Daily FNArena News - Commodities

The Chinese steel mills have finally agreed to the proposed 19% price hike for contract iron ore supplies this year. BHP Billiton posted the news on its website.

Chinese steel output continues growing at breakneck pace, meaning the outlook for iron ore producers remains buoyant.

Positive newsflow has likely caused a drop in longer NYMEX oil futures, but Barclays Capital expects prices to pick up soon.

Accepting another painful public defeat in this year’s annual iron ore contract negotiations doesn’t come easy for the Chinese steel mills. However, the quest for revenge has already begun.

Gold down 7%, silver down 13%, copper down 7%. Is it Armageddon? Or just the weak, “hot” money scrambling to get out at any cost?

The 30 month outlook for the US dollar is for further decline, Deutsche Bank suggests, as one would expect the gold price should move up accordingly.

Dennis Gartman believes the current price movements for gold are critical for the short term outlook.

Merrill Lynch expects a pull back in gold over the coming month or so to US$600-625/oz, but expects a price of US$750/oz by year end.

Have Chinese steel mills finally accepted a 19% price increase for iron ore? Contradictory statements are still coming out of China.

Market experts and investors are too bullish on global oil demand, Wells Fargo economist Swanson believes. He thinks the market is heading towards a genuine shock.