Sat, Feb 13, 2016
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Metals and Minerals more

Deepening Metals Rout Sends Copper Below $4,500 as Nickel Slumps

Posted on 24 November 2015 by VRS  |  Email |Print

Copper fell below $4,500 a metric ton for the first time in six years and nickel touched the lowest in more than a decade on concern producers aren’t doing enough to trim a glut of metal.
The retreat in commodities helped send a gauge of mining companies to near the lowest in almost seven years. The London Metal Exchange’s index of six main contracts has slumped 28 percent this year, the most since the global financial crisis in 2008, as a slowdown in top user China cut demand………………………………………..Full Article: Source

Tough road ahead for LME’s new steel, aluminium contracts

Posted on 23 November 2015 by VRS  |  Email |Print

New steel and aluminium contracts to be launched next week by the London Metal Exchange (LME) are expected to attract initial interest from customers, but building up strong liquidity in the current bear market may be challenging. The launch on Monday is a key element of a strategy by the LME’s owner, Hong Kong Exchanges and Cleaning (HKEx), to boost profitability at the 138-year-old exchange.
Three new contracts in steel rebar, steel scrap and aluminium premiums will go live nearly three years after HKEx bought the LME for $2.2 billion, pledging to widen the scope of the exchange from its core business in key industrial metals………………………………………..Full Article: Source

Zinc gains, but copper is down

Posted on 23 November 2015 by VRS  |  Email |Print

Zinc has surged nearly six per cent after top Chinese smelters agreed to cut output in 2016 by 500,000 tonnes, but gave up the bulk of gains on scepticism over whether shortages would kick in. Zinc, mainly used in galvanising steel, rebounded a day after sinking to its weakest point in six years, jumping on the back of the joint announcement by Chinese zinc producers to slash production.
“The scale of those cuts is quite significant. A surge of refined output from China has been weighing on the whole zinc market all year,” said Caroline Bain, senior commodities economist at Capital Economics in London. Three-month zinc on the London Metal Exchange shot up 5.8 per cent to an intraday peak of $US1,620.50 a tonne, the biggest one-day gain in over a month………………………………………..Full Article: Source

Copper Crisis in Commodity ETFs

Posted on 23 November 2015 by VRS  |  Email |Print

On Wednesday, 23 exchange traded products hit all-time lows and the bulk of those products were commodities funds. The iPath Dow Jones-UBS Copper Subindex Total Return ETN, an exchange traded note, is included in that group. JJC has tumbled 29.4% year-to-date as slack demand for the red metal from China has prompted an array of global banks to pare their outlooks on copper.
Goldman Sachs argues that the base metal is headed for a seven-year-long bear market cycle, reports Aza Wee Sile for CNBC. “It is, in our view, highly likely that the four-year trend decline in copper prices is set to continue through at least 2018,” Goldman Sachs said in a note………………………………………..Full Article: Source

LME base metals hit multi-year lows

Posted on 19 November 2015 by VRS  |  Email |Print

Base metals have hit multi-year lows as fears persisted over waning demand in top metals user China and investors awaited the minutes of a US Federal Reserve policy meeting, which could reinforce rate rise expectations.
THE US dollar was just off seven-month highs against a basket of currencies, weighing on metals by making dollar-priced commodities costlier for European and other non-US investors. London Metal Exchange zinc hit a fresh six-year trough of $US1,510.50 a tonne, and ended down 2.0 per cent at $US1,517………………………………………Full Article: Source

Zinc Falls to Six-Year Low as Metals Fall on China Concerns

Posted on 19 November 2015 by VRS  |  Email |Print

Zinc dropped to the lowest in more than six years amid signs of ample supply and concern that demand is faltering in China, the world’s biggest user. Nickel closed at the lowest in 12 years.
Global refined zinc output of 10.486 million metric tons January through September exceeded demand of 10.298 million tons, the International Lead and Zinc Study Group said in a report Wednesday. China President Xi Jinping said the economy faces “considerable downward pressure,” while data showed the nation’s home-price recovery slowed in October………………………………………Full Article: Source

Iron ore hits 7-year low as China woes deepen

Posted on 19 November 2015 by VRS  |  Email |Print

Spot iron ore is on track to extend losses, approaching a seven-year low on prolonged worries over declining steel demand in China that has pushed ferrous futures deeper into the red. Falling steel demand has prompted many loss-making Chinese producers to either cut output or shut capacity.
Another mill located in China’s top steel producing Hebei province may have shut, market sources say. Iron ore for immediate delivery to China’s Tianjin port tumbled 3.2 per cent to $45.80 a tonne on Tuesday, according to the Steel Index (TSI). That was the lowest for the spot benchmark since July 8 when it touched $44.10, the weakest level since TSI began compiling data since late 2008………………………………………Full Article: Source

OPEC Delays Long-Term Strategy Amid Rift Over Production

Posted on 18 November 2015 by VRS  |  Email |Print

OPEC’s board of governors was unable to agree on the group’s long-term strategy plan and won’t present it to oil ministers when they meet on Dec. 4 in Vienna, two OPEC delegates with knowledge of the matter said.
Approval of the plan is delayed until at least the next meeting of the board of governors in 2016, said the delegates, who asked not to be identified because the plan isn’t public. Calls to the headquarters of the Organization of Petroleum Exporting Countries in Vienna weren’t immediately answered………………………………………..Full Article: Source

Platinum Hits 6-Year Low On Precious Metals Malaise

Posted on 18 November 2015 by VRS  |  Email |Print

Platinum prices fell around 15% in the last three weeks. Prices are now at their lowest levels since January 2009. What is causing the price slump? Is it just the Volkswagen scandal? We don’t think so. Just before prices plunged, the London Bullion Market Association (LBMA) held a conference in Vienna in which senior representatives from all sectors of the precious metals market attended.
The audience predicted an average platinum price of $1,072 per ounce for next year. They also predicted higher palladium prices for 2016, averaging $844 per ounce. If you read us, you probably know that we don’t like forecasts, especially when based on opinions. The LBMA audience better be lowering their forecast after prices nose-dived days after the conference………………………………………..Full Article: Source

Despite slowing growth, China to remain key growth market for metals

Posted on 18 November 2015 by VRS  |  Email |Print

As commodity prices touched fresh decade-lows in recent months, a look at the global macro-economic situation reveals that despite China being a significant part of the commodity price slump, it will remain a critically important growth market for metals for decades to come.
Addressing an audience at the third annual mineLatinAmerica forum, Scotiabank VP for economics and commodity market specialist Patricia Mohr noted that commodity prices fell to near decade lows from August, under pressure from concerns over a possible ‘hard landing’ in the rate of China’s gross domestic product (GDP) growth, which was linked to a sharp equity correction and the depreciating yuan, and “consternation” caused over the possible US Federal Reserve’s mooted monetary tightening in September, which was delayed………………………………………..Full Article: Source

Iron ore price extends slide

Posted on 17 November 2015 by VRS  |  Email |Print

The price of iron ore has continued its slide toward a 10-year low amid another broad retreat in commodities. At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US47.30 a tonne, down 0.2 per cent from its prior close of $US47.40.
The commodity has rarely seen positive numbers over the past month thanks to ongoing concerns around Chinese demand, the prospect of persistent supply increases, weak crude prices and a US dollar that is rising ahead of a likely rate hike in December. The former and latter concerns are plaguing the broader commodities space, with base metals and oil all struggling since the US Federal Reserve hinted at a rate move two weeks ago………………………………………..Full Article: Source

Demand fears push copper to lowest in more than six years

Posted on 17 November 2015 by VRS  |  Email |Print

Copper prices fell to their lowest in more than six years on Monday in a sell-off triggered by the attacks in Paris, a stronger dollar and poor demand prospects in top consumer China. Benchmark copper on the London Metal Exchange slid as low as $4,685 a tonne in early trading, matching the low seen in June 2009. The metal used in power and construction closed down 2.8 percent at $4,690.
Risky assets, such as commodities and equities, came under pressure as investors turned to safer assets, such as the dollar, after suspected Islamist militants launched coordinated attacks across Paris. “We’re struggling to see light at the end of the tunnel, things aren’t getting any better in China, we can’t see what is going to turn things around for industrial metals,” Cantor Fitzgerald analyst Asa Bridle said………………………………………..Full Article: Source

Chinese funds bet on lower metals prices

Posted on 17 November 2015 by VRS  |  Email |Print

Chinese traders have placed a new round of speculative bets against aluminium and copper prices after months of quiet trading, suggesting funds in the country expect prices to keep falling even after sinking to six-year lows.
Investors in China this month have increased their bets that aluminium prices will fall 15 per cent, while average trading volumes have doubled. Average copper volumes in Shanghai have risen fourfold during November, while short positions have also increased………………………………………..Full Article: Source

Singapore growing as precious metals trading hub

Posted on 17 November 2015 by VRS  |  Email |Print

As trade agency IE Singapore pushes ahead with efforts to develop Singapore as a precious metals trading hub, industry players say they are benefiting from more growth and trade opportunities.
Of all the gold and silver stored by bullion retailer Silver Bullion, about 90 per cent is owned by foreigners. Silver Bullion said Singapore is seen by overseas buyers as a secure jurisdiction for storing their precious metals. On top of strong global demand, it said growth in the domestic industry gave a lift to sales in recent years - in particular, the removal of 7 per cent goods and services tax for investment precious metals in 2012………………………………………..Full Article: Source

Investors Flee Precious Metals as ETF Outflows Top $1 Billion

Posted on 16 November 2015 by VRS  |  Email |Print

Investors are back to dumping precious metals as gold trades near five-year lows and banks including Barclays Plc forecast more price declines. Outflows from U.S. exchange-traded funds backed by precious metals have reached $1.12 billion so far in November, heading for the first monthly loss since July, data compiled by Bloomberg show.
Gold prices have fallen for four straight weeks as Federal Reserve Chair Janet Yellen signaled that officials are getting closer to raising U.S. interest rates, cutting bullion’s appeal as a store of value. Holdings in futures contracts have dropped to a five-week low………………………………………..Full Article: Source

Zinc, lead hit multi-year lows; copper eyes 6-yr low

Posted on 12 November 2015 by VRS  |  Email |Print

Zinc and lead hit multi-year lows on Wednesday while copper steadied, having veered towards six-year lows earlier after a gauge of China’s factory health showed ongoing weakness in the world’s top metals consumer.
China’s October factory output growth cooled to 5.6 percent, slightly lower than a Reuters poll forecast, though the figure was cushioned by a just-above-forecast 11 percent jump in retail sales. Global equities shrugged off the data, while copper steadied in afternoon trade after Zambia’s Konkola Copper Mines, owned by Vedanta Resources said its Nchanga mine is making “unsustainable losses”, responding to reports that the miner was set to close the operation………………………………………..Full Article: Source

Silver Price Forecast Plunge to as Low as $10

Posted on 10 November 2015 by VRS  |  Email |Print

The last update posted on 18th October called a top in silver, and that is what it turned out to be. On its 3-month chart we can see that silver broke down from a small Head-and-Shoulders top at the end of October and then went into a steady day after day decline with the result that it has dropped now for 7 trading days in a row.
While it could drop further towards or to the support shown, it is getting short-term oversold and is increasingly likely to bounce soon. As with gold this weakness was triggered by dollar strength, with the dollar rising sharply on Friday in response to a stronger than expected jobs report which the market thinks makes an interest rate rise more likely……………………………………….Full Article: Source

Copper stuck under $5,000/t as tightness eases, base metals soft

Posted on 10 November 2015 by VRS  |  Email |Print

Base metals, with the exception of lead and zinc, were all lower on Monday as dollar strength continued to dampen sentiment on the LME pre-market. Meanwhile, China’s imports of unwrought copper and copper products fell 7.1 percent month-on-month to 420,000 tonnes in October.
“Although copper imports for example dropped by nearly 8 percent month-on-month … this was because of the festival week in China at the beginning of October and the high level of imports in the previous month. What is more, copper imports exceeded last October’s level,” Commerzbank said……………………………………….Full Article: Source

London copper below $5,000, eyes six-year low

Posted on 09 November 2015 by VRS  |  Email |Print

London copper was little changed on Monday, struggling to regain the $5,000 mark and trending towards six-year lows after China trade data underlined struggling growth in the world’s top metals user.
Three-month copper on the London Metal Exchange traded up 0.1 percent at $4,992.50 a tonne by 0010 GMT, after losses in the previous session when it sank to its weakest level since Sept 29 at $4970 a tonne. Prices are sidling towards six-year lows of $4,855 a tonne hit late August. LME nickel traded up 0.9 percent to $9,720, rebounding from its weakest in more than a month after falling 1.6 percent on Friday………………………………………..Full Article: Source

Copper hits weakest in a month

Posted on 06 November 2015 by VRS  |  Email |Print

Copper slid to its lowest in a month on Thursday and other base metals also slipped on the prospects of a December US interest rate hike, which boosted the dollar. Zinc and lead touched their weakest levels in nearly a month while nickel hit a six-week low as metals also felt the impact of worries about global economic growth and soggy metals demand.
“The main driver behind the drop in prices must be the speeches of the Fed officials, driving the dollar higher and weighing on the wider commodity space,” said analyst Daniel Briesemann at Commerzbank in Frankfurt. Federal Reserve Chair Janet Yellen on Wednesday pointed to a December interest rate rise as being a “live possibility”, sending the dollar surging to a three-month high………………………………………..Full Article: Source

Base metals fall, bar aluminium

Posted on 06 November 2015 by VRS  |  Email |Print

Copper has fallen to its lowest in a month and other base metals also slipped on the prospects of a December US interest rate rise, which has boosted the US dollar. Zinc and lead touched their weakest levels in nearly a month while nickel hit a six-week low as metals also felt the impact of worries about global economic growth and soggy metals demand.
“The main driver behind the drop in prices must be the speeches of the Fed officials, driving the dollar higher and weighing on the wider commodity space,” said analyst Daniel Briesemann at Commerzbank in Frankfurt………………………………………..Full Article: Source

Base metals fall, bar aluminium

Posted on 06 November 2015 by VRS  |  Email |Print

Copper has fallen to its lowest in a month and other base metals also slipped on the prospects of a December US interest rate rise, which has boosted the US dollar. Zinc and lead touched their weakest levels in nearly a month while nickel hit a six-week low as metals also felt the impact of worries about global economic growth and soggy metals demand.
“The main driver behind the drop in prices must be the speeches of the Fed officials, driving the dollar higher and weighing on the wider commodity space,” said analyst Daniel Briesemann at Commerzbank in Frankfurt………………………………………..Full Article: Source

Here’s why iron ore prices aren’t rising anytime soon

Posted on 05 November 2015 by VRS  |  Email |Print

Iron ore prices are unlikely to stage a decisive recovery anytime soon as a supply glut continues to flood a market hit by slowing demand, sending prices to four-month lows this week, analysts say. Seen as a key gauge of the global economy, the raw material used in steel production is under heavy pressure as construction activity slows in largest consumer China. Normally, that would spur companies to curtail production.
Except, companies are increasing output as prices remain above their production costs. “Prices will continue to fall because of economies of scale enjoyed by miners due to the large production volumes,” said Mohd Taufik, who manages the over-the-counter trading desk at the Singapore-based brokerage Phillip Futures as a business development manager………………………………………..Full Article: Source

Commodity rout has room to run as fund sees oil, iron at $40

Posted on 04 November 2015 by VRS  |  Email |Print

The rout in commodities is set to get worse as resilient supply and faltering Chinese demand will see global gluts persist, sending oil and iron ore below $40, according to Merchant Commodity Fund. Prices are still trying to find a floor with excess supply in almost every commodity, said Michael Coleman, managing director of RCMA Asset Management Pte, which runs the $210 million fund.
Any rally in raw materials will be probably short- lived as demand isn’t improving and production cuts are insufficient to stem surpluses, he said in an interview. Commodity prices are languishing near a 16-year low as supplies outstrip demand amid forecasts for the slowest full- year expansion in China since 1990. Money has been flowing out of commodityfunds as investors punish shares of oil drillers, miners and traders including BHP Billiton Ltd. and Glencore Plc………………………………………..Full Article: Source

Base metals give up recent advances from output cuts

Posted on 04 November 2015 by VRS  |  Email |Print

Zinc, a metal used to rustproof steel in everything from cars to building materials, has surrendered all of the gains made after Glencore, the miner-cum-trader, stunned the market with plans to cut a third of its annual production.
Glencore’s move in early October sparked a broad-based rally in metals prices, driving the price of zinc up by more than 12 per cent on the London Metal Exchange to $1,881 a tonne. But the price has fallen back and now stands at $1,675…………………………………………Full Article: Source

Aluminium traders closing out bearish bets

Posted on 03 November 2015 by VRS  |  Email |Print

Orders to remove aluminium from warehouses tracked by the biggest metals exchange rose for a third day, the longest stretch in more than a year, prompting traders to close out bearish bets on prices that are near a six-year low.
Cancelled warrants, as the bookings are known, surged 21 per cent in the past three days to 1.1 million metric tons, the highest in five weeks, London Metal Exchange data show. While the market is in surplus, the bookings are probably a sign that supplies are tightening and have spurred traders to cover positions on further price declines, according to ICBC Standard Bank………………………………………..Full Article: Source

China aluminium supply adds to US tensions

Posted on 03 November 2015 by VRS  |  Email |Print

China’s continued production of aluminium is raising tensions with US rivals as prices for the lightweight metal trade at their lowest levels in six years. Aluminum Corporation of China, or Chalco as the country’s largest state-owned producer is also known, said it would not shut a smelter that it had previously earmarked for closure after securing a deal for lower electricity prices from the local government.
The announcement is a sign it will take longer than expected for low aluminium prices to force production cuts in China, the world’s largest producer of the metal which is used in everything from aircraft, cars to cans………………………………………..Full Article: Source

Copper Prices Tread Water

Posted on 03 November 2015 by VRS  |  Email |Print

Copper prices were treading water at the start of the week, as investors weighed up mixed Chinese economic data. Three-month copper on the London Metal Exchange was barely changed at $5,113 a metric ton in midmorning European trade. Other base metals were mixed on Monday.
The Caixin China manufacturing purchasing managers index, a gauge of nationwide manufacturing activity, rose to 48.3 in October from 47.2 in September. Still, a reading below 50 indicates contraction and the index has stayed below this level for eight consecutive months. The official gauge of China’s factory activity, released Sunday, was unchanged at 49.8 in October………………………………………..Full Article: Source

Chileans cut 2016 forecast for average copper price

Posted on 03 November 2015 by VRS  |  Email |Print

Sentiment among Chileans over copper prices have tumbled over the last six months, according to the latest survey of local market experts by the Chilena Copper Commission released Monday. The experts’ forecasts for 2016 averaged $2.43/lb, down from $2.89/lb in the previous survey released in May.
The government body, known as Cochilco, surveyed 15 experts, including economists, executives, analysts and academics for the expectations for the copper price this year and next. Cochilco research director Jorge Cantallopts said the lower price outlook reflected slower growth in China, the normalization of US monetary policy and, to a lesser extent, production cuts announced by mining companies………………………………………..Full Article: Source

US steel sheet prices continue to fall

Posted on 03 November 2015 by VRS  |  Email |Print

US steel sheet prices continued to erode Monday as mills attempted to resist losing any more ground. Platts lowered its daily hot-rolled and cold-rolled assessments to $390-$400/st and $520-$530/st from $390-$410/st and $520-$540/st, respectively. All prices are normalized to a Midwest (Indiana) ex-works basis.
One buyer said mills were still quoting $530/st on CRC if you asked them, but they don’t anticipate generating many orders at that price. He said the $500/st level for CRC can be broken, but it takes more significant volume and effort………………………………………..Full Article: Source

Small Asian Miners Struggle for Funding

Posted on 03 November 2015 by VRS  |  Email |Print

Asia’s small mining companies are battling capital flight, as banks and investors pull funds amid a collapse in commodity prices. A once-in-a-generation resources boom, driven by China’s seemingly unlimited appetite, caused a proliferation of mining outfits, fueled by easy credit.
But after a sharp drop in prices for everything from copper to coal, the industry’s junior miners—those valued at US$1 billion or less—are fighting for survival. In Australia alone, there were 240 insolvencies in the mining sector in the year through June, up 64% from the previous 12 months, according to the country’s corporate regulator………………………………………..Full Article: Source

Cleaning up the precious metals industry

Posted on 29 October 2015 by VRS  |  Email |Print

UvA researchers have discovered a new material that can catalyse the decomposition of cyanide ions in process waste streams. The catalyst has been patented and attracts interest from industry. Germany’s oldest gold and silver refining company Heimerle + Meule is now examining the possibilities of using the catalyst for waste effluent treatment. The research is part of the research priority area Sustainable Chemistry.
Gold, silver, platinum and palladium are used all over the world in coins, bullion, investments, jewellery and electronics. But there is a less shiny side to these metals as well: their production and refining processes typically require large amounts of cyanide salts, which are highly toxic………………………………………..Full Article: Source

China Rate Cut Fails to Lift Metals Prices

Posted on 29 October 2015 by VRS  |  Email |Print

Central banks from the world’s two largest economies may be headed in different directions. Neither are doing much to help stoke moribund metals markets. Last week’s quarter-point interest-rate cut by the People’s Bank of China—its sixth since November—has failed to stir price rises in metals, even though China accounts for more than 40% of the world’s demand from aluminum to iron ore.
The looming prospect of a rate rise by the U.S. Federal Reserve and the uncertainty over its timing have meanwhile dampened hopes of a sharp uptick for metals like copper or zinc, despite recent production cuts signaled by major producers like Glencore PLC aimed at reducing global over supply………………………………………..Full Article: Source

Lithium prices tipped to rise 20 per cent by 2017 on demand for electric cars

Posted on 28 October 2015 by VRS  |  Email |Print

Prices for lithium are forecast to rise strongly in the next two years, with widespread adoption of electric cars tipped to be a game changer for the third element on the periodic table. While most demand for lithium carbonate comes from industrial companies producing ceramics and glass, Citi analyst Matthew Schembri believes demand will rise significantly when electric vehicles become mainstream and need the commodity for lithium-ion batteries.
Citi is very bullish about electric cars, and forecasts production of pure electric models (not hybrids) like the Nissan Leaf or the Tesla Model S to rise from about 150,000 in 2015 to about 290,000 in 2016………………………………………..Full Article: Source

Zinc Price Forecast: Prices Drop Slightly as Another Base Metal Emerges

Posted on 28 October 2015 by VRS  |  Email |Print

Zinc prices dropped slightly in Oct. 22 mid-morning European trade, along with aluminum and lead, but the big news comes from another base metal: copper. According to The Wall Street Journal, copper prices climbed on Oct. 22 due in part to better than expected import data from China, the world’s largest consumer of the metal. Meanwhile, Chinese refined copper imports climbed 22% for the month of September compared to September 2014.
Want a short- and medium-term buying outlook for aluminum, copper, tin, lead, zinc, nickel and several forms of steel? Subscribe to our monthly buying outlook reports! “Copper is the best-performing metal today, helped by quite positive data on Chinese metals imports,” confirmed Stephen Briggs, BNP Paribas metals analyst, told the news source………………………………………..Full Article: Source

Why Is Aluminum Trading at Its Lowest Levels Since 2009?

Posted on 28 October 2015 by VRS  |  Email |Print

Base metals and major base metal mining companies fell in the week ending on October 23, 2015. Within the base metals complex, Aluminum was the worst performer, falling ~5% last week. Anglo American (AAUKY), one of the major producers of base metals, led the descent by falling 11% last week. Also, LME (London Metal Exchange) 3M Copper fell by 2% last week and closed at 5176$ per MT, or metric ton.
Copper has been consolidating for the past two weeks. The surprise rate cut from China initially had a positive effect on metals prices, but as the dollar found major strength, these metals, including copper, fell to the lows established on October 21. The Chinese government’s meeting to draft its 5-year development plan, as well as the FOMC meeting, will help define the direction of copper prices in the short term………………………………………..Full Article: Source

Global base metal prices to remain weak in 2016: Moody’s

Posted on 27 October 2015 by VRS  |  Email |Print

Slowing growth in China and Brazil, muted conditions in Europe and a weak recovery in the US will continue to pressure global base metal prices, says Moody’s Investors Service. Moody’s outlook for the global base metals industry remains negative. Uncertainty regarding growth in China is one of the primary factors underpinning Moody’s negative outlook, with the country accounting for more than 40% of global demand for most key base metals, according to the report “2016 Global Base Metals Outlook: Downside Risk Remains on China Concerns, Slowing Global Growth.”
Weak global macroeconomic conditions and volatility in base metal prices have also dampened investor sentiment, which could pressure future growth rates. “We expect base metal prices to continue to trade at lower levels, and expectations for slower growth and reduced demand could result in further downside risk for the sector,” said Carol Cowan, a Moody’s Senior Vice President………………………………………..Full Article: Source

Copper Says The Bear Market In Commodities Is Not Over

Posted on 27 October 2015 by VRS  |  Email |Print

The third quarter of 2015 was the worst yet for commodity prices. Copper, the industrial metal that is a barometer for global economic health, lost over 10% of its value during the three months that ended on September 30. It was around 18% lower on the year at the end of Q3.
Copper closed on September 30 at $2.3410 per pound; on Friday, October 23, the price was $2.3485. During the first weeks of Q4, many raw material prices corrected higher. Copper moved up to highs of $2.4375 on October 9 in a feeble attempt to move towards resistance at $2.50 per pound, but the rally failed………………………………………..Full Article: Source

How platinum got cheaper than gold

Posted on 26 October 2015 by VRS  |  Email |Print

Looking for an engagement ring or stepping out to buy a wedding band? You no longer have to restrict yourself to the boring yellow metal; the classy platinum in now within reach. Prices of platinum have been declining steadily and are down about 50 per cent over the last four years. The best part is, platinum is now cheaper than gold. Platinum trades at about $1,000/ounce while gold quotes at $1,164/ounce. It moved to a discount to gold in February.
Platinum has always sported this exclusive aura and commanded a premium because it is rarer than the yellow metal. But sometimes, due to unfavourable demand-supply dynamics, the metal trades cheaper for months together. For instance, when platinum prices moved to a discount to gold in 2011, it took 16 months for it to recoup its premium to the yellow metal………………………………………..Full Article: Source

Non-ferrous metal prices likely to remain low

Posted on 26 October 2015 by VRS  |  Email |Print

A revival in international prices of non-ferrous metals is expected to be limited in the near term, as an uneven and mixed outlook for the major economies in the world, particularly China, is likely to keep base metal prices under check in the near term, states a recent report by ICRA.
“International prices of aluminium, copper and zinc started weakening towards the end of the calendar year 2014 to reach their respective lows in the third quarter of 2015. Since then, these prices have improved by 6-7% till date for aluminium and zinc, while the increase has been higher at around 9% in the case of copper from their respective lows,” says the ICRA study on non-ferrous metal industry………………………………………..Full Article: Source

What Iron Ore Reveals About China’s Growth

Posted on 26 October 2015 by VRS  |  Email |Print

Between its peak in February 2011 and low of April 2015, the price of iron ore has plunged by approximately 75%, far outpacing declines in other industrial metals. Copper prices, for instance, are down “only” by about 52% the past year, while aluminum and lead prices are down by 40%-45% from their highs. Prices for steel, of which iron is the primary component, are down by 52% from their recent highs.
Furthermore, iron ore has a low correlation to other metals, including copper and hot rolled steel, making iron ore a potentially interesting portfolio diversifier for those who have exposure to other metals. Although iron and copper are both used as industrial metals, they have very different supply and demand dynamics. First, the geographic locations of iron and copper vary greatly………………………………………..Full Article: Source

Aluminium hits seven-year low in China

Posted on 23 October 2015 by VRS  |  Email |Print

Aluminium prices in China fell to a seven-year low on Thursday, adding to difficulties facing companies in the world’s largest producer. China supplies more than half of the world’s aluminium, but a slowing economy and global glut of the lightweight metal have weighed on prices. Aluminium on the Shanghai Futures Exchange fell for the ninth day in a row and is down 30 per cent since the summer of 2014.
Goldman Sachs said this month that the aluminium market was “facing the greatest bearish fundamental shock in a generation, and perhaps in its history”………………………………………..Full Article: Source

Why miners keep expanding as prices collapse

Posted on 23 October 2015 by VRS  |  Email |Print

Even as iron ore prices have collapsed, Brazilian giant Vale SA is building a $US16 billion iron-ore operation that it touts as “the biggest project in our history and in international mining.” How? Because its costs are collapsing as well.
From South America to Australia, plunging currencies in mineral-rich nations are helping some companies expand their mines — and contributing to a glut of production that has saturated markets and driven prices down………………………………………..Full Article: Source

Miners proving stubborn on output cuts despite price slide

Posted on 22 October 2015 by VRS  |  Email |Print

Base metal mines dipping into the red are proving unexpectedly resilient against output cuts, which is likely to prolong and deepen already weak prices. Some mines are resisting cuts in production by hedging when prices pop higher, others are absorbing losses because shutdown costs are even steeper, while fear of painful job losses is keeping still other loss-making operations alive.
The London Metal Exchange index of its six main base metals has shed a fifth of its value over the past 12 months. In some metals, such as nickel, about half of capacity is loss making after the rout on commodity markets, largely due to fears about slower growth in top metals consumer China………………………………………..Full Article: Source

London Metal Exchange strikes deal to give China more input on prices

Posted on 22 October 2015 by VRS  |  Email |Print

Seven Chinese banks and brokers, including Bank of China and Industrial and Commercial Bank of China, have agreed to support an initiative by the London Metal Exchange to encourage greater participation by China in setting prices for metals, The Financial Times reported.
Among the goals of the deal are price convergence between Chinese and global markets, greater use of LME-approved warehousing systems and aiding the yuan’s internationalization. China currently consumes 40% of global base metals, is the world’s largest metals producer and accounts for 20% of business on the London exchange. The country lacks a true international exchange thanks to capital controls that limit market access for foreign investors………………………………………..Full Article: Source

Does Rio’s iron ore boost signal a turn for commodities?

Posted on 19 October 2015 by VRS  |  Email |Print

Anglo-Australian miner Rio Tinto posted Friday a 17 percent rise in third-quarter iron ore shipments, selling more of the raw material than they were able produce, a result that some investors are taking as a sign that conditions for the commodity market might be looking up.
The group said it was on track to hit its full-year target of 340 million tons, upping output by some 12 percent despite the fears of slowing Chinese growth that have dogged markets and commodity prices all summer………………………………………..Full Article: Source

Is the iron ore price about to collapse?

Posted on 19 October 2015 by VRS  |  Email |Print

The iron ore price has held up surprisingly well through the market’s recent bout of volatility, but it’s no certainty to remain that way. According to The Australian, the commodity’s price has now fallen to its lowest level in two months. It’s fetching just US$52.60, based on data from The Metal Bulletin, after falling more than 5% during a four-session losing streak.
Indeed, the commodity’s price is largely dependent on the strength of the Chinese economy. China accounts for the vast majority of demand for the commodity, which is a key ingredient used to make steel. The iron ore price soared to a high of roughly US$185 a tonne in 2011, but has since collapsed as Chinese demand growth begun to wane………………………………………..Full Article: Source

Mining industry ‘needs’ $205b in investment

Posted on 19 October 2015 by VRS  |  Email |Print

The mining industry needs to invest $US150 billion ($A205 billion) to meet expected demand or face shortages, according to analysts Wood Mackenzie. But before that happens Wood Mackenzie tips even more mine closures and cutbacks. It says about 500,000 tonnes of copper has to be cut from the market and more than half the global nickel production is at a loss.
It comes with Queensland’s economy taking a heavy hit from the slowdown in the state’s mining industry. Deloitte Access Economics, in a report out today, pointed out the slump in commodity prices and related profits meant “the chance of new mining and energy construction projects getting the go-ahead any time soon continues to fall”………………………………………..Full Article: Source

US sheet steel market woes continue, hot-rolled coil prices fall

Posted on 16 October 2015 by VRS  |  Email |Print

Hot-rolled coil prices in the US fell Wednesday as mounting pressure continued in an oversupplied market. Prices for HRC fell to $400-$420/st from $410-$430/st Tuesday. Cold-rolled coil prices stayed level at $540-$550/st day on day. All prices are normalized to a Midwest (Indiana) ex-works basis.
New orders for mills have become scarce as buyers have maintained their focus of selling inventory and are on the sidelines about taking any new physical position on material. Multiple sources have indicated that current supply at the ports and availability from service centers and distributors are suppressing the need to buy material from the mills………………………………………..Full Article: Source

Copper rises on mining cutback hopes, dollar caps gains

Posted on 16 October 2015 by VRS  |  Email |Print

Copper rose on Thursday on hopes for further production cuts from miners, but a rebound in the dollar kept a lid on gains. Benchmark copper on the London Metal Exchange closed 0.2 percent higher at $5,308 a tonne, after climbing near a four-week high earlier in the session.
Prices were supported by expectations for a tightening of the market as several mining groups consider output cuts in the face of slowing demand growth in China, which accounts for nearly half of global copper consumption. “The supply side is finally responding and drawing back a little bit, and hopefully that will stimulate prices,” said Asa Bridle, mining analyst at Cantor Fitzgerald………………………………………..Full Article: Source

banner
February 2016
S M T W T F S
« Jan    
 123456
78910111213
14151617181920
21222324252627
2829