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Commodities: Nickel on a steady rise

Posted on 26 November 2014 by VRS  |  Email |Print

The stock market continued higher on Monday as the rally in U.S. stocks broadened out to include not only large cap stocks, but small and mid-cap shares as well. The Standard and Poor’s 500 large cap index ended the day higher by 0.29 percent, but small cap stocks had an entirely different agenda, as seen in the Russell 2000 small cap index which rose 1.19 percent on the day.
Small cap stock indexes have lagged large cap stock indexes for much of the year, and it would take a Herculean effort for small caps to catch up with just 25 trading days left. However, this doesn’t mean they won’t try, given Friday’s news out of China that their central bank will make money cheaper to borrow, in an attempt to stimulate their economy. The European Central Bank also announced on Friday they are getting closer to additional stimulus efforts……………………………Full Article: Source

BHP forecasts copper deficit by the year 2018

Posted on 25 November 2014 by VRS  |  Email |Print

The Melbourne based subsidiary of BHP Billiton, in their statement released today articulated that, the industrial production of copper will be highly affected by structural factors such as grade decline of the metal as well as higher strip ratios. The statement further added that, the availability of energy and water might also affect the copper production of certain mines.
According to the report released by the Wood Mackenzie Ltd, by the year 2022, 4.5 million tonnes of production of the metal might be needed in order to meet the rising demand of copper. According to the reports from Goldman Sach, the supply gap of the metal might reach up to 2 million tonnes by the year of 2018………………………………….Full Article: Source

Copper concentrate market seen splitting into three-tier system: Citibank

Posted on 25 November 2014 by VRS  |  Email |Print

The pricing of copper concentrate treatment and refining charges may be splintering into a three-tier system owning to the variety of ore available to the market, Citibank said in a research piece Monday. Analyst at the bank David Wilson questioned the validity of a benchmark reference price for copper raw material.
“Is there even such a thing as a ‘benchmark’? As of November 20, miners and smelters remained stuck in negotiations between $105-110. We expect the benchmark level will be set at $108. However, we believe that a three-tier market is emerging,” said Wilson………………………………….Full Article: Source

Global metal trading becomes more difficult to regulate

Posted on 25 November 2014 by VRS  |  Email |Print

Global metals markets are becoming more difficult to regulate as manipulation takes more subtle forms and new trading platforms spring up, according to a new study. The movement of commodities trading to new hubs in Singapore, Dubai and China adds additional complications for national regulators, London-based think-tank Chatham House will say in a report set to come out next month.
“Opaque pricing mechanisms and weakly governed market platforms are vulnerable to manipulation by powerful market participants, including trading houses, major producers and financial institutions,” the report says………………………………….Full Article: Source

US report details metal warehouse issues

Posted on 21 November 2014 by VRS  |  Email |Print

The two-year US Senate investigation into banks’ commodities business has thrown a sharp light on the relationship between metals warehouses and their owners.
A 403 page document released on Wednesday alleges Goldman Sach’s 2010 purchase of Metro International Trade Services, a Detroit warehouse operator, led to rising aluminium prices as the company paid incentives to holders of the metal to shuffle it between warehouses, artificially increasing the length of queues and creating the impression of strong demand………………………………….Full Article: Source

The iron ore price slump won’t stop BHP and Rio

Posted on 21 November 2014 by VRS  |  Email |Print

With the iron ore price touching $US70 a tonne overnight, the price is closing in on the point where only Rio Tinto and BHP Billiton will have profitable iron ore businesses. Despite the continuing collapse in the price, however, both remain committed to driving increased production volumes.
Any of the smaller producers hoping for some relief from the apparently inexorable decline in the price to levels below $US70 a tonne — when the price usually firms in November and December as China’s steel mills build up their stocks — would have had them dashed by Andrew Mackenzie’s comments at BHP’s annual meeting in Adelaide today………………………………….Full Article: Source

Is the aluminium production cycle starting to turn?: Andy Home

Posted on 21 November 2014 by VRS  |  Email |Print

Daily average aluminium production in the world outside China slid to 66,200 tonnes in October, according to the International Aluminium Institute (IAI). It was the lowest collective run-rate since January with continued strong growth in the Gulf region, up 23 percent so far this year, offset by curtailments and closures elsewhere.
Annualised non-Chinese production has fallen by 1.61 million tonnes since the start of 2012, which was when Western producers started wielding the collective axe in response to low prices………………………………….Full Article: Source

Goldman Spars With Senators Over Its Aluminum Business

Posted on 21 November 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc. (GS) executives sparred with lawmakers over accusations that its aluminum business improperly influenced prices and that the firm’s traders had unfair access to market-moving data. Under fire at a hearing today on whether Wall Street’s ownership of commodities spurs conflicts, Goldman Sachs’s Jacques Gabillon disputed senators’ charges that long wait times for aluminum stockpiles had a direct effect on what companies and consumers pay for the metal.
Only a handful of Goldman Sachs employees get information on the aluminum unit and reports are limited to financial performance, he said. “When everything is said and done, you can say there is no correlation” between wait times and price, said Gabillon, head of the New York-based bank’s global commodities principal investments group………………………………….Full Article: Source

Goldman reports copper price to fall

Posted on 20 November 2014 by VRS  |  Email |Print

Max Layton, an analyst, in his report, affirmed that, the bank has declined its outlook for copper in the year 2015, from 6,400 dollars per metric tonne to 6,217 dollars per metric tonne. The report also asserted that the marginal production cost of the base metal, for the year 2015 will lie between, 5,600 dollars per tonne, and 6,300 dollars per tonne.
The report by the bank expressed that, the strength of the dollar, and decline in the price of the input, shows the lower cost of the metal and lower prices in the market for the metal. In case of the commodity markets, which are found to be in balance or in slight surplus, the price of the commodity, will always trade with or around the marginal operating cost………………………………Full Article: Source

Aluminium pricing may never be the same again: Andy Home

Posted on 20 November 2014 by VRS  |  Email |Print

The splintering of the global aluminium price is becoming ever more acute. Physical premiums on both sides of the Atlantic have just sailed through the $500 per tonne level, widening the disconnect between the global reference price set on the London Metal Exchange (LME) and the “all-in” price paid by manufacturers.
There is accumulating evidence that first-stage aluminium users, who have up to now taken the unhedgeable premium pain, are looking to pass it down the supply chain to their own customers. If they do, what was once considered a temporary aberration risks becoming embedded throughout the aluminium industry………………………………Full Article: Source

Iron ore price hits five-year low, no year-end restocking seen

Posted on 20 November 2014 by VRS  |  Email |Print

Iron ore prices slid to their lowest level in more than five years on Wednesday as a supply glut kept battering the market. Iron ore has lost nearly half its value this year, hit hard by a slowing economy in top consumer China. Analysts are ruling out any Chinese restocking that typically supports prices towards the end of each year.
“We no longer expect a meaningful iron ore restock later in the year as steel mills in China are content to purchase iron ore at their convenience, either from the port or from domestic producers, due to its wide availability,” Commonwealth Bank of Australia said in a note. “Tighter credit is also forcing many steel mills to adjust to lower inventory levels.”……………………………..Full Article: Source

Outlook for Global Base Metals Industry Remains Stable: Moody’s

Posted on 19 November 2014 by VRS  |  Email |Print

Moody’s Investors Service on Tuesday forecast a stable outlook for the global base metals industry. “The outlook for the global base metals industry remains stable. Copper, nickel and zinc are expected to trade within the price ranges seen this year over the next 12 to 18 months, while aluminium could exceed 2014 trading ranges,” it said.
“Prices will continue to be volatile, with heightening concern over global growth factors tipping risk to downside,” Moody’s Investors Service added. Prices, it said, would remain vulnerable to influences such as global economic growth rates, Chinese export or import levels, production disruptions and foreign-currency movements……………………………………Full Article: Source

Metals Investing: Zinc, Aluminum And Nickel Make Good Plays

Posted on 19 November 2014 by VRS  |  Email |Print

Zinc, aluminum and nickel have become a profitable play for investors who have taken a net long position in base metals as supply would dip in the near future, several analysts noted. Robin Bhar, Societe Generale research head, said bargain hunters looking for value should take advantage of the current low prices of base metals before a probable price hike.
“Supply/demand balances are tightening, so that should provide a good support level and help to repel some of the downside moves,” Bhar told Reuters. “I’ve heard that consumers and merchants are looking to do more hedging again, and there’s been good dip buying.”…………………………………..Full Article: Source

Iron Ore Bear Market Deepens as China Home Prices Add to Concern

Posted on 19 November 2014 by VRS  |  Email |Print

Iron ore extended a tumble to the lowest level in more than five years as declining home prices in China added to concern that an economic slowdown in the biggest buyer will deepen, exacerbating an oversupply. Ore with 62 percent content delivered to Qingdao, China, retreated 4.4 percent to $71.80 a dry ton, the lowest level since June 2009, according to data from Metal Bulletin Ltd. yesterday. It’s 47 percent lower this year, heading for the biggest annual drop in data going back to 2009.
The raw material fell into a bear market this year as BHP Billiton Ltd. (BHP), Rio Tinto Group and Vale SA (VALE5) boosted output, spurring a global glut just as economic growth slowed in China. Prices may drop to less than $60 a ton next year as output rises further and demand remains weak, Citigroup Inc. said……………………………………Full Article: Source

Aluminum Falls to Two-Week Low on Concern Global Use Ebbs

Posted on 19 November 2014 by VRS  |  Email |Print

Aluminum fell to a two-week low after a report showed that China’s real-estate market is weakening, fanning concern that a global economic slowdown will sap demand for industrial metals.
New-home prices slid in October for a second month in all but one city monitored by the government, China’s statistics bureau said today. U.S. industrial production unexpectedly slipped last month, and the economy in Japan fell into its fourth recession since 2008, separate report showed yesterday. China is the world’s top metal consumer, followed by the U.S. Copper, tin, nickel, lead and zinc declined……………………………………Full Article: Source

‘Dr Copper’ still the favourite commodity

Posted on 19 November 2014 by VRS  |  Email |Print

Copper has outperformed other major commodities this year, with demand expected to hold up into next year. The metal slipped 0.5 per cent in afternoon trade on Tuesday to $US6673 a tonne from two-week highs marked the session before, hurt by concerns over China’s sluggish housing market, although expectations of more European monetary stimulus provided support.
While copper is down about 9 per cent since the beginning of the year it has avoided the deeper selloff experienced this year by other commodities such as iron ore and oil……………………………………Full Article: Source

Swiss regulator flags attempt to manipulate bullion benchmarks

Posted on 13 November 2014 by VRS  |  Email |Print

Switzerland’s financial watchdog said on Wednesday it had found a “clear attempt” to manipulate precious metals price benchmarks during a cross-market investigation into trading at UBS bank.
The FINMA regulator revealed its findings just days after the precious metals industry decided to automate the setting of reference prices for gold, ending the twice-daily “fix” by a panel of banks which has been used for almost a century………………………………………..Full Article: Source

Base metals resilient amid commodity rout, may hold fast

Posted on 13 November 2014 by VRS  |  Email |Print

The industrial metals complex on the London Metal Exchange, led by aluminium, is bucking a sell-off in commodities this year and could outperform in coming months as investors bet on developing shortages. The industrial metals component of the S&P Goldman Sachs Commodity index is up 1 percent so far in 2014.
That compares with a 15 percent fall in the overall index as excess supplies, weak global growth and a strong dollar have driven energy prices down 22 percent and agricultural markets 9 percent lower. Precious metals have shed 5 percent. “Base metals have been relatively resilient, and the reason for that is that some at least have distinct supply-side support, which is simply not there for oil,” said Stephen Briggs, metals strategist at BNP Paribas………………………………………..Full Article: Source

Nickel: A lot of question marks there

Posted on 13 November 2014 by VRS  |  Email |Print

The failure to find a buyer for its Australian nickel business has left BHP Billiton Ltd. with unwanted smelters and pits after the collapse of a price boom. The metal reached a two-year high on May 13, a day before the world’s biggest miner outlined a plan to sell all or part of the unit. Since then, the price has declined 27 percent.
Nickel West, which includes mines, concentrators, the Kalgoorlie smelter and Kwinana refinery, didn’t attract a suitable bid, the company said today in a statement. While Glencore Plc Chief Executive Officer Ivan Glasenberg said earlier his company planned to examine Nickel West and would be “kicking its tires,” no acceptable offers were made, BHP said………………………………………..Full Article: Source

Copper prices fall amid global uncertainty

Posted on 13 November 2014 by VRS  |  Email |Print

Copper prices were slightly lower after shuffling between gains and losses for much of the day, as investors weighed uncertainty about the pace of growth in China and Europe against expectations of a tighter market for the industrial metal.
Copper for December delivery, the most actively traded contract, settled down 0.3 per cent at $US3.0250 a pound on the Comex division of the New York Mercantile Exchange. Prices for copper have held in a tight range in recent weeks………………………………………..Full Article: Source

Industry to promote platinum as an investment

Posted on 12 November 2014 by VRS  |  Email |Print

An industry body to promote investment demand for platinum should be set for launch late this year or early 2015 as South African producers try to boost sales in the face of falling prices, industry and banking sources said. The new body, called the World Platinum Investment Council, will most likely be based in London or Johannesburg, the sources said.
“This is a collaborative industry initiative. The aim is to promote investment into platinum,” said a source at a producer, who declined to be named. The source said the world’s top platinum producers Anglo American Platinum and Impala Platinum were heavily involved but several of the smaller companies in the sector were also taking part in the discussions and would likely sign up and help finance it………………………………………..Full Article: Source

Peru’s top copper and zinc mine says strike not hurting output

Posted on 12 November 2014 by VRS  |  Email |Print

Peru’s top copper and zinc miner, Antamina, said that a partial labor stoppage had not hurt its production, but the union striking for a second straight day on Tuesday said output was likely down by at least 90 percent.
Zinc prices rose on Tuesday in part on concerns the strike would further tighten global supply, but the stoppage appeared not to significantly affect copper prices amid expectations of a surplus next year. The mine, in the Peruvian highlands region Ancash, produces about 30 percent of Peru’s copper and 20 percent of its zinc………………………………………..Full Article: Source

Iron Ore Seen by Citigroup Below $60 as 2015 Forecast Cut

Posted on 12 November 2014 by VRS  |  Email |Print

Iron ore prices will plummet to less than $60 a metric ton next year as global supply increases and demand remains weak, according to Citigroup Inc., which slashed its quarterly forecasts for 2015 by as much as 23 percent.
The raw material will average $72 a ton in the first three months of 2015, down from an earlier forecast of $82, Ivan Szpakowski, an analyst in Hong Kong, wrote in a report dated today. The second-quarter forecast was cut to $65 from $80, while the third was reduced to $60 from $78 and the figure for the final three months was put at $62 from $78, he wrote………………………………………..Full Article: Source

Iron ore party’s over

Posted on 11 November 2014 by VRS  |  Email |Print

ANZ’s research team returned from a trip to China to declare “the party’s over for iron ore” after discovering demand conditions that were more challenging than thought, while analysts at RBC Capital Markets slashed their price forecasts for this and next year and predicted small WA’s iron ore miners would be loss-making.
Hardest hit among RBC’s targets was Atlas Iron, which it says will record an underlying loss of $48 million for the year to June 30, worse than its initial forecast of a $9 million deficit. The outlook is equally grim in 2015-16, with RBC now expecting Atlas to post a loss of $34 million, rather than a $38 million profit………………………………………..Full Article: Source

Iron Ore Seen at Less Than $60 by Citigroup as Forecasts Cut

Posted on 11 November 2014 by VRS  |  Email |Print

Iron ore prices will plummet to less than $60 a metric ton next year as global supply increases and demand remains weak, according to Citigroup Inc., which slashed its quarterly forecasts for 2015 by as much as 23 percent.
The raw material will average $72 a ton in the first three months of 2015, down from an earlier forecast of $82, Ivan Szpakowski, an analyst in Hong Kong, wrote in a report dated today. The second-quarter forecast was cut to $65 from $80, while the third was reduced to $60 from $78 and the figure for the final three months was put at $62 from $78, he wrote. The full-year forecast for 2015 was cut to $65 a ton from $80………………………………………..Full Article: Source

Metals meltdown: Gold isn’t glittering

Posted on 07 November 2014 by VRS  |  Email |Print

That pot of gold at the end of the rainbow just got a lot less valuable. Gold and silver prices have been in meltdown mode in recent weeks. Gold spent much of 2014 trading around $1,250 an ounce. Now it trades below $1,145 — its lowest level in over four years.
Why are gold and silver going out of fashion with investors? It’s simple: The “end-of-the-world trade” is no longer popular. Investors buy gold when they’re scared. Right now the U.S. economy continues to chug along, Ebola fears have faded, tensions with Russia have eased and Western countries are containing ISIS………………………………………..Full Article: Source

Nickel Leads Metals Down as Aluminum, Zinc Outperform

Posted on 06 November 2014 by VRS  |  Email |Print

Nickel fell to the lowest in a week, leading industrial metals lower and slipping below aluminum and zinc as the London Metal Exchange’s top performers this year.
Nickel dropped as much as 1.6 percent today after slumping 3 percent yesterday as inventories tracked by the LME rose to a record 385,860 metric tons. Aluminum, which displaced nickel as the biggest gainer on Nov. 3, has climbed 13 percent this year. Zinc moved into second place today with an 8.8 advance as nickel trimmed its rise to 8.2 percent………………………………………..Full Article: Source

Cooling China gold demand helps dim metal’s outlook

Posted on 05 November 2014 by VRS  |  Email |Print

Cooling Chinese demand for gold has added to an increasingly gloomy global outlook for the precious metal, which slumped to a fresh four-year low on Monday. Gold prices in Shanghai normally carry a premium to global prices, but that reversed to a rare discount Monday. The premium, which is attributable to capital controls, was $2 to $3 an ounce to London prices about a week ago.
The tepid demand is especially unusual, as the premium typically rises this time of year as Chinese traders stock up on gold ahead of the Lunar New Year holiday, which is due in February. Lunar New Year is the peak gold-buying season in China. But the price move in Shanghai shows even Chinese buyers aren’t yet stepping in to buy at cheaper prices, betting that they may have further to fall………………………………………..Full Article: Source

Peru trims its view of copper output in 2014, 2015

Posted on 05 November 2014 by VRS  |  Email |Print

Peru will likely produce less copper this year and next than the government had forecast as big new projects face delays and output from the country’s top producer has slid on lower ore grades.
Deputy Mines Minister Guillermo Shinno said on Tuesday that Peru’s copper production in 2014 is now on track to rise just slightly from last year’s 1.375 million tonnes………………………………………..Full Article: Source

Outlook for gold and iron ore is ‘very good’

Posted on 04 November 2014 by VRS  |  Email |Print

Although most commodity prices were weak, large-scale producers’ margins remained high, but profitability would continue to be helped by increasing global production levels, said Afriforesight’s monthly commodity update released last month.
The report forecast that in the coming year, the profitability for the top players in iron ore and gold industry was “very good” while diamonds profitability was “excellent”, however platinum group metals were “okay” but were still recovering from effects of the five-month strike………………………………………..Full Article: Source

Copper is up, but most metals fall

Posted on 04 November 2014 by VRS  |  Email |Print

Copper futures have closed up on the London Metal Exchange, after the release of better-than-forecast US ISM factory index data. THE LME’s three-month copper contract was up 0.4 per cent at $US6,720.00 a metric ton at Monday’s PM kerb close.
The US ISM factory figure rose from 56.6 in September to 59 in October, which was bullish for prices. As the US is the world’s second-biggest consumer of copper after China, prices tend to mirror its economic trajectory. This means that when economic data is strong, demand increases and prices rise accordingly………………………………………..Full Article: Source

Coal price weakness will extend into 2015:BofA Merrill Lynch

Posted on 03 November 2014 by VRS  |  Email |Print

Coal price weakness is expected to extend into 2015 on the back of a growing physical surplus next year. The balance is weaker on soft demand in China and continued strong mine ramp-ups around the world, forcing further production cuts in the US. A new 6% import tax on Australian supplies into China may further depress Newcastle prices, according to Bank of America Merrill Lynch.
Still, at $64/mt Newcastle prices are not low enough to force production cuts in Australia, as the vast majority of production earns enough to cover variable cash costs as long as Newcastle prices stay above $55/mt………………………………………..Full Article: Source

Precious Metals Take a Beating on Fed Worries

Posted on 31 October 2014 by VRS  |  Email |Print

Gold prices slid to the lowest level in nearly a month on Thursday and other precious metals fell sharply, as hawkish comments from the Federal Reserve and strong U.S. economic data indicated the central bank could raise interest rates sooner than expected.
Gold for December delivery, the most actively traded contract, closed down $26.30, or 2.2%, at $1,198.60 a troy ounce, on the Comex division of the New York Mercantile Exchange. It was the contract’s first settlement below $1,200 an ounce since Oct. 3. Silver fell to a 4½-year low, tracking gold lower………………………………………..Full Article: Source

Huh! Where did that copper market surplus go?: Andy Home

Posted on 31 October 2014 by VRS  |  Email |Print

“Who’s got all the copper?” was the headline question in my last column on the copper market at the end of September. The answer, according to the Wall Street Journal, is Red Kite, the specialist metals hedge fund set up by Michael Farmer, a man who was trading the copper market before many younger readers were born.
Well…maybe. But…maybe not. It’s always a bit tricky to say in the hall-of-mirrors that is the London Metal Exchange (LME). What is not in doubt is that someone has been exerting a vice-like grip on LME copper stocks for many, many weeks………………………………………..Full Article: Source

Southern Copper cuts view for 2015 copper output

Posted on 30 October 2014 by VRS  |  Email |Print

Global miner Southern Copper said on Wednesday that it was revising down its forecast for its copper output next year by 9.8 percent to 758,000 tonnes.
“This number is still under review. We will have, I believe, a better plan when we start 2015,” said Chief Financial Officer Raul Jacob in a conference call with investors following the company’ release of third-quarter results. The company, controlled by Grupo Mexico, will likely produce 658,000 tonnes of copper this year and 912,000 tonnes in 2016, Jacob said………………………………………..Full Article: Source

Nickel miners soar as commodity price stages turnaround

Posted on 30 October 2014 by VRS  |  Email |Print

ASX-listed nickel miners are soaring on the ASX today, as the commodity price stages a resurgence. Nickel prices had fallen more than 20% to below US$7 a pound, as stockpiles surged 45% to record levels, according to Bloomberg.
Investment bank Goldman Sachs is forecasting that China will cut its nickel pig iron output by around 70,000 tonnes a year, in an attempt to reduce pollution levels prior to the Asia-Pacific Economic Cooperation meeting that begins in Beijing on November 10………………………………………..Full Article: Source

U.S. Bank: Any Macroeconomic Improvement Should Boost Base Metals

Posted on 30 October 2014 by VRS  |  Email |Print

Improvement in the global macroeconomic picture is likely to help base metals, particularly since there is some supply tightness, says U.S. Bank Wealth Management. The firm notes that improved economic news for China helped copper prices rebound 1% for the last week, returning prices above the key $3-per-pound level.
Nickel, meanwhile, lost more than 4%, with the metal retracing most of its year-to-date gains as stockpiles have risen in Asia despite the Indonesian export ban. “On balance, this left the industrial metals complex unchanged for the week,” the firm says………………………………………..Full Article: Source

Why bearishness on copper looks extreme

Posted on 29 October 2014 by VRS  |  Email |Print

With safety issues increasing the likelihood of a work stoppage at Freeport McMoran Copper & Gold Inc.’s Grasberg project in Indonesia, coupled with a strike set to begin Nov. 10 at the Antamina mine in Peru, the probability of a deficit in the copper market has significantly risen.
Estimates suggest that these two labour disruptions could remove 84,000 tonnes of mined copper supply through the end of 2014. Prices for the base metal have declined approximately 9% so far this year as traders anticipated a market surplus, but Dundee Capital Markets mining analyst David Charles pointed out that this excess metal has yet to materialize………………………………………..Full Article: Source

Why China blurs the global aluminium picture

Posted on 28 October 2014 by VRS  |  Email |Print

Is the world aluminium market in a supply-demand deficit or surplus? It’s a simple enough question but an extraordinarily difficult one to answer. That much was clear at last week’s LME Seminar. Two respected bank analysts, Citi’s David Wilson and Natixis’ Nic Brown, offered diametrically different views.
Deficit, according to Brown, and one that will steadily increase over the next two years. Surplus, according to Wilson, with no sign of deficit until 2017 at the earliest. Calculating supply-demand balances in any industrial metal is a tricky business, but the problems are compounded in aluminium………………………………………..Full Article: Source

A Copper-Bottomed Strategy?

Posted on 28 October 2014 by VRS  |  Email |Print

Talk about a strong market position: a single buyer has bought up over half of the copper held in London Metal Exchange warehouses, with its holding sometimes reaching over 90% of stocks in the last month, according to a story by the WSJ’s Sarah Kent, Ese Erheriene and Ira Iosebashvili.
The LME hasn’t made the buyer’s identity public but several traders and brokers suspect London-based hedge fund Red Kite Group, which has declined to comment. Why would anyone buy so much copper? One possibility is that whoever is behind the trade thinks copper prices are heading upwards due to a coming supply shortage………………………………………..Full Article: Source

Platinum and palladium price Fixing settled - now for gold

Posted on 27 October 2014 by VRS  |  Email |Print

It was announced a week ago by the London Platinum and Palladium Fixing Company Limited (LPPFCL) that the responsibility for administering a new electronic Fixing process for the two metals has been awarded to the now Hong Kong-owned London Metal Exchange (LME).
The LPPFCL had previously announced the setting up of a Request for Proposal (RFP) following a review of its Fixing process at the end of July. This was with the aim of appointing a third party to assume responsibility for the administration of the Fixing in place of the LPPFCL. The recent announcement was that the LME had been selected and has committed to become the new administrator of the Fixing process………………………………………..Full Article: Source

Here’s Why Copper Is Still So Strong

Posted on 27 October 2014 by VRS  |  Email |Print

Copper is supposed to be the commodity with a PhD. That is, copper has always been seen as so ubiquitous throughout the global economy that its moves, like the Aussie dollar’s, are often taken as a proxy for traders views on global growth.
So copper’s resilience above $3 a pound over the past 4 months has been a stand-out price performance which has had traders scratching their heads………………………………………..Full Article: Source

Factors Affecting Precious Metals

Posted on 23 October 2014 by VRS  |  Email |Print

Since the dawn of civilization, precious metals — especially Gold and Silver — have been recognized as stores of value and have been used as money for transaction purposes. Even today, in the presence of stocks, bonds and a number of alternate investment options, they are a very popular source of investment.
They neither yield dividends nor interest and they don’t convey an ownership interest in a firm or stock — in fact, they actually come with additional storage and safeguarding fees. But still, they are an important component of individual as well as institutional investors’ portfolios. Apart from acting as investment vehicles, gold and silver also have a strong jewelry market and are used for manufacturing purposes in some industries………………………………………..Full Article: Source

Nickel’s Slide Extends Roller-Coaster Ride

Posted on 23 October 2014 by VRS  |  Email |Print

Nickel prices have sunk to their lowest level since March, as slowing economies in Europe and China rattle investors, while a financing scandal in China has prompted companies to dump tons of nickel and other metals on the market.
The slide extends this year’s roller-coaster ride for traders in the metal, which is used to produce stainless and heat-resisting steel. Nickel futures have tumbled more than 20% since early September. That followed a monthslong rally, as a ban on nickel-ore shipments by No. 1 exporter Indonesia drove a 50% jump in prices from January to mid-May………………………………………..Full Article: Source

Copper hopes ‘bright despite volatility’

Posted on 23 October 2014 by VRS  |  Email |Print

Copper is set for a period of price volatility as the market digests new supply but long-term prospects remain bright due to grade declines and extended lead times for new projects, according to global miner Rio Tinto.
Sentiment toward the red metal, used extensively in construction and electrical applications, has turned increasingly bearish over the past year as new projects have come on stream and concerns about slowing growth in China have intensified………………………………………..Full Article: Source

Is This Crunch Time for Base Metals?

Posted on 22 October 2014 by VRS  |  Email |Print

Anyone investing in industrial metals needs to be patient. Copper, nickel, zinc and tin are likely to suffer low prices for some time yet, traders and analysts warn, though many are hopeful they’ll hit a floor soon. Demand has been dented by weakening global growth—not least concerns about a Chinese slowdown–which means metal consumption isn’t rising as fast as many had expected.
Traders are feeling particularly grim about copper. According to a survey of LME Week participants conducted by Macquarie Group Ltd, copper is the metal that people most want to bet against — the first time that’s been the case in six years. By contrast, traders are more optimistic about zinc, according to the survey………………………………………..Full Article: Source

Increase in copper price is unlikely, says analysts

Posted on 22 October 2014 by VRS  |  Email |Print

In the Metal Seminar conducted at the LME, Edward Meir, an analyst at INTL FC Stone, stated that, breaking out the earlier predicted supply glut, the demand for copper in the global market, will only rise to 150,000 tonnes, in the year of 2014.
A recheck on the outlook of global copper demand, by the International Copper Study Group, showed a lag of 270,000 over supply and demand, the same group, had earlier this year, forecasted a demand of 40,000 tonnes of copper in the global market………………………………………..Full Article: Source

India Steel output up by 2.5% in September,slight dip in Global output

Posted on 22 October 2014 by VRS  |  Email |Print

World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 134 million tonnes (Mt) in September 2014, a slight decrease of -0.1% compared to September 2013. India produced 6.8 Mt of crude steel, an increase of 2.5% compared to the same month 2013.
China’s crude steel production for September 2014 was 67.5 Mt, the same compared to September 2013. Elsewhere in Asia, Japan produced 9.2 Mt of crude steel in September 2014, a decrease of -0.5% compared to September 2013. South Korea produced 5.7 Mt of crude steel in September 2014, up by 10.1% on September 2013………………………………………..Full Article: Source

Refined lead market to show ‘modest’ deficit in 2014, 2015: ILZSG

Posted on 21 October 2014 by VRS  |  Email |Print

Global demand for refined lead metal will continue to exceed supply by a modest amount in both 2014 and 2015, the International Lead and Zinc Study Group said Monday, forecasting a deficit of 38,000 mt this year and 23,000 mt in 2015.
Global demand for refined lead metal is forecast to rise by 1.4% to 11.33 million mt this year and by a further 2.1% to 11.56 million mt in 2015, the ILZSG said. “In China, despite a further increase in automotive output and an expansion in the construction of mobile phone base stations that require industrial lead-acid batteries for back-up power, demand growth is expected to slow to 2.5% in 2014 and 2.9% in 2015,” the group said in a statement………………………………………..Full Article: Source

Supply Deficit Unlikely To Help Copper

Posted on 21 October 2014 by VRS  |  Email |Print

The copper market may end up in deficit this year, but that won’t do much for the metal’s price, analysts said. Instead of an earlier predicted supply glut, the copper market will likely finish 2014 with a deficit of around 150,000 tons, said Edward Meir, an analyst at INTL FC Stone., in a presentation at the LME Metals Seminar in London.
That forecast jibes with the International Copper Study Group’s revised outlook, which foresees demand lagging supply by 270,000 tons. Earlier this year, the ICSG predicted a 400,000 ton surplus………………………………………..Full Article: Source

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