Daily FNArena News - Commodities

Analysts at Deutsche Bank expect the uranium spot price to strengthen during this quarter, which bodes well for both Paladin and ERA.

The price of uranium plumbed highs and lows in 2008 and while the outlook for 2009 is for stable prices, there are no safe bets in this market.

Recent US dollar strength is expected to fade and with scope for inflationary pressures to emerge later this year analysts see gold as a relatively good performer among commodities.

Steel prices collapsed in the last few months of 2008, but Westpac sees some positives for iron ore that could limit price falls to 30% or less this year.

While drilling activity is decling sharply, weaker economic data suggest lower demand for natural gas in the coming year.

Spot uranium fell in price during the week past as sellers felt they needed to offer some discount.

Fears that a fading Chinese economy would cause further harm to an already suffering base metals market are now panning out.

The latest update on global steel markets by industry researcher MEPS reads like a horror novel.

With no transactions recorded, the uranium spot price is unchanged from US$54/lb leading into Christmas.

Poor prices and tough credit conditions are causing mining companies to cutback spending and Barclays Capital notes this will create serious supply side issues once demand returns.