Daily FNArena News - Commodities

Expert projections for spot uranium beyond 2007 vary a lot, but everybody seems to agree that things can get a lot hotter in the short term.

Not every expert is equally convinced investing in nickel and copper stocks now is a good idea. But all of them seem to like bulk commodities, and gold.

Following on from the first shortfall in European central bank gold selling in 2006, 2007 has begun even further behind the norm.

Steel prices in Asia are up 5-30% so far this year and Citigroup sees a further 10% upside in coming months thanks to solid demand and tight markets.

Just when it looked like gold would finally break through US$700/oz once more, along came the great risk scare. But there was more to it than that.

Strengthening demand and potential supply side disruptions support the view of the Commonwealth Bank and Barclays Capital the oil price has further to run.

Molybdenum gains when steel markets are strong so its fundamentals look solid this year, though China is the swing factor in terms of the supply-demand balance.

Both India and South Africa are clamping down on chromite exports to China, which could well lead to a chromium price jump.

Is silver’s outperformance versus gold about to come to an end? Barclays Capital is bullish on palladium, and on gold, but not so on silver.

Industry consultant MEPS points out higher nickel prices mean higher alloy surcharges and with oversupply emerging stainless steel prices appear headed lower in both North America and Europe.