Daily FNArena News - Commodities

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.

The uranium spot price hasn’t changed over the past week. Expectations are that further rises will occur over the next few weeks.

Growing supply is an issue in the coal sector, with brokers revising down price forecasts leading into the new contract negotiating period.

Industry consultant MEPS suggests Asian steel prices should rise slightly in coming months but lower US and European prices will see global prices fall before a recovery in 2H07.

Analysts concur that weakened sentiment due to reports of increased domestic Chinese iron ore production is unfounded, and that the 2007 round of contract negotiations will again see price increases.

A report commissioned by Fortis Bank suggests that while gold supply will be lower in 2007, demand will be lower still.