Mon, Aug 29, 2016
A A A
Welcome vaishu
RSS

Commodities Briefing - Category | Market Pulse more

Should Western Steelmakers Exit the Commodity End of the Market?

Posted on 10 June 2016 by VRS  |  Email |Print

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

Saudi Arabia sets 2030 oil, gas targets

Posted on 08 June 2016 by VRS  |  Email |Print

Saudi Arabia’s cabinet approved a new economic plan Monday to diversify state revenue in the world’s largest crude oil exporter away from oil by 2030. It also set oil and gas production-capacity targets for the period.
The National Transformation Program elaborates on the Vision 2030 document released in April as the brainchild of Deputy Crown Prince Mohammed bin Salman, the son of the Saudi monarch, Salman bin Abdul Aziz. The deputy crown prince has chaired the Council for Economic and Development Affairs since his father’s accession to the throne………………………………………..Full Article: Source

Gold Ends Near Steady Amid Chart Consolidation

Posted on 08 June 2016 by VRS  |  Email |Print

Gold prices ended the U.S. say session near unchanged levels Tuesday, amid mild profit-taking pressure and some normal backing and filling on the charts following recent good gains. The gold market bulls still possess the overall near-term technical advantage.
That means the path of least resistance for prices in the near term will remain sideways to higher. August Comex gold was last up $0.10 an ounce at $1,247.60. July Comex silver was last down $0.017 at $16.43 an ounce………………………………………..Full Article: Source

Iran’s Zanganeh says OPEC ‘friends’ dumping crude oil

Posted on 07 June 2016 by VRS  |  Email |Print

Iranian oil minister Bijan Zanganeh accused its regional neighbors of trying to take away its customers by offering cheaper oil, but said despite not offering much of a price discount itself, Iran had managed to retake 1 million b/d.
Iran’s crude is similar to Iraq and Saudi Arabia’s and these producers fight for a share of the same market — being competitive has proved a huge marketing challenge. Zanganeh’s remarks come in an interview with S&P Global Platts in Vienna Friday, the day after OPEC’s meeting in the Austrian capital………………………………………..Full Article: Source

Saudi, Iran set to clash over OPEC oil output targets

Posted on 02 June 2016 by VRS  |  Email |Print

OPEC is set for another showdown between rivals Saudi Arabia and Iran when it meets on Thursday, with Riyadh trying to revive coordinated action and set a formal oil output target but Tehran rejecting the idea.
Tensions between the Sunni-led kingdom and the Shia Islamic Republic have been the highlights of several previous OPEC meetings, including in December 2015 when the group failed to agree on a formal output target for the first time in years………………………………………..Full Article: Source

Iran’s oil already factored in, minister says

Posted on 02 June 2016 by VRS  |  Email |Print

The global market for crude oil is moving closer toward balance, suggesting Iran’s return had already been factored in, the country’s oil minister said. Total crude oil production from members of the Organization of Petroleum Exporting Countries for April, the last full month for which data are available, was 32.4 million barrels per day, about 180,000 bpd higher than for March. Increased production from member states Iraq and Iran offset declines in Kuwait and Nigeria.
According to OPEC’s latest figures, Iranian crude oil production for April of 3.4 million bpd was 20 percent higher than the average for the fourth quarter of 2015. Iranian Oil Minister Bijan Zangeneh said exports, meanwhile, have doubled, but that increase in supply has not pushed crude oil prices lower………………………………………..Full Article: Source

Copper, Mining Shares Drop as China Factory Data Dims Outlook

Posted on 02 June 2016 by VRS  |  Email |Print

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

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

Posted on 01 June 2016 by VRS  |  Email |Print

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

Iron ore heads down again — Lower for longer?

Posted on 31 May 2016 by VRS  |  Email |Print

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

Saudi Arabia Aims to Protect Share of Global Oil Market

Posted on 27 May 2016 by VRS  |  Email |Print

Saudi Arabia is not politicizing the oil problem and is acting solely on economic reasoning in discussion of oil prices and production output, Saudi Foreign Minister Adel al-Jubeir said Thursday. In an interview with Russia Today television, al-Jubeir dismissed assertions that Riyadh was using the oil issue to achieve political goals and insisted that Saudi Arabia approached the current situation on the global oil market solely from the economic standpoint.
“The market determines the oil price depending on demand and offer. The goal of Saudi Arabia is to protect its share of the market and not to support producers that have high oil prices,” the minister stressed………………………………………..Full Article: Source

Gold likely to see speculative unwinding: S&P Global Platts survey

Posted on 27 May 2016 by VRS  |  Email |Print

Market participants expect the US dollar gold price to head lower over the next week, with signals from the US Federal Reserve on a possible rate hike and speculative unwinding the likely key drivers, the S&P Global Platts Gold Sentiment Survey indicated this week.
The poll of 20 industry participants showed that the majority of those who responded were bearish on the outlook for the gold price over the course of the coming week. This is the second week of the market being polled, and like the first week it shows lower price forecasts………………………………………..Full Article: Source

5 key issues OPEC must wrestle with at its June meeting

Posted on 26 May 2016 by VRS  |  Email |Print

The oil market has given members of the Organization of the Petroleum Exporting Countries a reason to crack a cautious smile at next week’s meeting in Vienna. Signs of a more stable oil market have emerged since the cartel members last held a regularly-scheduled meeting. Oil prices have gained more than 30% so far this year, with West Texas Intermediate crude oil trading at its highest price in seven months in early trade Wednesday on the New York Mercantile Exchange, surpassing $49 a barrel.
Global production is on the decline following a larger-than-expected weekly decline in crude supplies, according to a report from the American Petroleum Institute late Tuesday………………………………………..Full Article: Source

Iran-Saudi row threatens any OPEC deal, puts role in question

Posted on 26 May 2016 by VRS  |  Email |Print

OPEC’s thorniest dilemma of the past year - at least from a purely oil standpoint - is about to disappear. Less than six months after the lifting of Western sanctions, Iran is close to regaining normal oil export volumes, adding extra barrels to the market in an unexpectedly smooth way and helped by supply disruptions from Canada to Nigeria.
But the development will do little to repair dialogue, let alone help clinch a production deal, when OPEC meets next week amid rising political tensions between arch-rivals Iran and oil superpower Saudi Arabia, OPEC sources and delegates say………………………………………..Full Article: Source

Saudi Oil Policy Is Set In Stone

Posted on 25 May 2016 by VRS  |  Email |Print

Next week, OPEC will hold its first meeting since talks on freezing production between the bloc’s major producers and their non-OPEC peers fell apart in April. The June 2 convention will also mark the first time OPEC members have come together in Vienna since Saudi Oil Minister Ali al-Naimi stepped down, making way for Khalid al-Falih to take his place.
Both events have raised questions about what direction Riyadh’s oil policies will take in the months ahead, and how they will affect the kingdom’s relationships with its fellow producers………………………………………..Full Article: Source

The Market May Crowd Out the OPEC Cartel

Posted on 24 May 2016 by VRS  |  Email |Print

Daniel Yergin’s excellent “Where Oil Prices go From Here” (op-ed, May 16) suggests that shale-oil production in the U.S. will increase once the world’s crude-oil supply and consumption return to balance later this year. This is a very optimistic scenario as it is unlikely that the Saudis will reverse their production policy.
Market forces will also ensure that other members of OPEC will start increasing production rather than sticking to their quotas. This is happening with Saudi Arabia, which is likely to produce 12 million barrels a day within 18 months to counteract the increasing surge in Iranian production. Venezuelan production will also increase within a few years after there is a more oil-company friendly government in power………………………………………..Full Article: Source

Greenback To Pressure Commodities

Posted on 23 May 2016 by VRS  |  Email |Print

The US dollar will now be the major driver for commodity prices after last week’s rather blatant move by the US Federal Reserve to return a rate rise to centre stage. While an increase is possible at next month’s Fed meeting, the July and September meetings look more likely candidates.
For that reason the US dollar will reverse its recent weakness and start rising - and will put downward pressure on commodity prices. The only exception will be the vote on June 23 about UK membership of the EU. A vote to leave would see a sell-off in sterling, a surge in the greenback and also gold. A vote to remain in the EU will see markets quickly focus on the July meeting of the Fed for a rate rise (if there is no increase at the June meeting a week before the EU vote in Britain)………………………………………..Full Article: Source

Iran Won’t Freeze Oil Output Before OPEC Meeting

Posted on 23 May 2016 by VRS  |  Email |Print

Iran, which is due to meet with OPEC partners on June 2, has no plan to join any freeze in crude output as the country won’t be done ramping up oil exports to pre-sanctions levels before the second half of the year, the head of the state oil company said.
The Persian Gulf state’s oil exports will likely surpass 2.2 million barrels a day by the middle of the summer, Rokneddin Javadi, managing director of National Iranian Oil Co., told Mehr news agency. Iran last exported at this level before sanctions were imposed on the country for its nuclear program more than four years ago. Sanctions were eased in January, and Iranian officials said they won’t discuss any output freeze or cut before reaching pre-sanctions levels………………………………………..Full Article: Source

Huge Trend Changes Point To Something Big In The Gold Market

Posted on 20 May 2016 by VRS  |  Email |Print

Very few precious metals investors realize how recent trend changes will greatly impact the gold market going forward. The reason many investors fail to grasp the huge change in the gold market is that they look at data or information on an individual basis. To really understand what is going on, we must look at how all segments of the market compare to each other… a BIRD’S EYE VIEW.
Let’s start off with one segment of the gold market that has changed significantly in the past 15 years. The Global Gold Hedge Book hit a peak of nearly 3,100 metric tons (mt) in 1999: Here we can see that after the Global Gold Hedge Book peaked in 1999, it fell to a low at a little more than 100 mt in 2013………………………………………..Full Article: Source

Oil outages speeding up new world energy order

Posted on 19 May 2016 by VRS  |  Email |Print

The world’s oil market is rebalancing faster than expected due to several serious outages, but for now there is enough oil in storage and excess capacity to keep prices from spiking.
“We’ve strung together an impressive number of outages and supply disruptions for the moment, but there’s every incentive in the dire straits the industry’s been in to get these barrels on line,” said John Kilduff, partner with Again Capital………………………………………..Full Article: Source

China goes cold on platinum jewellery, crimping world demand

Posted on 16 May 2016 by VRS  |  Email |Print

China’s penchant for luxury platinum jewellery is fading despite lower global prices, leaving world demand for the metal exposed to sharper decline. China is by far the biggest market for platinum jewellery, making up more than 60 percent of global manufacturing use for the white metal in 2015.
A close to double-digit drop in Chinese platinum jewellery demand is expected this year, GFMS analysts said ahead of the industry gathering London Platinum Week, which starts on Monday. This follows a seven percent drop in Chinese buying in 2015 fed into a four percent decline in global demand for jewellery made from the metal………………………………………..Full Article: Source

Price of Gold Will Rally in 2016 Thanks to These 2 Bullish Trends

Posted on 13 May 2016 by VRS  |  Email |Print

There are two reasons why prices will continue higher in 2016. But first, here’s the newly revealed trend that’s pushing the gold price higher today…This Is Why the Price of Gold Is Surging in 2016: A report from the World Gold Council (WGC) today shows gold demand is rising faster than ever.
During the first three months of 2016, demand for the metal soared 21%. Investors piled into gold due to worries of a global slowdown and market volatility. Gold demand in Q1 2016 totaled 1,289.90 tons. That’s a huge 21% increase from 1,070.40 tons last year………………………………………..Full Article: Source

Demand for gold skyrockets, but skepticism remains

Posted on 13 May 2016 by VRS  |  Email |Print

Gold fever is back, a sign of investors’ growing – but perhaps misplaced – anxiety about what lies ahead for the global economy. The World Gold Council, the marketing arm of the gold industry, announced on Thursday that demand for the precious metal hit its second-highest level on record during the first quarter of the year.
Meanwhile, Bank of Montreal analysts boosted their forecast for gold. They say they now expect the metal to begin next year at around $1,400 (U.S.) an ounce. That is well above its current level of roughly $1,270 and far ahead of the bank’s previous forecast of $1,200………………………………………..Full Article: Source

Blink and you’ll miss it: China’s two-month commodities bubble

Posted on 12 May 2016 by VRS  |  Email |Print

Chinese investors are known for their ability to drive markets to eye-popping extremes, resulting in some of the most spectacular booms and busts of recent times. The latest frenzy has been a bet on China’s economic recovery expressed through trading the commodities futures market, but how does it compare with history’s most-famous bubbles?
If the charts are anything to go by, the latest rage in trading commodities futures could already be over, after just two months that saw futures pricing in everything from iron ore to eggs and cotton rise as much as 50 per cent. ……………………………………….Full Article: Source

Commodities fall back to earth on China worries

Posted on 10 May 2016 by VRS  |  Email |Print

Commodities from copper to iron ore fell sharply on Monday, as a speculative rally lost steam over fresh worries about economic growth in China, the world’s biggest consumer of raw materials.
A burst in speculative trading that drove up commodity prices over the past month has led to increased production and a build-up of inventory in the country, the world’s largest consumer of commodities. Traders are now growing concerned that real demand is not there to support prices………………………………………..Full Article: Source

Saudis hand oil market the one thing it really hates

Posted on 10 May 2016 by VRS  |  Email |Print

The removal of Ali al-Naimi as Saudi Arabia’s oil minister ushers in a new age of uncertainty, and more erratic prices. Naimi was a major architect of Saudi’s current policy of forcing oil prices lower through higher supply of crude, but he was also a trusted voice within government and a respected figure at the Organization of the Petroleum Exporting Countries.
His successor Khalid al-Falih is unlikely to command the same influence over output decisions that his 80-year-old predecessor had once enjoyed. The son of a Bedouin who climbed through the ranks of Saudi oil industry technocrats, Naimi commanded the respect of successive rulers in the oil-rich kingdom………………………………………..Full Article: Source

India: Business is sluggish this Akshaya Trithiya due to rising gold prices

Posted on 10 May 2016 by VRS  |  Email |Print

It was a rush for gold on the auspicious day of Akshaya Trithiya on Monday with people thronging various jewellery shops across the city to mark the occasion with a good buy.
According to S Venkatesh Babu, president, Karnataka State Jewellers’ Federation (KJF), the business this year has been low due to the rising gold prices when compared to that of the previous year. The gold price for the day stood at Rs 2,850 per gram and Rs 3,050 for pure gold (24 carat)………………………………………..Full Article: Source

The most powerful man in oil is out - here’s what comes next

Posted on 09 May 2016 by VRS  |  Email |Print

Ali al-Naimi was the most powerful man in the oil business for two decades - until this weekend. As the oil minister of Saudi Arabia, in control of the largest proven crude reserves in the world, al-Naimi was the de-facto leader of OPEC.
At one point he held three key positions at the same time: Minister of petroleum, chairman of Saudi Aramco and chairman of Saudi’s Supreme Petroleum Council. In a word, he called the shots, and he let other OPEC ministers know just that. The past year and a half had been particularly important, as oil prices crashed and oil-dependent countries looked to Saudi Arabia to lead the effort to support prices………………………………………..Full Article: Source

Industry lobby expects 10-15% gold sales growth on Akshaya Tritiya

Posted on 09 May 2016 by VRS  |  Email |Print

The All India Gems & Jewellery Trade Federation (GJF) expects good growth in sales across India on Akshaya Tritiya, which falls on May 9 this year, due to the ongoing wedding season.
“Traditionally, Indians buy jewellery on Akshaya Tritiya and have great faith on this auspicious day. We expect a growth of 10-15% over last year due to pent up demand that was unfulfilled due to non-availability of products in previous months,” said G V Sreedhar, chairman of GJF……………………………………….Full Article: Source

China’s commodities lose more froth as economic worries underpin curbs

Posted on 06 May 2016 by VRS  |  Email |Print

Chinese steel and iron ore futures fell sharply for a third straight day and other commodities also slid on Thursday, giving up more froth after Chinese exchanges slapped curbs to quell speculation that spurred a buying frenzy last month.
Mixed signals on China’s economic health have also weighed on sentiment, breaking earlier perceptions that the world’s second-largest economy had stabilized. Trading volumes have tapered off from record highs hit in April after China’s securities regulator told commodity exchanges in Shanghai, Dalian and Zhengzhou to rein in speculation following rapid price gains in everything from steel to cotton………………………………………..Full Article: Source

Doctor Copper Still Holds Sway as Fed Barometer

Posted on 06 May 2016 by VRS  |  Email |Print

As copper goes, so goes the Federal Reserve. At least, that’s what the market thinks. Copper’s ebb and flow are thought to lend insight into global momentum (or a lack thereof) because it’s used in everything from household appliances to the wiring that powers them.
The highly conductive metal is seen as reliable gauge of economic health: Hence, its oft-used honorific, “doctor.” The transformation of the commodity into a form of collateral, however, (China has stockpiled enough copper to build 30,000 Statues of Liberty) has somewhat diminished the extent to which it still serves as the planet’s financial pulse……………………………………….Full Article: Source

OPEC to Head for June Talks Without Plan for Supply Limits

Posted on 05 May 2016 by VRS  |  Email |Print

There are currently no proposals on the table for OPEC to revive limits on crude output at its June meeting after the failure of talks to freeze production last month, according to six delegates from the group.
A meeting of representatives from the Organization of Petroleum Exporting Countries in Vienna Wednesday discussed how the fundamentals of oil supply and demand are improving, according to two delegates, who asked not to be named because the talks were private. The proposal to freeze output has been overtaken by changes in the market and may no longer be necessary, said two delegates from nations that had supported the idea last month………………………………………..Full Article: Source

Lithium: The lucky commodity?

Posted on 04 May 2016 by VRS  |  Email |Print

Lithium seems to be lucky: it has roared into prominence just when most other things are doing badly, which has given it more pronounced (or at least more noticeable) thrust than probably may have been the case if all boats were rising. Call it the after-burner effect. It is the space capsule that keeps on going when the booster rockets fall away after take-off.
In the past, whatever was the latest fashion in commodity investing had surged in unison with the market in general. So when uranium went crazy in 2007, and hit $136/lb, or when phosphate and potash had their moments in the sun, or nickel went to $50,000/tonne, or gold threatened to get to $2,000/oz, they were not the only shows on the road………………………………………..Full Article: Source

Oil Prices Slide on Bearish Data

Posted on 03 May 2016 by VRS  |  Email |Print

OPEC production figures reinforce concerns oversupply fundamentals still gripping the market. U.S. and global oil prices fell sharply Monday after data showed rising oil stockpiles in the U.S. and increased production from the Organization of the Petroleum Exporting Countries.
Analysts and brokers said the three-month, 70% rally in oil prices appeared to be losing steam, with speculative bets hitting their highest levels in a year even as supply-and-demand conditions have yet to show substantial improvement………………………………………..Full Article: Source

Commodities recovery has sceptics, but a boon while it lasts

Posted on 02 May 2016 by VRS  |  Email |Print

The recovery in commodity markets has plenty of sceptics, including the major resource companies, but the benefits will soon start flowing through the rest of the economy. The lift in the iron ore price from its low of just under $US38 a tonne last December to a high of just under $US70 a tonne last month has paralleled a broader improvement in resource markets including oil, copper and nickel.
It may not be enough to spark fresh investment in new resource projects, but it will boost the profits of the resources sector, delivering more dividends, taxes and royalties and, at the margin, more employment. It should help lift Western Australia — at present the biggest drag on national economic performance — out of its slump………………………………………..Full Article: Source

Rising oil prices throw lifeline to shale producers: Kemp

Posted on 29 April 2016 by VRS  |  Email |Print

Brent prices for 2017 ended trading above $50 per barrel on Wednesday for the first time since mid-December following the largest and most sustained rally in prices since the oil slump started.
The average for the 12 futures contracts expiring in 2017, called the calendar strip, has risen by 34 percent from its recent low of $37.45 on Jan. 20 to $50.26 on April 27.Spot prices, represented by the nearest futures contract, dominate the headlines and are of most interest to analysts and financial investors………………………………………..Full Article: Source

Saudi reforms could be low oil price’s cure

Posted on 27 April 2016 by VRS  |  Email |Print

A major obstacle holding back economic reform in Saudi Arabia has been removed. And with it goes one of the main barriers to a rising oil price. Saudi’s cabinet approved an economic reform plan on April 25 aimed at ending the country’s addiction to crude.
The plan’s author, Deputy Crown Prince Mohammed bin Salman, could plausibly argue that after the price of oil had fallen 60 percent in two years, it was time to radically overhaul the economy and open up new sources of non-oil income. Now that his strategy has won official backing, the 31-year-old prince has a chance to get the best of both worlds by moving ahead with reforms while letting oil prices - which Saudi effectively drives as the swing producer - climb at the same time………………………………………..Full Article: Source

Commodity Hedge Funds Are Hot Again

Posted on 26 April 2016 by VRS  |  Email |Print

The first quarter was a turning point for commodity markets, and the hedge funds that invest in them. The market investors couldn’t wait to get out of a year ago is the one they’re rushing into in 2016.
Commodity hedge funds netted more investor cash in the first quarter than any other type of hedge fund, and their $4 billion of inflows was their largest for any quarter in more than six years. The group has brought in more money that it has had to redeem for seven straight months, the longest winning streak ever tracked by eVestment, which plans to release the data later Monday morning………………………………………..Full Article: Source

Why cheap oil hasn’t saved the US economy

Posted on 25 April 2016 by VRS  |  Email |Print

Cheaper oil boosts an economy. It’s Econ 101. But while growth has been chugging along in America, it hasn’t been as vigorous as you’d expect with a 60% drop in oil prices since 2014. Former US Treasury secretary Larry Summers has called the lack of a big bounce one of the biggest economic puzzles of our time.
Somehow, it may even turn out to be bad for the economy. The economy should get a lift through several channels. One of the most significant is that lower fuel prices mean people have more money to spend on other things………………………………………..Full Article: Source

OPEC Officials: May Discuss Oil Freeze at June Meeting

Posted on 22 April 2016 by VRS  |  Email |Print

OPEC is ‘still alive’ as a force in the oil market, says secretary-general Abdallah Salem el-Badri. OPEC spoke on Thursday, but the market wasn’t listening. The Organization of the Petroleum Exporting Countries could revive talk of freezing oil production along with nonmembers at its next meeting in June, said top oil officials on Thursday.
A production freeze was an idea that had helped send prices rallying more than 50% from 12-year lows last winter. But after the 13-nation producer group ultimately failed to strike a production deal with Russia in Qatar over the weekend, investors didn’t react much to the news that freeze talks could soon be renewed………………………………………..Full Article: Source

Iron ore break-even points halve but unlikely to dive much further: Citi

Posted on 21 April 2016 by VRS  |  Email |Print

The “breakeven” point at which the world’s largest iron ore producers are neither making nor losing cash has halved in less than three years but is unlikely to continue its steep decline, Citi says.
The “break-even” points at which the world’s largest iron ore producers are neither making nor losing cash have halved in less than three years but are unlikely to continue their steep decline, Citi says. An analysis conducted by Citi found that in the second half of 2013, the “big five” iron ore producers needed an average benchmark iron ore price of approximately $US64.30 a tonne to break even on exports to China. ……………………………………….Full Article: Source

Switzerland – A trading paradise?

Posted on 20 April 2016 by VRS  |  Email |Print

How do Swiss-based commodities giants Glencore or Vale operate in the field and what are the consequences of their work for those living there? A new documentary by respected Swiss director Daniel Schweizer takes a rare look behind the scenes of this industry.
“Today some of the biggest extraction and trading firms are based between Geneva, Zug and Lausanne. Switzerland has a great responsibility accepting them here and monitoring them so little,” declared Schweizer at the world premiere of his new documentary Trading Paradise, shown at the Visions du Réel film festival in Nyon last weekend………………………………………..Full Article: Source

China to launch gold benchmark

Posted on 19 April 2016 by VRS  |  Email |Print

China will launch a new contract today to set a “benchmark” price for gold bullion in the world’s biggest producer and consumer of gold, as part of efforts to increase its influence in pricing of the precious metal.
The yuan-denominated gold fix will be launched on the Shanghai Gold Exchange this morning, with the benchmark price at 257.97 yuan (US$39.83) per gram, said a statement released by the exchange yesterday. Eighteen banks and bullion traders have been chosen as initial market makers for the fix, including 10 Chinese lenders, Standard Chartered Bank, Australia and New Zealand Banking Group and six domestic and international bullion traders including Switzerland-based MKS Gold Ltd, the exchange said………………………………………..Full Article: Source

Copper mines shut in Chile as deluge floods Santiago streets

Posted on 18 April 2016 by VRS  |  Email |Print

Service restoration work to resume production is estimated to take at least three days, equivalent to 5,000 metric tons of copper production. Codelco, the world’s biggest copper producer, and Anglo American Plc shut mines after heavy rains in central Chile over the weekend.
Operations at Codelco’s El Teniente underground mine were halted and homes and roads were inundated as the Cachapoal River broke its banks in the O’Higgins region south of Santiago. Meanwhile, London-based Anglo American suspended its Los Bronces open-pit mine in the Andes mountains above the capital for safety reasons, while continuing some processing using stockpiled ore………………………………………..Full Article: Source

Copper Climbs With Metals, Miners as China Data Improves Outlook

Posted on 14 April 2016 by VRS  |  Email |Print

Industrial metals and mining shares jumped as Chinese trade data showed recovering demand in the biggest consumer of the commodities. Freeport-McMoRan Inc., the biggest publicly traded copper miner, headed for its highest closing price in five months.
China’s overseas shipments grew 11.5 percent in dollar terms in March from a year earlier, compared with a 25 percent slump in February, when factories and offices were closed for a week-long holiday. Copper imports rose for the first time this year, gaining 36 percent on the month to a record 570,000 metric tons………………………………………..Full Article: Source

South America Suffers From End of Commodities Boom

Posted on 13 April 2016 by VRS  |  Email |Print

World Bank foresees second year of economic contraction in Latin America and the Caribbean. The economies of Latin America and the Caribbean will likely contract for a second consecutive year, dragged down by South American countries that rely heavily on commodities and are more exposed to the slowdown in China, the World Bank said Tuesday.
In its semiannual report on the region, the World Bank said it expects output to shrink 0.9% from 2015 as the region enters its fifth year of economic slowdown………………………………………..Full Article: Source

Damaged Opec has lost the power to influence a world broken by debt

Posted on 13 April 2016 by VRS  |  Email |Print

Opec and non-Opec oil producers meet in Doha next Sunday to decide on what to do about the still depressed oil price. On the agenda is a proposal to freeze production at January or February levels, with a view to possibly cutting it at the following meeting in June.
Time was when such machinations would be front page news. Journalists would hang on the every word of Opec’s vainglorious overlords, and their pronouncements would be major market moving events, with sometimes profound repercussions for the global economy………………………………………..Full Article: Source

Is China Becoming An Even Bigger Player In The World’s Gold Market?

Posted on 12 April 2016 by VRS  |  Email |Print

China, the world’s largest producer and consumer of gold, may be expanding its presence in the international gold market. According to a new story by the Wall Street Journal, low gold prices in recent years have driven a new wave of international gold asset acquisitions by Chinese companies.
Sprott Asset Management CEO Peter Grosskopf says China’s five or six gold companies are all better-positioned financially than their North American counterparts. “I have been in touch with all of them, and they all have plans for increasing assets overseas,” Grosskopf says………………………………………..Full Article: Source

Opec’s days as economic force are ‘over’

Posted on 11 April 2016 by VRS  |  Email |Print

‘The era of Opec as a decisive force in the world economy is over’ argues Daniel Yergin. Opec’s economic power is broken, says the unofficial historian of the oil industry, who has argued that the association of oil exporting countries has become irretrievably divided and is unable to reverse the current slump in crude prices.
Daniel Yergin, whose Pulitzer-prize winning book The Prize provides a comprehensive history of oil and power, said he believes the association’s economic prowess has been undone by its inability to agree on how to stop the oil crisis.Yergin, who is also vice-chairman of data provider IHS, said the recent disagreements among Opec members have revealed how weak the organisation now is………………………………………..Full Article: Source

OPEC’s political agenda and the price of oil

Posted on 08 April 2016 by VRS  |  Email |Print

Because we trade ProShares Ultra Bloomberg Crude Oil and ProShares UltraShort Bloomberg Crude Oil as that relates to West Texas Intermediate (WTI), and because the words of OPEC largely influence those prices, the politics surrounding oil is immediately entertaining, and of special interest, to me.
In this case, I’m talking specifically about Saudi Arabia and Iran. Of course, there’s more going on in the oil space than just what we’re seeing from these two countries, but the price of oil has recently been influenced what Saudi Arabia has said about participating in a production freeze when OPEC meets with Russia on April 17………………………………………..Full Article: Source

Oil prices lower on IMF’s ‘not-so-good news’

Posted on 06 April 2016 by VRS  |  Email |Print

Crude oil prices moved lower for a second straight day as the International Monetary Fund gauged the prospects of “mediocre” economy momentum. The IMF warned Chinese growth patterns may have a lingering ripple effect on the global economy.
Chinese slowdown last year dragged on broader economic momentum and 2016 started with a hiccup following steep declines in the benchmark Shanghai Composite Index. Speaking in Germany, IMF Managing Director Christine Lagarde said the global economy was moving forward and there were no signs of imminent crisis………………………………………..Full Article: Source

banner
banner
August 2016
S M T W T F S
« Jul    
 123456
78910111213
14151617181920
21222324252627
28293031