Fri, Jul 25, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 19.Feb 2014

Posted on 19 February 2014 by VRS |  Email |Print

Commodities revenue at the top 10 investment banks dropped 18 percent in 2013 in a third year of declines due to weak investor interest and low volatility, a consultancy said on Tuesday.
Revenue from commodities for top banks fell to $4.5 billion last year from $5.5 billion the previous year, London-based financial industry analytics firm Coalition said in a report. Many banks have slashed their commodities businesses and others have completely shut down commodities units, which also have been hit by tougher regulation and higher capital requirements after the global financial crisis………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Global gold demand fell by 15 per cent to a four-year low in 2013 as US investors sharply reduced holdings of the precious metal.
Bullion last year suffered its biggest drop since 1981, losing more than a quarter of its value as a decade-long bull run ended. It has since regained some ground, rising 9 per cent this year to $1,327 a troy ounce on Monday………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

According to the latest report issued by World Gold Council, global gold consumption demand grew 21% year-on-year to 3,864 tons last year. Particularly, demand for jewellery moved up 17% to 2,209 tons, while investment in gold bars and coins advanced 28% to 1,654 tons.……………………………………….Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

For the first time India lost its tag of the world’s largest gold consumer to China, which lapped up 1,065.8 tonnes of the precious metal in 2013, says a World Gold Council report. India’s demand came down to 974.8 tonnes following wide- scale curbs imposed by the government to tame hunger for the precious metal, according to WGC’s ‘Gold Demand Trend 2013′.
Despite the massive increase in customs duty and many restrictions that the Centre put on jewellery imports, India consumed more gold than 2012, when it stood at 864 tonnes. In China, the total demand stood at 806.8 tonnes in 2012. “While China has put in infrastructure that was in favour of gold, India has turned away from it………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Upbeat data on economy-wide lending in China out over the weekend gave metals prices a boost. Dubai gold futures rose by 0.9% to the 1,331.30/oz. mark. Despite recent decent gains Bloomberg cited the two most accurate forecasters for the price of gold over the last two years, Societe Generale’s Robin Bahr and Justin Smirk, at Westpac Banking Corp, as calling for the recent rally to fizzle out over the coming year.
While past performance is no guarantee of future returns, those predictions were in line with similar analysis out over the last few weeks from Credit Suisse or Goldman Sachs, but not with those from Capital Economics, for example………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

The steady climb in the gold price in recent weeks came to a halt on Tuesday, as momentum traders take some profits in the metal up nearly 10% since the start of the year.
In noon trade on the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – hit $1,324.60 an ounce, down $4.30 from Monday’s close, but up from lows earlier in the day of $1,314………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

The World Gold Council’s (WGC) annual report on demand trends for the precious metal reveals the inner workings of the market last year. While gold’s price endured something of a roller coaster ride, the fundamentals underpinning its value seemed to have been remarkably resilient.
Last year saw the largest volume increase in jewellery demand for 16 years as consumers across the globe reacted to lower gold prices, the WGC revealed. Full year demand was 2,209.5 tonnes, 17% above the 2012 figure and the highest level since the onset of the 2008 financial crisis………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Kitco News speaks with US Global Investors’ CEO Frank Holmes about gold’s price movements last week and where he expects the yellow metal is headed. “Now with gold going above the 200-day, there’s a sentiment of relief and it is positive,” he says.
However, Holmes says that this does not mean investors are ‘runaway bullish’ on gold just yet. Holmes is optimistic about gold’s direction, stating that one of the major headwinds for the metal last year will probably soften in 2014………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Investors fled gold exchange-traded funds in droves last year as the price of bullion plummeted, which could improve the environment for Canadian precious metal companies.
Just over 880 tonnes of gold were dumped on the market when investors liquidated their holdings in exchange-traded funds, according to a survey by the World Gold Council, an industry group………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Two of the world’s three biggest aluminium producers have announced cuts to production in the latest sign of how weak prices and oversupply are weighing on the industry.
US company Alcoa said on Monday it was shutting its 190,000 tonne-a-year Point Henry smelter in Australia since the plant had “no prospect of becoming financially viable”. Two rolling mills there will also be permanently closed. Alcoa’s total closures or curtailments to production now represent 551,000 tonnes of capacity, or about 1 per cent of world supply of the metal………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

The copper price’s February comeback accelerated on Tuesday, bringing gains so far this month to more than 4%. In New York trade spot copper jumped 2c to $3.34 a pound, up from $3.20 hit at the end of January over fears of a marked slowdown in the economy of number one consumer China.
For 2014 economists are predicting 7.4% which would make it the slowest nominal growth since 1990. Given its widespread use in transportation, manufacturing and construction the copper price is sensitive to any economic slowdown………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

China has two competing REE industries: legal and illegal. This results in an abundance of REE suppliers. End-users are aware of this and exploit it by shopping around. They use the last guy’s offer to negotiate a lower price with the next supplier, and ultimately, the spread between prices widens, and prices trickle downward.
China’s consolidation plans aim to remedy this situation. The Baotou Rare Earth Products Exchange shares this goal. In the long term and in the context of the recent World Trade Organization (WTO) ruling against China’s REE restrictions and tariffs, consolidation is a power play. It aims to drive down production costs, so that China can undercut emerging suppliers, should it find its grip on the industry weakening………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Costs are down, output is up and the cash is starting to flow: the world’s largest miners are recovering their poise. BHP Billiton’s 31 per cent rise in interim profits, hard on the heels of Rio Tinto’s return to annual profit and bumper dividend, is giving investors hope that the worst is over for the two most valuable mining groups. BHP has indicated it should also be able to return more cash to shareholders when it reports annual results in August.
Shareholders lost faith in mining companies because they chased growth with spending on overblown projects, leaving them exposed to a downturn in commodity prices when Chinese growth slowed………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Venezuela is in an economic crisis. Inflation is running at more than 50%. There are shortages of basic goods including water and toilet paper. Last month, the central bank was forced to restrict the amount of dollars that it sells at the official exchange rate, a de facto devaluation.
The current crisis may lead to a regime change in Venezuela. That could push down the oil price. It could also open new opportunities for Western oil companies in Venezuela………………………………………….Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Investors are losing patience with hedge-fund managers who rely on computers to follow global market trends after three years of underperformance. Quantitative hedge funds run by companies such as Man Group Plc (EMG) and Michael Platt’s BlueCrest Capital Management LLP saw investors pull $4.9 billion in the last three months of 2013, the most in five years, according to Chicago-based data provider Hedge Fund Research Inc.
That followed outflows of $1.1 billion in the second quarter and $668 million in the third, HFR said………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Scottish politicians have clashed over plans to keep the pound as part of a formal currency union if the nation votes for independence. The SNP’s Stewart Hosie said the move made sense, but Scottish Conservative leader Ruth Davidson said the plan was falling apart.
Labour’s Jenny Marra said a currency union would be difficult to sell to the rest of the UK. The clashes came during a BBC TV debate ahead of the independence referendum………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

The rise of Bitcoin has lead many to be confused by the digital currency and why it’s preferable to cash. In response, Ledra Capital has published a tongue-in-cheek piece outlining what might happen if the reverse was true — cash is introduced into a world that uses digital currency.
Taking the form of a fictional news report, the piece outlines some of cash’s many failings: it’s anonymous, easily lost or destroyed, is geographically limited, and it can even spread disease………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

The US Federal Reserve has moved to tighten the rules on physical commodity trading by banks, citing fears they might suffer huge losses as a result of an environmental disaster. How valid are such concerns and what steps is the Fed likely to take?
During the past year, US banks have been embroiled in a public relations nightmare over physical commodity trading. Costly settlements for alleged power market manipulation, accusations of nefarious dealings at aluminium warehouses, and hostile hearings on Capitol Hill have created an environment in which the presence of Wall Street banks in physical markets looks increasingly precarious………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Access to good quality water was the topic of the first-ever official hearing held for a European citizens’ initiative at the European Parliament on 17 February. The Right2Water campaign wants universal access to clean water and sanitation and opposes the liberalisation of water services. They collected nearly two million signatures in order to ask the European Commission to produce EU legislation on this. We talked to the organisers to find out more.
Organisers of the Right2Water campaign are urging the Commission to guarantee access to water and sanitation for all Europeans and give legaly binding guarantees that water services will not be liberalised in the EU. “Water is not a commodity, it is part of our heritage,” said Anne-Marie Perret, president of the Right2Water citizens’ committee. (Press Release)

Posted on 19 February 2014 by VRS |  Email |Print

Qingdao has become the latest Chinese city to plan a market to reduce greenhouse gas emissions, as a group of advisers backed by its mayor is hammering out rules for an emissions trading scheme that could start next year.
Qingdao, a city of 3 million people in northeastern Shandong province with a GDP equal to that of Bangladesh, is a major energy consumer as the local economy relies on heavy industry and petrochemicals………………………………………..Full Article: Source

Posted on 19 February 2014 by VRS |  Email |Print

Europe needs instruments that solve the problem of carbon pollution in reality, not theory, say Bellona together with a coalition of European environmental NGOs. The IPCC has restated the risks of climate disruption from the continued use of fossil fuels.
Given the urgent need to reduce global carbon emissions to a safe level, getting policies right is now critically important. It is essential for Europe to have ambitious renewable energy and efficiency targets for 2030. Nonetheless, to ensure closure or clean-up of Europe’s worst carbon emitters and to prevent building new ones, a targeted policy intervention such as EPS is also needed………………………………………..Full Article: Source

See more articles in the archive

July 2014
S M T W T F S
« Jun    
 12345
6789101112
13141516171819
20212223242526
2728293031