Daily FNArena News - Commodities

China’s unwillingness to commit to iron ore contract prices is creating uncertainty in the market.

In the next few years, a number of major global zinc mines will close due to ore depletion.

Barclays Capital notes oil demand is more sensitive to economic growth rates in Asia than in other regions.

Barclays Capital suggests a normalisation of the oil market balance requires higher prices to be achieved.

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.