Daily FNArena News - Commodities

Improving conditions in global steel markets are proving supportive for iron ore prices.

Steel industry consultant MEPS expects global steel output will be down around 12% this year, an outcome that would have earnings implications for the Australian companies in the sector.

Despite last week’s falls, analysts are maintaining higher oil price forecasts.

Analyst opinion is divided as to whether gold or silver offers the better exposure to precious metals as there are arguments for both.

Exchange-traded funds have been blamed for extreme volatility in energy and food prices.

Korea has indicated its intention to significantly increase its gold reserves as India joins the dollar-diversification drive.

Base metal prices are not supported by fundamentals, argues Foris, so any reduction in Chinese buying could generate a correction.

Demand remains fickle, but stainless steel producers have found they can raise prices without scaring away their customers.

After gaining for much of June uranium prices pulled back last week given weaker buyer interest at the higher price levels.

According to GaveKal Research, the risk for oil prices in coming months is to the downside as technical indicators are weakening.