Daily FNArena News - Commodities

Chinese destocking is behind short term weakness in the copper price, UBS warns.

One of the proponents of the Commodities Super Cycle believes resources stocks are likely to become cheaper before bouncing back.

Chinese steel exports to Europe are surging and pressuring prices, with industry consultant MEPS suggesting prices could fall further.

Industry feedback suggests market fundamentals remain in stark favour of further price rises for U3O8. Last week saw the spot price advance again.

BHP has locked in lower TC/RC prices with Korean and Indian smelters, with no price participation, which may benchmark the level for Japan and China.

The IEA has painted what UBS describes as a “gloomy” energy future. The tone for oil prices is increasingly bullish.

Paladin management has dispelled concerns regarding its processing operation at Langer Heinrich. UBS gains confidence.

Industry consultant MEPS has released its forecasts for global steel production this year, the group expecting the strongest year-on-year increase for more than three decades.

Citigroup analyst Alan Heap has yet to catch uranium-itis. Has anyone else noticed Paladin’s market cap is rapidly approaching ERA’s?

Industry consultant MEPS sees steel prices drifting lower in coming months before recovering in 2007, a view shared by a number of stockbrokers.