Commodity Blog

Posts Tagged ‘metal prices’

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 Western-grade aluminum ingot more than doubled in 2009 as record purchases by China and decreased supplies from Russia caused shortage of the metal in Asia.

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.

Copper rose in London on outlook for increasing demand in Japan, the fourth biggest buyer of the metal in the world. Japan’s gross domestic product grew 4.6 percent in the fourth quarter. Imports of the metal in China declined as much as 546,000 metric tons. Yet analysts say that this decline can be more than offset by rising global demand. Three-month delivery for copper rose $70 (1 percent) to $6,880 per ton by 16:52 on the London Metal Exchange.

Wheat futures fell in Paris on speculation that rising global stockpiles will decrease prices. The U.S. Department of Agriculture reported that global wheat stockpiles will increase from 164 million metric tons a year earlier to 195.9 million tons by the end of May as supply exceeds demand for a second year. Prices may yet go up with farmers’ reluctance to sell at current prices and good European Union exports. March delivery for milling wheat fell 0.4 percent to 125.25 euros ($170.35) per metric ton today on NYSE Liffe.

Orange-juice futures went up after frosts hit Florida, the second greatest grower in the world after Brazil. Cold weather will last for a week, which should be not enough to noticeably damage crops. March futures for orange-juice delivery added $0.083 (6.4 percent) to $1.3735 per pound as of 10:33 on ICE.

Copper prices jumped to the record in 16 months after a strike at the second-biggest mine in the world and as manufacturing in the U.S., China and India increased in December. Last month manufacturing in the U.S. grew at fastest rate in three months. Demand for the metal in China reached a record in the first half of 2009. March futures for copper delivery climbed $0.0505 (1.5 percent) to $3.397 per pound by 11:22 on the New York Mercantile Exchange’s Comex unit.

White sugar price reached the highest level in at two decades in London on concern that flooding in Brazil may harm the crop. Analysts forecast that global sugar production will decline by 13.5 million tons in 2009–2010 season. March delivery for white sugar rose $16.10 (2.3 percent) to $726.30 per metric ton on the Liffe exchange.

Platinum is mainly used in manufacture of the autocatalysts. It is also used in petroleum, electrical, chemical and glass industries as well as investment asset. In 2009 demand for the metal fell as car demand declined because of global economy recession. What future can be expected for platinum in 2010?

As global economy rebounds so demand for platinum from industries, particularly car industry, grows. Jewelry industry showed astounding 80% growth of demand for the metal. Demand in China is steadily growing, expected to add 900,000 oz.

Will supply catch up demand in the next year? Opinions differ at this matter. Supply from South Africa fell 10.6% in 2009. Production in Russia declined 11% in the previous year. But in 2010 output from these countries can rise in response for growing prices. In other regions production slightly grew. Some analysts predict deficit as demand climbs, while other analysts forecast oversupply.

But even in case of oversupply platinum price may in fact grow due to investor involvement. Platinum ETFs increased 89% in 2009. Analysts say that the commodity will be traded in range $1,100-$1,900 in the next year, $1,350 being the most likely price.

Gold prices dropped as rising dollar lowered demand for the precious metal as a hedge against inflation. Restoring U.S. economy returned confidence in the U.S. currency, driving the greenback up. Some investors also were selling the metal to make profit from high gold prices. February futures for gold delivery slid $9.80 (0.9 percent) to $1,098.10 per ounce on the Comex division of NYMEX.

Crude oil little changed, remaining at a five-week high, after heating oil jumped on forecast for cold weather in the U.S. and the dollar rebounded versus the euro. January delivery for heating oil increased $0.0293 (1.4 percent) to $2.1028 per barrel on NYMEX. U.S. oil stockpiles dropped 1.85 million barrels in the week ended December 25th from 327.5 million the previous week. February delivery for crude oil gained $0.1 to $78.87 per barrel on NYMEX.

The global aluminum surplus will be cut by 54 percent in 2010 compared to this year as demand increase in China, the greatest buyer in the world, with economical recover. Chinese demand also increase with help of government’s economic measures. World demand for the metal will climb 7.6 percent to 37.6 million metric tons in the next year.

Chinese aluminum production will rise 16 percent to 15.5 million tons in 2010 as smelters encouraged restarting their work by increasing metal prices. Despite this analysts don’t expect any significant export from China next year. Global supply will rise 3.5 percent to 38.8 million tons in 2010.

Analysts predict that delivery for aluminum in three months will reach $1,900 per metric ton on the London Metal Exchange in January to March. The metal traded $2,127 per ton as of 17:50 in Tokyo.

Copper tumbled on speculation that the global economic recovery may become slower. Imports of the metal in China, the largest consumer of copper in the world, slid in October for the third time in four months. March delivery for copper slid $0.0065 to $3.252 per pound by 11:39 on the New York Mercantile Exchange’s Comex unit.

Soybeans gained for the first time in three sessions on speculation that global demand for the U.S. oilseed and animal feed increased. Sales grew 58 percent to 27.8 million metric tons since September 1st. January futures for soybean delivery gained $0.0675 (0.7 percent) to $10.4075 per bushel as of 11:52 on CBT.

Hog futures climbed to the weekly high on speculation that a rising prices for U.S. wholesale-pork signaled increasing export demand. Exports are rising as the dollar falls and as countries lift bans on U.S. pork that were put after the swine flu outbreak. February futures for hog settlement climbed $0.003 (0.5 percent) to $0.6695 per pound at 12:21 on CME.

Copper slid in London as growing inventories and the rebounding dollar pushed down demand for the metal. Stockpiles monitored by the London Metal Exchange increased 0.1 percent to 432,075 metric tons, the highest level since April 23rd. March delivery for copper slid 2.3 percent to $3.1245 per pound on NYMEX.

Gold imports by India, the greatest buyer in the world, declined for the seventh straight month as record prices decreased demand for the precious metal. Gold prices touched a record for a third time this week as falling dollar boosted attractiveness of the metal as an inflation hedge. Immediate delivery for gold for dropped 0.7 percent to $1,183.15 per ounce.

Copper slid in New York and London after the dollar gained. Prices also fell as stockpiles of metal in LME-monitored warehouses increased 0.4 percent to 373,800 tons. December delivery for copper slid $0.0325 (1.1 percent) to $2.9125 per pound by 8:27 on the New York Mercantile Exchange’s Comex unit.

Coffee futures declined on speculation that a stronger dollar will decrease demand for commodities. Coffee also fell on concern that yesterdays 5.1 percent surge was overdone. December futures for Arabica-coffee delivery declined $0.025 (1.8 percent) to $1.3985 per pound as of 9:32 on ICE Futures U.S. in New York.

Wheat futures may be opened lower as the rising dollar decrease demand for the U.S. exports and for commodities as an alternative investment. Wheat on CBoT is expected to open about 6 cents lower.

Survey showed that gold may go down because a rising dollar eroding appeal of the precious metal as a hedge against inflation. The U.S. Dollar Index has gained 1.3 percent from the lowest in the 14 months on October 21st. Gold have trend to move inversely to the U.S. currency. December delivery for gold went down 0.8 percent to $1,047.50 per ounce at 12:55 yesterday in New York.

Copper may fall in London on speculation the dollar will rebound, eroding demand and making metals priced in the U.S. currency more expensive for holders of other monies. Analysts said that the metal would fall next week. Three-month delivery for copper remained at $6,651 per metric ton as of 17:00 yesterday on the London Metal Exchange.