Daily FNArena News - Commodities

The LME has been forced to act to prevent potentially major delivery defaults in the nickel market, such is the current shortage of the metal.

The WGC reports strong investment demand in the second quarter, while technical signals are strengthening and supply remains constrained.

Dennis Gartman has cut his gold exposure by half. Why would anyone who’s bullish on gold do such a thing?

Steel industry consultants MEPS estimates global steel production will increase 7.5% this year, the fifth year in a row where the increase has topped 5%.

While alumina demand from China is falling as its production increases, it continues to require significant imports of bauxite, which shapes as good news for companies in that market.

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.