Posts Tagged ‘Asia’
Lower Fee for Japanese buyers of Aluminum
Aluminum producers lowered the fee for Japanese buyers after China resumed halted capacity and supply in Asia rose as smelters began production. Premiums for the three months ending June 30 fell to $122 per metric ton down from $125 to $130 this quarter (the highest level in 14 years). The premium for Good
China, the largest buyer of copper in the world, decreased import after record purchases in 2009 as local smelters restarted production. Aluminum smelters in China, the largest producer of the industrial metal, resumed 5 million tons per annum of idled capacity in past year as profit margins improved with increasing prices. China’s purchases of refined aluminum dropped to 40,059 metric tons in January from 42,106 tons in December as the nation have ample inventories after it have bought more metal than necessary on outlook for a demand recovery.
Delivery for aluminum in three months rose 0.3 percent to $2,225 per ton by 15:57 on the London Metal Exchange. The price has reached previously a 15-month high.
Cocoa Rises to 21-year Record, Copper Falls, Soybeans Go Up
Cocoa rose to a highest level in 21 years in London on speculation that demand will be boosted by a rebounding global economic. Restocking is taking place as consumer confidence returns and business conditions improve. Cocoa consumption jumped 0.6 percent in Europe in the fourth quarter. March delivery for cocoa rose 1 percent to $3,770 per metric ton on Liffe today.
Copper prices tumbled to the
Soybeans rose on expectations that demand from China will rebound after prices from the U.S. fell 9.4 percent this month. China’s demand for soybeans grown in the U.S. to produce cooking oil and livestock feed rose as drought harmed crops in South America last year. March futures for soybean delivery gained $0.04 (0.4 percent) to $9.54 per bushel on CBoT.
Aluminum Consumption May Rise in Asia in 2010; Cotton Rise, Aided by China Market
Consumption of aluminum may continue to rise in Asia next year as stimulus measures in China, the greatest consumer of the metal in the world, and rest of the region increased demand for the metal. China’s economy growth touched 8.9 percent in the third quarter, being the fastest in a year. Aluminum prices rose 32 percent in China this year. Analysts predict that demand will exceed supply by 380,000 tons next year and prices will average $2,700.
Cotton gained for the fifth straight session as high prices for cotton in Chinese markets boosted the attractiveness of cotton. Unwillingness of cotton holders to deliver supplies against December contracts also helped cotton prices. March futures for cotton delivery gained $0.0058 (0.8 percent) to $0.7506 per pound by 12:44 on ICE Futures U.S. in New York.
Gold Declines in Asia as Strengthening Dollar Reduces Appeal
Gold declined in Asian trading as a gain in the dollar curbed the precious metal’s appeal as an alternative investment.
The dollar climbed from a three-week low against the euro after a Chinese official said he hoped the greenback would remain stable and was “not aware” of a plan to discuss a new reserve currency at next week’s Group of Eight meeting. Gold surged 1.5 percent yesterday, the largest closing gain since June 4, as the dollar slumped.
“We may see some consolidation today” for gold, said Darren Heathcote, head of trading at Investec Bank (Australia) Ltd. “It certainly looks that the dollar and gold movements are still linked. The news yesterday that China was reportedly prepared to debate a reserve currency at the G8 summit caused a stir and will continue to have repercussions.”
Bullion for immediate delivery fell 0.3 percent to $938.11 an ounce at 3:16 p.m. in Singapore. Dollar-denominated gold typically declines when the greenback gains as it becomes more expensive for holders of other currencies. Gold for August delivery fell 0.3 percent to $938.50 an ounce on the New York Mercantile Exchange’s Comex unit.
