Daily FNArena News - Commodities

Iron ore is expected to firm a little then soften, rising coal supply is pressuring prices, while the falling AUD is helping domestic miners across the board, although there is little good news for gold.

Soft term weakness in iron ore may lead to opportunities later in the year, while the lower AUD is helping Aussie miners and maybe the de-rating cycle has ended.

The spot price slid a little last week and remained below US$40/lb as stubborn sellers are growing increasingly resistant to bargain hunting buyers.

Goldman Sachs sees iron ore pushing higher over the 2H, while Macquarie sees little upside for aluminium and UBS is predicting some supply side consolidation.

RBC Capital Markets and others expect a quick restart of Japan’s nuclear fleet which could signal the beginning of a new age for uranium.

Jonathan Barratt of Barratt’s Bulletin does not expect crude oil prices to hold these higher, geopolitically inspired levels.

A review of the global outlook for global mining capex, prospect for domestic iron ore play, the US scrap market and a post mining boom outlook.

Many in the uranium market were in Turkey last week talking up the increasing importance of the growing markets of Asia, but it didn’t help the price much.

Chinese growth remains key to BHP, the coal market is not shipshape and some fertiliser products are more resilient than others.

The mood inside China remains cautious, although analysts at ANZ expect solid steel output to provide some support for iron ore prices.