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Global aluminium production; the sound of one hand clapping

Posted on 26 January 2015 by VRS  |  Email |Print

What is the sound of one hand clapping? It’s supposed to be a question without an answer, a test posed by the master to the disciple in the Zen journey towards enlightenment. But it’s also as good a description as any of the current state of global aluminium production.
The one hand clapping is that of the non-China world, where producer discipline has tamed supply sufficiently to drag the market into a state of deficit. Such enlightenment has taken several years to achieve and marks only the very first step towards correcting the mistakes of the past. These still weigh heavily over the aluminium price in the form of millions of tonnes of accumulated surplus………………………………………..Full Article: Source

Gold and Silver Buyers Take a Shine to Precious Metals Again

Posted on 23 January 2015 by VRS  |  Email |Print

Gold and silver are getting another turn in the spotlight, luring investors worried about slowing global growth and surprises by central banks. On Thursday, the European Central Bank offered the latest reason to pile into precious metals by unleashing a bigger-than-expected bond-buying program amid continued worries about Europe’s economy.
Gold futures ended above $1,300 a troy ounce for the first time since August, while silver neared bull-market territory, defined as a 20% increase from a recent low. Gold and silver are drawing buyers of all stripes, a sign fears about a worsening economic outlook run deep in financial markets………………………………………..Full Article: Source

Global aluminum production; the sound of one hand clapping: Andy Home

Posted on 23 January 2015 by VRS  |  Email |Print

What is the sound of one hand clapping? It’s supposed to be a question without an answer, a test posed by the master to the disciple in the Zen journey toward enlightenment.
But it’s also as good a description as any of the current state of global aluminum production. The one hand clapping is that of the non-China world, where producer discipline has tamed supply sufficiently to drag the market into a state of deficit………………………………………..Full Article: Source

Copper prices may rise to $10,000 a tonne by year-end: Simon Hunt

Posted on 22 January 2015 by VRS  |  Email |Print

Copper prices in the global market are likely to witness an exponential rise and may even hit the USD 10,000 a tonne mark by the end of this year, according to an industry expert. However, after a brief boom the prices are expected to decline and may even plunge below the $2,000 a tonne level by 2017.
“Copper prices will stabilise in Q2 of 2015 and from third quarter onwards price will begin to rise exponentially and may even touch USD 10,000 a tonne by end of 2015 and early 2016, before it begins its downward journey,” global copper analyst and economist Simon Hunt said………………………………………..Full Article: Source

Iron ore price extends slump

Posted on 22 January 2015 by VRS  |  Email |Print

The price of iron ore is now dangerously close to a more than five-year low after the commodity was again sold off overnight. At the end of the latest offshore session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US66.50 a tonne, down 1.3 per cent from its previous close of $US67.40 a tonne and the lowest mark for 2015 to date.
It also leaves the commodity just 1 per cent above the five-and-a-half year trough of $US65.60, reached on December 23. The latest weakness represents the third straight day of falls, with the streak following quickly on the back of a six-day losing run that was snapped last week………………………………………..Full Article: Source

Palladium Is Rarer Than Gold and, Thanks to Cheap Oil, Now Rarer Still

Posted on 21 January 2015 by VRS  |  Email |Print

America’s renewed love affair with the automobile is tightening global supplies of palladium, a metal rarer than gold. While each car requires only a few grams of palladium, demand in 2015 will probably exceed supply for a fourth consecutive year, according to Johnson Matthey Plc, a maker of catalytic converters for automobiles that use the metal to reduce harmful tailpipe emissions.
Global car sales rose 3.4 percent last year to a record 81.6 million vehicles, Macquarie Group Ltd. said in a report last week………………………………………..Full Article: Source

Asia alumina: Stable at $352/mt; buyers, sellers stand back

Posted on 20 January 2015 by VRS  |  Email |Print

The Platts Australian alumina daily assessment at $352/mt FOB was unchanged Monday from Friday, as buyers and sellers were treading water. The Australian market has been tracking China’s domestic prices, as China remains the largest prospective net buyer in the international open market.
In the last week, there have been signs of interest and material to be had, but no immediate signs of active buyers or sellers. Price discussions in Asia have momentarily been CIF China driven rather than FOB Australia………………………………………..Full Article: Source

Copper Finds a Friend in Morgan Stanley

Posted on 20 January 2015 by VRS  |  Email |Print

It’s when you’re down that you know who your friends are. Copper’s sharp decline to a five-and-a-half-year low on Wednesday prompted an outflow of negative sentiment. Furthermore, in the wake of oil prices slipping lower, some market participants have been comparing the trajectory of the red metal with that of black gold.
Others, however, are standing by the metal. “We were surprised by last week’s 6% correction in copper, but with no evidence of impaired trade or a collapse in demand, we remain bullish on the copper outlook,” said Morgan Stanley in a research note………………………………………..Full Article: Source

World refined lead market close to balance in Jan-Nov 2014: ILZSG

Posted on 20 January 2015 by VRS  |  Email |Print

World refined lead metal supply and demand were close to balance during the first 11 months of 2014, according to provisional figures released Monday by the International Lead & Zinc Study Group. ILZSG figures showed metal output at 10.3 million mt for January-November exceeding consumption by a marginal 1,000 mt.
For the same period in 2013, metal usage exceeded production by 20,000 mt. Global demand for refined lead metal increased by 1% year on year in January-November, mainly as a result of rises of 2.3% and 1.2% in Europe and China, respectively, the ILZSG said. Usage in the US declined by 0.6%………………………………………..Full Article: Source

Copper: Not wired for price revival

Posted on 19 January 2015 by VRS  |  Email |Print

Copper prices, which avoided a meltdown in 2014, are being hammered since the start of 2015. Copper prices on the London Metal Exchange (LME) dropped 15 per cent in 2014 to $6,400 a tonne; this is not a bad show, given that other metals such as iron saw their prices cut in half. It not just belied analyst expectations last year of a price revival, but has dropped to a low of $5,500 a tonne currently.
Weakness to continue: Even after such a steep drop, copper prices may continue to remain soft in 2015 due to three factors — unfavourable demand-supply dynamics, strengthening dollar and falling crude prices. These reasons could keep copper from clawing back any gains this year………………………………………..Full Article: Source

Morgan Stanley: We’re Still Bullish Australian Miners

Posted on 19 January 2015 by VRS  |  Email |Print

Morgan Stanley are out with a report on the commodity cycle and Australian miners are they are bullish. As the Mining Index deterioration accelerates, we are focused on the 2016 horizon and the recovery implied by the cyclical nature of the group.
Undoubtedly, some miners face difficulties as volumes need to be taken out of the market to balance the supply-demand relationship, but those that work through the cycle will likely be viewed as ‘cheap’ in hindsight. Using foresight to say that with hindsight miners will look cheap discounts a lot of information and expectation into current and future price expectations………………………………………..Full Article: Source

Copper Posts Biggest Gain in Four Months

Posted on 16 January 2015 by VRS  |  Email |Print

Copper prices notched their biggest one-day percentage gain in four months Thursday as investors took advantage of the recent slide to 5 1/2-year lows.
The most actively traded contract, copper for March delivery, rose 5.25 cents, or 2.1%, to settle at $2.5580 a pound on the Comex division of the New York Mercantile Exchange. It was the largest percentage gain since Sept. 16………………………………………..Full Article: Source

Copper takes a beating – but it may be a panic reaction

Posted on 15 January 2015 by VRS  |  Email |Print

Fears grow over global economic health as copper leads a commodities sell-off after the World Bank cuts growth forecasts. Copper prices, seen as a barometer of industrial demand around the world, plunged to a five-and-a-half low on Wednesday as fears grew over the health of the global economy.
Amid a wider commodities sell-off the metal was down more than 8% at one point at $5,353.25 (£3,531.38) a tonne – a level last seen during the depths of the financial crisis in July 2009………………………………………..Full Article: Source

Copper slump heightens concern over state of mining sector

Posted on 15 January 2015 by VRS  |  Email |Print

Shares in global miners were pummelled on Wednesday after sharp falls in the price of copper exacerbated investor concerns over the parlous state of the sector, already hit by oversupply of many other key commodities.
“The last bastion of commodity price stability crumbles following what is effectively a wholesale exodus from physical commodities,” said analysts at Investec………………………………………..Full Article: Source

Copper price slump may not yet be deep enough to cut much output

Posted on 14 January 2015 by VRS  |  Email |Print

A slump in copper prices to their lowest in five years has pushed as much as a tenth of the world’s miners into the red, but the market may not yet feel enough pain to trigger deep production cuts this time round.
Prices on the London Metal Exchange pierced below $6,000 per tonne on Monday for the first time since October 2009, as the metal slid along with a relentless decline in oil prices and concerns about a growing metal surplus. Copper’s 16 percent decline since July is the biggest since 2013………………………………………..Full Article: Source

The beginning of the end for gold and industrial metals price falls?

Posted on 13 January 2015 by VRS  |  Email |Print

The title of this article could be taken two ways, but our meaning in using it – courtesy of London metals and mining commentator David Hargreaves’ Week in Mining newsletter, which used aspects of the famous Winston Churchill wartime quote in its title and conclusions this week – is that are we perhaps actually nearing the bottom of the prices downturn virtually across the board in resources?
As the newsletter points out – the Brent crude oil price has fallen through $50/bbl, iron ore is staring down the abyss, copper has a look of testing $6,000 per tonne on the downside, while gold has picked up to $1,200 plus etc………………………………………..Full Article: Source

Zinc, copper, nickel and aluminium: Base metal prices predicted to chart a smoother course in 2015

Posted on 13 January 2015 by VRS  |  Email |Print

In line with all other mineral commodities, base (or industrial) metals, like lead, zinc, nickel and copper, were beset by poor prices in 2014, as well as in previous years. They tend to require levels of refinement, which render them energy intensive, especially aluminium, and are sensitive to energy prices.
Australian base metal producers are also coming under pressure from a slowdown in economic activity in China, the largest consumer of industrial minerals. The stronger US dollar has also exerted downward pressure on prices………………………………………..Full Article: Source

What Trend Will Aluminum Price Track in 2015?

Posted on 13 January 2015 by VRS  |  Email |Print

Aluminum price have been falling these recent days? What trend will aluminum price track in 2015? “Aluminum prices are forecast to fluctuate between 12,500-14,000 yuan per tonne in 2015,” said Guosen Futures’s research report, adding big supply pressures will stand out in Q1 2015 due to weaker consumption from 2014 Q4’s.
Supply concerns on bauxite, growth of new capacities and power price reform will be the three major factors dominating Chinese aluminum market in 2015, Guotai Junan Futures’s research report pointed out. “Aluminum prices are expected to fall first, and then rally before falling again in 2015, with little possibility that aluminum prices will rise above 15,000 yuan per tonne,” the report noted………………………………………..Full Article: Source

Gold miners struggle to shine in investors’ eyes

Posted on 12 January 2015 by VRS  |  Email |Print

Gold miners are hoping that the four-year low in the precious metal’s price, recorded in November, marked the end of a torrid period for the industry – and that the outlook will be brighter in 2015.
But many investors in gold fear the miners are still placing too much faith in a cyclical recovery and not making structural changes to put the sector on a stronger footing………………………………………..Full Article: Source

Investors bet on copper price fall

Posted on 09 January 2015 by VRS  |  Email |Print

Investors are betting the price of copper will fall further as the US dollar continues to strengthen and global economic growth shows few signs of recovery. Yet a reduction in mine supply last year has left the market almost balanced, meaning any pick-up in demand or further supply reduction could tip the price into positive territory, leaving those short the metal on the wrong side of the trade.
At 16 per cent of the London Metal Exchange market, the largest market in the world for metals trading, contracts betting that copper will fall are at the highest level since the exchange started publishing the data in July. On the Shanghai Futures Exchange, the number of similar contracts has jumped by 180 per cent since the beginning of December………………………………………..Full Article: Source

The outlook for the base metals sector this year

Posted on 09 January 2015 by VRS  |  Email |Print

We are updating our commodity price forecast by marking-to-market our short-term and medium term prices. The most meaningful changes were for copper, nickel and molybdenum in 2015/16 and thermal/HCC coal throughout the whole forecast period and long term. DCM’s commodity preferences are n>Ni>Cu>coal (bulks). The new reality driving the adjustment to our forecast prices is the on-going strength of the U.S. dollar, the slowdown in the global economy (deficient demand), and lack of supply discipline.
The lessons learned from oil’s price collapse, is that there needs to be a significant reduction in supply before prices can rebound. Copper prices may suffer a similar examination in 2015. Given the recent flow of funds, we do not expect base metal stocks to outperform until the U.S. dollar peaks (first U.S. rate hike?). So investor patience will be tested. We expect strong trading rallies in 2015 as risk/reward attractive, especially if the U.S. dollar corrects………………………………………..Full Article: Source

Rare Earths and Technology Metals – Was 2014 a Lost Year?

Posted on 09 January 2015 by VRS  |  Email |Print

In a space in which there are too many “lost years” of late, we cannot deem 2014 as anything but yet another lost year, especially for the Rare Earth space. Let’s hope it will be the last of such periods. The first half was pretty good with many, including ourselves, calling a turn in fortunes but this was a more generalized improvement linked to a better vibe in the mining space in general.
It was certainly not linked to price appreciation in Rare Earths or indeed, in any of the specialty metals. REE prices remained firmly stuck were they were with the Chinese sending out vibrations that didn’t give much hope for improvement either………………………………………..Full Article: Source

Copper, Aluminum Extend Losses as Oil’s Slump Fuels Growth Worry

Posted on 08 January 2015 by VRS  |  Email |Print

Copper fell, extending declines from a four-year low, while aluminum languished near the weakest in seven months on fears oil’s slump signals a slowdown in economic growth and weaker commodities demand.
Crude oil in New York slid below $48 a barrel, extending losses to the lowest in more than five years, and the euro area is poised to post its first drop in consumer prices since 2009, fueling pessimism over the global economy. The Federal Reserve releases minutes of its last meeting of 2014 today and U.S. jobs data are due later this week………………………………………..Full Article: Source

Nickel Posts Biggest Two-Day Rally in a Month on China’s Outlook

Posted on 07 January 2015 by VRS  |  Email |Print

Nickel prices climbed, capping the biggest two-day rally in a month, on speculation that increased economic stimulus will boost demand in China, the world’s biggest user of industrial metals.
China is accelerating 300 infrastructure projects valued at 7 trillion yuan ($1.1 trillion) this year as policy makers seek to shore up growth that’s in danger of slipping below 7 percent, said people familiar with the matter. In the second half of 2014, nickel dropped 20 percent amid concern that growth in the Asian nation was slowing………………………………………..Full Article: Source

Why China couldn’t corner the market on high-tech metals

Posted on 07 January 2015 by VRS  |  Email |Print

Despite controlling some 70% of production, China has quietly conceded its inability to control the market for rare earth elements, which are used in a variety of high-tech devices and manufacturing processes.
China’s announcement that it will end export quotas on the elements comes after an August WTO finding that the limits violated global trade rules. But the real nail in the coffin was the power of the market: China didn’t appeal the decision because the quotas did little to affect the market for the metals………………………………………..Full Article: Source

China’s iron ore import price to ease on weak demand: CISA

Posted on 07 January 2015 by VRS  |  Email |Print

The China Iron and Steel Association expects the country’s iron ore import prices to ease this winter as domestic steel mills maintain low steel output ahead of and during the festive season, the association said Monday, January 5, in its latest market analysis.
Demand for iron ore is unlikely to improve and an oversupply will persist, resulting in a moderate softening of prices, especially for imported cargoes, the report said. Iron ore imports meet about 70% of China’s total steelmaking demand………………………………………..Full Article: Source

Miners face challenge tapping copper opportunities

Posted on 07 January 2015 by VRS  |  Email |Print

The giant Chilean Escondida mine produces more copper than anywhere on earth. Some 1.2m tonnes emerge from the BHP Billiton-run facility each year. For the largest miners, Escondida also serves as a key measure for world copper output.
To meet global demand over the next decade, the industry “will have to add the equivalent of a new Escondida every 15 months”, says Jean-Sebastien Jacques, head of copper at Rio Tinto, which owns a minority stake in the mine. First Quantum, a mid-tier copper miner, says that if China, India and Brazil were to reach EU levels of copper use by 2020, it would imply nine new Escondidas………………………………………..Full Article: Source

Performance of metals complex mixed in 2014

Posted on 06 January 2015 by VRS  |  Email |Print

Zinc, nickel, palladium posted gains; lead, tin, copper, silver and platinum fell. Now that 2014 is behind us, it would be instructive to examine the price performance of the metals complex covering precious and base metals. Performance of the metals complex was a mixed one.
Zinc, nickel and palladium posted annual average gains of more than 10 per cent over the year. At the same time, the biggest losers were lead, tin and copper as well as silver and platinum. Does this portend the shape of things to come?……………………………………….Full Article: Source

Tin Outlook 2015: Reduced Chinese Supply Could Help Prices

Posted on 06 January 2015 by VRS  |  Email |Print

The last two years have promised much for the price of tin , and while the metal didn’t live up to the hype expected in 2014, 2015 could prove to be the year that changes. Tin hit a 15-month low of $19,000 per tonne during October, according to Reuters, and in November it was competing with copper and lead to be the worst performer of the year.
Despite that disappointment, experts throughout the industry are once again rallying behind tin for the coming year. While recognizing that tin has hit new lows in recent months, Barron’s reported recently that the metal is set for a turnaround in 2015. Analysts predict Indonesia and China will have a harder time mining tin due to declining ore grades; meanwhile, demand is set to increase thanks to the expanded use of tin in new electronic products………………………………………..Full Article: Source

Industrial Metals Looking Up Amid Some Worry

Posted on 06 January 2015 by VRS  |  Email |Print

Industrial metals are used in a wide variety of applications, including numerous construction and manufacturing businesses. The rise in global population, growth in the Chinese economy and increasing requirements from the developed countries had created an unprecedented demand for minerals and metals.
However, over the last couple of months, a stronger greenback, falling oil prices and a slowdown in the Chinese economy have emerged as major headwinds for the global metal industry………………………………………..Full Article: Source

Copper Sees Red on Surplus Metal Fears

Posted on 06 January 2015 by VRS  |  Email |Print

Already battered commodities prices suffered yet another blow as the U.S. dollar soared to its highest level in more than a decade on Friday. Among the casualties was copper, the ubiquitous base metal that could be found inside electric wires and on circuit boards.
As the Wall Street Journal Dollar Index gauged the greenback at its strongest level since 2003 against a basket of 16 other currencies, spot copper prices retreated to $6,309 a tonne, just $3 shy of an almost five year low struck last month. Because copper is denominated in U.S. dollars, a stronger greenback weighs on demand as the commodity becomes more expensive for buyers using other currencies………………………………………..Full Article: Source

Lead Outlook 2015: Another Small Deficit Expected

Posted on 05 January 2015 by VRS  |  Email |Print

2014 was a tough year for many metals, but fortunately for lead market participants, the base metal’s 2015 outlook is looking pretty positive. Case in point: the International Lead and Zinc Study Group predicts that demand for refined lead will increase by 2.1 percent in 2015, hitting 11.6 million tonnes, while refined lead output will grow by 2.2 percent, reaching just 11.5 million tonnes.
The organization thus anticipates a 23,000-tonne lead deficit in 2015, just slightly less than the 38,000-tonne deficit it sees coming in 2014. Similarly, a recent Reuters poll shows that analysts believe lead will sell for $2,387 per tonne in 2015 — that’s a year-over-year rise of 11.5 percent………………………………………..Full Article: Source

Base metals to remain subdued with narrow volatility in 2015

Posted on 02 January 2015 by VRS  |  Email |Print

The prices of base metals were highly volatile in 2014, nickel the most so, due to rapid change in their fundamentals. Analysts believe these prices will continue declining in 2015, with narrow volatility.
The markets would watch the two–day meeting of the US Federal Reserve’s open market committee on January 27-28, for a direction on the anticipated interest rate rise. While Fed chair Janet Yellen has indicated “no hurry” to do so, analysts think this would begin by June–July………………………………………..Full Article: Source

A mixed outlook for non-ferrous metals in 2015

Posted on 02 January 2015 by VRS  |  Email |Print

China’s uncertain economic situation is likely to hang heavy over the non-ferrous metals sector in 2015. The country is one of the largest consumers and producers of non-ferrous metals and its decision to re-balance economic growth from an investment-focused one to a consumption-oriented one has upset demand-supply balances.
It has not helped that the other emerging markets, too, are seeing slower growth, while Europe’s growth continues to disappoint. Moreover, capacities that were planned in the years when the prices were high are coming on line at a time when demand is flagging. Despite all these factors, non-ferrous metals such as zinc and aluminium were better off in 2014………………………………………..Full Article: Source

Will 2015 Be The Turning Point For Metals?

Posted on 02 January 2015 by VRS  |  Email |Print

Commodities have been in a bear market since the start of 2011 (See Diagram 1) and amongst the worst performing metals are Gold, Silver, Copper and Iron Ore. Gold saw a low of 1142 $/oz in November 2014 and a high of 1895 $/oz in September 2011. The peak to trough was 39.7% and it’s currently (26Dec14) at 1195.8 $/oz.
Silver saw a low of 15.28 $/oz in November 2014 and a high of 48.70 $/oz in April 2011. The peak to trough was 68.6% and it’s currently (26Dec14) at 15.77 $/oz. Copper saw a low of 2.81 $/lb in December 2014 and a high of approx. 4.6 $/lb in Feb 2011. The peak to trough was 38.8% and it’s current (26Dec14) at 2.81 $/lb………………………………………..Full Article: Source

Nickel Price Forecast 2015

Posted on 02 January 2015 by VRS  |  Email |Print

Nickel for our thoughts? Sure! An exact nickel price forecast isn’t necessary to make the most effective purchasing decisions – in fact, it may be dangerous. By analyzing and understanding these price drivers, buyers will be ready to react when the market gives clear signs that a new uptrend is developing and stay hedged as long as the trend is in place – until there is evidence that the trend is over.
Nickel was the first base metal to turn up this year. We recommended that our members start hedging nickel in the first quarter when prices were rising rapidly………………………………………..Full Article: Source

Copper Price Forecast 2015

Posted on 02 January 2015 by VRS  |  Email |Print

When it comes to forecasting metal prices, one of MetalMiner’s core beliefs rests on the need to analyze metal markets within the broader context of commodities markets - not in a vacuum. That’s why we put a category sourcing guide together for a number of base metals and steel; since many purchasing organizations are sourcing a diverse metal mix, shouldn’t you have a resource (and strategies) to match? However, if you buy a significant volume of copper, read on.
Copper is the worst performer among the industrial metals in 2014. Since the start of the year, we’ve continued to say that there is no reason to go long on copper unless prices managed to break above $7,500/mt, which they haven’t………………………………………..Full Article: Source

Aluminum Price Forecast 2015

Posted on 02 January 2015 by VRS  |  Email |Print

If you’re looking for a 2015 aluminum price forecast, and landing on MetalMiner for the first time, we must warn you: we don’t forecast prices. But we do something so much more valuable. When it comes to forecasting metal prices, one of MetalMiner’s core beliefs rests on the need to analyze metals markets within the broader context of commodities markets - not in a vacuum.
Aluminum could be called the “MVP” of industrial metals this year. We recommended that our members start hedging aluminum in June when LME 3-month prices were at $1,950/mt………………………………………..Full Article: Source

More iron ore pain in 2015: Aussies see price falling 33%

Posted on 23 December 2014 by VRS  |  Email |Print

Australia cut its iron ore price estimate for next year by 33 percent as surging output in the world’s top exporter outpaces Chinese demand growth, adding to a surplus. Prices will average $63 a metric ton, the Department of Industry said today. That compares with $94 a ton forecast in September by the Bureau of Resources and Energy Economics, which is now part of the department. The commodity is set to average about $88 this year, today’s quarterly report says.
Iron ore tumbled 49 percent this year as miners including Rio Tinto Group and BHP Billiton Ltd. expanded production in Australia, pushing the market into oversupply. Prices may drop to less than $60 next year as increasing output widens a glut just as demand growth falters in China……………………………………….Full Article: Source

Precious metals- a hedge against volatility in paper currency

Posted on 22 December 2014 by VRS  |  Email |Print

The observation of modern finance through the lens of sound money requires an onion peeler. Each time I imagine onions, I think of my soft contact lens patients; the ones who abuse them. I think of the patients who wear them too long or through periods of mild irritation or redness and practice poor hygiene.
Soft contact lenses mask normal corneal sensitivity. They act like tiny onion goggles. With soft lenses in place, one can literally chop onions and not feel the normal irritating sensation at all. The problem is they tend to be the last to know about the trouble………………………………………..Full Article: Source

Iron Ore Price Outlook Cut 33% by Australia as Glut Expands

Posted on 22 December 2014 by VRS  |  Email |Print

Australia cut its iron ore price estimate for next year by 33 percent as surging output in the world’s top exporter outpaces Chinese demand growth, adding to a surplus.
Prices will average $63 a metric ton, the Department of Industry said today. That compares with $94 a ton forecast in September by the Bureau of Resources and Energy Economics, which is now part of the department. The commodity is set to average about $88 this year, today’s quarterly report says………………………………………..Full Article: Source

World Crude Steel production rises to 131Mt in Nov

Posted on 22 December 2014 by VRS  |  Email |Print

World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 131 million tonnes (Mt) in November 2014, a 0.1% increase compared to November 2013.
China’s crude steel production for November 2014 was 63.3 Mt, a slight decrease of -0.2% compared to November 2013. Elsewhere in Asia, Japan produced 9.2 Mt of crude steel in November 2014, a decrease of -1.1% compared to November 2013. South Korea produced 5.9 Mt of crude steel in November 2014, up by 5.5% on November 2013………………………………………..Full Article: Source

Bullish reversal in miners but metals remain in question

Posted on 22 December 2014 by VRS  |  Email |Print

The gold and silver stocks have put in a bullish weekly reversal but gold and silver have not confirmed it. The interplay between the metals and the shares has been complicated in recent weeks.
Gold and silver are charted below in weekly candle format. Before this week the metals looked bullish. Each tested support and rebounded strongly towards resistance. However, both metals gave back much of the recent gains. Bulls would say they are correcting and still in position to test resistance. Bears would say the metals failed to reach resistance and are headed to new lows………………………………………..Full Article: Source

Credit Suisse cuts 2015 gold price, bullish on zinc

Posted on 19 December 2014 by VRS  |  Email |Print

“Gold prices we see as stabilized at current levels,” said the Credit Suisse Global Metals & Mining Team, “we now expect a $1,100-$1,300/oz trading range, we reduce our gold price forecast for 2015 to $1,225/oz and our long term price from $1,250/oz from $1,300/oz.”
“We see gold price supported at the $1,200/oz level by a lower mine supply and continued global physical investment demand,” the analysts advised. However, they observed, “We see potentially bearish factors for the gold market including the bullish consensus USD outlook and market expectations for higher rates in balance with more bullish fundamental factors that drove gold from 2002-2008; shrinking mine supply, central bank buying and Asian demand.”……………………………………….Full Article: Source

Iron demand falls to the wayside

Posted on 19 December 2014 by VRS  |  Email |Print

Iron ore prices and shipping costs fell to the lowest levels in five years amid signs China’s slowing growth is sapping demand for cargoes just as the world’s largest mining companies press on with raising output and spur a glut.
The rate to ship the steel-making commodity on a Capesize vessel to Qingdao, China from Tubarao, Brazil slid 4.9% to $11.86 a ton today, the lowest since Jan. 8, 2009, data from the Baltic Exchange in London show. Iron ore delivered to Qingdao fell to $68.05 a ton yesterday, the lowest since June 3, 2009, according to Metal Bulletin Ltd………………………………………..Full Article: Source

Gold Miners ‘Don’t Think Price Will Fall’, Hedging ‘Still Isolated’

Posted on 18 December 2014 by VRS  |  Email |Print

Gold Miners are still not hedging their future production despite the recent price-drop to new 4.5-year lows, says the latest expert analysis, as zero interest rates and falling energy prices are deterring forward sales to lock in current prices. “There is not yet compelling evidence to indicate an extended rise in the volume of hedging by gold miners,” says Matthew Piggott, senior precious metals analyst at Thomson Reuters GFMS, introducing the consultancy’s Q3 2014 report for French investment bank and bullion market maker Societe Generale on Tuesday.
Growing 57 tonnes by weight in the first 9 months of 2014, the global gold mining hedgebook – the amount of unmined production effectively sold in advance to lock in prices – fell between July and October, says GFMS, dropping some 6 tonnes as new output was delivered to meet existing contracts…………………………………….Full Article: Source

PGMs Seen Gaining Upward Momentum By End Of 2015; More Supply Deficits Expected

Posted on 18 December 2014 by VRS  |  Email |Print

Platinum group metals might start slowly but eventually should gain upside momentum in 2015, with most analysts expecting rises for the year. Large existing above-ground stockpiles, potential for higher U.S. interest rates and a stronger U.S. dollar are expected to provide obstacles in the early part of 2015. But eventually, further supply/demand deficits are expected to help the market tick higher.
Platinum could remain under pressure early in the year, said Bart Melek, head of commodity strategy with TD Securities. While the market is already in a supply/demand deficit, there are nevertheless considerable inventories already built up. Further, Europe’s economy remains soft, especially important to platinum since it is required for auto catalysts in the diesel-powered vehicles popular on the continent…………………………………….Full Article: Source

Aluminium sector unveils new global sustainability standard

Posted on 18 December 2014 by VRS  |  Email |Print

BMW Group and Nestlé Nespresso are among 28 organisations to have collaborated on a new standard to improve the environmental, social and governance performance of the aluminium industry.
The Aluminium Stewardship Initiative (ASI) Performance Standard, due to be released in early 2015, will address key issues around the production and maintenance of aluminium throughout its value chain and includes plans to reduce its greenhouse gas (GHG) emissions…………………………………….Full Article: Source

Lead Touches Two-Year Low as Metals Fall Before Fed

Posted on 18 December 2014 by VRS  |  Email |Print

Lead prices dropped to a 28-month low on concern that demand will ebb in China, the world’s largest consumer, while some industrial metals fell on concern that the Federal Reserve is moving closer to boosting interest rates.
Yesterday, a Chinese manufacturing gauge in December fell to a seven-month low, a report showed. The Fed ends a two-day meeting today. Sixty-eight percent of economists surveyed by Bloomberg News said policy makers will drop a pledge to keep rates near zero percent for a “considerable time.” Nickel and tin prices dropped in London…………………………………….Full Article: Source

World Copper Price Continues Fall

Posted on 18 December 2014 by VRS  |  Email |Print

International copper price continued fall and aluminum price touched two-month low on December 1 due to weak manufacturing data of China , the world largest metal consumer, and further decline of oil price.
Dragged by new order and price index decrease, the HSBC China Manufacturing PMI dropped to lower than 50 in December, which was the first time the index dropped to lower than 50 in seven months. Three-month aluminum closed down 0.81% at USD 1,906.50 per ton at the LME; it touched USD 1,900.75 earlier, a two-month low…………………………………….Full Article: Source

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