Last Updated : 07 February 2013 at 02:20 IST
Price gains in base metals for 2013 limited by higher inventory, excess capacity: Natixis
Source :Commodity Online/Natixis
Potential downside risks exist for base metals with respect to China growth, US economic recovery and even though the worse may be over the for Europe’s fiscal crisis, Natixis said.
- Precious, base metals, Crude Oil may trade negative on weak global sentiments
- Taking cues from decline in spot gold prices coupled with weak global market sentiments, Spot silver prices decreased by 0.53 percent today. However, favourable economic data from Germany along with weakness in DX cushioned sharp fall in the prices.
- read more
The USDA forecasts 2013/14 Canada rapeseed production at 14.5 million tons, up 9 percent from las..
By Col. Ajay
As per financial astrology, transit OD Sun in Saturn house is ..
LONDON (Commodity Online): The price gains in base metals complex may be limited by higher inventories and excess capacity in 2013 coming close on the heels of a disappointing market in 2012, according to Natixis.
“In particular, the disappointing pace of growth last year led to a rise in stockpiles of most base metals, which may limit potential price gains in 2013. Our optimism regarding growth across the developing world suggests that base metal prices can rise this year, even if this price appreciation is likely to be limited by high inventories and excess capacity for many metals.”
Potential downside risks exist with respect to China growth, US economic recovery and even though the worse may be over the for Europe’s fiscal crisis, Natixis said.
“Amid the chaos in Europe over the past three years, we may have become too complacent about the economic and political risks in developing countries. Across the developing world, debt issuance has expanded rapidly in recent years as investors have sought alternatives to low-yield/high-risk debt from European countries. As these bonds mature in coming years, there is substantial scope for disappointment among investors who were seeking yield enhancement through diversification into these new markets.”
Natixis forecast for metals for 2013-14
Aluminium: 2013: $2125/ton; 2014: 2,250 per ton
Copper : 2013: $8500/ton; 2014: $7500/ton
Lead: 2013:$2575/ton, 2015: 2725 per ton
Nickel: 2013: $18750 per ton, 2014: 19500/ton
Zinc: 2013: $2150/ton, 2014: $2200/ton
- MCX Lead, Nickel negative; support 111.9, 823 and 810
- LME launches Asian helpdesk in Hong Kong
- MCX Copper negative; investors await data releases
- China April Platinum imports strong at 294koz, up by 32% y/y: Barclays
- Copper slips on China mfg data, await German PMI, US job data
- Copper gets a punch in the belly as China PMI shrinks