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The coming copper peak

Posted on 14 February 2014 by VRS  |  Email |Print

If electrons are the lifeblood of a modern economy, copper makes up its blood vessels. In cables, wires, and contacts, copper is at the core of the electrical distribution system, from power stations to delicate electronics.
As consumption has risen exponentially—reaching 17 million metric tons in 2012—miners have met the world’s demand for 10,000 years. But that might soon change. A group of resource specialists has taken the first shot at projecting how much more copper miners will wring from the planet………………………………………..Full Article: Source

Aluminum as a financial asset — Who knew?

Posted on 14 February 2014 by VRS  |  Email |Print

Aluminum was a wholesale market between large producers and large industrial customers such as Boeing or Procter & Gamble. Contracts were arranged bilaterally, the spot market was small, and the London Metals Exchange (LME) did not even list forwards on the metal until 1978.
But if we have learned anything since the late 1970s, it’s that there is no aspect of human existence that cannot be digitized or turned into some aspect of financial engineering or both………………………………………..Full Article: Source

Demand for precious & industrial metals support price increases

Posted on 14 February 2014 by VRS  |  Email |Print

European stocks closed higher on Wednesday as investors around the globe cheered a combination of U.S. Federal Reserve Chair Janet Yellen’s reassurance of supportive monetary policy, strong Chinese export data and a U.S. debt deal in Congress. U.S. stocks were mixed on Wednesday, with Procter & Gamble’s reduced earnings outlook weighing on the Dow industrials and the S&P little changed after its largest four-day rise in more than a year.
Traders seemed to refocus on commodities after the strong Chinese import and export data. Gold continues to climb as Chinese buyers grab up as much gold as they can………………………………………..Full Article: Source

Copper leads industrial metals higher on China’s trade surplus

Posted on 13 February 2014 by VRS  |  Email |Print

Copper led gains in industrial metals after China’s trade surplus widened more than estimated in January and as imports of the commodity used in wiring rose.
The metal for delivery in three months on the London Metal Exchange climbed as much as 0.7 percent to $7,125 a metric ton, the biggest intraday advance since Feb. 6. Copper traded at $7,118.25 at 10:55 a.m. Hong Kong time………………………………………..Full Article: Source

Rhodium poised to exceed output most in three decades

Posted on 13 February 2014 by VRS  |  Email |Print

Global demand for rhodium, used mostly in catalysts to clean auto emissions, is poised to exceed output by the most in three decades as carmakers and chemical companies snap up supplies near the lowest prices in nine years.
Buying of the metal will top output this year by 78,000 ounces, the most since at least 1984, according to Deutsche Bank AG and Johnson Matthey Plc. Prices will halt a four-year drop, rising 4.8 percent to average $1,100 an ounce in the fourth quarter, a survey of 11 analysts shows. Goldman Sachs Group Inc. sees gains through 2017………………………………………..Full Article: Source

Iron ore derivatives see growth spurt

Posted on 11 February 2014 by VRS  |  Email |Print

Call it a theory of evolution for commodities. First, prices are set on long term contracts; then indexation and the spot market take over. Then derivatives emerge.
Since the 1970s and 1980s all the major raw materials from oil to coal to copper have followed this evolutionary path with one notable exception – iron ore………………………………………..Full Article: Source

Copper’s outlook? Not good

Posted on 11 February 2014 by VRS  |  Email |Print

In the last five weeks copper prices are lower by 6% finding mild support at the 61.8% Fibonacci level just above $3.18. Expectations of a continued slowdown in China has weighed on futures. Since China’s demand accounts for approximately 40% of the world’s copper market, a contraction there will have a major influence on prices.
The latest evidence of this slowdown came in the smaller figures in the purchasers manages index indicating that manufacturing and service sectors are losing momentum………………………………………..Full Article: Source

Rare Earths gloom seems to be lifting

Posted on 10 February 2014 by VRS  |  Email |Print

Hallgarten & Company’s Christopher Ecclestone suggests, “The storm of the last two years has winnowed the wheat from the chaff (largely) in the REE space.” “The two bulk producers managed to get into production after a titanic struggle and have been rewarded for their perseverance with relatively lowly market caps,” he noted, adding that the fact Lynas and Molycorp have started churning out light rare earths products “are undermining Chinese dominance in some metals.”
Meanwhile, “Tensions between Japan and China over disputed islands may yet be the touchpaper to set REEs and other specialty metals alight,” he speculated…………………………….Full Article: Source

2014 forecasts not looking good for copper producers

Posted on 10 February 2014 by VRS  |  Email |Print

Market indicators are spelling out a bad year for copper producers as the world’s biggest consumer, China, appears unlikely to eat up excess supply. Copper prices dropped in late January on weak Chinese manufacturing data. Then US data dragged prices down further, adding to a 10-day losing streak for the metal.
Economists are predicting that in 2014 China will experience its slowest nominal growth since 1990. Every number that comes out of China lately is worse than the time before, Bloomberg Industries’ Kenneth Hoffman said last week…………………………….Full Article: Source

China seen as cushion for softer copper prices

Posted on 10 February 2014 by VRS  |  Email |Print

Prices of copper - the bedrock industrial metal and a benchmark for gauging the strength of the global economy - are likely to soften further in the coming year as production growth is expected to exceed that of consumption. However, any weakness may be cushioned by steady demand on the mainland.
The price of the benchmark three-month forward contract on the London Metal Exchange may average US$7,078 a tonne this year, 3.7 per cent lower than last year, according to the average estimate of 28 analysts polled by Bloomberg. Prices have fallen 16.7 per cent in the previous two years amid global economic weakness…………………………….Full Article: Source

Coking coal: Enhanced supply, bearish trend may cheer up steel industry

Posted on 07 February 2014 by VRS  |  Email |Print

The global supply of coking coal is expected to remain elevated in 2014, a trend that prevailed in 2013. Metallurgical coal – or coking coal – is a vital ingredient in the steel making process. Global steel production is dependent on coal and 70% of the steel produced today uses coking coal.
Enhanced global supply of coking coal in 2013, caused the continued prices decline of Premium Hard Coking Coal (PHCC), Hard Coking coal (HCC) and bearish global demand. But coking coal witnessed an increased global import rates; China, India and Japan importing million tonnes of coking coal, according to The Steel Index (TSI)………………………………………..Full Article: Source

Metal trade wars could cost a pretty nickel

Posted on 07 February 2014 by VRS  |  Email |Print

Nickel gained in London for the first time in four sessions on signs that demand for the metal used to make stainless steel will accelerate just as supply tightens on an ore-export ban from top producer Indonesia.
Crude stainless-steel output will rise to a record 39 million metric tons this year on Chinese production, industry consultant MEPS (International) Ltd. said yesterday. U.S. jobless claims fell as companies retained workers to meet demand. Indonesia will be consistent in applying the export limits, the government said………………………………………..Full Article: Source

M&A and capital raising in mining & metals

Posted on 07 February 2014 by VRS  |  Email |Print

Ernst & Young (EY) 2013 trends, 2014 outlook: A look back at 2013 as an inflection point, a year when management and investors finally came to terms with a new investing paradigm.
The extreme price volatility and rapid changes to the global economy persisted through 2013. Year-end reporting announcements were littered with headlines of impairments and recriminations that forced changes in strategy and senior management across many of the industry’s participants during 2013………………………………………..Full Article: Source

Rare earths gloom seems to be lifting - Ecclestone

Posted on 07 February 2014 by VRS  |  Email |Print

In analysis published Wednesday, Hallgarten & Company’s Christopher Ecclestone suggests, “The storm of the last two years has winnowed the wheat from the chaff (largely) in the REE space.”
“The two bulk producers managed to get into production after a titanic struggle and have been rewarded for their perseverance with relatively lowly market caps,” he noted, adding that the fact Lynas and Molycorp have started churning out light rare earths products “are undermining Chinese dominance in some metals.”……………………………………….Full Article: Source

Select base metals drops on global cues

Posted on 07 February 2014 by VRS  |  Email |Print

Tin, nickel, zinc and select copper prices dropped at the non-ferrous metal market here today on stockist selling amidst lower demand from industrial users on the back of bearish London Metal Exchange (LME) cues.
The industrial metals were trading lower at the LME, supported by expectations of improving - if fragile - economic growth this year, and as traders expected a pickup in prices when China returns after a holiday week on Friday………………………………………..Full Article: Source

Metals hit China wall: Is it prudent to bet on the counter after recent fall?

Posted on 07 February 2014 by VRS  |  Email |Print

Shares of metal companies have been in a downtrend since the beginning of the year, but the correction intensified in the last week of January as currencies of emerging markets came under intense pressure.
If that was not enough, reports of slowdown in China led to a sell-off. China’s Purchasing Managers’ Index slipped to 50.5 in January 2014 from 51 in December 2013. The factory growth eased to six-month low in January, hurt by weaker local and foreign demand. There are also concerns of rising debt in the system which pose risks to the economy………………………………………..Full Article: Source

Is World Bank’s base metal price forecast a shocker?

Posted on 06 February 2014 by VRS  |  Email |Print

The World Bank thinks we are in for generally lower metal prices in 2014, continuing the trend of the last two years as slowing growth in the world’s largest metal consumer, China, fuels a negative attitude towards commodities in general as an asset class.
In a recent quarterly report, covered by the Financial Times, the World Bank said prices of the main commodities – energy, metals, agriculture and fertilizers – are expected to decline for the second successive year in 2014………………………………………..Full Article: Source

Copper set for longest slump in 27 years on Factory data

Posted on 05 February 2014 by VRS  |  Email |Print

Copper dropped for a 10th day, heading for the longest losing streak since at least April 1986, on signs of weakening demand after manufacturing slowed in China and the U.S., the world’s top metals consumers.
The metal for delivery in three months on the London Metal Exchange slid as much as 0.3 percent to $7,016 a metric ton, the lowest intraday level since Dec. 4, and was at $7,030.50 at 4:28 p.m. in Tokyo. Prices have lost 4.3 percent in this run of declines………………………………………..Full Article: Source

Is copper’s swoon a bad omen for China?

Posted on 05 February 2014 by VRS  |  Email |Print

Copper prices marked their longest losing streak in 18 years this week, but while some say the slump is a bad sign for the metal’s biggest importer China, others say it’s no cause for alarm.
The industrial metal’s price, widely perceived as a bellwether for global market sentiment and often referred to as ‘Dr. Copper,’ fell to $3.184 per pound or $7,020 per ton Monday, its ninth consecutive decline, as softer manufacturing data out of China and the U.S. led investors to ditch the commodity amid supply concerns………………………………………..Full Article: Source

Global stainless crude steel production rises 5.5pct in Jan-Sept 2013: ISSF

Posted on 05 February 2014 by VRS  |  Email |Print

International Stainless Steel Forum (ISSF), in its preliminary report, shows that global stainless crude steel production increased by 5.5% for the first 9 months of 2013 y–o–y. Production for the first nine months of 2013 totalled 28 million metric tons (mmt), up 1.4 mmt in comparison to the same period of 2012.
Production for the 3rd quarter 2013 was at 9.3 mmt, a new all–time 3rd quarter high. However significant differences in regional development prevail. Asia excluding China recorded a stainless crude steel production of 6.5 mmt during quarters 1–3 of 2013 corresponding to a y–o–y decrease of -1.4%………………………………………..Full Article: Source

Downtrend in metals unlikely to ease

Posted on 05 February 2014 by VRS  |  Email |Print

Some of the most successful trend-following technical analysts focus purely on commodities, for several reasons. One, commodity futures are liquid, highly traded and driven by global considerations. So, price discovery is, by and large, good. Two, when commodities go into trends, those can last for months or even years. Three, these contracts are margin-traded and it is as easy to go short as to go long.
Price trends in non-precious metals are driven largely by global supply and demand. Last year was bad for metals. Downbeat economic conditions meant iron ore declined a little over 15 per cent in price, globally. Copper prices on the London Metal Exchange dropped nine to 10 per cent. Aluminium hit a five-year low………………………………………..Full Article: Source

Mining sector needs innovative funding

Posted on 05 February 2014 by VRS  |  Email |Print

In a release timed to coincide with this year’s big Mining Indaba meeting in Cape Town, Standard Bank’s London-based global head of mining and metals, Rajat Kohli had some very pertinent comments to make on the necessity for the mining industry to consider innovative funding structures in 2014.
Equity markets are spurning new resource ventures amid continuing uncertainty in the commodity price outlook, spurred in part by the Federal Reserve’s decision to begin withdrawing its unprecedented monetary stimulus. Meanwhile existing quoted companies equity valuations, particularly in the gold sector, have fallen so low that raising money in equity markets leads to unacceptable dilution………………………………………..Full Article: Source

Metals prices are falling – so why is now a great time to buy mining stocks?

Posted on 04 February 2014 by VRS  |  Email |Print

Last year was a bad one for metals – and the companies that mine them. The price of iron ore fell by more than 15%, while copper fell from above $8,000 per tonne to around $7,400.
It’s hardly surprising. The backdrop for commodities looks grim. Weak economic data has raised fears of a Chinese slowdown, while the US Federal Reserve’s ‘taper’ has seen money flee out of commodities. That’s sent prices lower again this month………………………………………..Full Article: Source

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EY forecasts improvement in mining deals in 2014

Posted on 04 February 2014 by VRS  |  Email |Print

“The mining and metal sector is entering 2014 with a more positive outlook: confidence in the global economy is improving, companies have taken action to deleverage balance sheets and the industry-wide focus on productivity and efficiency should begin to yield results,” says consultancy EY.
In their report, EY mining analysts advised “…we expect the gradual strengthening of mining and metals equity valuations to continue and the increased availability of capital.” Nevertheless, the analysts cautioned, “As supply and demand struggle to return to post-supercycle equilibrium, we expect further price volatility to occur for at least the next two years. This will see caution prevail: any uplift in M&A activity and improvement of capital raising conditions will be gradual and will require innovation in pricing to tame volatility.”……………………………………….Full Article: Source

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Global mining, metals M&A activity to pick up in 2014 — Study

Posted on 03 February 2014 by VRS  |  Email |Print

Deal-making across the global metals and mining sector is set to pick up in 2014 following a seven-year low in mergers and acquisitions volume last year, said consultancy and accountancy firm Ernst & Young. The pickup in activity likely will be driven by improving economic sentiment, healthier balance sheets among the large miners, and the presence of private funds with more than $10 billion looking to invest in the mining sector, Ernst & Young said.
M&A activity in the global mining and metals sector reached 703 deals valued at $124.7 billion in 2013, the consultancy said in its mining and metals mergers, acquisitions and capital-raising report. Excluding the all-share merger of Xstrata and Glencore, deal volumes and value were down 25% and 16% year-on-year to 702 and $87.3 billion, respectively. This marks the lowest number of deals in the sector since 2006 and the lowest global deal value since 2009………………………………………..Full Article: Source

Coal becomes commods’ first victim of emerging-market woes

Posted on 31 January 2014 by VRS  |  Email |Print

The rout in emerging markets is starting to spill into commodities, with coal prices tumbling as much as 10 percent this month as utilities in developing economies slash orders. Commodity price developments often go hand in hand with growth in emerging economies, which consume more energy as their wealth rises.
“Commodity demand is more concentrated in fast-growing countries … The marginal buyer of commodities is very much the emerging world and it’s going through a bear market right now,” said Charlie Morris, head of absolute return at HSBC Global Asset Management, who oversees $1.8 billion in assets………………………………………..Full Article: Source

Aluminium falls to a 4½-year low

Posted on 31 January 2014 by VRS  |  Email |Print

Aluminium prices slid to a four-and-a-half year low, amid a wider sell-off in base metals triggered by a strengthening US dollar, weakness in emerging market currencies and lacklustre demand from China ahead of the Lunar New Year.
On Thursday, aluminium prices for delivery in three months on the London Metal Exchange fell as much as 1.1 per cent to $1,722 a tonne – its lowest level since July 2009………………………………………..Full Article: Source

Risk and energy risk commodity rankings 2014: Metals

Posted on 31 January 2014 by VRS  |  Email |Print

The past 12 months have seen plummeting gold prices, directionless base metals markets and a heated row over warehousing on the London Metal Exchange. Yet this has had little impact on our annual ranking of dealers and brokers, which remains largely unchanged.
Chinese demand has been vital to base metals prices in recent years, but it took on a new role in 2013, preventing sliding gold prices from collapsing entirely – dealers say the year’s one reliable trade was to be short gold in an otherwise meandering metals market………………………………………..Full Article: Source

Copper heads for longest slump in 15 months on economy

Posted on 30 January 2014 by VRS  |  Email |Print

Copper futures fell, capping the longest slump in 15 months, on speculation that rising borrowing costs in emerging markets will damp economic growth, eroding demand for industrial metals.
The South Africa Reserve Bank unexpectedly increased its benchmark interest rate, following central banks from Turkey to Brazil. Countries tightened monetary policy to bolster their currencies. A gauge of global equities approached the lowest in six weeks, while aluminum, nickel, zinc and lead dropped………………………………………..Full Article: Source

Commodity sector outlook got you down? Consider this metal

Posted on 30 January 2014 by VRS  |  Email |Print

Commodities have started to seriously bore Wall Street. That’s because commodity prices are expected to hold steady — at best — this year and many are expected to fall. Production is generally seen as keeping pace with or exceeding demand and inventories of a number of commodities are not low enough to bolster prices.
Barclays PLC put it succinctly recently in noting that commodity returns will remain “sluggish for some time to come.”……………………………………….Full Article: Source

Strikes hit precious metals prices

Posted on 28 January 2014 by VRS  |  Email |Print

Platinum and palladium retreated as investors weighed the odds of an imminent resolution to South African mining industry strikes as talks resumed between union officials and mining companies.
Platinum for April delivery fell $US7.50, or 0.5 per cent, to settle at $US1,421.10 a troy ounce, a two week low. Palladium for March delivery fell $US12.25, or 1.7 per cent, the largest daily decline since December 17, to settle at $US722.55 an ounce………………………………………..Full Article: Source

Why should you consider precious metal royalty companies?

Posted on 28 January 2014 by VRS  |  Email |Print

One of the downsides to owning gold and silver in your portfolio is that these assets do not pay a dividend. For retirees, this could be a serious problem, and it may dissuade them from investing in precious metals. True, investors seeking income from precious metals could look to mining companies — but mining is a risky business.
Furthermore, if we take a look at gold and silver mining companies that pay dividends, we find that several of them have cut their dividends recently due to low metal prices. Some examples include Gold Resource Corp., IAMGOLD Corp, and Barrick Gold………………………………………..Full Article: Source

Russia’s 2013 base metals output falls on weak demand

Posted on 28 January 2014 by VRS  |  Email |Print

Russia’s base metals output in 2013 fell compared with 2012 due to weak demand on the international and domestic markets, the federal statistics service reported Monday.
Russia’s primary aluminum output in 2013 fell by 10.5% compared with 2012. The statistics service doesn’t give output volumes in tonnages, only the percentage change. Russia nickel output in 2013 fell by 2.4% on the year………………………………………..Full Article: Source

Why copper may turn red hot in 2014

Posted on 28 January 2014 by VRS  |  Email |Print

Copper prices in the international market have been under pressure because of a surplus in the market. Spot copper prices on the London Metal Exchange have crashed 28 per cent from the highs in 2011 to $7,336/tonne now. But the outlook for the current year is better with initial signs of a global economic recovery.
In India, thanks to a weak rupee and a relatively better demand scenario, copper prices have largely been range-bound and have not dropped sharply. Going ahead, domestic prices will track international price trends as rupee stabilises………………………………………..Full Article: Source

Copper, Dr. Copper

Posted on 28 January 2014 by VRS  |  Email |Print

Copper, aka “Dr. Copper” in economic circles due to the fact copper demand is seen as a barometer for the global economy, has found some support today off a key level on strong German data. But do not take your eye off the ball as today’s “hold” is not a perch that looks terribly sturdy.
Copper has been torched in 2014 (-3.4%) along with most industrial metals as many suddenly question a global recovery without the Fed and with China sputtering. Nickel has been one of the bright spots in the metals space +4.5% YTD. ……………………………………….Full Article: Source

Gold miners’ reserve cuts may mean near-term pain, long-term gain

Posted on 27 January 2014 by VRS  |  Email |Print

Barrick Gold Corp’s warning this week that its in-the-ground gold reserves will shrink is widely expected to be echoed in the coming weeks by miners around the globe, spelling more asset writedowns for an already beat-up sector.
For the first time in years, miners from Canada to Australia will tell their shareholders that reserves - the future source of production, cash flow and growth - have significantly diminished, hit by bullion’s 28 percent price slide in 2013………………………………………..Full Article: Source

Global mined gold output rose 4pct in 2013

Posted on 27 January 2014 by VRS  |  Email |Print

Contrary to many reports and arguments put forward by gold commentators, the latest analysis by Thomson Reuters GFMS shows global new mined gold output as rising in 2013 – to 2,982 tonnes – an increase of around 4% on the 2012 figure. As the GFMS report suggests this tends to show the gold mining sector’s short term inelasticity to the sharp fall in the gold price.
In our view the rise in global mined gold production is not surprising. Major new gold mining project developments already under way will have come on stream, adding to the global total, while the industry’s rapid conversion to a focus on bringing operating costs down to profitable levels at the lower gold prices now prevailing does not mean, as many seem to suggest, that gold output would actually fall as uneconomic units are closed down……………………………………….Full Article: Source

Palladium prices to go up for automakers

Posted on 27 January 2014 by VRS  |  Email |Print

Categorised as a precious metal, palladium is part of what are popularly referred to as Platinum Group Metals (PGM) with increasing industrial application, mainly in auto-catalysts (for automobiles), electrical, dental and chemical industries.
Jewellery sector demand is limited. Auto-catalysts for cars that run on gasoline require a higher content of palladium (unlike diesel cars that need more platinum for auto-catalyst), and majority of cars sold in the US and major developing countries such as China and India run on gasoline………………………………………..Full Article: Source

BNP favors lead, tin, zinc as 2014 top-performing base metals

Posted on 24 January 2014 by VRS  |  Email |Print

Lead, tin and zinc are likely to be the best-performing base metals for 2014, based on tightening supply fundamentals, said a base-metals analyst at BNP Paribas on Thursday. Stephen Briggs, base-metals strategist at BNP Paribas, also said he’s slightly bearish on copper and is taking a wait-and-see attitude toward nickel and aluminum.
Briggs said BNP as a whole expects the global economy to grow 3.5% globally, which would be a “benign demand environment” for base metals………………………………………..Full Article: Source

World crude steel production up by 3.5pct at 1,607 Mt in 2013

Posted on 24 January 2014 by VRS  |  Email |Print

World crude steel production reached 1,607 megatonnes (Mt) for the year 2013, up by 3.5% compared to 2012. The major chunk of ouput was mainly from Asia and Middle East while crude steel production in all other regions decreased in 2013 compared to 2012.
Annual production for Asia was 1,080.9Mt of crude steel in 2013, an increase of 6.0% compared to 2012. The region’s share of world steel production increased slightly from 65.7% in 2012 to 67.3% in 2013. China’s crude steel production in 2013 reached 779.0 Mt, an increase of 7.5% on 2012………………………………………..Full Article: Source

Top 10 mining trends for 2014 - Market imbalances will wreak commodity price havoc

Posted on 23 January 2014 by VRS  |  Email |Print

Prolonged market volatility is forcing miners to change the way they operate, making tough strategic changes in a bid to remain viable. Deloitte global mining leader Phil Hopwood explains that mining companies are facing a climate marred by volatile commodity prices and shifting demand fundamentals.
“To rectify cost overruns, improve capital efficiency and rebuild investor relationships, companies need to sharpen their focus on productivity, sustainable cost management and enhanced shareholder value,” Hopwood said………………………………………..Full Article: Source

Momentum still split between energy and precious metals

Posted on 23 January 2014 by VRS  |  Email |Print

A sharp and exceptional split in short-term momentum between the energy and precious metal sectors is continuing into a second week. The four metals, led by platinum, are all among the top five performers this month while the energy sector holds on to negative momentum.
Some signs of a break-up are now starting to emerge, with the recent recovery in both WTI crude and natural gas having the potential of a return to positive strength — but not yet………………………………………..Full Article: Source

Precious-metals upswing is a chance to get out: Wells Fargo

Posted on 23 January 2014 by VRS  |  Email |Print

There’s an upswing of interest — and price gains — in gold and precious-metals miners lately. To Wells Fargo Advisors, it’s a good opportunity to get out. Here’s what Wells’ Sameer Samana says on the subject in a note released Wednesday:
In our opinion, precious metals are now in a downtrend and the path of lease resistance is lower. Bounces in downtrends tend to be small in size and quick in duration. Thus, we believe the recent reprieve in gold and precious metals prices should be taken advantage of to eliminate exposure. Investors concerned about higher inflation and weakness in the dollar should consider this an opportunity to rotate towards a more broadly diversified basket of commodities………………………………………..Full Article: Source

Analysts forecast a corrosive year for copper prices

Posted on 23 January 2014 by VRS  |  Email |Print

The outlook for copper isn’t very bright, with analysts expecting prices for the metal to fall this year. Goldman Sachs analysts on Tuesday said they expects copper prices on the London Metal Exchange to average $6,850 per metric tons, or about $3.11 a pound this year. That’s down from an estimated average of $7,328 per metric ton, or $3.32 a pound in 2013.
The analysts see a surplus of 385,000 metric tons in 2014. “This reflects the strong growth in supply following a decade of mining capital expenditure, together with an anticipated strong ramp up in smelter output in 2014 and 2015.”……………………………………….Full Article: Source

When metals market manipulation breaks down

Posted on 22 January 2014 by VRS  |  Email |Print

It is crystal clear to anyone willing to go a few steps beyond the headlines that massive intervention and ignorance of risk act as massive governors to progress, real economic growth and natural capital formation. Nevertheless, what is less clear is how these failures will manifest in precious metals — especially the silver market.
The catalyst for much higher prices will be of a monetary, rather than an industrial, demand-led series of events……………………………..Full Article: Source

Mining companies cutting $10 bln heralds boom: Commodities

Posted on 21 January 2014 by VRS  |  Email |Print

Mining companies are extending massive cuts in exploration budgets for a second year, setting up the next price boom as China continues its relentless pursuit of metals and energy.
Exploration spending plunged by 30 percent or $10 billion last year, squeezing budgets to search for minerals and sustain supplies, according to MinEx Consulting Pty, whose clients include BHP Billiton Ltd., the world’s biggest miner………………………………………..Full Article: Source

Copper, zinc and nickel to do well in 2014

Posted on 20 January 2014 by VRS  |  Email |Print

Global growth is likely to pick up in response to stronger growth in advanced economies. Euro-zone growth could improve because of (a) reduced pace of fiscal tightening and (b) stronger exports, but weak domestic demand and a fragile banking system could increase deflation risks that could force the European Central Bank (ECB) to turn further accommodative.
The US economy could grow above the trend over 2014-15, in response to the fading fiscal drag and improvement in private demand allowing the Fed to wind-down the third round of quantitative easing (QE3) by end-2014 and begin raising rates in 2015………………………………………..Full Article: Source

Better year ahead for base metals: Barclays

Posted on 17 January 2014 by VRS  |  Email |Print

Commodities will fare better in 2014 than last year because of better demand prospects and a slower pace of supply growth, but investors in gold and silver should remain cautious and sell into rallies, says a new report from Barclays Capital Inc.
“We argue that commodity markets have not really been key beneficiaries of the Fed’s QE policy; thus, tapering in 2014 is unlikely to imply any meaningful pullback in commodity prices,” said analyst Sudakshina Unnikrishnan………………………………………..Full Article: Source

Gold isn’t the only precious metal in 2014

Posted on 16 January 2014 by VRS  |  Email |Print

Sugar and coffee may be out of vogue (very bad for you), gold is too flash (though some of us still like it), and, thanks to the glimmers of a global industrial recovery, we’re back to basics when it comes to industrial metals.
Recent data from the U.S. Commodity Futures Trading Commission showed net long commodity positions falling by 11 percent in the week to January 7. But while investors think we’ll see softer prices for sugar, coffee, and corn, they have become more bullish on gold, with net long positions in the shiny metal rising 18 percent………………………………………..Full Article: Source

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Uranium bull market to gather steam over next 18 months - Scotiabank

Posted on 14 January 2014 by VRS  |  Email |Print

Scotiabank analysts are bullish uranium. They have been for some time. As we noted in early 2013, Patricia Mohr, Scotiabank’s vice-president economics and commodity market specialist, made the case that uranium prices, decimated by the 2011 Fukushima Dai-Ichi nuclear disaster, would rebound mid-decade.
It’s not a position that has changed. In her latest commodities report on December 19, 2013 she labelled uranium a “turnaround story” for the mid-2010s. Her thesis - as outlined at the AME BC Roundup conference last year - is heavily contingent on three factors:……………………………………….Full Article: Source

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