Australia Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/commodities/australia.html Fri, 28 Nov 2014 09:31:10 +0000 SRA Framework 2.0 en-gb London copper slips from 2-week high; bearish Chinese data weighs http://www.brecorder.com/markets/commodities/australia/205461-london-copper-slips-from-2-week-high;-bearish-chinese-data-weighs.html http://www.brecorder.com/markets/commodities/australia/205461-london-copper-slips-from-2-week-high;-bearish-chinese-data-weighs.html imageSYDNEY: London copper slipped on Tuesday from a two-week high marked in the previous session, hurt by concern over China's sluggish property sector, although expectations of more European monetary stimulus offered support.

Chinese home prices fell for the second consecutive month in October from a year earlier, official data showed on Tuesday, despite government efforts to lift the market.

Still, metals have held up moderately well in the face of a downturn in oil and bulk commodities markets, which suggests some investors may be using the complex to hedge against falling prices elsewhere, said analyst Daniel Hynes of ANZ in Sydney.

"If we saw another strong import number on copper, that could get the market a bit more optimistic for 2015, but outside of that it's hard to see how things could significantly change." China's copper imports climbed 2.6 percent in October from a month before to 400,000 tonnes.

The breakdown of China's trade data is due in the next week. Three-month copper on the London Metal Exchange slipped 0.2 percent to $6,690 a tonne by 0711, after closing little changed in the previous session, when it had hit $6,734 a tonne, its highest since Nov. 4.

Goldman Sachs slashed its 2015 copper price forecast to $6,217 per tonne from $6,400 per tonne, citing a lower marginal operating cost of production.

The most traded January copper contract on the Shanghai Futures Exchange edged up by 0.2 percent to 47,610 yuan($7,780) a tonne.

In Europe, the European Central Bank's stimulus is gaining traction, but should it turn out that its current efforts are not sufficient to accelerate the euro zone recovery, the ECB is ready to do more, ECB President Mario Draghi said.

In news, aluminium stocks held at three major Japanese ports rose for a seventh straight month, hitting a 5-1/2-year high at the end of October as demand fell and the world's third-largest economy unexpectedly slipped into recession.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Australia Tue, 18 Nov 2014 07:51:46 +0000
London copper slips from near two-week high as Japan taints mood http://www.brecorder.com/markets/commodities/australia/205288-london-copper-slips-from-near-two-week-high-as-japan-taints-mood.html http://www.brecorder.com/markets/commodities/australia/205288-london-copper-slips-from-near-two-week-high-as-japan-taints-mood.html imageSYDNEY: London copper slipped from its highest level in a fortnight on Monday as news that Japan had surprisingly fallen into recession tainted previously buoyant sentiment following a slew of improving economic signals from the United States.

Japan's economy unexpectedly slipped into recession in the third quarter, setting the stage for Prime Minister Shinzo Abe to delay an unpopular sales tax hike and call a snap election just two years after he took office.

Slowing global growth could drag on demand for copper, which is expected to stay muted next year as the market swings into surplus for the first year in six.

"Copper looks range-bound for the rest of the year, around the ... $6,600 mark. Supply continues to be a headwind into next year," said analyst Daniel Morgan at UBS in Sydney.

Three-month copper on the London Metal Exchange climbed to its highest since Nov. 4 at $6,734 a tonne, before trading edging down by 0.3 percent to $6,686 a tonne by 0744 GMT. In the previous session it had gained 0.8 percent.

The most traded January copper contract on the Shanghai Futures Exchange climbed 1 percent to 47,630 yuan ($7,776) a tonne, having also reached a two-week high.

China's smelters have ramped up output to take advantage of higher processing fees as the past decade's boom in investment translates into more mine supply.

China's refined copper output rose 13.6 percent in October from a year before to 732,746 tonnes, data from the statistics bureau showed on Saturday.

Market attention was turning to U.S. industrial output figures later, to see if the economy is keeping up brisk growth after U.S. retailers reported strong sales in October.

China's bank lending tumbled in October and money supply growth cooled, raising fears of a sharper slowdown in the economy and prompting some economists to urge the government to ratchet up stimulus measures, including cutting interest rates.

China's metals industry is grappling with tougher credit conditions that are likely to persist and spark consolidation after a portside financing scandal roiled the market, a Trafigura executive said.

Hedge funds and money managers cut their copper shorts, the Commodity Futures Trading Commission said on Friday.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Australia Mon, 17 Nov 2014 12:38:57 +0000
London copper hits two-week high on US growth signals http://www.brecorder.com/markets/commodities/australia/205126-london-copper-hits-two-week-high-on-us-growth-signals.html http://www.brecorder.com/markets/commodities/australia/205126-london-copper-hits-two-week-high-on-us-growth-signals.html imageSYDNEY: London copper touched its highest level in a fortnight on Monday in the afterglow of improving economic signals from the United States, although news that Japan had surprisingly fallen into recession added a note of caution.

An improvement in global growth could add demand for copper, although this is expected to be offset next year as the market swings into surplus for the first year in six.

"Copper looks range-bound for the rest of the year, around the ... $6,600 mark. Supply continues to be a headwind into next year," said analyst Daniel Morgan at UBS in Sydney.

Three-month copper on the London Metal Exchange climbed to its highest since Nov. 4 at $6,734 a tonne, before trading flat at $6,706.75 a tonne by 0300 GMT.

In the previous session it had gained 0.8 percent.

The most traded January copper contract on the Shanghai Futures Exchange climbed 1 percent to 47,640 yuan($7,777) a tonne, having also reached a two-week high.

China's smelters have ramped up output to take advantage of higher processing fees as the past decade's boom in investment translates into more mine supply.

China's refined copper output rose 13.6 percent in October from a year before to 732,746 tonnes, data from the statistics bureau showed on Saturday.

Market attention was turning to US industrial output figures later, to see if the economy is keeping up its brisk growth trajectory after most US retailers reported strong sales in October.

Japan's economy unexpectedly slipped into recession in the third quarter, setting the stage for Prime Minister Shinzo Abe to delay an unpopular sales tax hike and call a snap election just two years after he took office.

China's bank lending tumbled in October and money supply growth cooled, raising fears of a sharper slowdown in the economy and prompting some economists to urge the government to ratchet up stimulus measures, including cutting interest rates.

Hedge funds and money managers cut their copper shorts, the Commodity Futures Trading Commission said on Friday.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Australia Mon, 17 Nov 2014 04:31:16 +0000
London copper flat as China data disappoints, raises stimulus hopes http://www.brecorder.com/markets/commodities/australia/204516-london-copper-flat-as-china-data-disappoints-raises-stimulus-hopes.html http://www.brecorder.com/markets/commodities/australia/204516-london-copper-flat-as-china-data-disappoints-raises-stimulus-hopes.html

imageSYDNEY: London copper was steady on Thursday after evidence that China's economic growth cooled in October dented demand prospects but raised bets Beijing will have to loose further stimulus to shore up its struggling property market.

Factory growth dipped and investment growth hit a near 13-year low in October, while growth in real estate investment, which affects about 40 other industries in China, cooled to 12.4 percent.

Property sales and new construction continued to fall.

Copper prices have been stuck in range since mid-September with modest demand met by supply which is expected to swell next year, pressuring prices. "Our central view is that copper prices will edge down a bit next year," said James Glenn, analyst at National Australia Bank (NAB) in Melbourne.

NAB sees copper prices at around $6,600 by the end of 2015.

Three-month copper on the London Metal Exchange traded at $6,685 a tonne by 0746 GMT, up 0.1 percent, after closing little changed in the previous session.

The most-traded January copper contract on the Shanghai Futures Exchange edged up 0.3 percent to 47,400 yuan ($7,738) a tonne.

The copper market is expected to be in a 350,000-tonne surplus next year, according to analysts recently polled by Reuters, due to improving mine supply.

Rio Tinto's Kennecott copper smelter is considering treating third-party concentrate on a large scale for the first time, as the second-biggest US copper producer tries to tackle falling ore grades from its nearby mine, four sources said.

Across other metals, forecasts for a sustained nickel rally were under threat, as LME stocks swamp a market seen in deficit since Indonesia banned exports of ore in January to jump start its domestic processing industry, said NAB's Glenn NAB expects LME nickel to trade at $16,400 by Dec 2015.

LME nickel edged up by 0.3 percent to $15,650.

LME nickel stocks are sitting near record highs of around 390,000 tonnes. "Will that supply be worked through before we start to see Indonesian supply ramp up again? It's definitely a timing issue.

If we don't see (LME stocks) running down or levelling off in the next few months, we will probably look to start reconsidering our forecasts," said Glenn.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Australia Thu, 13 Nov 2014 08:35:30 +0000
London copper barely changed, seen up on Asian, euro zone stimulus http://www.brecorder.com/markets/commodities/australia/204364-london-copper-barely-changed-seen-up-on-asian-euro-zone-stimulus.html http://www.brecorder.com/markets/commodities/australia/204364-london-copper-barely-changed-seen-up-on-asian-euro-zone-stimulus.html imageSYDNEY: London copper was little changed on Wednesday after gaining about half a percent in the previous session when US markets were shut for a holiday, while zinc prices were underpinned by a strike at a Peruvian mine.

Three-month copper on the London Metal Exchange traded flat $6,690 a tonne by 0313 GMT.

Prices have traded in a narrow $300 band of around $6,500-$6,800 since mid-September as modestly growing demand is met by ample supply.

But copper should yet get a lift in three to six months as stimulus measures undertaken by Japan, the euro zone and China filter through to industry and stimulate demand, said Jonathan Barratt, chief investment officer at Ayers Alliance in Sydney.

"That demand should feed through into commodities. I'm looking for signs that the (copper) forward market will get a little better bid, but we haven't seen it yet," he said.

The most-traded January copper contract on the Shanghai Futures Exchange edged up 0.2 percent to 47,380 yuan($7,736) a tonne.

Chile's Codelco, the world's top copper producer, has offered a lower premium of $133 per tonne for 2015 term shipments of the metal to China, reflecting expectations of more supply next year.

LME zinc edged down 0.3 percent to $2,261 a tonne.

Peru's top copper and zinc miner Antamina said a partial labour stoppage had not hurt its production, but the union striking for a second straight day on Tuesday said output was likely down by at least 90 percent. Ultra-loose US monetary policies and a weaker dollar, which had boosted demand for commodities, are reversing course.

Near-zero US interest rates are too low and should make the Federal Reserve nervous, one of its top policymakers, Charles Plosser, said on Tuesday.

The dollar lost a bit of steam against other currencies, as investors took profits from its hefty gains in the last few months.

BHP Billiton, the world's largest mining company, said on Wednesday it has scrapped the sale of Nickel West and will continue operating the unit after failing to find a buyer at the right price.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Australia Wed, 12 Nov 2014 05:10:44 +0000
London copper steady ahead of US payrolls http://www.brecorder.com/markets/commodities/australia/203712-london-copper-steady-ahead-of-us-payrolls.html http://www.brecorder.com/markets/commodities/australia/203712-london-copper-steady-ahead-of-us-payrolls.html imageSYDNEY: London copper was flat on Friday supported by easier policies in Europe and China and ahead of a key US labour report, but the metal was set to post its biggest weekly fall since early October thanks to a strong dollar.

European Central Bank members all stand ready to take more policy action if needed to revive a struggling euro economy and the bank's staff will prepare the groundwork, President Mario Draghi said on Thursday.

China's central bank meanwhile pledged to maintain modest policy support.

The ECB's statement weighed on the euro, pushing up the dollar and dragging on commodities.

However, despite some dollar pressure, metals are also following their own fundamentals, said analyst Mark Keenan of Societe Generale in Singapore. "Despite the movement of the dollar, industrial metals have remained quite fundamentally driven and also quiet diversified," he said.

Copper prices have found support from low global stocks, although expectations of rising supply have capped gains, keeping prices in a narrow trading band.

Three-month copper on the London Metal Exchange was little changed at $6,666 a tonne by 0700 GMT, after ending a tad firmer in the previous session, and faces a weekly slippage of half a percent, the biggest slide in five weeks.

The most-traded January copper contract on the Shanghai Futures Exchange climbed 0.8 percent to 47,190 yuan($7,714 US dollar) a tonne A stronger dollar tends to weigh on commodities, because, priced in dollars, they become more expensive for holders of other currencies. However, the broad depreciation of currency in the wake of the global financial crisis has underpinned prices because as hard assets, they tend to retain their value as the value of paper currency in comparison weakens.

Markets were awaiting a key labour report from the US that may provide fresh clues on the timescale before it starts raising rates.

US employers likely hired new workers at a fairly brisk clip last month, underscoring the economy's resilience in the face of slowing global demand.

In news, a key piece of equipment that has had a troubled start-up at Codelco's Ministro Hales mine will undergo repair work this month to improve its capacity from 70 percent currently to at least 90 percent, the Chilean state copper miner said Thursday.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Australia Fri, 07 Nov 2014 13:24:06 +0000
London copper slips to near 2-week low after China data, oil rout http://www.brecorder.com/markets/commodities/australia/203165-london-copper-slips-to-near-2-week-low-after-china-data-oil-rout.html http://www.brecorder.com/markets/commodities/australia/203165-london-copper-slips-to-near-2-week-low-after-china-data-oil-rout.html imageSYDNEY: London copper slipped on Wednesday for the second day to a near two-week low and Shanghai zinc shed 2.5 percent as weak China economic data compounded a selloff that started in oil and spilled over into base metals.

Growth in China's services sector weakened further in October as new business cooled, a private survey showed on Wednesday, reinforcing signs of a gradual economic slowdown that could prod the government to unveil fresh stimulus measures.

Oil markets recovered from multi-year lows on Tuesday but still ended down more than 2 percent after Saudi Arabia cut export prices to the United States, threatening to deepen a global supply glut that has driven prices down 30 percent since June.

"It's fair to point the finger at oil. But the overarching concern now is deflation," said analyst Tim Radford at Sydney-based advisor Rivkin.

"The key concern in the market was inflation, and how gold was going to go through the ceiling but we haven't seen that at all. We've seen a deflationary environment play out, and that's being reflected in crude oil and in copper prices," said Radford.

Three-month copper on the London Metal Exchange edged down 0.2 percent to $6,632 a tonne by 0316 GMT from the previous session when it fell 1 percent and touched $6,618.25, its weakest since Oct. 21.

The most-traded January copper contract on the Shanghai Futures Exchange fell 1.1 percent to 47,010 yuan ($7,693) a tonne.

But, in news that could underpin copper prices by eroding surplus expectations next year, Peru will likely produce less copper this year and next than the government had forecast as big new projects face delays and output from the country's top producer has slid on lower ore grades.

On the demand side, the state power grid, which is China's biggest buyer of copper, is set to roll out more power lines.

China has begun construction on a large-scale ultra-high voltage (UHV) power project, which will help alleviate air pollution problems, the State Grid Corporation of China (SGCC) said on Tuesday.

Across other metals, ShFE zinc fell 2.5 percent, tracking the London contract overnight as traders said new long holders cut their positions.

LME zinc pared an early bounce to turn negative, adding to the previous session's losses of more than 2 percent. Traders said that recent ShFE zinc longs had shed their positions, as illustrated in falling prices and falling exchange open interest. "Base was up while crude and oilseeds were all sold off. Base played catch down," said a trader in Singapore.

In other signs of slowing growth, the US trade deficit unexpectedly widened in September as exports hit a five-month low, a sign that easing global demand could undercut economic growth in the fourth quarter.

Looking ahead, the European Central Bank will hold off on fresh policy action when it meets on Thursday, waiting for updated ECB staff forecasts next month and traction from its latest stimulus measures before any possible further steps.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Australia Wed, 05 Nov 2014 06:36:51 +0000
London copper underpinned by Japan easing, China clouds outlook http://www.brecorder.com/markets/commodities/australia/203056-london-copper-underpinned-by-japan-easing-china-clouds-outlook.html http://www.brecorder.com/markets/commodities/australia/203056-london-copper-underpinned-by-japan-easing-china-clouds-outlook.html imageSYDNEY: London copper was flat on Monday, as support from Japan's surprise stimulus last week continued to underpin metals, but signs of fading economic momentum in top metals user China suggested gains would be short-lived.

China's economy lost further momentum heading into the fourth quarter as a cooling property market weighed on activity and export demand softened, surveys showed on Monday, putting Beijing's official target for the year at even greater risk.

Asia's factories are reporting a generalised loss of momentum that speak volumes about the need for more policy stimulus, on top of Japan's latest efforts to ignite growth.

"At least some of the support that the Chinese got in recent months due to demand from the developed world seems to be fading," said analyst Dominic Schnider at UBS Wealth Management in Singapore. "If you look at some of the subcomponents, like exports and you sum it all up - not good.

I think we are going to test the lows we have seen in October," he added.

Three-month copper on the London Metal Exchange traded at $6695 a tonne and flat from Friday by 0709 GMT, losing a bid tone seen earlier in the session. LME copper fell to it lowest in six months at 6$6,530 a tonne on Oct. 17.

LME copper finished October little changed, reflecting the push and pull of lower-than-expected supply versus steady - if unspectacular - demand.

Some support was coming from looser monetary policy after the Bank of Japan's surprise stimulus push last week, and expectations of at least a hint of fresh action from European policymakers this week. Stimulus tends to plump up commodities because as hard assets they hold their value when currency depreciates.

However, headwinds came from a robust US dollar which touched seven-year peaks versus the yen on Monday and held near four-year highs against a basket of currencies.

A stronger dollar trims demand for commodities because, priced in the US currency, the asset class becomes more expensive for holders of other currencies.

The most-traded January copper contract on the Shanghai Futures Exchange slipped by 0.3 percent to 47,310 yuan($7,735) a tonne. Flickering momentum was seen elsewhere.

US consumer spending fell for the first time in eight months in September, suggesting the economy lost some momentum heading into the fourth quarter.

A series of recent supply disruptions due to strikes and other issues has fanned questions over an expected copper surplus next year, as supply tends to underperform expectations.

Hedge funds and money managers slashed their bearish bets in copper futures and options to the lowest in five weeks and cut their bullish long position in gold in the week up to Oct. 28, the Commodity Futures Trading Commission said on Friday.

Across other metals, LME nickel appears to have broken its strong downtrend, after prices rose for the first week in eight weeks, broker Triland said in a note.

"In all likelihood, it will not reverse straight into an uptrend but will begin a period of consolidation.

It still faces headwinds from a strong dollar and ample nearby supply but it seems the worst is over for now," it said. LME nickel traded down 0.6 percent at $15,685 a tonne, after hitting its weakest in nearly 8 months at $14,690 last week.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Australia Mon, 03 Nov 2014 08:50:18 +0000
London copper drops as dollar rallies on Fed comments http://www.brecorder.com/markets/commodities/australia/202372-london-copper-drops-as-dollar-rallies-on-fed-comments.html http://www.brecorder.com/markets/commodities/australia/202372-london-copper-drops-as-dollar-rallies-on-fed-comments.html imageSYDNEY: London copper led other metals lower on Thursday after encouraging comments by U.S. monetary officials on the state of the world's top economy sparked a dollar rally.

The Federal Reserve on Wednesday ended its monthly bond purchase program and dropped a characterization of U.S. labour market slack as "significant" in a show of confidence in the economy's prospects.

A reduction in cheap liquidity weakens support for metals prices and a stronger dollar tends to weigh on commodities because, priced in dollars, they become more expensive for holders of other currencies.

Three-month copper on the London Metal Exchange slipped 0.6 percent to $6,773 a tonne by 0220 GMT, after ending slightly firmer in the previous session when it struck its loftiest level since Sept 19.

Copper is down some 7 percent for the year to date on concerns about slowing demand from top user China, which is grappling with falling property prices.

"Orders are quite soft, that hasn't changed," said analyst Judy Zhu at Standard Chartered in Shanghai.

"I wouldn't call it an improvement in October....nobody is reporting strong order books or strong equipment orders in the coming months," she said.

In China, two of China's biggest banks reported sharply higher bad loans for the third quarter on Wednesday, and one added that a credit crunch squeezing small companies in the country's export-oriented eastern provinces may be spreading westwards.

The most-traded January copper contract on the Shanghai Futures Exchange trimmed overnight gains to 0.2 percent at 47,680 yuan ($7,799) a tonne.

Higher world mine production has also capped copper's upside. China's copper smelters may be paid between 9 percent and 20 percent more in fees for processing raw material concentrate next year by global miners, executives at smelters as well as traders said.

But highlighting risks to copper supply, downgrades to mining production forecasts have begun to chip away at a surplus of 350,000 tonnes predicted for next year.

Global miner Southern Copper said that it was revising down its forecast for its copper output next year by 9.8 percent to 758,000 tonnes.

Although the Federal Reserve is tightening, looser policy may persist elsewhere. The European Central Bank will need to expand its balance sheet by around 1 trillion euros for a stimulus programme to be effective in boosting inflation, according to a Reuters poll, and it may be difficult to reach that target.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Australia Thu, 30 Oct 2014 05:55:11 +0000
BHP Billiton boosts Australian iron ore production http://www.brecorder.com/markets/commodities/australia/201007-bhp-billiton-boosts-australian-iron-ore-production.html http://www.brecorder.com/markets/commodities/australia/201007-bhp-billiton-boosts-australian-iron-ore-production.html imageSYDNEY: BHP Billiton Wednesday reported a rise in September quarter iron ore production as the mining giant vowed to continue reducing costs amid depressed prices from a global supply glut.

The world's biggest miner reported a 17 percent increase in iron ore production to 57.1 million tonnes in the three months to September compared to the previous year.

"Robust operating performance across our diversified portfolio in the September 2014 quarter delivered a 9.0 percent increase in production with records achieved for eight operations and four commodities," BHP chief executive Andrew Mackenzie said.

"With production guidance maintained across all operations and businesses, we remain on track to generate group production growth of 16 percent over the two years to the end of the 2015 financial year."

BHP said its Western Australian iron ore production guidance for the 2015 financial year remained unchanged at 245 million tonnes.

The miner reported a 25 percent rise in coking coal production to 12.8 million tonnes compared with the previous September quarter, while total petroleum output jumped by 7.0 percent to 67.4 million barrels of oil.

Copper production slipped by 3 percent to 389,400 tonnes as industrial action, a power outage in northern Chile and declining ore grades hurt output.

BHP vowed to maintain its "relentless focus on costs", as the firm said it no longer had any major iron ore projects in Western Australia in the pipeline.

"With our focus now on maximising the value of existing infrastructure, we plan to reduce costs and invest judiciously in very low capital cost debottlenecking initiatives," Mackenzie said.

He added that BHP planned to reduce unit costs for iron ore, a key ingredient in steel making, by at least 25 percent to less than US$20 per tonne.

Iron ore prices have slumped by 40 percent this year, hitting a five-year low amid the continued rise in output from mining giants such as BHP, Rio Tinto and Brazilian mining powerhouse Vale.

Copyright AFP (Agence France-Presse), 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Australia Wed, 22 Oct 2014 04:47:58 +0000