Daily FNArena News - Commodities

Diversified miners are well placed on the swings and roundabouts of industrial commodities, while mineral sands are weak and coal is oversupplied.

Weak activity in the first half of 2014 confirms utilities are currently well covered by existing contracts and inventories, meaning no pressure to buy.

Chinese steel, cement, copper, aluminium and iron ore prices all look subdued. Iraq is a swing factor for oil while gold’s recent rally looks to be stalling.

Activity in the uranium term market has seen a pick-up but the spot market is showing little sign of life.

The spot uranium price continues to wallow as demand remains absent in the face of oversupply.

Aluminium in vehicles; picking nickel and gold stocks; copper looks oversold; iron ore risks.

Nickel deficit likely but no shortage of bauxite; iron ore and coal prices still under pressure; Rio Tinto dictates titanium dioxide.

To date global energy markets have priced in only a small premium for the situation in Iraq but longer term ramifications may have a significant impact.

Hopes of a floor being confirmed in the uranium spot price abated last week with another price fall.

Producers versus developers on ASX; Goldman’s key small ASX resources stocks; silver versus gold; Rio Tinto’s upside surprise potential; and more declines forecast for iron ore.