Daily FNArena News - Commodities

The broker’s currency team is neutral on the USD, but the precious metals experts have increased their short term price forecasts.

Merrill Lynch is looking for a reversal in sentiment in steel and an easing of bearishness.

Now the correction appears to be behind us, National Bank expects base metal prices to remain firm for the near term, before peaking in the December quarter.

Steel industry consultant MEPS suggests stainless steel prices are likely to reflect nickel prices in coming months, so short-term rises and a weaker longer-term outlook are expected.

Several brokers have recently cut their alumina price forecasts, now Deutsche forecasts an onerous period of market adjustment.

If the conspiracy theorists are right – and they abound in the world of gold trading – then the price of gold should be much, much higher. Perhaps as high as US$2,000/oz.

Both National Bank and Credit Suisse have lifted their oil price forecasts as they note demand remains strong but increases to supply capacity remain limited.

Steel industry consultant MEPS suggests both sides of the steel market are struggling as the nickel price continues to impact on steel prices.

Steel markets globally are showing increased volatility, though analysts suggest it is too early to know if this signals a correction or is simply a seasonal blip in prices.

Nickel has been the outstanding performer in the metal complex of late, but UBS ponders whether copper might not make a comeback.