Daily FNArena News - Commodities

What correction? The nickel price has now shot well over its May highs. The Chinese might be about to curb production but stocks are very tight.

In the second half last year, the nickel price suffered a 35% pullback following a Chinese stainless steel production cut. Well, they’re at it again.

Renewed interest in coal-to-oil conversion is expected to help keep thermal coal markets tight over the next few years.

The oil price has reached virgin territory, but there’s more to it than a bit of old Cold War posturing.

Industry feedback suggests iron ore prices will climb further in the next few years, as supply is not expected to be able to catch up with rising demand.

Barclays Capital suggests it not just a case of all systems go since the Fed allayed further tightening fears. Inflation may yet prove resilient.

Higher oil prices pushed inflation higher in the 1970s, but UBS suggests the world has changed and the inflationary impact now should be less severe.

ETF buyers had begun to return cautiously at the bottom of the gold correction, but once the Fed cleared the air the dam walls broke.

China is taking measures to limit domestic steel production. The world is expected to benefit from this.

The latest data from an international study group suggest copper will be in surplus in 2006, but Citigroup analysts believe the group has significantly miscounted Chinese stocks.