which started in the second half of 2012 and is set to last through to 2016/17, following a decade of high capital expenditure investment in the industry, raising trend supply growth to about 4-5 percent from about 2 percent over the past decade………………………………………..Full Article: Source

Goldman Raises Nickel Price Forecast as Deficit Looms Amid Ban

Posted on 25 July 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc. raised its price forecast for nickel as the market is swinging to a deficit next year following an ore-export ban in Indonesia. The bank’s 12-month estimate is now $22,000 a metric ton, up 38 percent from the previous projection of $16,000, analysts led by Max Layton wrote in a report.
They increased zinc and aluminum by at least 11 percent to $2,500 a ton and $2,100 a ton, respectively, saying iron ore, gold and copper have “the greatest downside” among the mining commodities………………………………………..Full Article: Source

Mining Industry `Is Coming’ Back: Caterpillar CEO (Video)

Posted on 25 July 2014 by VRS  |  Email |Print

Douglas Oberhelman, chief executive officer of Caterpillar Inc., talks about the company’s second-quarter earnings and full-year forecast, share buyback and the impact of global political instability on Caterpillar.
The largest maker of mining machinery forecast full-year sales and earnings that fell short of analysts’ estimates. Oberhelman speaks with Trish Regan on Bloomberg Television’s “Street Smart.”……………………………………….Full Article: Source

Palladium market to deliver sizeable deficit in 2014: Barclays

Posted on 24 July 2014 by VRS  |  Email |Print

Russian Palladium shipments have witnessed a rebound of the trend that has been in dominance over the past few years, despite a two-month spike in April and May.
Limited releases can be expected from Russian state stocks this year with palladium market delivering a sizeable deficit in 2014. A return to the consistently elevated shipments of most of the past decade cannot be expected, according to a Barclays report………………………………………..Full Article: Source

Copper under pressure but analysts see support from strategic buying

Posted on 24 July 2014 by VRS  |  Email |Print

Although mainland imports are slowing amid tighter credit, prices are seen benefiting from strategic reserve purchases and power grid plans. While the worst fallout from the Qingdao metal-backed financing scandal may have passed, mainland copper imports are slowing, with volumes shifting from small traders to larger ones as banks become more cautious.
Still, analysts said, copper prices would be supported by strategic reserve buying and demand spurred by power grid construction. “Copper imports will likely be under pressure in the second half of the year, partly because of small traders going out of business amid tightened lending,” said JP Morgan Asia-Pacific head of basic materials research Daniel Kang, adding that their volumes would be taken over by bigger rivals………………………………………..Full Article: Source

Palladium poised for record year

Posted on 23 July 2014 by VRS  |  Email |Print

Palladium will reach its highest yearly price on record this year and could top that in 2015 as expectations for lower South African output combine with a recovery in demand and doubts over Russian supply, a Reuters poll showed.
Palladium, which has averaged $777 an ounce in the first half, is expected to average $805.50 an ounce in the full year, up more than 10 percent from 2013 and its highest since Reuters data began in 1984, a survey of 31 analysts and traders showed. Next year it is expected to extend that average to $875………………………………………..Full Article: Source

World Crude Steel production rises 3.1% in June

Posted on 23 July 2014 by VRS  |  Email |Print

World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 137 million tonnes (Mt) in June 2014, an increase of 3.1% compared to June 2013.
World crude steel production in the first six months of 2014 was 821.3 Mt, an increase of 2.5% compared to the same period of 2013. The EU 28 showed an increase of 3.8% while Asia and North America reported growth of 2.9% and 1.7% respectively in the first half of 2014. South America and C.I.S. produced -1.0% and -2.6% less each………………………………………..Full Article: Source

Base metals climb on good demand, global cues

Posted on 23 July 2014 by VRS  |  Email |Print

Most of the base metals climbed at the non-ferrous metal market here today on stockists buying amid sustained demand from industrial users in the backdrop of higher London Metal Exchange (LME) cues.
Meanwhile, copper sheet cuttings and lead eased owing to subdued demand from consumer industries. The industrial metal, zinc and aluminium spurted in early trade at the LME as investors bought metals amid supply constraints and a brighter global growth outlook………………………………………..Full Article: Source

Precious metals dealers search for better benchmarks

Posted on 22 July 2014 by VRS  |  Email |Print

Amid pressure from regulators, a new system for determining benchmark silver prices will be put in place from mid-August, while reforms are also under discussion in the gold market. Industry observers say increasing participation will be crucial to restoring confidence in the benchmarks.
The daily silver and gold fixings represent two of the oldest commodity benchmarks in the world, dating back to 1897 and 1919, respectively. But now, their long lives appear to be coming to an end. The silver fix is to be held for the last time in mid-August, while industry discussions were underway aimed at ‘modernising’ the gold fix as Energy Risk went to press. In both cases, the developments will bring significant changes to the way benchmark prices are set for precious metals………………………………………..Full Article: Source

Zinc, aluminium hit multi-month highs, copper steady

Posted on 22 July 2014 by VRS  |  Email |Print

Zinc and aluminium prices hit their highest in more than a year on Monday as investors sought exposure to commodities with improved fundamentals, but copper’s gains were curbed by worries over China’s property sector and over a build-up of stocks.
The gains were probably driven by CTAs (commodity trading advisors), or managed futures funds, said analyst Andrey Kryuchenkov at VTB Capital, referring to funds that often use computer algorithms to track momentum………………………………………..Full Article: Source

Chinese commodity financing scam dents copper’s prospects

Posted on 22 July 2014 by VRS  |  Email |Print

Copper prices on the London Metal Exchange have dropped over five per cent since the beginning of the year to $6,987 (₹4.22 lakh) a tonne. A major reason for this fall is the drop in demand after a scandal over financing of commodities broke out in China. Data on Chinese copper imports show sharp drop in consumption.
The scam came to light a couple of months ago and it has seen copper shipments to China drop drastically. In May, copper imports declined 16 per cent to 3,80,000 tonnes from April and last month they slipped further to 3,50,000 tonnes………………………………………..Full Article: Source

Aluminum in Bull Market as Investors Lured by Shortage Outlook

Posted on 22 July 2014 by VRS  |  Email |Print

Aluminum entered a bull market in London and traded near the highest in 16 months on speculation demand will exceed supply for the metal used in everything from cars to packaging. Stockpiles monitored by the London Metal Exchange slumped 9.4 percent this year to the lowest in 22 months.
Producers outside China cut output after prices on the bourse slumped 13 percent last year. Demand will exceed supply by 136,000 metric tons this year, with the deficit widening to 504,000 tons next year, Bank of America Corp. estimates. Premiums added to the LME benchmark price to obtain metal in Europe, North America and Asia climbed to records this year………………………………………..Full Article: Source

Is it time to take a look at the coal-mining businesses?

Posted on 21 July 2014 by VRS  |  Email |Print

Heightened global tensions sent the spot price of gold up nearly US$20 overnight on Thursday to around US$1319 per ounce. On the local bourse gold mining stocks including Newcrest Mining Ltd and Northern Star Resources Ltd were both up around 3% on Friday in response to the tensions and higher gold price; in contrast the S&P/ASX 200 Index traded lower.
The bounce in volatility is a stark reminder to investors that many stocks are now priced for perfection; this leaves them vulnerable to swift declines. At the same time, major economies such as China and the USA continue to report solid growth rates………………………………………..Full Article: Source

Global Steel Dynamics shifts due to Chinese Structural Changes

Posted on 21 July 2014 by VRS  |  Email |Print

During a meeting with shareholder on Thursday, Tata group chairman Cyrus Mistry said that there would be a shift in demand-supply in the global steel industry due to the structural changes happened in china, the largest steel producer in the world. The steel sector anticipates a lower price level for raw materials.
Mistry said in the company’s annual report for fiscal 2013-14 that the growth in China has tempered as the nation has moved its gears to attain a sustainable model of economic development………………………………………..Full Article: Source

Global Zinc rally takes market by surprise

Posted on 18 July 2014 by VRS  |  Email |Print

Zinc futures prices and open interest have climbed up in London Metal Exchange (LME), Shaghai Futures Exchange (SHFE) and India’s Multi Commodity Exchange (MCX) as global market for refined zince has fallen into deficit by 107 kt over the four months from January to April 2014. This scenario has emerged amidst weakness in copper market, Standard Bank said in a report.
Standard Bank notes that open interest in SHFE zinc contract has risen 60% since the start of July while prices have risen 10% since June indicating build up of large long position. Zinc open interest is now at the highest point since November 2010………………………………………..Full Article: Source

Citi: Base Metals Rally ‘Too Far Too Fast’

Posted on 17 July 2014 by VRS  |  Email |Print

A rally in base metals may be “overdone,” says Citi Research. The London Metal Exchange Index is up 7.2% since June 12. “However, we do not believe that current supply-(and)-demand fundamentals justify this rally and expect prices to correct lower,” Citi says.
The bank says the rally has been driven by paper-market positioning on the back of improving macroeconomic sentiment, money inflows including those from commodity trading advisers, and anticipation of more positive supply/demand conditions next year, such as zinc mine closures. ……………………………………….Full Article: Source

China copper trading hit by commodity financing crackdown

Posted on 16 July 2014 by VRS  |  Email |Print

A Chinese commodity trading house is accused of securing multiple bank loans against a single stockpile of copper and aluminium, causing ructions in copper prices and a dip in trading volumes.
The discovery of a financing practice by a Chinese trading firm using the same metals inventory as collateral to secure multiple bank loans has caused copper prices to plummet, yet futures traders have profited from the price dislocations………………………………………..Full Article: Source

Palladium Is The Best Performer Among Precious Metals In 2014

Posted on 15 July 2014 by VRS  |  Email |Print

The first half of the year 2014 is history. Time for a quick evaluation of the metals’ performance. Obviously, Sharelynx offers the best in class charts to answer our question. Palladium is by far the best performer among the precious metals. Since the start of this year it’s price has increased with 18% (approximately) while the second performer (silver) added 10% to its price.
The other three metals have a very similar percentage rise over 6 months. Silver has been the laggard till early June when it accelerated its rise in a very short time span. This is the “restless” characteristic of silver………………………………………..Full Article: Source

Miners hit by precious metals pullback

Posted on 15 July 2014 by VRS  |  Email |Print

A sudden pullback in gold and silver prices after a month’s rally sent precious metal miners lower on Monday. Gains in the two commodities have been fuelled by improving economic activity, particularly in China, as well as the resurgence over the past week of euro area fears and discord over when the Federal Reserve will first raise interest rates.
Spot gold, which has climbed more than 7 per cent since the start of June, tumbled 2.5 per cent to $1,305.51 an ounce while silver prices slid 3 per cent. Analysts with Credit Suisse said bullion movements over the remainder of the year would be tied to Fed chairwoman Janet Yellen’s view of the economy and how the central bank normalises monetary policy………………………………………..Full Article: Source

September 2014
S M T W T F S
« Aug    
 123456
78910111213
14151617181920
21222324252627
282930