LONDON (Reuters) – The combined impact of stronger output and a sharper-than-expected slowdown in China has sent market surpluses in copper and aluminum ballooning this year, a quarterly Reuters poll showed.
Prices of the two most-traded industrial metals, however, may have limited downside, according to the poll results.
LONDON, July 21 (Reuters) – Copper’s production costs have
fallen in the wake of lower oil prices and weaker local
currencies, which means most miners will continue to pump out
metal despite a recent slide in prices.
Benchmark copper on the London Metal Exchange
tumbled nearly a fifth between early May and earlier this month
when it touched the lowest in six years at $5,240 a tonne.
LONDON (Reuters) – Mining group Anglo American has warned of a second multi-billion dollar writedown this year on its coal and iron ore assets, demonstrating the growing impact of sliding commodity prices.
The charge of between $3 billion and $4 billion flagged on Thursday, to be taken in its first-half results, comes on top of a $3.9 billion writedown Anglo took for similar reasons in February, when it also posted a 25 percent drop in underlying operating profit for 2014.
LONDON, July 16 (Reuters) – Copper rose on Thursday after
Greek lawmakers passed a tough bailout programme and the Chinese
stock market stabilised, but gains were capped by a stronger
dollar and continued concern about global growth.
While the Greek parliament approved austerity measures
demanded by its creditors, Germany’s finance minister questioned
whether Athens would ever get a third bailout.
LONDON, July 16 (Reuters) – Global mining company Anglo
American expects to take a writeoff of between $3
billion and $4 billion in its first-half results because of the
slide in prices for iron ore and coal, it said on Thursday.
This comes on top of a $3.9 billion writedown Anglo took in
February, also due to the rout on commodity markets, when it
also posted a 25 percent drop in underlying operating profit for
LONDON, July 9 (Reuters) – Copper prices rebounded further
on Thursday from a six-year low hit in the previous session, as
Beijing managed to halt panic selling in Chinese equities,
though underlying worries about China’s growth persisted.
Beijing’s increasingly frantic attempts to stem a stock
market rout were finally rewarded as Chinese shares bounced
around 6 percent, but sentiment towards copper remained
LONDON (Reuters) – An expected bounce in hard-hit rare earth prices later this year will be vulnerable to a glut of supplies, including from illicit mines and smuggling in dominant producer China.
The outlook will weigh on miners such as Molycorp Inc, the only U.S. supplier of rare earths, which filed for Chapter 11 bankruptcy last month after reporting a loss for the 13th straight quarter in May.
LONDON (Reuters) – Investors in industrial metals will keep a close watch on miners’ results in coming weeks for possible announcements of production cutbacks that could bolster weak prices.
“What will be very important over the next few weeks is whether we start to see some supply responses emerging during the corporate results period,” said Nicholas Snowdon, metals analyst at Standard Chartered in London.
LONDON, July 1 (Reuters) – Most base metals rebounded on
Wednesday on brighter prospects for a Greek bailout deal and
after solid U.S. economic data that spurred hopes for stronger
Many investors scrambled to close out short positions after
profiting from sharp falls over the past two days when some
metals hit multi-year lows.
LONDON (Reuters) – Shrinking tin stocks, dwindling supplies from Myanmar and new Indonesian rules to curb exports are at last creating conditions for bulls who for some time have expected to see higher prices.
But the optimism is tinged with caution as much depends on whether top exporter Indonesia can limit its shipments abroad, something it has failed to do in recent months.