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March Tin Price Forecast: Grading Above the Curve

Posted on 01 April 2016 by VRS  |  Email |Print

Tin prices are on the rise with demand remaining strong, yet a prolonged mining slump and other factors are contributing to tightened supply.
A metal used as solder for electrical circuits, tin is very much in need by an assortment of manufacturers. Yet major exporters, Indonesia and Myanmar, are shipping much less of it in the face of a multiyear slump that investment in mines and smelters sapped………………………………………..Full Article: Source

Hot-rolled coil steel prices in the US continue to rise

Posted on 01 April 2016 by VRS  |  Email |Print

Prices for hot-rolled coil in the US rose again Thursday as more market sources indicated firm offerings at higher prices with upside expected. Platts increased its daily HRC assessment to $455-$465/st from the previous $440-$460/st. The move reflects a $460/st midpoint, where the bulk of offers and transactions have been heard.
The daily cold-rolled coil assessment remained flat at $610-$630/st. Both prices are normalized to a Midwest (Indiana) ex-works basis………………………………………..Full Article: Source

Is the worst of the bear storm over for iron ore?: Andy Home

Posted on 31 March 2016 by VRS  |  Email |Print

The iron ore market has had a good first quarter. True, the spot price has retreated from the frothy heights of early March, when it rocketed by over 20 percent in the space of just two days to $63.60 per ton. That speculative frenzy, fueled by massive trading activity on China’s Dalian Exchange, has abated.
But at a current $54.70 per ton, iron ore is on course to close the first three months of 2016 with price gains of around 27 percent. Compare and contrast with copper, another industrial commodity plagued by the same demons of slowing demand growth and oversupply, which is currently showing year-to-date gains of just six percent………………………………………..Full Article: Source

Aluminum Continues to Struggle below the $1,500 Price Level

Posted on 31 March 2016 by VRS  |  Email |Print

Aluminum prices are a key driver of aluminum companies’ price movements. Aluminum producers such as Alcoa (AA), Century Aluminum (CENX), Norsk Hydro (NHYDY), and Rio Tinto (RIO) have varying sensitivities to aluminum prices. In this part of the series, we’ll look at the current trend in aluminum prices.
Aluminum has now closed below the crucial price level of $1,500 per metric ton for three consecutive days. The spread between 3M and cash contracts now stands at ~$11 per metric ton. Note that aluminum moved into backwardation in February 2016………………………………………..Full Article: Source

Precious-metals funds emerge as a powerful leveraged gold play

Posted on 30 March 2016 by VRS  |  Email |Print

The stunning run so far this year by equity precious-metals mutual funds might be enough to temp some investors and financial advisers to try and jump on the bandwagon. A better strategy, however, would be to take a lesson from the rally in order to be prepared to catch the next one.
As a broad category, equity precious-metals funds have lapped the field since the start of the year, cranking out an average gain of more than 36%, according to Morningstar. The category performance more than doubled the 15% gain by the next best category, commodities precious metals, which includes just one fund………………………………………..Full Article: Source

Asia alumina prices rangebound amid holiday lull

Posted on 29 March 2016 by VRS  |  Email |Print

The Platts Australian alumina daily assessment continued at $248.50/mt FOB on Monday, unchanged from Thursday last week, as spot activity remained limited amid the holiday lull. There was no assessment on Friday as many markets were closed for Good Friday.
The UK market remained closed Monday and will resume on Tuesday. The China market will be closed next Monday for the Qingming festival. “There are people eying ingot prices for alumina direction, and London is off today [Monday], so we need to wait and see how metal prices move when the market returns tomorrow [Tuesday],” a source from a Henan smelter said………………………………………..Full Article: Source

Doctor Copper Hiding in Shanghai Warehouse

Posted on 24 March 2016 by VRS  |  Email |Print

The price of copper has risen as China keeps buying this industrial metal, sending positive signals about the state of demand in its economy. But there is evidence that the metal is just being stockpiled, raising questions about what those signals actually say.
Instead, a rebound that has added 15% to the price of copper since mid-January could be more about technical factors and a cheaper greenback than resilience in Chinese demand………………………………………..Full Article: Source

Base metals steady, China demand clues awaited

Posted on 23 March 2016 by VRS  |  Email |Print

Copper prices steadied as the market waited to see whether signs of stronger demand in top consumer China are confirmed over coming months. Benchmark copper on the London Metal Exchange ended unchanged at $US5,065 a tonne. Prices of the metal, used in power and construction, are up about 17 per cent since the middle of January due to improving sentiment about Chinese demand.
Funds have been buying copper for some weeks. Their net long position on the LME last Friday rose to 43,834 lots or nearly 1.1 million tonnes of copper from 35,170 lots the previous week………………………………………..Full Article: Source

Despite the Rally in Commodities, Investors Should Avoid Miners

Posted on 23 March 2016 by VRS  |  Email |Print

It has been a tough year for miners with weak commodity prices and concerns about the outlook for China weighing heavily on mining stocks. Now it appears that there are further dark skies ahead as a falling U.S. dollar and rising oil prices renew cost pressures on miners. This is certainly not good news for beleaguered coal and metals miners such as Teck Resources Ltd. and First Quantum Minerals Ltd.
The primary problem for miners has been the sharp collapse in commodity prices. Key commodities such as iron ore, coal, and copper have fallen between 20% and 50% over the last year. This has caused considerable pain for miners that earn substantial amounts of their revenue from coal and copper such as Teck and First Quantum………………………………………..Full Article: Source

Goldman Sachs thinks miners could upgrade earnings by 30pc - or maybe not

Posted on 23 March 2016 by VRS  |  Email |Print

A big part of the recent rally in commodities is due to currency effects, particularly the fall in the US dollar, but Goldman Sachs suggests we could see quite a few earnings upgrades in this half if commodities and currencies stay exactly where they are.
In a note to clients, Goldman Sachs points out higher commodity prices should bode well for local resource stocks, which weighed heavily on last earnings season. But a weakening US dollar and a lift in commodity currencies like the Aussie has meant resource stocks haven’t had as much time in the sun as they might have hoped………………………………………..Full Article: Source

LME to join warehouse operators in electronic tracking system

Posted on 23 March 2016 by VRS  |  Email |Print

The London Metal Exchange (LME) said on Tuesday it will team up with warehouse operators to register warehouses for its new electronic tracking system along China’s silk road route. The exchange, owned by Hong Kong Exchanges and Clearing (HKEx), said it will work with Henry Bath & Son, CMST Development and Mercuria Energy Trading to register warehouses.
A warehousing fraud at China’s Qingdao port in 2014 spurred the development of LMEshield, a scheme to provide electronic receipts as proof of ownership for stored metal, which has the capacity for tens of millions of tonnes of material………………………………………..Full Article: Source

Aluminum emerges as most widely used base metal across the globe

Posted on 22 March 2016 by VRS  |  Email |Print

Base metals are crucial in the growth of the infrastructure, manufacturing, and utilities sectors of a country. Base metal mining refers to the mining of the major industrial non-ferrous metals such as nickel, lead-zinc, copper, tin, and aluminium.
Rapid infrastructure development across the globe has propelled the growth of the global base metal mining market. The global base metal mining market is expected to expand at a CAGR of 5.01% during the period between 2015 and 2023. In terms of volume, the overall market stood at 103.33 million metric tons (MMT) in 2014 and is projected to reach 160.19 MMT by 2023………………………………………..Full Article: Source

China demand for copper forecast to slow

Posted on 22 March 2016 by VRS  |  Email |Print

A higher copper price that has lifted the gloom in global commodity markets faces a challenge as demand in the world’s largest consumer China remains weak, according to consultancy CRU.
China, which is responsible for more than 40 per cent of global consumption, is likely to increase copper consumption 0.6 per cent this year, down from an estimate of 3.8 per cent growth for 2015, the London-based group has forecast………………………………………..Full Article: Source

Iron ore rises 2.3pc

Posted on 22 March 2016 by VRS  |  Email |Print

Iron ore extended a gain toward $US60 a tonne as further signs of a recovery in China’s property market, coupled with policymakers’ plans to loosen margin-lending controls in equity trading, helped to improve sentiment.
Ore with 62 per cent content in Qingdao rose for a fourth day, increasing 2.3 per cent to $US58.82 a dry ton, according to Metal Bulletin. After dropping in January as concern about a global glut persisted, the commodity rallied 19 per cent last month. This quarter it’s up 35 per cent, with the advance also supported by a weaker US dollar and interruptions to supply………………………………………..Full Article: Source

Private capital is ready to invest $7 billion in mining

Posted on 21 March 2016 by VRS  |  Email |Print

According to a study of private capital in the resources sector from industry tracker Preqin, finds half of investors in the mining and metals sector will deploy more capital this year despite two-thirds of institutional investors displaying less appetite for the sector compared to a year ago.
The pullback comes after fundraising for natural resources investment reached record levels in 2015, with 74 funds raising a total of $67.8bn. In total natural resources investment firms have $400 billion assets under management. Of this $243 billion represent unrealized value with the remaining $157.3 billion so-called dry-powder capital ready to invest. The vast majority is destined for North America………………………………………..Full Article: Source

Copper Climbs to 4-Month High as Metals Rally Thanks to Fed

Posted on 18 March 2016 by VRS  |  Email |Print

Industrial metals rallied on speculation that accommodative U.S. monetary policy will support demand for raw materials. Copper jumped as stockpiles tracked by the London Metal Exchange fell the most in almost two years.
Copper for delivery in three months climbed as much as 2.7 percent to $5,068.50 a metric ton in London, the highest since Nov. 5. Aluminum, zinc and nickel added more than 1.5 percent. Mining stocks joined the rally, with Glencore Plc gaining 8 percent………………………………………..Full Article: Source

Aluminium’s return to contango fails to tempt much spot buying

Posted on 18 March 2016 by VRS  |  Email |Print

The end of backwardations on the London Metal Exchange aluminium contract has failed to entice buyers into the European spot market, with most consumers well-covered for the second quarter after buying strongly at the end of last year.
Backwardations have loomed over the market for the past several weeks, resulting in a very quiet spot market as buyers were unwilling to take positions ahead of that loss of value. The cash-to-three-months aluminium spread is now in a contango of almost $20 per tonne. It was at a backwardation of $18 per tonne at the beginning of last week, from above $30 per tonne the week before that………………………………………..Full Article: Source

Physical iron ore price volatility stokes paper trade

Posted on 17 March 2016 by VRS  |  Email |Print

Ten-day historical volatility for iron ore futures is approaching 100% after averaging just 29% last year, brokerage Freight Investor Services said Wednesday. Paper trade volatility has exploded since March 7, when The Steel Index’s underlying reference price for 62% Fe fines rose 19.5% to $62.60/dry mt CFR.
Since then the TSI, a unit of Platts, has given back those gains, printing at $52.50/dmt Thursday. “If a flower show can cause a 20% spike in iron ore prices, then traders should be ready for more unexpected and uncorrelated market moves,” FIS said in the report, referring to the horticultural exposition taking in place in Hebei, China’s major steelmaking province, over the coming months…………………………………………Full Article: Source

Steel industry: Commission takes action to preserve sustainable jobs and growth in Europe

Posted on 17 March 2016 by VRS  |  Email |Print

The Commission suggests policy measures to support the European steel sector to overcome its serious challenges, largely due to global overcapacity. The European Commission has presented today a Communication setting out how the European steel sector can overcome its short-term and long-term challenges with the support of Member States and the EU institutions.
A joint effort is needed to overcome these serious challenges fuelled by global overcapacity, a dramatic increase of exports and an unprecedented wave of unfair trading practices. High energy costs and changing market conditions require energy-intensive industries to adapt and innovate to ensure their long-term competitiveness and sustainability………………………………………..Full Article: Source

Platinum Over Gold: It’s a ‘No-Brainer’

Posted on 16 March 2016 by VRS  |  Email |Print

Platinum currently trades around the $900 per ounce level. Gold is trading around $1,200 per ounce. And platinum is a far more precious metal in every aspect than gold! Google that fact for the proof as you will find no argument for gold being more precious than platinum — because that argument is false.
Take away all the press, all the media hype, and all the sales promotions on television and the Net that push the “own gold” mantra and you are left wondering as I have been for years now. Wondering how in the world so many millions of investors in precious metals can be so dumb as to buy gold over platinum………………………………………..Full Article: Source

Nickel in deficit in 2016, but more production cuts needed

Posted on 16 March 2016 by VRS  |  Email |Print

Major production cuts and a substantial draw-down of exchange inventory are needed to trigger a sustained price recovery in nickel, despite a likely market deficit this year, Russia’s Norilsk Nickel said Tuesday.
“Nickel industry restructuring seems to be picking up pace in 2016. With some production cuts (mainly in China) already announced in 2015 and further production cuts scheduled in 2016, we also see a substantial amount of high cost nickel operations have been put up for sale,” the world’s largest nickel producer said in its 2015 results statement………………………………………..Full Article: Source

Commodities retreat weighs on miners

Posted on 16 March 2016 by VRS  |  Email |Print

Iron ore and industrial metals fell on Tuesday, weighing heavily on debt-laden mining stocks, as analysts said the recent recovery in prices could not be sustained without a pick-up in Chinese demand.
Commodities have rallied sharply since the middle of January when concerns about growth in China, the world’s biggest consumer of raw materials, reached near panic levels. Iron ore, the key ingredient in steelmaking, has risen 31 per cent, while copper has gained 15 per cent and zinc 20 per cent………………………………………..Full Article: Source

Copper will lead commodity recovery

Posted on 16 March 2016 by VRS  |  Email |Print

A slide in copper prices has hit miners hard, with Chilean copper miner Antofagasta no exception; on Tuesday, the company reported a 83 percent slide in pre-tax profits for 2015, sending the company’s shares 10 percent lower in opening trade in London.
Along with other commodities, Copper has seen a 15 percent slide over the last 12 months on the back of decreased demand and oversupply. Asked whether a recovery in copper prices was on the cards this year, Antofagasta’s Chief Executive Diego Hernandez told CNBC that a rebound was not imminent………………………………………..Full Article: Source

Is Palladium starting to play catch-up?

Posted on 15 March 2016 by VRS  |  Email |Print

Palladium, the worst performing precious metal this year, has started to play catch-up to its peers. This after acting more as an industrial metal and following overall market trends instead of trends in precious metals.
The metal fell more than 17% to a five-year low of around $470/oz in early January, when data showed that Chinese car sales increased at the slowest pace in three years. The main use of palladium in China, the biggest consumer of the metal, is in the fabrication of autocatalytic converters which reduce harmful emissions………………………………………..Full Article: Source

Commodities bust takes heavy toll on scrap-metal industry

Posted on 15 March 2016 by VRS  |  Email |Print

Cars are piling up at junkyards across the U.S., as the commodities bust that has already bruised mining and metals companies from Ohio to Australia ripples through another sector: scrap. As prices for steel, iron ore and other commodities have dropped because of a demand slowdown and oversupply in China, prices for scrap metal have also collapsed.
That is leading junkyard operators to stockpile cars instead of shredding them, stalling the auto-recycling industry and the chain of largely small businesses that make up the U.S. scrap sector, which is a linchpin of the U.S. industrial economy and an $105 billion-a-year business………………………………………..Full Article: Source

Major iron ore miners won’t take pedal off the metal

Posted on 14 March 2016 by VRS  |  Email |Print

Rio Tinto appears set to beat its own iron ore production targets for 2017 in a sign that hopes the proposed joint venture between Fortescue and Vale could reduce the oversupply in the global market will be short-lived.
Rio is not going to step back from the iron ore producers’ fight, and Samarco, BHP’s troubled Brazilian joint venture with Vale, is aiming to restart by the end of 2016 at 60 per cent capacity despite many observers expecting it to be mothballed for at least two to three years, or shut………………………………………..Full Article: Source

China’s next bubble? Iron ore surges as speculators weigh in

Posted on 14 March 2016 by VRS  |  Email |Print

With a huge global steel glut and slowing demand in China, an enormous recent spike in the price of iron ore has left analysts scratching their heads, with some even claiming a flower show might be to blame.
But observers say the extraordinary movements for one of the world’s basic bulk commodities have been fuelled by something far more prosaic than daisies and daffodils — simple speculation. The spot price for iron ore — the key material for steel — jumped 20 percent on the Dalian Commodity Exchange on Monday………………………………………..Full Article: Source

Steel chrysanthemums: A China-driven rally in metals prices may be as fleeting as spring

Posted on 11 March 2016 by VRS  |  Email |Print

The spectacular leap of almost 20% in the price of iron ore on March 7th reveals a lot about the idiosyncrasies of commodities markets. Coming on the first trading day after the opening of China’s National People’s Congress, at which the government pledged to maintain GDP growth of at least 6.5% a year for the next five years, the jump may well have reflected renewed optimism about the appetite of the world’s biggest steel consumer.
But the price of physical commodities tends to depend more on supply, demand and inventories than on the expectations of financial markets. So a giant flower show in Tangshan, China’s biggest steel-producing city, may be an equally good—and more fragrant—explanation for the sudden rally………………………………………..Full Article: Source

Base metals down as Chinese equities fall

Posted on 11 March 2016 by VRS  |  Email |Print

Copper prices have fallen in tandem with Chinese equities as worries about growth and demand in top consumer China dominate the mood, though a weaker US dollar has limited losses.
London Metal Exchange benchmark copper ended down 0.9 per cent at $US4,890 a tonne in official rings. It hit a four-month high of $US5,059 last week on expectations China would move to stave off a further economic slowdown………………………………………..Full Article: Source

Copper prices may have hit a floor, but 2016 has limited upside

Posted on 11 March 2016 by VRS  |  Email |Print

Copper prices may have hit a floor this year, but as fundamentals finally shift in the metal’s favor and despite a strong start to 2016, investors should treat any upside with caution, market sources told Platts this week.
A return of investor sentiment this month for risk-on assets such as base metals has seen copper on the London Metal Exchange recover almost 15% since hitting seven-year lows in mid-January, trading above $5,000/mt this week for the first time since November. But most market participants, who have come together this week for a number of international copper conferences in Lisbon, are reluctant to get too carried away………………………………………..Full Article: Source

Uranium Market Poised to Take-Off?

Posted on 11 March 2016 by VRS  |  Email |Print

The uranium market has been in a five-year bear market that shows no signs of bouncing back. But, one junior uranium player says the commodity is set for a strong move up. Kitco News caught up with Amir Adnani, CEO and president of Corpus Christi, Texas-based Uranium Energy.
Spot prices of uranium, used to make fuel for nuclear power production, have been depressed since the 2011 Fukushima disaster in Japan, which led to the shutdown of the country’s reactors and generated stockpiles globally. Uranium currently trades around $32.15 a pound………………………………………..Full Article: Source

Rout in global steel prices puts brakes on platinum recycling

Posted on 10 March 2016 by VRS  |  Email |Print

Recycling rates for autocatalyst metals platinum and palladium, have been driven lower in the past year not only by a price slide in the metals themselves, but also by a crash in the value of another raw material - steel.
With steel prices forecast to remain under heavy pressure this year in the face of over-supply and tepid demand, that could limit an expected rebound in the rate at which platinum group metals are recovered from catalysts. Recycling slowed last year as more scrapped cars were stockpiled by recyclers awaiting better prices, and as fewer cars, which use platinum in their autocatalysts, were scrapped………………………………………..Full Article: Source

How is iron ore priced?

Posted on 10 March 2016 by VRS  |  Email |Print

It may not attract as many headlines as oil, but a record 19 per cent jump in iron ore prices this week has drawn renewed attention to the key steel making ingredient, which underpins the profits of most of the world’s biggest miners.
News that a flower show in the Chinese city of Tangshan was a major driver of the spike has also raised questions about the way in which iron ore prices are calculated and published. Iron ore prices have actually only been set on a daily basis for the past eight years, and are not as transparent as prices for many other industrial commodity markets………………………………………..Full Article: Source

Copper Prices Lifted by Oil Rally

Posted on 10 March 2016 by VRS  |  Email |Print

Copper prices rose on Wednesday, boosted by a rally in oil. Copper for May delivery was recently up 1.3% at $2.2575 a pound on the Comex division of the New York Mercantile Exchange.
The move higher comes alongside a sharp rise in prices for oil, which climbed with help from declining product stockpiles and signs rampant supply around the world could be slowing down. Light, sweet crude for April delivery recently rose $1.05, or 3.8%, to $37.92 a barrel on the New York Mercantile Exchange………………………………………..Full Article: Source

Miners seek fresh financing options, backed by resurgent gold

Posted on 09 March 2016 by VRS  |  Email |Print

This year’s double-digit gold rally is opening opportunities for smaller miners to sell future output or tap markets for finance, aimed at paying back debt and strengthening balance sheets. Miners have been hit hard by plummeting commodities prices, forcing them to cut jobs, capital expenditure and dividends.
However, bullion has risen nearly 20 percent so far in 2016 to a 13-month high around $1,280 an ounce on concern about financial and economic turmoil and a weaker dollar as markets adjust to the prospect of deferred U.S. interest rate rises………………………………………..Full Article: Source

How Do Platinum and Palladium Compare to Gold and Silver?

Posted on 09 March 2016 by VRS  |  Email |Print

Though gold and silver prices fell on March 7, 2016, platinum and palladium maintained steady gains alongside the rise in equities and the overall market sentiment. Platinum and palladium have been carefully following the industrial sector, especially the automotive sector.
The haven demands extended to gold and silver due to the upheaval of the global economy initially left platinum and palladium lower. However, these two metals later bounced back. Platinum and palladium have year-to-date rises of 11.8% and 1.9%, respectively, as of March 7. The price changes in these two metals can also be seen in investments such as the Platinum Physical Shares ETF and the Palladium Physical Shares ETF………………………………………..Full Article: Source

Goldman Sachs stays sceptical about rising metal prices

Posted on 09 March 2016 by VRS  |  Email |Print

Metal and oil prices may have enjoyed a bounceback in recent days but investment bank Goldman Sachs reckons the recovery could be short-lived. Iron ore prices climbed nearly a fifth to US$62.6 a tonne on Monday amid hopes that China would launch fresh stimulus to kick-start the country’s ailing economy.
Other metals such as copper have also risen and the oil price has revived to about US$40 a barrel as Middle East producers face growing political and financial pressure to limit or reduce supplies………………………………………..Full Article: Source

Iron ore jumps by record 19% on China stimulus hopes

Posted on 08 March 2016 by VRS  |  Email |Print

Iron ore prices surged by a fifth on Monday, the biggest gain on record, as Chinese mills scrambled to replenish supplies of the steelmaking ingredient ahead of the summer construction season. If the move is sustained, it could add billions of dollars to the bottom line of the world’s largest miners.
Iron ore is critical to the profitability of companies such as BHP Billiton, Rio Tinto and Brazil’s Vale. Iron ore had been widely expected to remain in the doldrums amid excess supply and slowing Chinese demand………………………………………..Full Article: Source

Base metals mostly retreat, tin reaches new high

Posted on 08 March 2016 by VRS  |  Email |Print

Copper and zinc pulled back from their highest levels in more than four months on Monday, dampened by a firmer US dollar and as misgivings surfaced over China’s ability to stimulate underlying demand for base metals.
Three-month copper on the London Metal Exchange slipped 0.8 per cent to $US4987 a tonne by 1454 GMT to hand back some of the previous week’s 3.5 per cent rally. Chinese authorities gave assurances at the weekend that the top metals-consuming country would not experience a hard landing………………………………………..Full Article: Source

The Lead Price: Volatile But Holding Well

Posted on 08 March 2016 by VRS  |  Email |Print

Lead prices have had huge up and down swings lately, but lead has managed to hold its value well this year. Last week, the metal hit an 8-month high. All base metals are up since the year started. Metals such as tin and zinc have made significant gains so far this year while aluminum, copper and nickel are also making some progress.
Although lead nose-dived at the beginning of January, prices have made a nice comeback since. But price rallies like this have been usual in previous years only to then be erased as prices trend lower. It will be interesting to see if lead prices can hold above these levels………………………………………..Full Article: Source

Copper retreats on China qualms, tin hits high

Posted on 08 March 2016 by VRS  |  Email |Print

Copper and zinc pulled back from their highest levels in more than four months on Monday, weighed down by a firmer dollar and as misgivings surfaced over China’s ability to shore up economic growth.
Three-month copper on the London Metal Exchange slipped 0.5 percent to close at $5,000 a tonne, handing back some of last week’s rally, but off an earlier low of $4,940. Chinese authorities gave assurances at the weekend that the top metals-consuming country would not experience a hard landing………………………………………..Full Article: Source

Base metal price recovery may be short-lived, say analysts

Posted on 07 March 2016 by VRS  |  Email |Print

The price recovery in base metals may be short-lived as there is hardly any change in fundamentals that points to a long-term rally, analysts said. They attribute the current rally to short covering that is prompting some bargain hunting which may not last too long. The market expectation is that prices of base metals may rise by another 4-5% this month, possibly luring investors looking for short-term gains.
“Base metals are trending higher underpinned by the Chinese stimulus and monetary easing announcement, mine closures, production cut- backs and reduction in capital expenditures across the globe,” said Renisha Chainani, senior manager, commodity research, Edelweiss Financial Services………………………………………..Full Article: Source

For miners, a sense of optimism returns

Posted on 07 March 2016 by VRS  |  Email |Print

The mining industry’s annual bash roared into life on Sunday against an unfamiliar backdrop – a market where metal prices are no longer falling and share values in the sector are actually climbing. After four years of brutal, grinding decline, the beleaguered industry is finally enjoying a spurt of good news.
Gold prices have sprinted to their best start to a year since 1980, while even grimy industrial laggards such as copper and iron ore have displayed twitches of life in recent weeks. There is, to be sure, a contradiction in these trends – gold tends to be most popular during times of economic stress, while base metals thrive when growth is strong and sure – but nobody at the opening day of the Prospectors & Developers Association of Canada (PDAC) convention in Toronto was in a mood to question the spate of upbeat developments………………………………………..Full Article: Source

Something strange is happening in the metals market

Posted on 07 March 2016 by VRS  |  Email |Print

Silver typically does what gold does, only more so. But it now appears to be having trouble keeping up the pace. Over the past 10 years, the two metals have enjoyed a very tight correlation of 0.81. And each daily move in gold has tended to be amplified by 45 percent for silver, according to a regression analysis based on FactSet data.
In other words, if gold rises 1 percent in a particular session, silver could be expected to jump 1.45 percent. This year, however, silver is lagging. Gold is up 17 percent in 2016 and 10 percent in the past month alone. Silver, meanwhile, has risen just 8 percent this year and 5 percent in the past month………………………………………..Full Article: Source

Barclays, exiting bullion business, has tough sell in London gold vault

Posted on 04 March 2016 by VRS  |  Email |Print

Barclays, winding down its physical bullion business in the face of tough market conditions, will do well to find a buyer for its interest in a gold vault near London, market participants said. The vault, at an unknown location, was designed and built by global logistics and security company Brinks, which was said to have leased it to Barclays.
Barclays would not comment, while Brinks was not available. One senior market source said Barclays will likely simply wind down the contract with Brinks and write down the business as a loss………………………………………..Full Article: Source

Platinum and Palladium Outperforms Gold and Silver

Posted on 04 March 2016 by VRS  |  Email |Print

Although gold and silver saw a down day on Tuesday, March 1, platinum and palladium were buoyed due to an increase in the overall market sentiments extended from the release of economic data. Platinum and palladium gained 0.26% and 4.4%, respectively, on Tuesday. Platinum and palladium closed at the marks of $936.70 and $517.40 per ounce, respectively.
Over the past five days, palladium has been the best-performing precious metal as it has gained a whopping 6.1%. The rest of the precious metals have been retreating during that timeframe………………………………………..Full Article: Source

Copper hits more than 3-month high

Posted on 04 March 2016 by VRS  |  Email |Print

Copper prices have hit their highest in more than three months, boosted by gains for equities, increased confidence in global growth prospects and a lower US dollar. London Metal Exchange three-month copper ended 1.4 per cent higher at $US4,856 a tonne.
The metal earlier hit $US4,848, its highest since November 12, although analysts were cautious about the potential for further gains. Equity markets in Europe and the US have rallied in recent days in response to receding worries about the health of the US economy………………………………………..Full Article: Source

Buoyant zinc rallies 25% after falling in January

Posted on 04 March 2016 by VRS  |  Email |Print

Zinc has risen more than 14 per cent since the start of the year, making it the third best-performing major commodity behind iron ore and gold. Since falling to a seven-year low of $1,460 a tonne in mid-January, the metal has rallied by 25 per cent.
Glencore, the world’s biggest metal trader, said this week that its order book was strong and it had not seen any signs of “weakness”. “What we’ve also seen is the shortage of zinc concentrates in the world,” said chief executive Ivan Glasenberg after Glencore reported annual results on Tuesday………………………………………..Full Article: Source

Iron ore shares rise despite sinking commodity price

Posted on 04 March 2016 by VRS  |  Email |Print

A number of iron ore miners have seen their share prices rise, despite the spot iron ore price sinking 2.5% overnight to US$51.20 a tonne. So far this year though, the commodity has defied expectations, rising 18% and appearing to have established a holding pattern above US$50 a tonne.
However, according to Capital Economics Ltd, the rising commodity price has probably been driven by restocking by Chinese steel mills and some weather-related disruptions to Australian shipments………………………………………..Full Article: Source

Copper rises to highest level in more than 3 months

Posted on 03 March 2016 by VRS  |  Email |Print

Copper prices rose to their highest level in more than three months on Wednesday, spurring hopes commodity prices have bottomed and may herald a period of stability for the sector. Copper on the London Metal Exchange rose 1.6 per cent to $4,792.5 a tonne, the highest level since November. In Shanghai, copper for May delivery rose 1.6 per cent.
That bolstered sentiment for mining companies listed in London. Shares in Chilean copper miner Antofagasta rose 3.9 per cent to 509.5p, while BHP Billiton gained 5.4 per cent to 780p. Anglo American rose 6.7 per cent to 524.1p………………………………………..Full Article: Source

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