Skip to main content

Copper Aluminum and Iron ore to push upwards 2010 to 2013 – commodity markets

''Over the next 15 years we expect consumption trends to lead to a doubling in demand for iron ore, aluminum and copper. We also expect substantial increased demand for energy. These trends will require a significant response from producers,'' Albanese said.

The shine is on on copper , iron ore and aluminum – Commodity markes

The Rio tinto media release said '”Let me put this in perspective. By 2030 the additional supply required will be equivalent to replicating the iron ore output of the Pilbara region of Australia every five years, adding another aluminium production complex the size of Canada's Saguenay every nine months, and developing another copper mine the size of Escondida in Chile each year. Future energy requirements are such that an entire Hunter Valley coal supply chain needs to be created each year plus a uranium mine the size of Ranger every four years.'' It is staggering stuff.
The price of copper was just $2.33/lb last year but now is being forecast to rise to $3.31, according to a revised consensus by analysts.company news image
The metals and mining sector  and commodity markets is presenting opportunity this year, and analysts are eyeing this positive trend for investors in shares and exchange traded funds (ETFs). There is big-time potential of the group's Mumbwa iron oxide copper-gold (IOCG) exploration joint venture in Zambia with BHP Billiton. BHP is earning a 60 per cent interest in the ground by operating and funding an exploration program that has just kicked off.
Other industrial metals also are expected to increase in price: Aluminium now is projected to average 97¢/lb this year, up from 75¢ in 2009; zinc is projected at $1.03/lb, up from 75¢; lead is seen at $1.04/lb, up from 78¢; nickel is forecast at $8.82., as compared with $6.64 in 2009, and tin is seen at $7.40/lb, up from $6.15 last year.
An analyst with HSBC recently noted what he sees are the top opportunities in the metals and mining sector and commodity markets. The Wall Street Transcript says that the places to go this year will likely be bulk commodities, such as iron ore,  thermal coal and metallurgical. Copper and Aluminum is also a favorite to push upwards.

Crude Oil outlook – commodity markets

After rallying andsurging  to a 2-week high at 75.72, crude oil price retreated more than -$1/bbl as US consumer confidence missed market expectations. The front-month WTI contract ended settled at 73.97, down -0.78%, on Friday. On weekly basis, the contract surged +5.61%, halting the severe selloff since May 3. In May, WTI futures slumped -14.1%.
Crude oil and product prices surged as OECD revised up its economic forecasts for 2010 and 2011 and commodity markets. Rallies accelerated after release of the oil inventory report although the set of data was not exceptionally bullish. Indeed, recent price movements have been driven by macroeconomic and political issues, rather than fundamentals in the oil market.

Links:
Free Australian Finance Blogs with hosting 

Popular posts from this blog

Best Australian stock forums online ( finance forums)

Many traders and investors use forums to share ideas, learn from the more experienced, or simply to stave off boredom during long hours at the computer. Here we list the known universe of forums, complete with costs, member numbers, extra benefits and popular forum topics. Please post a message on Your 2 Cents if your favourite forum isn't listed here, or if you feel that there's more to add about the day-to-day goings on in your online community.Forum
Cost
Stock comps
Forum areas
Comments
AussieStockForums.comFreeASX by share code, General, Beginners, Derivatives, Commodities, International, Strategies/SystemsEasy to use, independent forum. Aussie Stock Forums has a group of very active and knowledgeable traders. Private messaging available. Australian forum.
Chimes in ExileFreeASX stocks, fundamental analysis, technical analysis, commodities, economics, investment tools The forum has a small group of regular contributors that form a genuine community of investor…

The diggers and dealers forum meet 2011

The diggers and dealers forum has just begun August 1. Its a three day annual event happening every year  at the WA country town of kalgoorlie.2011 Diggers & Dealers forumBig name brokers  keenly watching the event will be MacquarieDeutsche BankBell PotterGoldman SachsRBS MorgansEvans & PartnersHartleysBlack Swan Euroz.Well most other websites will give you the  finer details of the annual meet and greet that happens at kalgoorlie , so we will just stick with the bare minimum of details  and focus on the more enjoyable bits  of information that the dealers require to strike a good deal while in town.Bare detailsWebsite : Diggers & DealersEvents : Program and scheduleWatering holes and entertainment at Diggers and dealers forumPubs , clubs  and skimpy (barmaids) culture in kalgoorlie . There are about 25 pubs in Kalgoorlie-Boulder area and for a city that stretches just 67sq km the number of pubs makes for  a good choice on drinking holesand entertainmentExchange Hotel ( Pa…

Stock market and High frequency trading

High frequency and computerised trading androgue trading is again  in the news with  trader Mr Adoboli working for UBS  who was arrested at his desk, is alleged to have lost £1.3 billion through his rogue trades  according to the company , now also annoucing that they might go into a loss in this quarter. According to some reports in the media it was said that Mr Adoboli Himself had reported the  trade when the trade went bad before the computers picked up the loss.
Not so long ago in 2008 Jérôme Kerviel, the Paris-based Société Générale trader lost £4 billion in rogue trades, but fought it out in court contesting that the trading firm knew about his trades with large amounts.

High frequency computerised trading in Australia HFT drives the wild swings in global markets and in co-relation influences the local assets, the intensity is expected to rise with online exchange Chi-X to  begin operating in Australia soon with a limited number of stocks in November. The ASX will launch its Pur…