Daily FNArena News - Commodities

Barclays Capital notes copper scrap supplies are falling and it expects this trend to limit the global surplus of the metal this year.

Worsening fundamentals have pushed down aluminium prices.

Barclays Capital notes it has been growing demand for power that has driven growth in the natural gas market in recent years. Despite current weakness this trend should continue.

Recent data out of China suggest improving demand in the steel sector but Barclays and steel industry consultant MEPS suggest it remains too early to be optimistic on prices.

According to Barclays Capital sentiment in the natural gas market remains poor as the economic outlook continues to deteriorate but as this improves so should the gas market.

Spot uranium has tumbled below US$50/lb again.

The uranium market featured little activity for the third week in a row.

Uranium prices eased this week, but developments in India paint a brighter picture for emerging demand.

According to Barclays Capital, worsening economic fundamentals and increasing supply suggest little scope for shorter-term gains in commodity prices.

Index rebalancing has temporarily distorted the picture, but copper prices should have no other way to go but down.