”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.
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.