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Copper hits eight-week peak as Brexit fears fade, dollar dips

Posted on 30 June 2016 by VRS  |  Email |Print

Copper and nickel climbed to the highest levels in nearly eight weeks on Wednesday, bolstered by a softer dollar and fading fears about Britain’s vote to exit the European Union. Zinc and lead touched three-week highs as the dollar gave up some of its gains made since the Brexit vote last week.
Three-month copper on the London Metal Exchange hit a peak of $4,847.50 a tonne, the highest since May 5, building on a 2.3 percent gain in the previous session. It failed to trade in closing open outcry activity and was bid at $4,838, up 0.4 percent……………………………………….Full Article: Source

Gold Retreats, Copper Climbs as Post-Brexit Markets Stabilize

Posted on 29 June 2016 by VRS  |  Email |Print

Gold fell back and copper soared as global markets stabilized on speculation that policy makers will do more to curb the post-Brexit fallout. Bullion fell after its biggest two-day surge in seven years as European and U.S. equities and the pound climbed for the first time since the U.K. voted to leave the European Union.
Concern that an exit will disrupt the global economic recovery had caused market turmoil and boosted gold by 5.4 percent in just two days as investors sought a haven………………………………………..Full Article: Source

Copper touches 2-month peak as dollar eases

Posted on 29 June 2016 by VRS  |  Email |Print

Copper hit its highest level in almost two months on Tuesday as the US dollar weakened and hedge funds and speculators slashed their bets on lower prices. Data from the London Metal Exchange showed money managers had reduced their short position in copper to just over 86,600 lots on Friday, down from 107,600 lots a week before.
The report came in the wake of figures published late on Friday that showed a reduction in the record short copper position on Comex, the US futures exchange………………………………………..Full Article: Source

What Brexit Means For Metal Prices

Posted on 28 June 2016 by VRS  |  Email |Print

One of them is the referendum, especially when it’s done in a period of instability. When people are unhappy, they look for what they think is a short-term solution to their problem, overlooking what’s really best for the country. The Brexit is a perfect example of this.
The British people are unhappy because their economy isn’t doing so well, blaming foreigners that cross its borders as part of the European Union and the regulations imposed on member states by Brussels. Referendums can also distill complex issues into a simplistic choice………………………………………..Full Article: Source

Why Aluminum Is A Suitable Commodity For Long-Term Investors

Posted on 27 June 2016 by VRS  |  Email |Print

The development of the global automotive industry has a positive impact on aluminum prices. The current perspectives of the global automotive industry assume a significant growth in aluminum demand in the mid-term. The decline in aluminum production and its warehouse levels are positive catalysts for the growth of aluminum prices.
One of the features of the aluminum market is that the biggest share of aluminum imports belongs to the United States: it amounted to 10.8% of total imports in 2015. The reason is that aluminum is mainly used in the construction and automotive industries, and their activities are spread all over the world………………………………………..Full Article: Source

Iron ore holds steady amid global volatility

Posted on 27 June 2016 by VRS  |  Email |Print

The iron ore price has edged lower, escaping much of the volatility that shook global financial markets in the wake of British voters’ historic decision to leave the European Union. Iron ore fell 0.6 per cent to $US51.40 a tonne in the most recent session, according to The Steel Index, from $US51.70 the previous day.
The relatively muted move contrasts with sharp swings in other commodities. The day after the vote, oil prices sank around 5 per cent, while safe haven asset gold soared 4.7 per cent in its largest one-day gain since September 2013………………………………………..Full Article: Source

Copper Is Just a Bystander in Commodities’ Best Start Since 2008

Posted on 24 June 2016 by VRS  |  Email |Print

The best start to a year for commodities since 2008 is leaving copper in the dust. The metal is one of the weakest of the 22 raw materials in the Bloomberg Commodity Index of returns this year and the worst of the major metals.
“If you look at where iron ore, coking coal or oil have gone this year, copper really has lagged,” Tyler Broda, an analyst at RBC Capital Markets in London, said by phone. “There is no question that right now copper is relatively tenuous in terms of the outlook. We’re definitely picking up a more neutral near-term outlook on copper than previously.”……………………………………….Full Article: Source

Molybdenum price is on tear

Posted on 24 June 2016 by VRS  |  Email |Print

While base metals have enjoyed a good 2016 so far with only lead (-5%) in negative territory for the year and the likes of zinc (+27%) and tin (+18%) entering bull markets, molybdenum is making a star turn.
A metric tonne of molybdenum on the London Metal Exchange fetched $16,500 on Thursday after customs data from China showed imports of concentrate and oxides surged 131% in May. Over the first five months of the year, China imported 8,851 tonnes of molybdenum concentrates and oxide, up 89% year on year………………………………………..Full Article: Source

China’s supply-side reforms bring silver lining to rare metals

Posted on 22 June 2016 by VRS  |  Email |Print

After a long downtrend, prices of some rare metals have been recovering since the beginning of the year. Driving the change is China, the leading supplier, where government-led moves are underway to consolidate producers, slash output and build up reserves.
To address excessive production, Beijing has recently been promoting supply-side reforms. And while those efforts have struggled to make progress in the steel, coal and aluminum industries, they are gradually bearing fruit in the rare metals industry………………………………………..Full Article: Source

Copper Rises on Risk Appetite, Weaker Dollar

Posted on 21 June 2016 by VRS  |  Email |Print

Copper prices gained on Monday, boosted by an increased investor appetite for risk and a weaker U.S. dollar. Copper for July delivery was recently up 1.9% at $2.0895 a pound on the Comex division of the New York Mercantile Exchange.
The WSJ Dollar Index, which measures the greenback against 16 other currencies, was down 0.7% at 85.45. A weaker dollar tends to help dollar-denominated commodities like copper, which becomes cheaper for other currency holders as the dollar falls………………………………………..Full Article: Source

Scrap metal shortage adds to steel sector woes

Posted on 21 June 2016 by VRS  |  Email |Print

Steel producer Scaw Metals has called for swift action to address the shortage of scrap metal, which recently brought its operations to a standstill in South Africa.
“We are strong advocates for trying to introduce a Price Preference System that works or overall some type of tariff on scrap [exports] or an outright ban on scrap [exports]…It will not only benefit us, Scaw Metals, it will actually benefit the industry at large…it will also benefit some of our competitors…and benefit the foundry industry at large,” said Scaw CEO Markus Hannemann………………………………………..Full Article: Source

Is China the de facto, unwitting OPEC for metals?

Posted on 21 June 2016 by VRS  |  Email |Print

Is China doing for metals markets what Saudi Arabia used to do for crude oil? The world’s largest producer and consumer of industrial metals may be acting as a de facto, if unwitting, type of OPEC for metals, adjusting supply in response to price signals and balancing the market.
While not as obvious as the role Saudi Arabia played as the market balancer for crude in the previous glory days of the Organization of the Petroleum Exporting Countries (OPEC), the dynamics for China and metals may be somewhat similar………………………………………..Full Article: Source

Iron ore inches higher

Posted on 20 June 2016 by VRS  |  Email |Print

The iron ore price has edged higher despite another projection that the commodity could fall sharply over the second half of the year and remain at depressed levels until 2020. Iron ore rose 1 per cent to $US50.70 a tonne in the most recent session, according to The Steel Index.
Credit Suisse analysts have joined the latest chorus of commentators predicting the price will head lower as the market remains well oversupplied. The bank reaffirmed its forecast that prices fall to $US40 a tonne in the second half of calendar 2016, holding at that level until the end of 2020………………………………………..Full Article: Source

Options market maps zinc bulls’ upside ambitions: Andy Home

Posted on 20 June 2016 by VRS  |  Email |Print

Zinc continues to shine amid the general gloom pervading the base metals complex. On the London Metal Exchange (LME) benchmark three-month zinc has eased back from the near one-year high of $2,105.50 per tonne hit earlier this month.
But at a current $1,983, zinc is still showing year-to-date gains of over 26 percent, by some margin the best performance of the base metals pack. Investors have been drawn into the market by an enticing narrative of closing mines and a tightening raw materials supply chain………………………………………..Full Article: Source

China Plans to Boost Metals Reserves Amid Commodities Glut

Posted on 17 June 2016 by VRS  |  Email |Print

China, the world’s top consumer of base metals, will boost stockpiles, accelerate the closure of excess capacity and provide tax breaks for producers as the country grapples with a raw-materials glut amid the slowest growth in decades.
The nation will increase reserves of some metals and study a trial program for companies to build stockpiles in addition to their inventories, according to State Council guidelines posted on its website Thursday. China already holds stockpiles of metals though the State Reserve Bureau. The statement from China’s cabinet didn’t specify a timeline or say how the plan would be financed………………………………………..Full Article: Source

Commerzbank: Supply Deficits To Underpin Prices Of Platinum, Palladium

Posted on 16 June 2016 by VRS  |  Email |Print

Supply deficits in platinum group metals are likely to continue, thereby supporting prices, says Commerzbank. Analysts project platinum will average $1,000 an ounce in the third quarter, $1,050 in the fourth and $1,100 in the first quarter of 2016. They see palladium at $575 in the third quarter, $625 in the fourth and $650 in the first three months of 2016.
“Supply is unlikely to be sufficient to cover demand yet again this year on both the global platinum and palladium markets,” Commerzbank says. “Both markets thus look set to record their fifth consecutive year in deficit, which in our opinion points to higher platinum and palladium prices. There are likely to be some limits to the anticipated price rises, however.”……………………………………….Full Article: Source

Rising Prices Are the Last Thing Metals, Other Commodity Markets Need

Posted on 16 June 2016 by VRS  |  Email |Print

Sounds counter intuitive, doesn’t it? Well, not really when the you look at the reality of the situation as the Financial Times has done in a recent article based on research and commentary by Australia’s Macquarie Bank.
2016 marked a turning point for most commodities. After 18 months of declines, prices have surged this year in a manner not seen since the 2009-10 Chinese stimulus. Plentiful Chinese liquidity has boosted sentiment and order books, the FT points out, across a range of industrial metals and oil, in spite of an underlying backdrop of excess production capacity and inventory overhang………………………………………..Full Article: Source

Rare-earth metal prices climb as China builds reserves

Posted on 16 June 2016 by VRS  |  Email |Print

International spot prices for rare-earth metals are rising amid moves by China to stockpile those key materials for high-tech consumer electronics and hybrid vehicles.
Neodymium, which is used in high-performance magnets, is selling for around $56 per kilogram — up 10% from a month ago and the highest since July 2015. Dysprosium prices have climbed 3% from the previous month to $265 per kilogram, while prices of terbium, a phosphor raw material, have increased 11% to around $570 per kilogram………………………………………..Full Article: Source

Platinum – This Precious Metal Just Hit A Multi-Decade Extreme

Posted on 15 June 2016 by VRS  |  Email |Print

The gold to silver ratio is often cited as an indicator for the precious metals markets. When the ratio is high (gold is relatively strong versus silver), that typically corresponds with a cyclical low area in precious metals prices. When the ratio starts narrowing (silver gains strength versus gold), that typically corresponds with a cyclical bull market in precious metals.
The gold:silver ratio hit a multi-year high of over 83:1 earlier this year. It has since come down to 73.4:1, as of Friday’s close, as silver has gained strength in this year’s rally. On a historical basis, silver remains a relative bargain compared to gold. The ratio has much further to fall in a major bull market………………………………………..Full Article: Source

Uranium Prices Set To Double By 2018

Posted on 15 June 2016 by VRS  |  Email |Print

With prices set to double by 2018, we’ve seen the bottom of the uranium market, and the negative sentiment that has followed this resource around despite strong fundamentals, is starting to change.
Billionaire investors sense it, and they’re always the first to anticipate change and take advantage of the rally before it becomes a reality. The turning point is where all the money is made, and there are plenty of indications that the uranium recovery is already underway………………………………………..Full Article: Source

Copper Prices Slide: LME Inventory Levels Surge

Posted on 15 June 2016 by VRS  |  Email |Print

A stronger dollar in May caused most base metals to weaken. However, in June, the dollar has pulled back, as expectations for rate increases recede. That helped to lift most base metals, so far, this month. But that wasn’t the case for copper, which continues to struggle on the upside.
The red metal has held its value well this year, but it has found strong resistance near $7,500 per metric ton. Unlike other metals like zinc and steels for which we recommended buying forward earlier this year, we’ve kept recommending buying only small quantities of copper for quite some time now………………………………………..Full Article: Source

HK Exchanges makes new bid to boost China metal market role

Posted on 15 June 2016 by VRS  |  Email |Print

Hong Kong Exchanges & Clearing Ltd, which bought the London Metal Exchange in 2012 for $2.2 billion, plans to start a metals trading platform in the first half of next year in southern China as it bids to secure a foothold in the world’s biggest consumer and producer of raw materials.
Grappling with a slide in volumes after a fee increase, and shrinking profits from commodities, the bourse aims to provide a marketplace for physical metals that will eventually generate benchmark prices in China. Futures in the country have traditionally been dominated by day-trading speculators and the HKEX model is specifically targeted at physical users, producers and traders………………………………………..Full Article: Source

Commodities enter bull market, so should you buy metal stocks now

Posted on 14 June 2016 by VRS  |  Email |Print

The bulls are back in the global commodities market, with multiple commodities gaining from their 13-year lows. The upturn in the commodity market has helped the stocks of metal companies to outperform the broader market.
So, does it make them an opportunity? “We are seeing metal prices firm up. So if this holds, we will have to take positions in that space,” said Deepak Shenoy, Founder, Capital Mind. Metal prices have been flying high buoyed by the depreciation in the dollar and the support from China’s stability………………………………………..Full Article: Source

Are Platinum Prices Set to Soar?

Posted on 13 June 2016 by VRS  |  Email |Print

Recession, Supply Deficit, and Market Appetite Will Play a Major Role in Platinum Prices. Platinum is the best buy among precious metals right now. It’s more affordable than gold and, some would argue, more useful. Trading now at around $1,000 an ounce, platinum could outperform both gold and silver over the next several months.
Platinum has much more in common with silver than it does with gold. That’s because, unlike gold, platinum plays a role as an important industrial metal. About 40% of the world’s platinum demand comes from the automobile industry………………………………………..Full Article: Source

Copper price big loser as other commodities rally

Posted on 13 June 2016 by VRS  |  Email |Print

Amid broad advance in metals and energy, copper price sinks to lowest in four months – is China and world economy worse off than is currently believed? Copper’s weakness comes despite Chinese trade data released earlier this week showing 2016 imports of refined copper are up 22% compared to the first five months last year.
The increase in copper concentrate imports is even more dramatic with Chinese smelters taking up 34% more at 6.7 million tonnes so far this year. Copper is the second worst performing metal this year behind lead and is down more than 12% since end April………………………………………..Full Article: Source

Unloved coal rides commodities rebound

Posted on 10 June 2016 by VRS  |  Email |Print

Although most analysts remain bearish, thermal coal has risen about 5% in the past month. A rising tide lifts all boats — even it seems seaborne thermal coal, possibly the least loved major commodity.
Raw materials are enjoying their best start to a year since 2008 aided by a weaker US dollar and better supply and demand fundamentals. Iron ore, oil, gold, soybeans and zinc have led the advance but other less favoured commodities have also seen gains, including coal………………………………………..Full Article: Source

Zinc may remain shining star among base metals

Posted on 10 June 2016 by VRS  |  Email |Print

Zinc prices has surged as much as 25 percent in 2016 to the highest since July as miners supply less of the ore concentrate that’s refined to produce the metal, just as demand rebounds in China, the biggest user. It has emerged as the best performing metal this year.
Prices for the metal rose past Rs 135 per kg on June 3, their highest level in almost 10 months. This defies a slump in commodities from copper to iron ore and nickel, which have continued to fall over the past month amid concerns about growth in China………………………………………..Full Article: Source

Should Western Steelmakers Exit the Commodity End of the Market?

Posted on 10 June 2016 by VRS  |  Email |Print

It’s not an unreasonable question. Certainly in Europe, few if any steelmakers are making any money. Capacity utilization is woefully low forcing steelmakers to fight for sales and depriving them of any price-setting opportunities.
Steelmakers and much of the media lay the blame on China’s doorstep. Although over half of China’s major producers made losses in 2015, exports soared by 20% to 112 million metric tons last year, more than the total output of the world’s second-largest producer, Japan………………………………………..Full Article: Source

How Are Gold Miners Placed in a Volatile Gold Price Environment?

Posted on 09 June 2016 by VRS  |  Email |Print

Gold investors became worried after the release of the Federal Reserve’s April minutes, which were more hawkish than expected. This put the summer rate hike back on the table, causing gold to lose some of its sheen. Gold lost 5.1% in 11 trading sessions after the minutes were released.
The Market was also awaiting the May jobs data to get a sense of the direction of Fed’s monetary policy. The data came in markedly below expectations, lowering the chances of a Fed rate hike in June………………………………………..Full Article: Source

Base metals higher on industrial buying, China imports

Posted on 09 June 2016 by VRS  |  Email |Print

Aluminium climbed to the highest level in a month on Wednesday, bolstered by buying from industrial consumers, while copper was boosted by a weaker dollar and strong Chinese imports.
Metals were firmer across the board, including zinc, which touched a 10-month high on tightening supply. Three-month aluminium on the London Metal Exchange closed up 2.6 per cent at $US1604 a tonne, the strongest since May 6, building on a rise of 0.7 per cent on Tuesday. ……………………………………….Full Article: Source

Chinese alumina prices steady despite fall in domestic aluminum levels

Posted on 08 June 2016 by VRS  |  Email |Print

Chinese spot alumina prices stood steady Tuesday despite weaker aluminum prices this week, and trade activity was thin as market participants awaited clearer direction. Buyers shied away in anticipation of lower prices, should ingot levels fall further, while sellers eyed a possible rebound in aluminum prices in the near term.
“Aluminum prices have been falling this week, so there’s no trades for alumina. Everyone is cautious. Metal has been very volatile and no one can be sure how the trend will go next, so they will just wait,” a South China smelter said………………………………………..Full Article: Source

Big miners in trouble as mining boom gains wiped out by commodity price plunge

Posted on 08 June 2016 by VRS  |  Email |Print

The world’s biggest miners are vulnerable and some are fighting for survival because of lower commodity prices and high levels of debt according to a new report. Accounting firm PwC found the globe’s 40 biggest miners made a collective loss of $US27 billion ($37 billion) in 2015, the first loss across the entire industry, hit by China’s slowing economy and a 25 per cent fall in commodity prices last year.
The report titled Mine 2016, said the market value of the world’s 40 biggest miners fell 37 per cent or $US297 billion to $US494 billion by the end of 2015, erasing all the gains from the mining boom………………………………………..Full Article: Source

What’s the price of the metal of the future? It’s confusing

Posted on 07 June 2016 by VRS  |  Email |Print

Lithium is shaping up to be The Next Big Thing. Prices are going stratospheric, junior miners are rushing to stake claims on future supply and investment websites are glowing red hot with speculation about the metal’s prospects.
The Global X lithium fund, one of the very few ways to get in on the action, has gained 25 per cent over the past three months with assets under management leaping from $41-million to $68-million since the start of the year………………………………………..Full Article: Source

Black Sea pig iron prices lower over week

Posted on 07 June 2016 by VRS  |  Email |Print

Black Sea merchant pig iron prices continue to show more downside, market sourced told S&P Global Platts on Friday. Platts weekly Black Sea pig iron price assessment stood on Friday at $255-$265/mt FOB Black Sea, indicating the mid-point of $260/mt, $15/mt down on week.
Turkish steelmakers were said to be particular bearish on pig iron prices on the back of strong pressure on the finished steel prices and anticipated corrections in scrap settlements………………………………………..Full Article: Source

Iron ore price surges towards $US50

Posted on 06 June 2016 by VRS  |  Email |Print

The price of iron ore has jumped back towards $US50 a tonne, ending a four-day losing run. At the end of the latest session, iron ore for delivery to the Port of Tianjin in China traded at $US49.50 a tonne, up 3.2 per cent from its prior price of $US47.90. The previous mark represented the commodity’s lowest mark since February 19.
The key Australian export remains almost 30 per cent off its year-to-date high near $US70, which was reached just seven weeks ago, with investors since fretting about rising supply. Iron ore endured a horror 2015 as the supply-demand balance was called into question as Chinese demand growth waned at a time the majors were ramping up low-cost production………………………………………..Full Article: Source

Goldman’s ‘Bullish Exception’ Powers Ahead as Zinc Tops $2,000

Posted on 03 June 2016 by VRS  |  Email |Print

Zinc extended its rally to a 10-month high amid expectations for a global shortage of one of this year’s best-performing commodities. Zinc, used for rustproofing steel in everything from auto bodies to suspension bridges, has surged 23 percent in 2016, outperforming other base metals.
Banks from Goldman Sachs Group Inc. to Macquarie Group Ltd. see further gains for prices that have risen for six straight days. Zinc deficits could even send prices to a record in the next two years, ICBC Standard Bank Plc said in March. The metal peaked at $4,580 a metric ton in 2006………………………………………..Full Article: Source

Uranium juniors defy bear market pricing

Posted on 02 June 2016 by VRS  |  Email |Print

Uranium is having the worst start to a year in a decade. U3O8 is down more than 20% in 2016 with the UxC broker average price sliding to $27.25 a pound on Monday. Current levels are the cheapest spot uranium has been since 2005.
In contrast the long term price, where most uranium business is conducted, is hovering at around $44 a pound, where it’s been since July 2015………………………………………..Full Article: Source

Zinc hits 10-month high as supply tightens, copper hits one-week low

Posted on 02 June 2016 by VRS  |  Email |Print

Zinc surged to its highest level in 10 months on Wednesday as speculators bet weaker supplies would create shortages, but copper touched a one-week low on worries about demand in top consumer China.
Speculators pushed zinc prices through key technical levels, fuelling a rally by triggering pre-set buying orders, traders said, also noting industrial metals got a fillip late in the session from a report that OPEC will consider setting a new oil output ceiling at its meeting on Thursday………………………………………..Full Article: Source

Metals on a back footing as Chinese PMI data disappoints

Posted on 02 June 2016 by VRS  |  Email |Print

The base metals remain in consolidation mode, the corrections seen in May have for the most part halted for now, but rebounds are struggling to hold on to gains. It appears that there is both bargain hunting and selling into strength going on.
The precious metals remain in correction mode, there is some dip buying around, but follow through buying is absent, palladium is the one attempting to rebound the most but it is a thin market. For now, all but all remain vulnerable, but we expect dips to attract pent-up demand………………………………………..Full Article: Source

Copper, Mining Shares Drop as China Factory Data Dims Outlook

Posted on 02 June 2016 by VRS  |  Email |Print

Copper dropped and mining stocks led by Freeport-McMoRan Inc. retreated after a Chinese factory gauge contracted and the OECD warned that the global recovery is set to stall this year.
A private index Wednesday showed a 15th straight month of contraction in May for Chinese manufacturing, while the Organisation for Economic Cooperation and Development said the world economy is slipping into a self-fulfilling “low-growth trap.” Manufacturing in the 19-nation euro area barely grew last month………………………………………..Full Article: Source

Precious Metals: A Resource Worth Recycling

Posted on 01 June 2016 by VRS  |  Email |Print

Precious metals are among the most valuable of Earth’s resources. As long as humans have been on the planet they’ve coveted these metals. The pleasing appearance, tarnish resistance, and permanence of gold and silver have made them ideal choices throughout recorded history for jewelry, ornamentation of persons and objects, and investment in the form of coins, bars, and exchange-traded items.
Platinum group metals (PGM) did not come on the historical scene until about 1800, but the high melting points, high corrosion resistance, and excellent catalytic properties of platinum, palladium, rhodium, ruthenium, iridium, and osmium make them indispensable for many industrial applications……………………………………….Full Article: Source

Nickel prices rise as workers vote for strike action at South32’s Cerro Matoso

Posted on 01 June 2016 by VRS  |  Email |Print

A strike at South32’s Cerro Matoso nickel project in Colombia will provide short-term support to nickel prices and further tighten the ferro-nickel market if it goes ahead in mid-June, market participants told Metal Bulletin.
Workers at the Cerro Matoso ferro-nickel mine in Colombia have voted in favour of strike action, unless a dispute over wage negotiations is resolved before June 14, Bloomberg reported yesterday. In February, South32 said it will be restructuring the Cerro Matoso operation, targeting a 30% cut to its running costs to $8,600 per tonne, and an 18% reduction in staff and contractor headcount at the mine……………………………………….Full Article: Source

China’s iron and steel futures lead falls in commodities

Posted on 01 June 2016 by VRS  |  Email |Print

Copper and gold face biggest monthly drop in six months as dollar strength takes toll in market pricing. China’s steel and iron ore futures are set for their worst monthly performance on record as a stronger US dollar weighed on commodities from copper to gold during May.
After a burst of speculative trading in the first four months of the year, China’s steel rebar contract has fallen 28 per cent this month, its worst performance since it started trading in 2009………………………………………..Full Article: Source

Brutal May for metals and miners

Posted on 01 June 2016 by VRS  |  Email |Print

Against expectations and in some instances in defiance of fundamentals, commodities managed to climb a wall of worry over the first four months of 2016 giving mining companies a welcome boost after three years of declines.
Sell in May and go away is one of the oldest adages on the equities market and it was especially true for the mining sector in 2016. While broader US share markets moved sideways and crude oil continued to rally, mining stocks, metals and mineral prices were hammered during the month………………………………………..Full Article: Source

Mines can put gold price respite to good use

Posted on 31 May 2016 by VRS  |  Email |Print

Stakeholders need to address alternative job opportunities for mineworkers, but it can also be expected that mining posts will steadily become more skilled and better paid. A surging gold price and a weakening rand have been good to South African gold producers in the first half of 2016, but how can the much-needed financial respite be used to build more sustainable mines?
There is a danger of this windfall revenue simply being used to repay debt and issue dividends to expectant investors. Rather, these pressing demands should be tempered by considering where the business will be when the rand gold price weakens again. What is needed are bold strategic and technical efforts to improve productivity and drive these companies down the industry cost-curve in the medium to long term………………………………………..Full Article: Source

Increasingly bearish indicators weigh down lead price

Posted on 31 May 2016 by VRS  |  Email |Print

Last year lead was the best-performing base metal on the LME by virtue of dropping by the least over the duration of 2015. The lead price declined 2.8% last year compared to 20%-plus falls in zinc, tin, cobalt and copper and ever volatile nickel’s 42% drop (moly fared just as badly).
In 2015 lead was buoyed by expectations of a handful of significant mine closures, a reduction in Chinese stockpiles and firm demand from the country’s lead-acid battery industry. Things haven’t quite panned out this way and lead is now the base metals deepest in the red year-to-date trading at $1,698 a tonne on Friday down 5.7% in 2016. In contrast sister metal zinc has managed to hold onto 18% gains since January………………………………………..Full Article: Source

Iron ore heads down again — Lower for longer?

Posted on 31 May 2016 by VRS  |  Email |Print

The world’s biggest iron ore miners believe that the recent rally in the price of the commodity will not last, because, while demand remains mostly flat, they have committed to maintaining or increasing their supply.
The price of iron ore, a key raw material to make steel, has fluctuated wildly so far this year, with the Northern China benchmark price plunging to a 10-year low of $39.30 per metric ton in January, a fraction of the commodity’s record high of $188 a ton in February 2011………………………………………..Full Article: Source

Indian banks to hurt from weakness in metals, mining: Moody’s

Posted on 31 May 2016 by VRS  |  Email |Print

Global rating agency Moody’s expects banks in the Asia-Pacific region (excluding Japan) to feel the ripple effects of the problems in commodities-related sector. The asset quality and profitability of banks in Mongolia, Singapore, Korea, Indonesia and India are exposed to the more vulnerable parts of the energy/commodity sectors, such as oil services, offshore marine, shipping and shipbuilders, and metals & mining and steel, says the Moody’s report.
“For metals and mining, banks in Mongolia, India, Indonesia and China are more exposed,” says the report. Moody’s expects 2016 to be another challenging year for metals and mining firms, leading to higher problem loans and weak recoveries for existing problem and restructured loans. ……………………………………….Full Article: Source

There are signs of life in the iron ore price

Posted on 30 May 2016 by VRS  |  Email |Print

After falling below the $50 a tonne level for the first time since February 29 on Thursday, iron ore prices rebounded solidly on Friday, boosted by renewed strength in Chinese futures markets.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by 3.38%, or $1.67, to $51.15 a tonne. It was the largest percentage gain recorded since April 29, and left the year to date gain at 17.4%………………………………………..Full Article: Source

Commodities hit by oil and metal falls amid flat pre-holiday trade

Posted on 30 May 2016 by VRS  |  Email |Print

Commodities producers were knocked by a sudden reversal in metal and oil prices, as the rally in Brent crude that began earlier this year gave way.
The price of a barrel of Brent, an oil benchmark, slid from the seven-month peak of $50 it touched on Thursday, to tumble beneath $49 as the week drew to a close. Coupled with declines in hard commodities, the moves weighed down the minerals- heavy FTSE 100………………………………………..Full Article: Source

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