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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

Signs that metals prices have bottomed out buoys miners

Posted on 02 March 2016 by VRS  |  Email |Print

Ivan Glasenberg is feeling better about the outlook for metals prices – and this time he may be right. The chief executive officer of Glencore PLC, the giant miner and trader, indicated on Tuesday that he is growing more upbeat about commodities after a brutal 2015 in which his company lost 70 per cent of its market value as raw materials prices plummeted.
“Have we bottomed? I think so,” he told reporters. To be sure, that is pretty much the positive sentiment you would expect any mining chief to spout during one of the most brutal downturns in decades………………………………………..Full Article: Source

US stainless CRC prices up in February on mill price hikes

Posted on 02 March 2016 by VRS  |  Email |Print

US cold-rolled stainless sheet prices rose during February as domestic mills held to announced price increases, market sources said Tuesday. North American Stainless, Outokumpu CoilAmericas, AK Steel and Allegheny Technologies Inc. (ATI) last month announced they would be reducing the functional discount on stainless sheet by 2 percentage points, effective with March shipments.
Mills also cut back on offering more aggressive discounts on large spot orders as supply has tightened, according to one service center source………………………………………..Full Article: Source

Mining continues to keep Australia out of recession

Posted on 01 March 2016 by VRS  |  Email |Print

Sustained growth in mining production and export levels has managed to buoy Australia’s economy, protecting it from a potential recession, new BIS Shrapnel data states. Despite falls in trade and low commodity prices, Australia’s ability to fill the gap made by supply exiting the market has supported the country, while its multi-commodity base has inured it from the devastating effect of the oil slump.
“Canada slipped into recession in the first half of 2015 but has since recovered – although growth for this year is projected at a meagre 1.4 per cent,” BIS Shrapnel Chief Economist, Dr Frank Gelber said………………………………………..Full Article: Source

China’s commodities timebomb is cause to reach for the valium

Posted on 29 February 2016 by VRS  |  Email |Print

What can you make of a week where, on one day, stocks go like a rocket but metals fall badly and, the next day, the Dow retreats but metals are up? Or a week in which, on the day the Shanghai G20 meeting kicks off, Shanghai stocks give up 6.4 per cent (with many stocks falling the maximum permitted 10 per cent)?
What to make of Goldman Sachs remaining bearish on gold but Deutsche Bank recommending buying physical metal as ­“insurance”. And why is China Steel hiking prices by 3.1 per cent when the country’s steel mills are running at about 70 per cent capacity?……………………………………….Full Article: Source

Why Did Copper Decline from Its 2-Week High?

Posted on 25 February 2016 by VRS  |  Email |Print

Copper reached a two-week high on Monday, February 22, 2016, after receiving a boost from global equities gains and the oil. However, it was unable to carry the same positive momentum to Tuesday. On Tuesday, February 23, LME 3M copper declined by 1.04% and 0.47%, respectively, in the London Metal Exchange (or LME) and COMEX.
On February 23, the decline of Chinese equities, along with the central bank fixing a softer midpoint, raised concerns about the Chinese economy and demand growth of metals. The People’s Bank of China set the midpoint rate of the yuan at 6.5273 per dollar prior to the Market’s open. This is 0.17% below the previous fix………………………………………..Full Article: Source

Gold, Platinum, Palladium, Silver And Rhodium: A Relative Value Analysis

Posted on 24 February 2016 by VRS  |  Email |Print

In the context of recent market volatility, a closer look at precious metals is warranted. Selected precious metals have historical pricing relationships which may be helpful in the context analyzing current valuations.
An analysis of historical price ratios and correlations can show likely investment opportunities, especially when paired with a thorough analysis of current supply and demand fundamentals. On a relative value basis gold may currently be overpriced while rhodium may be notably cheap. However, additional contemporary supply and demand forces need to be explored further………………………………………..Full Article: Source

Copper: The Next Metal Set To Rise After Gold?

Posted on 24 February 2016 by VRS  |  Email |Print

The copper market is getting excited! After a drop of +50% since it peaked in 2011, copper has basically gone only one way, i.e. down (just not in a straight line). Now, copper is showing a similar setup as gold two months ago, right before gold rose sharply higher.
Copper’s chart setup makes it very interesting, because sentiment is so negative nowadays: economic growth is slowing (driven by China), the interest rate hike was followed by talks about coming negative interest rates, companies are reporting rather poor earnings, manufacturing data are not very encouraging, … The list is endless, so everyone and his uncle is convinced that copper can only go one direction, i.e. down………………………………………..Full Article: Source

Chinese aluminum: Domestic offers track higher primary aluminum prices

Posted on 24 February 2016 by VRS  |  Email |Print

Offers for Chinese domestic spot ADC12 aluminum alloy tracked higher primary aluminum prices, and trading was picking up slowly after the week-long Lunar New Year holiday but generally remained thin, sources said Tuesday.
China officially restarted work on February 14 from the holiday but some plants remained shut till the 15th day of the Lunar New Year, which was on Monday and only resumed operations after that. Platts assessed its weekly China domestic ADC12 at Yuan 12,500-12,700/mt ($1,915-$1,946/mt) ex-works Tuesday, up from Yuan 12,400-12,700/mt the previous week………………………………………..Full Article: Source

How a crash in metals prices has made 2016 a great year to build a mine

Posted on 23 February 2016 by VRS  |  Email |Print

During the commodity boom, capital cost blowouts became so routine in the mining industry that they became a running joke. Analysts and investors just assumed costs would be much higher than the companies’ projections, and they were usually right.
One extreme example was Barrick Gold Corp.’s Pascua-Lama mine, which was budgeted at just US$1.5 billion in 2004. Barrick spent more than US$5 billion before halting the unfinished project in 2013. If Pascua-Lama ever gets completed, the ultimate cost could exceed US$10 billion………………………………………..Full Article: Source

Zinc touches four-month peak as concern about shortages grows

Posted on 23 February 2016 by VRS  |  Email |Print

Zinc prices surged to a four-month peak on Monday and other base metals also gained as investors’ appetite for risk increased while they also worried about potential shortages. Investor buying lifted industrial metals along with oil and equity markets, including shares in China, the world’s top consumer of metals.
“There’s higher risk appetite among market participants today which can be seen by the firmer Asian equity markets,” said analyst Daniel Briesemann at Commerzbank in Frankfurt………………………………………..Full Article: Source

4 Reasons Why Copper Is Due For A Rally

Posted on 23 February 2016 by VRS  |  Email |Print

The copper bear. Reason one - Other commodity action. Reason two - Technicals. Reason three - Seasonal trends. Reason four - Interest rates and China. So far, in 2016, COMEX active month March copper futures have traded in a range between $1.9355 and $2.1380 per pound.
Copper, the red metal that is often a barometer for the global economic condition, has been quiet when compared to other commodities. While copper did trade down to the lowest level since April 2009 on January 19, it has spent most of the time above the $2 level recently………………………………………..Full Article: Source

Aluminium regains mojo

Posted on 22 February 2016 by VRS  |  Email |Print

Aluminium prices surged 4 per cent last week, with the spot price on the London Metal Exchange (LME) closing on a stronger note at $1,562 per tonne on Friday. This is just above an important resistance at $1,560. The metal is up about 10 per cent from its low of $1,423 made in November 2015. Between May and November 2015, aluminium spot prices had plummeted over 27 per cent from a high of $1,959.
Prices of most metals have been strengthening in the global markets due to the recent weakness in the US dollar. Dollar weakness usually boosts metal demand as it makes it cheaper for consuming countries to import. Aluminium had fallen through last year, due to China adding to the supply glut at a time when the global economy was struggling to grow………………………………………..Full Article: Source

Copper Skeptics Boost Bearish Wagers, Defying Rally for Prices

Posted on 22 February 2016 by VRS  |  Email |Print

While copper prices have rallied in four of the past five weeks on the prospect of improved industrial demand in China, hedge funds are skeptical that recovery will last. The funds and other large speculators have bet on declines for the metal since October. Last week, the net-short position in copper holdings grew for the first time since mid-January, even as the metal advanced.
Doubts over a sustained rebound echo the outlook of Goldman Sachs Group Inc., where analysts predict that the metal will drop at least 10 percent by the end of the year………………………………………..Full Article: Source

Lead sees biggest daily loss in 9 months after inventories jump

Posted on 18 February 2016 by VRS  |  Email |Print

Lead suffered its biggest one-day loss in nine months on Wednesday, dropping more than 3 percent after a surge in inventories highlighted the market was well supplied. Other metals were mixed. Data showed that lead inventories at warehouses registered by the London Metal Exchange MPBSTX-TOTAL rose by 10 percent or 18,325 tonnes in one day.
“I don’t really think there’s any particular shortage of lead. The key market in lead is China and that’s been pretty weak,” said Citi analyst David Wilson. Data on Monday showed the global lead market surplus last year climbed to 63,000 tonnes from a surplus of 10,000 tonnes in 2014………………………………………..Full Article: Source

Iron ore price hits 2016 high

Posted on 17 February 2016 by VRS  |  Email |Print

Iron ore prices rose to their highest levels in three months on Tuesday, amid seasonal restocking by China’s steel mills following the lunar new year holiday. Iron ore with 62 per cent iron content for delivery to China, a key steelmaking ingredient and a big source of profits for miners such as BHP Billiton and Rio Tinto, rose to $46.10, its highest level since November 17, according to the Steel Index.
Iron ore is up 5 per cent this year, outperforming most other commodities apart from gold. The gains this week have been driven by Chinese steel mills restarting after the week-long new year break, and amid a short-term supply tightness in the market, according to analysts………………………………………..Full Article: Source

Base metals higher on China stimulus bets

Posted on 16 February 2016 by VRS  |  Email |Print

Copper and nickel rose as hopes for more stimulus measures resurfaced after Chinese traders, returning from a week-long holiday, digested worse-than-expected trade data.
Also helping the metals, oil held on to recent gains, while China’s central bank fixed the yuan at a much stronger rate. A stronger yuan reduces the risk that China will export deflation to the world. “There’s a sense of calm. The (China) trade stats … may be … fuelling hopes for more stimulus that will bolster demand,” said Societe Generale analyst Robin Bhar………………………………………..Full Article: Source

Copper lifts on upbeat US data

Posted on 15 February 2016 by VRS  |  Email |Print

Copper has gained, along with oil and shares, after upbeat US data offered hope of a rebound in economic growth, but metals investors were on edge ahead of the re-opening of Chinese markets next week.
US consumer spending, which accounts for more than two-thirds of US economic activity, regained momentum in January as households ramped up purchases of a variety of goods. London Metal Exchange benchmark copper closed 1.2 per cent higher at $US4,500 a tonne, but also ended with its biggest weekly drop in a month, of nearly three per cent………………………………………..Full Article: Source

Dr. Copper Is Looking More Fit

Posted on 11 February 2016 by VRS  |  Email |Print

Copper prices recently hit a one-month high as the dollar fell on weakening interest-rate hike fears. Recent data suggest China’s economic growth is on track, with copper demand holding steady. Motifs mentioned: Dr. Copper. With stocks struggling mightily this year – the Nasdaq touched a 22-month low on Monday – few sectors have offered much promise.
However, some investors have enjoyed early success rotating into industries that suffered in recent years while the broader market was ramping higher. Take copper, for example. The industrial metal had been in a solid price decline over the past couple of years, only occasionally showing signs of life. Even since the beginning of 2015, copper prices have slid more than 25%………………………………………..Full Article: Source

Goldman Sachs Says Metals Set to Underperform Oil, Cuts Price Forecasts

Posted on 10 February 2016 by VRS  |  Email |Print

Goldman Sachs on Monday said metals, particularly copper and aluminum, are set to underperform oil in the near future on subdued global demand growth and a sluggish Chinese economy. “Around mid-2016 and through 2017, we expect that the oil market will adjust, while metals markets are set to weaken further, particularly copper and aluminum, resulting in substantial downside to metals prices relative to oil over the period,” the bank said.
The investment bank cut its average copper price forecast by 8 per cent to $4,339 per tonne in 2016 and 11 per cent to $4,000 per tonne in 2017, citing current Chinese and global demand weakness and further cost deflation………………………………………..Full Article: Source

Copper Drops, Other Base Metals Rise

Posted on 09 February 2016 by VRS  |  Email |Print

China, the biggest consumer of many such metals, was out to celebrate its Lunar New Year. Base metals took a breather Monday, with prices for tin, lead and zinc all trading higher on a day when the dollar was weakening, global equity markets were bleeding, and China, the biggest consumer of many such metals, was out to celebrate its Lunar New Year.
At the London Metal Exchanges, prices for three-month contracts of tin, lead and zinc all gained about 3%. Aluminum and nickel were both up, too. Copper was the only laggard among all the industrial metals, down 0.6% to settle at $2.0915 a pound at the Commodity Exchange division of the New York Mercantile Exchange………………………………………..Full Article: Source

Nickel price crushed by weight of ghost stocks

Posted on 09 February 2016 by VRS  |  Email |Print

Another day, another landmark low for the nickel price. London Metal Exchange (LME) three-month nickel traded down to $7,900 per ton on Monday morning. Forget the troughs of the Global Financial Crisis in 2008. Nickel is now trading at levels last seen in April 2003.
And there may be worse to come. Might the price of nickel fall below that of copper, which is currently trading on the LME around $4,600 per ton? “Not an inconceivable prospect by any means,” according to one analyst, Leon Westgate of ICBC Standard Bank………………………………………..Full Article: Source

Mining sector burning through cash reserves after commodity price crash

Posted on 09 February 2016 by VRS  |  Email |Print

The value of cash held by London Stock Exchange-listed mining companies fell by £1.1bn in the last year, according to research released today by Banc De Binary. The findings show a fall in cash reserves across all LSE-listed mining companies from £24.3bn to £23.2bn over the last 12 months. A drop of £780m was recorded in FTSE 100 mining companies.
Banc De Binary, a binary options trading platform, has said weak global demand for raw materials and falling commodity prices affecting mining profitability have prompted the turn towards available cash reserves. It stresses that, although the fall in cash reserves may appear modest, it is significant that a noticeable reduction in cash balances has begun………………………………………..Full Article: Source

Metal Bulls Savor Longest Rally in 10 Months on Feeble Dollar

Posted on 08 February 2016 by VRS  |  Email |Print

Investors are jumping back into metals they were dumping as recently as a month ago. A global slowdown has increased speculation that U.S. growth will cool enough to force Federal Reserve policy makers to wait longer before raising interest rates again.
The prospect of delays sent the dollar lower and gave metals a boost as alternative investments. Speculators increased their bets on price gains for gold and silver and got less bearish on copper. Gold and copper prices have climbed for three straight weeks, the longest rally since at least mid-April………………………………………..Full Article: Source

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