Daily FNArena News - Commodities

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.

A survey by Barclays Capital at its Commodities Conference in the US shows professional investors remain committed to the sector.

Economists at the World Bank are dominating global headlines today. No surprise since they called the immediate end of the Commodities Super-cycle.

ANZ Bank expects coal prices to continue to weaken as oil prices move lower and demand stays weak.

Barclays Capital has been bullish on metals prices, but now it expect prices to weaken further into the early part of 2009.

Recent falls in commodity prices are matching the declines of the Great Depression, with the exception of copper.

November was a good month for uranium spot prices, which rose more than 20% and the demand picture remains solid.