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Coal’s Lead in Commodity Rally Seen Overdone as Demand Falls

Posted on 29 July 2016 by VRS  |  Email |Print

Investors in European coal, the year’s best-performing commodity, should strap in for a bumpy ride as demand for the fuel wanes.
Coal for delivery in Europe in 2017 will fall about 11 percent by December, taking the gloss off the longest rally in year-ahead prices since 2010, according to a survey of traders and analysts by Bloomberg. The mineral’s 48 percent jump this year is more than double crude oil’s advance………………………………………..Full Article: Source

Platinum, palladium chase down gold’s stellar showing

Posted on 29 July 2016 by VRS  |  Email |Print

The lesser known precious metals have had a stellar month, catching up with gold. Platinum has eclipsed gold’s performance this year and palladium is close to doing so, after demand from the car industry and investor appetite sent the two precious metals on a blistering rally this month.
Palladium is set for its best monthly performance in over eight years, leaving it just shy of the 26 per cent rise in gold this year. Platinum and palladium, which are used in auto catalysts, are trading at their highest levels in more than a year………………………………………..Full Article: Source

Platinum takes limelight from gold with best month in four years

Posted on 29 July 2016 by VRS  |  Email |Print

A surprise rally in gold and silver caught the eyes of investors in the first half of the year. Now, platinum and palladium are shining brighter. Platinum is up 12% in July, putting prices on track for the best month since 2012. Palladium is even better, jumping 17%, the most since 2008. By comparison, gold added less than 2% in July as it lost momentum after gains in the first half.
The two lesser-known precious metals, used in devices that control toxic car emissions, are benefiting from better auto sales in China, concern over labour in South Africa and loose monetary policy from central banks around the world………………………………………..Full Article: Source

Metals M&A fall to lowest in two years – PwC report

Posted on 29 July 2016 by VRS  |  Email |Print

The metals deals market remained sluggish in the second quarter of 2016, with mergers and acquisitions activity down to its lowest level in two years, according to a report by PwC. While some metals commodity prices rebounded, metals prices, global demand, and production all generally remained low during the quarter, and companies continued to be challenged by global economic uncertainty and volatility, the report noted.
However, PwC said it was cautiously optimistic that improvement will be seen in the second half of 2016. “Growth in US gross domestic product and continued improvement in relevant end-use sectors like automotive, aerospace, and construction are expected to begin to drive increased demand for metals, and in turn, increased production and stabilisation in the industry,” PwC said………………………………………..Full Article: Source

Base metal mining market - infrastructure development activities to be key enabler of growth

Posted on 28 July 2016 by VRS  |  Email |Print

Global estimates entail that nearly 40% of the world economy is directly or indirectly affected by the mining industry. Consistent supply of base metals such as copper, zinc, nickel, aluminum, and tin is central to the development of sectors such as infrastructure, construction, manufacturing, transportation, equipment, and utilities. Flourishing growth across these sectors in the past few years, especially in developing regions such as Asia Pacific, is the major demand driver of base metals in the global market.
The European Union has significantly increased its investment aimed at the development of the region’s energy infrastructure, to make it more complaint with renewable energy sources, in the past few years. Transportation, construction, and equipment industries, which are some of the principal consumers of a number of base metals, are also expanding at a plausible rate across the globe. (Press Release)

Japan’s spot aluminum premiums fall as stocks rise in Asia

Posted on 28 July 2016 by VRS  |  Email |Print

S&P Global Platts assessed spot premiums for aluminum imports into Japan at $76-$77/mt plus LME cash CIF Japan Wednesday, down from $79-$80/mt the day before, under pressure from rising stocks in Asia.
An international trader bought 1,000 mt of ingot at $76-$77/mt plus LME cash CIF Japan last week. The metal was 99.7% purity-guaranteed material excluding Russian, Indian, Malaysian, Egyptian, and Iranian origins. Continuing downward pressure was likely to result in a further fall in premiums, buyer and seller sources said………………………………………..Full Article: Source

How Investor Appetite for Risk Impacts Precious Metals

Posted on 27 July 2016 by VRS  |  Email |Print

Gold has seen a downward swing and has extended its first back-to-back weekly drop since May. Gold and silver have seen trailing-five-day losses of 0.9% and 2.7%, respectively. The reason behind the fall in the precious metals is the buoyancy of the equity markets and the gains in the US dollar. Both factors have significantly hurt the precious metals.
The holdings of the SPDR Gold Shares (GLD), the world’s largest gold-backed ETF, fell 0.22% to 963.1 tons on Thursday, July 21. The physical demand from the giant gold-consuming markets, India and China, has also been slowing down………………………………………..Full Article: Source

Nickel Leads Metals Lower on Demand Concerns as Oil Retreats

Posted on 27 July 2016 by VRS  |  Email |Print

Nickel and zinc fell to one-week lows as weaker oil prices heightened concerns over the health of the global economy. Oil closed at the lowest since April in New York amid speculation that fuel stockpiles increased in the U.S., the world’s biggest fuel-consuming nation. Weaker oil prices cut mining costs and reduce the price floor for metal production.
Metals also retreated as investors took profits after prices of some metals reached multi-month highs, according to Commerzbank AG. The decline in most industrial metals comes a day before the Federal Reserve announces its latest policy-making statement………………………………………..Full Article: Source

July Zinc Price Forecast: Multi-Month Highs Reached

Posted on 27 July 2016 by VRS  |  Email |Print

Zinc prices , along with nickel, rallied to hit multi-month highs last week as investors hedged on continued supply disruptions. According to a report from the Financial Times, the zinc price climbed to its highest point in 14 months to $2,275.5 per metric ton on the London Metal Exchange.
Investor sentiment surrounding commodities has improved due in part to a weaker dollar and growing oil prices, in addition to government stimulus in China. That stimulus has enhanced the Far East nation’s transportation and infrastructure sectors. Meanwhile, nickel could reach as high as $12,000 per metric ton………………………………………..Full Article: Source

Asia alumina: Australia price slips $1/mt to $235/mt FOB

Posted on 27 July 2016 by VRS  |  Email |Print

The Australian alumina daily assessment slipped $1/mt to $235/mt FOB on Tuesday, as buyers remained scarce amid a generally pessimistic market outlook. “There’s no one buying at the moment, as everyone is expecting the market to go down further, probably breaking below $230/mt soon,” an Asian consumer source said.
“The Chinese are not buying as domestic prices are falling, and the Middle East, India and Malaysia have all bought recently. We don’t see the Chinese buying in the next three months at least,” he added………………………………………..Full Article: Source

Major mining assets change hands after commodity rout

Posted on 26 July 2016 by VRS  |  Email |Print

Large mining companies are selling off prized assets after the prolonged global commodities markets rout left some with high levels of debt. Anglo American, Glencore and Freeport have been at the forefront of those companies trying to sell, but BHP Billiton and Rio Tinto have also been seeking to rationalise their assets while signalling an interest in acquisitions.
Slower growth in China triggered the slide in the prices of raw materials, and Chinese companies are the main potential buyers of assets on sale, aiming to secure natural resources as the economy expands. China Molybdenum Co, for example, snapped up two assets in less than a fortnight………………………………………..Full Article: Source

Zinc resumes rally, copper falls on weak oil, profit taking

Posted on 26 July 2016 by VRS  |  Email |Print

Zinc resumed its rally on Monday powered by falling mine supply, while copper fell as a sharp drop in oil prices overshadowed expectations of looser global central bank policy. G20 finance chiefs vowed at the weekend to use “all policy tools” to lift global growth after a meeting dominated by the impact of Britain’s exit from the European Union.
“They (G20 ministers) want to explore what options - including fiscal policy measures - are available to support growth. Ultimately, this could also give rise to increased demand for metals,” Commerzbank said in a note………………………………………..Full Article: Source

Metalprodex to launch global physical metal spot trading platform

Posted on 26 July 2016 by VRS  |  Email |Print

A new global spot physical metal trading platform called Metalprodex will launch in September, managing director Janko Linhart told FastMarkets. Headquartered in Germany, it has been developed to allow the quick purchase and sale of physical metal.
All metal is delivered physically within two days on the spot market. Metal delivered into any Metalprodex-approved warehouse can then be sold or bought instantly via electronic trading platform MTPX………………………………………..Full Article: Source

Dr. Copper Signals Brave New World Economy View as Funds Jump In

Posted on 25 July 2016 by VRS  |  Email |Print

Even with the recent turmoil, the global economy is looking pretty resilient — at least that’s what metals investors are signaling. Over the course of about four weeks, the U.K. voted to leave the European Union, there was a failed coup in Turkey and Donald Trump bucked the establishment of the Republican Party to become its presidential nominee.
Rather than taking these events as ominous signs, hedge funds are jumping into the growth-dependent world of copper. The funds and other money managers more than tripled wagers on price gains for the metal last week………………………………………..Full Article: Source

Why lithium will see another price spike this fall

Posted on 25 July 2016 by VRS  |  Email |Print

So far, lithium has been the hottest metal of 2016, beating out gold, with exponential demand expected over the coming years. Although the price trajectory of the metal has been subdued in recent months, the fundamentals behind the long-term trajectory suggest strong potential for long-term growth.
Price doubling from 2014/2015 was first seen in China and is now being felt worldwide, with lithium hydroxide prices from $16-20 and carbonate prices from $12-14 thousand USD per ton. There is no doubt as to the push that Tesla has given the current automotive transition to electric vehicles (EVs)………………………………………..Full Article: Source

Base metals fall on stronger US dollar

Posted on 25 July 2016 by VRS  |  Email |Print

A stronger US dollar has knocked industrial metals prices while nickel has also been hit as some investors lock in profits from a recent rally. Aluminium bucked the weaker trend and ticked higher as industrial consumers took advantage of recent declines to make purchases.
The US dollar index hit its highest levels since early March after data showing activity in the US manufacturing sector registered a larger-than-expected expansion, boosting expectations of a rate increase by the Federal Reserve………………………………………..Full Article: Source

This is Goldman Sachs’ best bet in commodities right now

Posted on 22 July 2016 by VRS  |  Email |Print

While investors have been paying close attention to the gold and oil trade, the best bet right now in the commodity space is selling copper, the head of commodities research at Goldman Sachs said Thursday. That’s because there is a lot of supply coming on, Jeff Currie said.
“We like the idea of the revenge of the low-cost player, meaning Peru. Weakness in demand in China — it’s not in the sweet spot,” he said. “Put it all together, this market’s already in a surplus. Prices at $5,000 a ton — target $4,000.”……………………………………….Full Article: Source

Zinc starts to bubble as investors pile in (again): Andy Home

Posted on 22 July 2016 by VRS  |  Email |Print

Zinc is this year’s investment pick of the base metals traded on the London Metal Exchange (LME). The price of LME zinc for three-months delivery has risen by 42 percent since the start of January to a current $2,235 per tonne.
It is by a wide margin the strongest year-to-date performance among the LME pack and prices are now back at levels last seen in May last year. Also rising at a fast clip, though, is speculative interest on both the London and Shanghai markets………………………………………..Full Article: Source

July Lead Price Forecast: On the Up and Up

Posted on 22 July 2016 by VRS  |  Email |Print

To begin July, lead prices moved up nearly a quarter of 1% in futures trades as participants increased their positions due, in part, to a pick-up in spot market demand and a boost in base metals overseas. Meanwhile, according to a report from the Business Standard, lead for August delivery at the Multi-Commodity Exchange also grew by nearly .25%.
Our own Raul de Frutos reported just this week that lead prices have hit a one-year high despite neutral fundamentals. It’s been a year of fluctuation for lead, but three-month London Metal Exchange data has prices at $1,900 per metric ton………………………………………..Full Article: Source

Nickel Extends Advance to 11-Month High on Philippines Concern

Posted on 22 July 2016 by VRS  |  Email |Print

Nickel extended gains to a 11-month high on concern the Philippines crackdown on mines is disrupting supplies from the world’s top supplier of nickel ore. A gauge of mining stocks climbed for the first time in a week.
The new government in the Philippines has pledged to shut mines that fall short of environmental and welfare standards. Environment Secretary Gina Lopez said on Wednesday that the state plans to suspend shipments from an idled mine owned by the nation’s top refiner, Nickel Asia Corp., while the checkup is conducted………………………………………..Full Article: Source

Nickel and zinc prices hit multi-month highs

Posted on 22 July 2016 by VRS  |  Email |Print

Stronger demand in China emerges as the industrial metals face potential supply shortages. Prices for nickel and zinc rallied to multi-month highs on Thursday as investors bet on further supply disruptions for the industrial metals.
The price for zinc, which is used to galvanise steel, rose to its highest level in 14 months at $2,272.5 a tonne on the London Metal Exchange, while nickel touched an eight-month high of $10,745 a tonne. Nickel is used to make stainless steel………………………………………..Full Article: Source

Base metals edge higher in subdued trading ahead of ECB meeting

Posted on 22 July 2016 by VRS  |  Email |Print

Base metals apart from aluminium were in positive territory in a subdued LME trading session on Thursday morning – traders are on the sidelines ahead of today’s key European Central Bank (ECB) meeting. The ECB meeting, its first since the June 24 UK Brexit referendum, will be watched for signals on interest-rate moves although several traders believe it will follow the Bank of England’s decision to keep rates unchanged.
“With the true extent of the Brexit effect still unclear, and the euro on the weaker side (due to renewed expectations for a September Fed rate hike), the central bank is under no real pressure to act,” Swissquote said……………………………………….Full Article: Source

Copper Futures Slide as Chinese Production Climbs in First Half

Posted on 21 July 2016 by VRS  |  Email |Print

Copper retreated on concern that supply will keep outpacing demand as data showed rising output in China, the biggest producer and user of refined metal. A stronger dollar also hit commodities priced in the currency.
China’s production grew 7.6 percent in the first half, according to the National Bureau of Statistics Wednesday, as smelter margins improved. There will be a global surplus every year until 2020, Barclays Plc said in a July 19 note………………………………………..Full Article: Source

Commodities rally of 2016 leaves mining industry in “far better shape”

Posted on 20 July 2016 by VRS  |  Email |Print

Investec, the financial analyst service across the UK, South Africa and Australia, believes that the mining industry could represent a ‘key sector’ for asset allocation, with particular strength in gold commodities. The company, in a report released today, believes this is a result of strong commodity rallying and sustained cost cutting since the beginning of 2016.
“The turn of the year proved, in hindsight, to be the point of peak pessimism; since then, the mining industry has begun to heal itself and cleanse some of the sins of the past. We moved into cautious buy territory in April this year, by moving our Investec Mining Clock forward to 4 o’clock and have seen buying momentum continue, despite the recent Brexit vote,” said the company in a report………………………………………..Full Article: Source

Precious metals performers: Shiny but scary

Posted on 20 July 2016 by VRS  |  Email |Print

It’s expected of a fund tracking precious metals to experience volatility, with holdings in ETFs climbing almost 21% earlier this year and then gold prices jumped as much as 8.1% after U.K.’s Brexit vote, the most since the height of the global financial crisis in 2008, according to Bloomberg News.
Short-term data depicts just how essential a quick flood to the category can be. Those who selected gold, silver or other precious metal funds in light of recent market volatility have been able to profit handsomely all of the category’s top YTD performers raked in triple digit returns while the same funds over the long-term all experienced double-digit negative returns………………………………………..Full Article: Source

Zinc climbs to highest in more than a year on shortage worries

Posted on 20 July 2016 by VRS  |  Email |Print

Zinc extended its advance to the highest level in more than a year on concerns over a looming supply deficit. The metal used to galvanise steel rose as much as 1.3% to $2 246 a metric ton on the London Metal Exchange, the highest since May last year, and traded at $2 241 by 3:03pm Shanghai time.
It added as much as 2.4% to 17 340 yuan ($2 589) on the Shanghai Futures Exchange. Zinc has rallied 39% this year, outperforming other base metals, amid forecasts for a global shortage after supply cuts and mine closures. Zinc may rise to $2 500 over the next six months as production trails demand, Goldman Sachs Group Inc. said last week………………………………………..Full Article: Source

Bullish Q3 for base metals

Posted on 20 July 2016 by VRS  |  Email |Print

Sucden Financial said Tuesday it expected rising demand from China and global economic uncertainty as key drivers for the continued rally in the base metals complex. “EU uncertainties, UK uncertainties and Japanese yen strength are all contributing to a mixed macro outlook, but sentiment is improving and metals prices are stabilizing having built bases,” Sucden said in a quarterly report.
The base metals complex has suffered large sell-offs in recent years, along with large overcapacity and limited demand. Prolonged periods of low pricing are now beginning to bite into the market, in the form of cuts in mining, production cuts and a heavily destocked market, fueling recent rallies seen across the complex………………………………………..Full Article: Source

Why Lithium Will See Another Price Spike This Fall

Posted on 19 July 2016 by VRS  |  Email |Print

So far, lithium has been the hottest metal of 2016, beating out gold, with exponential demand expected over the coming years. Although the price trajectory of the metal has been subdued in recent months, the fundamentals behind the long-term trajectory suggest strong potential for long-term growth.
Price doubling from 2014/2015 was first seen in China and is now being felt worldwide, with lithium hydroxide prices from $16-20 and carbonate prices from $12-14 thousand USD per ton………………………………………..Full Article: Source

London Metal Exchange price exclusivity falls on global stage

Posted on 19 July 2016 by VRS  |  Email |Print

Globally, base metal trading has expanded since the sale of the London Metal Exchange (LME) to the HKEx. Taking the two main exchanges for base metals – the LME and the Shanghai Futures Exchange (SHFE) – the average monthly volume of the six main base metals rose 23.8% since July 2012.
At the same time, the LME share of the trading has fallen from 89.7% in July 2012 to 77.8% in June 2016, even taking out the double-counting of Chinese contracts. The LME has lost its position due both to self-imposed measures, the growth of other exchanges, and the shift in the globally center of manufacturing to East Asia………………………………………..Full Article: Source

Lithium gets second wind

Posted on 18 July 2016 by VRS  |  Email |Print

The lithium boom has been showing signs of maturing. In a winnowing process that all booms go through, there has been a natural floating to the top of those with the biggest and best lithium positions.
In the listed ASX space, the rise of Pilbara Mines (PLS) is a case in point. It is now a $700 million-plus company courtesy of the success it has had in outlining one of the world’s biggest hard-rock sources of lithium at its Pilgangoora ­deposit, 120km south of Port ­Hedland………………………………………..Full Article: Source

A global battle for trading supremacy in industrial metals

Posted on 18 July 2016 by VRS  |  Email |Print

China has loomed large over the world of industrial raw materials for many years. The prices of metals from aluminum to zinc have long swayed to the beat of the world’s largest manufacturing country. But this is the year that China has emerged from the limelight to take centre-stage in the trading of those metals.
On one day alone, March 10, trading volumes on the Dalian Exchange iron ore contract exceeded one billion tonnes, more than the combined annual output of the world’s biggest three producers, Rio Tinto, BHP Billiton and Brazil’s Vale………………………………………..Full Article: Source

Rare earth metals pay the price of previous excess: Andy Home

Posted on 15 July 2016 by VRS  |  Email |Print

For every action there is a reaction and never more so than when it comes to industrial commodity supply chains. Japanese automotive giant Honda and its technology partner Daido Steel have just announced a materials breakthrough in the electric motors used in hybrid vehicles.
Starting with the next generation of “FREED” minivan due to go on sale later this year, Honda will be using a motor that doesn’t need heavy rare earth metals. Specifically, it will be the world’s first hybrid engine, one combining a gasoline and electric motor, to dispense with terbium and dysprosium………………………………………..Full Article: Source

Nickel near eight-month high as metals gain on stimulus speculation

Posted on 15 July 2016 by VRS  |  Email |Print

Nickel resumed a rally and industrial metals advanced on expectations that policymakers will increase efforts to spur economic growth. Mining stocks climbed, led by Anglo American and Rio Tinto Group.
Some economists expect the Bank of England to cut interest rates today and Japanese Prime Minister Shinzo Abe has promised more fiscal stimulus to charge up a stuttering economy. Nickel is near the highest in eight months on potential supply disruptions in the Philippines, the world’s top miner, and falling stockpiles………………………………………..Full Article: Source

Japan’s aluminium association head sees metal price at $1,500-$1,700/T

Posted on 15 July 2016 by VRS  |  Email |Print

Aluminium prices are likely to hover between $1,500 and $1,700 per tonne for the later half of this year as oversupply will cap further gains, Akio Hamaji, the new chairman of the Japan Aluminium Association said on Thursday.
“With uncertainty over the European economy after Brexit, it is unlikely to see a strong pickup in global economy,” Hamaji told a small group of reporters. “So I don’t expect sharp gains in the metal prices,” he said, adding aluminium supply is expected to exceed demand in the global market this year which will weigh on the market………………………………………..Full Article: Source

Metals’ Investors Forget About Brexit: Bull Market Continues

Posted on 15 July 2016 by VRS  |  Email |Print

The U.K.’s decision to leave the E.U. hasn’t really scared investors away from industrial metals. The metal complex continues to rally. As we explained in a webinar yesterday, Brexit had little to no impact on the supply and demand dynamics of industrial metals.
On the demand side of the equation, it is — not the U.K or even Europe — that is the world’s biggest consumer of industrial metals. Supply cuts amid low prices and this year’s boost in Chinese demand for industrial metals, thanks to stimulus measures, continue to be the key factors to watch………………………………………..Full Article: Source

China Aims to Be Metals Price Setter, Not Just Largest Consumer

Posted on 15 July 2016 by VRS  |  Email |Print

China, this year, is becoming more than just the world’s largest metals consumer, it’s also taking a larger role in setting metals prices. While oil prices have crept up this summer, another selloff could be caused when refined products in storage finally come to market.
China is Taking a Bigger Role in Setting Metals Prices. The prices of metals from aluminum to zinc have long swayed to the beat of the world’s largest manufacturing nation, Reuters’ Andy Home writes………………………………………..Full Article: Source

Platinum: Demand Up, Supply Down

Posted on 14 July 2016 by VRS  |  Email |Print

Platinum demand has increased and is set to keep on rising compared to last year according to industry analysts, whereas supply is falling. Total demand for the metal, which finds its single largest use by industry in catalysts to help clean emissions from diesel engines, is set to grow by 2% compared to 2015, while total supply shrinks 3% according to the Platinum and Palladium Focus 2016 from leading precious metals consultancy Metals Focus.
Last year’s total supply of platinum was just over 8 million Troy ounces, with total demand reaching 8.2moz, says the report. That marked a 17% and 9% increase respectively from 2014………………………………………..Full Article: Source

Iron ore prices in China at 3-month peak

Posted on 14 July 2016 by VRS  |  Email |Print

Rally comes after reduction in capacity across nation’s bloated steel industry. Iron ore prices in China have climbed to their highest level in almost three months, supported by a production clampdown in the country’s steel capital and expectations of further economic stimulus.
The most actively traded iron ore futures contract on the Dalian Commodity Exchange closed up 4 per cent at 457.5Rmb a tonne after producers in Tangshan were ordered to cut output for the rest of the month to help improve air quality………………………………………..Full Article: Source

Goldman Sachs Revises Base Metals Outlook

Posted on 14 July 2016 by VRS  |  Email |Print

Goldman Sachs has revised its base metal outlook for the year and Alcoa, Inc., has opened earnings season by reporting lower-than-expected Q2 profits. Goldman Sachs on Monday raised its outlook for zinc, aluminum and nickel prices anticipating supply inequalities to continue across the metals sphere throughout the second half of the year.
“In our view, the impact of the prior stimulus is still set to result in sufficient demand growth such that we will continue to see supply differentiation across the metals space during the second half of 2016,” the bank said in a note to investors………………………………………..Full Article: Source

China Aims to Be Metals Price Setter, Not Just Largest Consumer

Posted on 14 July 2016 by VRS  |  Email |Print

China, this year, is becoming more than just the world’s largest metals consumer, it’s also taking a larger role in setting metals prices. While oil prices have crept up this summer, another selloff could be caused when refined products in storage finally come to market.
The prices of metals from aluminum to zinc have long swayed to the beat of the world’s largest manufacturing nation, Reuters’ Andy Home writes. But this is the year that China has emerged from the limelight to take center-stage in the trading of those metals………………………………………..Full Article: Source

Mounting copper stocks could weigh on price

Posted on 13 July 2016 by VRS  |  Email |Print

Warehouses licensed by the London Metal Exchange show 18% jump in metal storage this week. Copper has been flowing into warehouses in Asia, fuelling speculation about demand in China, the world’s biggest consumer of industrial metals, and the outlook for prices.
Copper sitting in warehouses licensed by the London Metal Exchange has jumped by 18 per cent this week to the highest level since February, totalling 234,750 tonnes, up from 140,000 tonnes in April………………………………………..Full Article: Source

All change in the world of industrial metals trading?

Posted on 13 July 2016 by VRS  |  Email |Print

China has loomed large over the world of industrial raw materials for many years. The prices of metals from aluminium to zinc have long swayed to the beat of the world’s largest manufacturing nation. But this is the year that China has emerged from the limelight to take centre-stage in the trading of those metals.
On one day alone, March 10, trading volumes on the Dalian Exchange iron ore contract exceeded one billion tonnes, more than the combined annual output of the world’s biggest three producers, Rio Tinto, BHP Billiton and Brazil’s Vale………………………………………..Full Article: Source

Platinum and palladium to find price support from deficits in 2016: Citi

Posted on 12 July 2016 by VRS  |  Email |Print

Supplies of platinum and palladium, key ingredients in autocatalysts, are forecast to be in deficit for full-year 2016, with the dollar platinum price averaging $985/oz this year and $1,040/oz in 2017, Citi said Monday.
Strategist at the bank David Wilson said platinum is likely to register a 172,000 oz deficit with palladium short by 847,000 oz. “We expect platinum to average $1,120/ounce in 2018. For palladium, we expect $570/oz (up 7% from previous estimates), $640/oz (up 2%), and $690/oz (unchanged) in 2016, 17, and 18 respectively,” he said………………………………………..Full Article: Source

Metal prices lift on demand hopes

Posted on 11 July 2016 by VRS  |  Email |Print

Copper and other industrial metals have gained after better-than-expected US jobs data bolstered hopes for economic growth and metals demand. Copper recovered from the lowest levels in nearly two weeks and other metals extended gains after data showed US nonfarm payrolls marked up their largest increase since last October.
The data, however, was not conclusive enough to cause the Federal Reserve to abandon its cautious stance about raising interest rates………………………………………..Full Article: Source

Copper surrenders gains, down fourth day on rising stockpiles

Posted on 08 July 2016 by VRS  |  Email |Print

London copper futures gave up modest gains to trade lower for a fourth day running on Thursday as inventories of the industrial metal hit a five-month high, reflecting slow demand. Nickel also surrendered early gains, falling nearly 2 percent after earlier topping $10,000 a tonne amid continuing concerns about potential disruptions to the supply of nickel ore from top exporter Philippines to China.
Three-month copper on the London Metal Exchange was down 0.4 percent at $4,732 a tonne by 0707 GMT, closing in on Wednesday’s one-week low. The most-traded September copper contract on the Shanghai Futures Exchange slid 1.3 percent to 36,910 yuan ($5,522) a tonne………………………………………..Full Article: Source

US hot-rolled steel coil buyers see availability; prices holding

Posted on 07 July 2016 by VRS  |  Email |Print

Hot-rolled coil availability was no longer a concern, US buy-side sources said on Tuesday, though mills were maintaining current offer prices amid slower post-holiday transactions.
One service center source said he anticipated pressure to remain on HRC orders placed in July and “scrap stepping down would increase that pressure. Material for August delivery should be very widely available.” A second service center source said he had felt the stress in the market………………………………………..Full Article: Source

Iron ore price dips as bearish forecasts weigh on commodity

Posted on 06 July 2016 by VRS  |  Email |Print

The iron ore price has inched lower but remains above government forecasts, despite yet another analyst prediction that the commodity is set to fall over the second half of the year.
Iron ore slipped 0.2 per cent to $US55.80 a tonne overnight, according to The Steel Index, a whisker lower than the previous day’s close of $US55.90. Meanwhile, Metal Bulletin pegged the latest price at $US55.93 a tonne, a 0.5 per cent fall from the prior day………………………………………..Full Article: Source

Nickel price swings wildly as it records a nine-month peak

Posted on 06 July 2016 by VRS  |  Email |Print

Fears of lower output from the Philippines has given prices a further boost. The price of nickel swung wildly on Tuesday, rising to its highest level in nine months on worries about possible mines closures in the Philippines before it was hit by flurry of profit-taking and fell by more than 3 per cent.
The metal, which is used to make stainless steel, has been one of the worst-hit commodities during the recent price rout. Weakening demand in China and excess supply saw the price tumble 40 per cent last year and left most of the industry struggling to turn a profit………………………………………..Full Article: Source

Copper slides on producer hedging, rising stocks

Posted on 06 July 2016 by VRS  |  Email |Print

Copper slid on Tuesday after producer hedging, a firm dollar, profit-taking and rising inventories sparked a sharp sell-off, but further losses are likely to be limited due to funds waiting to buy at lower prices.
Benchmark copper on the London Metal Exchange ended down 1.5 percent at $4,817 a tonne. The metal used in power and construction hit a two-month high of $4,960 on Monday, a rise of seven percent since June 9. Traders said higher prices had encouraged producers to take the opportunity to sell future output………………………………………..Full Article: Source

Zinc rockets to one-year high

Posted on 04 July 2016 by VRS  |  Email |Print

Zinc is proving to be an outlier among industrial metals whose 2016 outlook looks dim due to supply overhangs and lagging economic growth. The price for the metal used for rustproofing steel is outperforming copper, aluminum and iron ore as banks and traders anticipate price gains due to a shortage.
On Friday the London Metal Exchange benchmark price hit US$2,104.5 a tonne, but earlier in the day prices reached US$2,116, the highest level since July 15, 2015………………………………………..Full Article: Source

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