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Aug 28, 2014

Major banks’ first-half commodity revenue climbs 21 pct

LONDON (Reuters) – Commodities revenue at the top 10 investment banks climbed by about a fifth in the first half of the year as a cold winter boosted business in U.S. power and gas and some investors returned to the sector, a consultancy said.

Revenue from commodities for the leading banks rose 21 percent to $3.3 billion in the first six months after falling by a similar percent last year, London-based financial industry analytics firm Coalition said in a report on Thursday.

Aug 20, 2014

Krom River keeps faith with commodities, bets on luring equity investors

LONDON, Aug 20 (Reuters) – Commodity hedge fund Krom River
is determined to stay the course in uncertain conditions despite
a hefty sectoral slide, hoping for fresh inflows from investors
fearing a retreat in equities.

Commodity funds have been pummelled in recent years as
pursuit of the asset class as an alternative investment lost its
allure, a sharp contrast to its boom when investors were keen to
ride a wave of infrastructure investment in China.

Aug 18, 2014

Copper rises, but China property downturn caps gains

LONDON, Aug 18 (Reuters) – London copper edged higher on
Monday as some investors regarded recent losses as overdone, but
gains were capped after new home prices in top metal consumer
China fell in July for the third month in a row.

Three-month copper on the London Metal Exchange was
up 0.1 percent at $6,877.50 a tonne by 1340 GMT, after shedding
over 4 percent so far this month.

Aug 1, 2014

Nickel stocks hit fresh peaks on fallout from Chinese port probe

LONDON/HONG KONG (Reuters) – Nickel inventories are hitting record highs as hidden stocks leave China following a fraud probe at Qingdao’s port, showing supplies are plentiful despite a halt to shipments from top exporter Indonesia.

Investors have bet on shortages developing after Jakarta in January banned unprocessed ore exports, spurring a price rally of 56 percent from the start of the year up to a May peak.

Jul 30, 2014

UK appeals court reserves judgment in LME warehousing case

LONDON, July 30 (Reuters) – A British appeals court declined
on Wednesday to make an immediate ruling in a case about the
London Metal Exchange’s (LME) effort to implement tough
warehousing rules to cut backlogs.

A three-judge panel “reserved judgment” on whether to
overturn or uphold an original March ruling in favour of Russian
aluminium company United Company Rusal.

Jul 29, 2014

LME, Rusal spar at appeal hearing over warehouse reform

LONDON, July 29 (Reuters) – The London Metal Exchange (LME)
and Russian aluminium giant Rusal sparred in court on
Tuesday as the LME sought to overturn a court ruling and allow
it to implement tough warehousing rules to cut backlogs.

The dispute is over whether the LME, the world’s oldest and
biggest market for industrial metals, should have to launch a
fresh consultation after a March court ruling labelled its
original process as “unfair and unlawful”.

Jul 28, 2014

Court appeal to move LME closer to cutting warehouse backlogs

LONDON, July 28 (Reuters) – The London Metal Exchange (LME)
is likely to move quickly to implement its tough warehousing
rules to cut backlogs if it is successful at an appeal hearing
this week, metals market sources said.

But even if it loses the appeal case against Russian
aluminium giant Rusal, the rules designed to speed up
deliveries of metal from depots in the LME’s global network are
likely to come into force by year’s end after another
consultation period, the sources said.

Jul 21, 2014

Zinc, aluminium hit multi-month highs, copper steady

LONDON, July 21 (Reuters) – Zinc and aluminium prices hit
their highest in more than a year on Monday as investors sought
exposure to commodities with improved fundamentals, but copper’s
gains were curbed by worries over China’s property sector and
over a build-up of stocks.

The gains were probably driven by CTAs (commodity trading
advisors), or managed futures funds, said analyst Andrey
Kryuchenkov at VTB Capital, referring to funds that often use
computer algorithms to track momentum.

Jul 21, 2014

Investors swap grains for metals as flows trickle to commodities

LONDON, July 21 (Reuters) – Investors are slowly being drawn
back into commodities, attracted by stronger global economic
growth and more volatility within sub-sectors, typified by
current investment flows out of grains into industrial metals.

The sector has been shunned in recent years, knocked by poor
returns during the financial crisis which saw commodities move
in step with other assets.

Jul 9, 2014

Hidden Chinese tin stocks, weak demand head off expected deficit

LONDON, July 9 (Reuters) – The export of hidden Chinese tin
stocks is likely to be behind a puzzling rise in London Metal
Exchange (LME) inventories that has frustrated investors who
expected to see shortages this year.

At the start of the year, tight supply-demand fundamentals
led to numerous forecasts that tin prices would rise.