Daily FNArena News - Commodities

Base metal prices have started the new year strongly but with continued concerns over global economic growth Barclays Capital doesn’t expect the trend to continue shorter-term.

Steel industry consultant MEPS anticipates continued strong global demand growth for steel in coming years, driven by Asia and emerging regions such as South America and the former USSR.

Canada’s BMO believes once the problem with debt and credit markets are left behind, resources will once again take off next year.

UxC has followed TradeTech and lowered its weekly price indicator for U3O8 to US$90 per pound.

Steel industry consultant MEPS has reviewed the outlook for steel production in coming years and sees China and the former USSR leading the way in lifting global output.

The latest forecast from ABARE suggests commodity earnings will grow by only 1% in FY08.

Surbiton Associates points out Australian gold production has been flat over the past year.

Ongoing tightness on the supply side is putting upward pressure on coal prices and analysts have reacted by lifting estimates for coming years.

The eighth annual LMBA Conference in Mumbai showed participants remain positive on the outlook for the gold price, with an average forecast of more than US$840 per ounce for September next year.

Industry consultant UxC joined colleague TradeTech by setting its weekly spot price indicator at US$93/lb this week.