Over the last month, I’ve shown you how China’s economy has seen a resurgence in commodities imports like copper, iron ore, uranium, and coal. China is the largest importer of industrial commodities in the world… So when its demand picks up, it’s bullish for the sector.
Platinum is a “dual purpose” metal. It’s used in jewelry… and it’s considered a “store of wealth,” so it serves as a precious metal like gold. But it’s also an industrial metal. It is used to make catalytic converters – which reduce a vehicle’s pollutants – and as a catalyst for refining gasoline and diesel fuel. Those two sectors account for 57% of the platinum produced per year. And demand is soaring………………………………………….Full Article: Source

The combination of better than expected U.S. durable goods data and the head of China’s sovereign wealth fund stating that China’s economy grew by almost 8% last quarter may offer some opportunities in the copper market.
Although these global economic indicators gave some hope about growth and demand in the world’s largest economy, the uneasiness about the growth of supply has kept copper prices relatively in check due to concerns that larges quantities of supply could enter the market in 2013………………………………………..Full Article: Source

Diverse price performance was the feature across the global commodity markets last week - covering energy products, base and precious metals as well as agriculture. Brent crude continued to rise with the prompt contract rates crossing levels last seen eight months ago, spurred by a combination of improving macroeconomic sentiment and intensification of geopolitical concerns.
The metals complex was rather diverse with most base metals registering a price fall except zinc that was up 1.2 per cent and copper nearly unchanged, while precious metals generally retained their upward trajectory with platinum (up 1.6 per cent) the real performer. Gold was unchanged week on week, while silver edged slightly higher………………………………………..Full Article: Source

Russia’s United Company RUSAL Plc, the world’s top aluminium producer, said on Friday it expects 2013 global aluminium demand will rise 6 percent, fuelled by investment in large-scale infrastructure projects in China.
RUSAL’s positive tone comes after a tough year for aluminium produers due to the global economic slowdown, although it cautioned the European debt crisis would continue to weigh on aluminium prices in the short term………………………………………..Full Article: Source

Steel prices in January showed a mixed trend across markets with US prices extending decline seen in December while China, European prices gained, while Indian markets were flat. Turkey prices gained on restocking, improved demand, according to a monthly report from The Steel Index (TSI).
In US markets, declining offers from sellers steadily pushed down prices. Spot Hot rolled (HR) pries tumbled with TSI daily index falling from US $640/short ton to US$614/short ton at end of January. Flat carbon steel imports dipped heavily in US Gulf coast. Steel shipments dipped sharply to 2.5 mn tons, the lowest in three years, TSI added………………………………………..Full Article: Source

Anyone who looks at precious metals when investing in 2013 will likely turn to gold and silver, maybe even platinum. But there is another precious metal that is often overlooked, and should not be: palladium.
Palladium is mainly used in catalytic converters on gasoline-powered vehicles to limit the pollution these vehicles emit, just as its sister metal, platinum, is used in a similar fashion for diesel-powered vehicles………………………………………..Full Article: Source

Australia’s rate of economic growth is expected to ease slightly in 2013 as mining investment slows, the central bank says. The Reserve Bank of Australia on Friday downwardly revised its forecasts for gross domestic product (GDP) growth to between two to three per cent in 2013, from its previous forecast of 2.25 to 3.25 per cent.
It expects GDP growth through to the end of 2012 to be 3.5 per cent, which is in line with its November forecast. December quarter GDP figures from the Australian Bureau of Statistics are released on March 6………………………………………..Full Article: Source

Let’s discuss uranium. The spot price is ridiculously low and set to rebound. I had a long discussion with a couple of serious uranium scholars earlier this week. They’ve been doing uranium in both government and private industry since the 1970s. They’ve seen all the different rodeo acts.
These gents laid out a strong case for strengthening yellowcake prices this year - 2013 - and well into the future. ‘Yellowcake,’ said one, ‘is comparable to where gold was 10 years ago. We’re looking at prices four-six times higher in the out years.’……………………………………….Full Article: Source

World crude steel production is expected to rise 4.7% to 1620 mn tons, according to MEPS International. Global crude steel output in 2012 was 1,548 mn tons which represented a growth of 1.2% over previous year, according to World Steel Association data. The growth came mainly from Asia and North America while crude steel production in the EU (27) and South America decreased in 2012 compared to 2011.
Blast furnace ironmaking is expected to expand at a rate similar to that of steel in 2013 and reach 1160 million tonnes. Direct reduced iron manufacturing should show better growth as the popularity of this process is increasing in the Middle East and India………………………………………..Full Article: Source

The price gains in base metals complex may be limited by higher inventories and excess capacity in 2013 coming close on the heels of a disappointing market in 2012, according to Natixis.
“In particular, the disappointing pace of growth last year led to a rise in stockpiles of most base metals, which may limit potential price gains in 2013. Our optimism regarding growth across the developing world suggests that base metal prices can rise this year, even if this price appreciation is likely to be limited by high inventories and excess capacity for many metals.”……………………………………….Full Article: Source

Platinum supplies are falling to a 13-year low as mines in South Africa, the world’s biggest producer, close and automobile sales reach new highs. Production will drop 2.7% to 5.68 million ounces, the least since 2000, according to Barclays, which raised its 2013 shortage estimate sixfold last month after Johannesburg-based Anglo American Platinum (AMS) said it plans to idle shafts.
At the same time, demand from carmakers, the biggest consumer of the metal, will increase 0.5% in 2013, Barclays says. Investors are buying platinum at the fastest pace in three years………………………………………..Full Article: Source

Platinum supplies are falling to a 13-year low as mines in South Africa, the world’s biggest producer, close and automobile sales reach new highs. Production will drop 2.7 percent to 5.68 million ounces, the least since 2000, according to Barclays Plc, which raised its 2013 shortage estimate sixfold last month after Johannesburg-based Anglo American Platinum Ltd. (AMS) said it plans to idle shafts.
At the same time, demand from carmakers, the biggest consumer of the metal, will increase 0.5 percent in 2013, Barclays says. Investors are buying platinum at the fastest pace in three years……………………………………..Full Article: Source

Size of global precious metals industry is likely to touch $215 bn by 2017 with a compound annual growth rate (CAGR) of 7.5 percent, stated a research report titled ‘Global Precious Metal Industry 2012-2017: Trend, Profit, and Forecast Analysis,’ from Lucintel.
Growing demand from end markets like jewellery, electronics, automotive, and investment are expected to drive the prices of precious metals. Lower availability of ore and regulations imposed by the governments on mining are the major hurdles for world precious metals industry, the report noted……………………………………..Full Article: Source

Copper and zinc demand in United States is expected to witness an up-tick trend in 2013-14 as a result of ongoing recovery in the US housing market. Improvement in the US housing market and recovery in global economy could boost demand for base metals, stated a recent market outlook by London based Barclays.
According to the 2013-14 US housing market outlook, housing starts would average 1mn units in 2013 and 1.2mn in 2014. This robust recovery trend in US construction activity would likely benefit copper and zinc……………………………………..Full Article: Source

Global demand for iron ore is expected to reach 2.6-billion tons in the next seven years, with China poised to remain the biggest consumer of the steel-making ingredient, Diedrik Tas, partner at commodities search firm McKinsey & Co, told attendees at the Mining Indaba in Cape Town on Monday.
Prices were also to remain high, Mr Tas said, but he warned that this would not be due to increased demand, but rather a function of rising operating costs. Iron-ore prices are closely linked to growth in the steel markets. Over the past year, prices have wavered as the slowdown in China’s economic growth led to lower demand for the metal……………………………………..Full Article: Source

The refined nickel market is heading for surplus again in 2013. Price-sensitive Nickel Pig Iron is the market’s swing supply and makes up most of the top quartile of the global industry cost curve, so will likely be the deciding factor of where prices will need to trade to trigger supply rationing. With LME prices currently trading at the upper end of the cost curve, Barlcays favour shorting nickel.
The rapid growth in lower-cost, higher-quality supply from RKEF(Rotary Kiln-Electric Furnace) means the NPI sector is now the main supplier of nickel to the stainless market……………………………………..Full Article: Source

Overall market sentiments in the BRIC (Brazil, Russia, India , China) region has brightened in January but dark clouds still loom in the horizon, according to an assessment by MEPS International.
Stability is expected in Brazil where production is rolled steel is forecasted at 26.2 mn tons, an increase of close to 4% over previous year. Russia steel demand trends aren’t bright- as doubt lingers on growth prospects in long steel and finished steel demand has fallen short of projections. ……………………………………….Full Article: Source

The world’s biggest mining and steel companies have wiped about $50 billion off project valuations in the past year and the purge is poised to continue this earnings season as managers reassess expensive takeovers.
Anglo American Plc (AAL), Vale SA (VALE3) and Rio Tinto Group (RIO) led the writedowns as declining metal prices, rising project costs and slowing demand forced reviews. Glencore International Plc (GLEN) may write down some nickel and copper assets acquired through its takeover of Xstrata Plc (XTA), Liberum Capital Ltd. has said. BHP Billiton Ltd. (BHP) may trim aluminum operation valuations, according to Goldman Sachs Group Inc. and Sanford C. Bernstein Ltd………………………………………..Full Article: Source

Indonesia, the biggest tin supplier, is poised to ship the least metal in a decade, extending shortages into a fourth year at a time when surpluses are emerging for most other industrial metals.
Sales will drop 24 percent to 75,000 metric tons because most smelters won’t meet a higher purity standard that starts in July and ore reserves are diminishing, according to the median of 13 exporter and analyst estimates compiled by Bloomberg. Prices will rise 17 percent to $28,750 a ton on the London Metal Exchange this year, the median of 14 forecasts shows………………………………………..Full Article: Source

HSBC has lifted its forecast for copper prices in 2013 due to expectations of a more structurally balanced market and positive sentiment. Analyst Andrew Keen said in a note to client that the “market remains balanced in our view, and this is enough to keep prices high when sentiment is good.”
The new forecast raises the average cash copper price in 2013 to $8,000 per ton from $7,500. Benchmark three month copper futures on the London Metal Exchange recently breached the $8,000 to hit $8,066 in Monday morning trading………………………………………..Full Article: Source

Senior geologist and co-editor of the Exploration Insights newsletter, Brent Cook, said 2013 will be the year in which a third of the juniors miners currently active will fade, as they simply don’t have viable properties.
Speaking to Cambridge House Live at the International’s Vancouver Resource Investment Conference held last week, Cook said this is really “good news” for investors because it leaves only the quality projects out there “and there is where you want your money to be.”……………………………………….Full Article: Source

Indonesia, the biggest tin supplier, is poised to ship the least metal in a decade, extending shortages into a fourth year at a time when surpluses are emerging for most other industrial metals.
Sales will drop 24 percent to 75,000 metric tons because most smelters won’t meet a higher purity standard that starts in July and ore reserves are diminishing, according to the median of 13 exporter and analyst estimates compiled by Bloomberg. Prices will rise 18 percent to $28,750 a ton on the London Metal Exchange this year, the median of 14 forecasts shows………………………………………..Full Article: Source

Deutsche Bank expects that, despite high copper stocks, net copper imports into China will likely remain elevated in the first half of 2013, with some re-stocking taking place at the consumer level.
“This may result in copper prices approaching USD9,000/t in Q2 in our view.” Deutsche Bank said in a report. Meanwhile, in 2013 Deutsche Bank economists expect Chinese growth to accelerate to the end of the year, averaging 8.2% after 7.7% in 2012………………………………………..Full Article: Source

Nickel and aluminium markets have been in surplus for some time on account of production indiscipline, but the forecasted surplus for 2013 may be wiped away on account of potential write downs Rio Tinto and BHP Billiton, according to Barclays Research.
Both Rio Tinto and BHP Billiton have been impacted by high costs and lower prices. In the event of a write down on nickel assets at BHP Billiton, it will wipe out 43 kt of surplus, Barclays said………………………………………..Full Article: Source

Sam Walsh’s first message to his employees could have been directed at the mining sector at large. The new chief executive of Rio Tinto referred to a need for “greater accountability and responsibility”, adding “we must treat the company’s money like it is our own and act like owners of our businesses not managers”.
Mr Walsh – whose elevation to CEO followed the surprise departure of Tom Albanese ten days ago – had good cause to press his staff for a change of thinking………………………………………..Full Article: Source

The coal industry has taken a beating in recent years. The discovery of natural gas in the U.S. has reduced the role of coal in the electric power industry: In 2012, the demand for coal has declined and coal companies, such as Arch Coal, have suffered from this drop in consumption. So, is it time to count out coal? I think this sentiment is premature.
During 2012, the consumption of coal in electric power industry declined compared to previous years: in the first nine months of 2012, total consumption reached 615 million short tons; during the same time in 2011, consumption reached 722 million short tons………………………………………..Full Article: Source

Copper traders are bullish for a third consecutive week as the fastest expansion in Chinese manufacturing in two years boosts confidence that the biggest buyer of the metal is leading a global recovery.
Eleven analysts surveyed by Bloomberg expect prices to rise next week, six were bearish and a further five were neutral. ETF Securities Ltd. said $28 million went into its ETFS Physical Copper exchange-traded product last week, the most since its introduction in 2010………………………………………..Full Article: Source

2013 is shaping up to be an interesting a year for iron ore. As prices hit US$150/t in January – an 80% increase over the lows in September of last year – optimism briefly returned to the market. In the Pilbara, BHP Billiton’s Jimblebar expansion remains on track for first production in the March 2013 quarter and the company expects to reach a production rate of 183Mt in FY2013, up 5% from 2012.
Rio Tinto is targeting production of 290Mt by early 2014, compared to 253Mt in 2012. FMG has restarted the development of its Kings deposit and remains committed to reach 155Mtpy production this year………………………………………..Full Article: Source

According to a recent report from the International Energy Agency (IEA), demand for energy has been increasing steadily since 2000, and coal supplies account for nearly half of the incremental primary energy supply globally. Coal demand grew 4.3 percent in 2011 alone and is unlikely to decrease in the foreseeable future.
“Coal’s share of the global energy mix continues to grow each year, and if no changes are made to current policies, coal will catch oil within a decade,” Maria van der Hoeven, IEA executive director, said………………………………………..Full Article: Source

Actual shipments of rare earths in 2012 by China reached only 16,265 metric tonnes, declining by 3.5 per cent versus a year ago, official data released by the China Customs Statistics Information Center on Tuesday showed.
It was likewise a far cry to the 2012 export guidance that the country set at 30,966 tonnes. Moreover, the center said the total export value in 2012 also dropped by 66 per cent year-on-year to $906 million. In December 2012, China set its first batch of rare-earth export quotas for 2013 at 15,501 tonnes. The amount would already account as its half-year quota………………………………………..Full Article: Source

The year 2012 turned out to be a record year for global crude steel production, according to World Steel Association (worldsteel).The growth came mainly from Asia and North America while crude steel production in the EU (27) and South America decreased in 2012 compared to 2011.
Annual production for Asia was 1,012.7 Mt of crude steel in 2012, an increase of 2.6% compared to 2011. The region’s share of world steel production increased slightly from 64.5% in 2011 to 65.4% in 2012. China’s crude steel production in 2012 reached 716.5 Mt, an increase of 3.1% on 2011………………………………………..Full Article: Source

Commodity prices are rebounding, but don’t hold your breath for megadeals in mining as a new crop of CEOs takes over.
At least 20 mining chief executive officers have stepped down in the past year, many under pressure from investors and boards. Tom Albanese, CEO at Rio Tinto PLC, was the latest to leave the corner office, agreeing to step down last week as the mining giant said it would write off roughly $14 billion in the value of various assets………………………………………..Full Article: Source

Gold exchange traded funds have remained relatively flat so far this year, but S&P Capital IQ analysts expect the precious metal to strengthen this year as loose monetary policies debase global currencies and low gold supply support prices.
“S&P Capital IQ Equity Research remains positive on the outlook for gold and gold-related investments for 2013,” Leo Larkin, S&P Capital IQ Equity Analyst, writes in a research note. “We expect gold to rise 15% in 2013 and finish the year at about the $1,930 level.”……………………………………….Full Article: Source

Palladium is expected to set a record average high this year and platinum to post its best price performance in two years as South Africa’s supply problems worsen and the economic cycle starts to favour industrial metals, a Reuters poll showed on Tuesday.
More upbeat growth prospects in China and the United States are expected to aid a demand recovery for cars - lifting automakers’ demand for platinum group metals, which are used in catalytic converters - and, in platinum’s case, jewellery………………………………………..Full Article: Source

Barclays expects zinc import demand of China to remain strong since, after a recent clamp down on copper financing, zinc now appears to be the metal of choice for this type of business, the Bank said in a recent report.
In industrial metals, demand for intermediate and raw materials like alumina and base metals concentrates continues to grow much faster than imports of metal………………………………………..Full Article: Source

Commodity fund managers who performed well over the testing final quarter of 2012 believe metals commodities prices could do better than expected in early 2013 due to a combination of Chinese restocking and continued supply disruption.
Managers at Vescore, Investec and BasInvest, who were amongst the few to make money in the fourth quarter, are relatively optimistic about the outlook for commodities going into 2013, tipping copper, platinum and palladium………………………………………..Full Article: Source

Most iron ore forecasts will be wildly wrong because of the jumpy and largely opaque nature of how the price series is generated. Forecasting commodity prices is like buying a second hand car. Only the car’s previous owner and perhaps the dealer really know what the car is actually like. In contrast you, the buyer, are an outsider with very limited insight and can only judge the car’s true value by what you see in the car yard.
Second hand cars, and iron ore, are classic cases of asymmetric information at work, pioneered by George Akelof’s 1970 study on the market for lemons………………………………………..Full Article: Source

Palladium prices rose to the highest in 16 months while platinum touched $1,700 a troy ounce for the first time in three months as supply-side problems buoyed the white precious metals.
The announcement on Tuesday that Anglo American would shut down platinum mines with total capacity of 400,000 ounces a year – or 7 per cent of global capacity – has reinvigorated investor interest in the markets for the so-called “platinum group metals”………………………………………..Full Article: Source

Whilst the outlook for the Chinese economy and domestic metals demand have dominated recent attention on the base metals complex, stronger supply expectations for 2013 are a critical component of projected softer metals market balances according to the latest Barclays Metals Magnifier.
Barclays forecasts point to an average 4.3% supply growth level in 2013, versus just 1.2% in 2012, supported by a combination of new projects, expansions and recoveries from disruption last year………………………………………..Full Article: Source

Goldman Sachs have released their mining commodity supply, demand and price forecasts for the short, medium and long term, following the extension of their economists annual GDP and IP forecasts.
This includes updated annual price forecasts for 2013-2017, as well as long-term prices, for the bulk commodities (thermal coal, metallurgical coals, iron ore), as well as base and precious metals, mineral sands, and rare earths. These forecasts form the basis of Goldman Sachs’ Global Investment Research mining equity models………………………………………..Full Article: Source

Are you thinking of investing in gold, silver, platinum or palladium? What’s the best way to gain exposure to precious metals? Thinking of jumping on the precious metals bandwagon?
The share of Millionaires interested in investing in precious metals more than doubled in the last two years, from 6 percent at year-end 2010 to 15 percent at the end of 2012, according to the latest research from Spectrem’s Millionaire Corner………………………………………..Full Article: Source

Rallying platinum prices are on the brink of hitting parity with gold, as concerns over supply outages in South Africa reignite, and stabilizing economic conditions in China and the U.S. boost the appeal of industrial metals over safe havens.
Even though platinum is still vulnerable to hiccups in the tentative global economic recovery, the white metal’s discount to bullion has shrunk to its tightest in nine months, a signal commonly associated with cyclical upswings………………………………………..Full Article: Source

Correlation is a useful measure – it helps us make predictions about a variety of events. But it’s also a bit tricky – while there are relationships that seem stable (such as the fact that rich people tend to spend more on luxury goods than the less wealthy), there are some that do experience some volatility.
These require special caution, as relying blindly on what was seen in the past without checking whether it is still true can lead to disaster………………………………………..Full Article: Source

Barclays in a precious metals price outlook for 2013 has said that platinum prices may average $1690/oz for the year even as it may touch a high of $1840/oz and a low of $1390/oz.
Platinum found itself pulled and pushed by the escalation of supply disruptions in South Africa and tumbling European auto demand. But unlike in the previous year, the metal struggled to find meaningful support from its marginal cost of production………………………………………..Full Article: Source

The top ten trends for mining companies this year have been assembled and cost cutting is at the top of this list. Deloitte’s Tracking the Trends of 2013 report says in the face of rising costs, falling commodity prices and other challenges, companies will be able to thrive into the future if they can set solid strategic direction and hold that course amidst shifting industry realities.
According to Deloitte this year’s biggest themes will be: Counting the costs, managing demand uncertainty, capital project deceleration, preparing for the M&A storm, governments getting greedier, combating corruption, climbing the social ladder, plugging the talent gap, playing it safe and getting the most out of technology………………………………………..Full Article: Source

Is the mining boom back? While everyone was on holidays, the price of iron ore has shot back up to $US158 a tonne. It was iron ore’s slump to $US86 a tonne at the end of last year that sparked fears of the mining boom’s end.
In August, BHP Billiton shelved expansion plans for Olympic Dam while Fortescue Metals Group announced plans to cut thousands of jobs. By December, amid fear of the US fiscal cliff and a volatile commodity outlook, the Federal Government also shelved its plans for a budget surplus in 2012-13………………………………………..Full Article: Source

The case of copper in 2012 highlights the need for companies to become more strategic not only in how they think about sourcing commodities with suppliers (demand aggregation programs with vendors, mill-direct, distributions, etc.), but also how they consider taking risk off the table through physical and financial contracts.
After all, even if the price ends the year exactly where it started (and customers believe that the price has not moved throughout the year), it does not mean that you haven’t exposed your business to volatility throughout a 12-month period………………………………………..Full Article: Source

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As the most abundant metal in the earth, aluminum actually makes up about 8% of the weight of the planet’s solid surface. The metal is known for its low density, ability to resist corrosion, and wide range of uses. It can be found in everything from soda cans to airplanes with an increasing number of industrial usages in between.
The metal was a hot commodity during the housing-led economic boom, but its price collapsed during the financial crisis, followed by the stock of those companies engaged in its production………………………………………..Full Article: Source

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Copper prices finished 2012 on a strong note and sprinted to multi-month highs to ring in the New Year . Aside from piggybacking on the stock market rally, the strength in copper prices has been underpinned by what seem to be some bullish supply and demand fundamentals.
Expectations for growth of 2012 Chilean production ran high, even as recently as several months ago. Early estimates put output up by as much as 10% over 2011. Between June and August, monthly production figures averaged 7.7% growth………………………………………..Full Article: Source

Standard & Poor’s Ratings Services has published an FAQ article titled, “Global Metals And Mining Sector Could Have It Tough In 2013,” which discusses the difficulties it believes that sector will encounter throughout the year. Standard & Poor’s believes economies in many regions remain fragile and demand for commodities such as steel has weakened as a result.
“While this overall outlook won’t necessarily translate into sharply declining credit quality, we could downgrade some of the borrowers we rates unless business conditions improve significantly in the near term,” said Standard & Poor’s credit analyst Michael Scerbo………………………………………..Full Article: Source