Daily FNArena News - Commodities

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.

Canada’s Cigar Lake has flooded, taking out 10% of planned world uranium production for at least a year. Get set for US$100/lb plus uranium prices.

Technical chartists at Barclays Capital believe the outlook for the spot price of gold is improving.

With tongue planted firmly in cheek, Stephen “Grizzly” Roach emerges from his den to berate investors who suddenly believe the commodity boom is back on.

GFMS Metals Consulting is forecasting India will export as much as 11 million tonnes of steel products by 2011 while enjoying significant cost advantages over Chinese producers.

Zinc stockpiles are dangerously low, and demand continues to grow from China’s galvanised steel industry.

Steel prices are settling lower in Japan due to Chinese export pressure, but a soft landing is on the cards and demand remains positive.

Rio Tinto’s Chief Executive Iron Ore left analysts at JP Morgan with the impression that iron ore prices will go up further as the market has commenced to pencil in.