Nickel price rises, while Iron Ore price stable – Commodities Round Up

Oil slides despite US supply concerns

Crude Oil: -2.63% to US$47.10

The resurgence of oil has been on our radar all week here at Markets & Money. Shae Russell has been covering the developments extensively, as the supply glut may be coming to an end.

Another colleague, Greg Canavan, believes oil could be set to lead a charge in commodities into next year.

In fact, US oil supply is in the firing line at the moment. The Gulf Coast of Texas, home to some of the biggest refineries in the world, is in jeopardy. Hurricane Harvey has brought work to a standstill.

What might come as a surprise, though, is that the oil price actually lowered, despite supply concerns. It appears investors are still cautious as to whether the glut is actually over.

We definitely think this is one commodity to watch moving towards 2018.

Nickel reaches new heights

Nickel: +1.63% to US$11,433.50

Nickel has continued its climb, reaching its highest price since December 2016.

Senior nickel analyst Xia Peng comments,

Unexpectedly better consumption of nickel in the stainless steel and battery sectors in the third quarter is the key driving force in the nickel price rally.’

These are sentiments that even our own resource analyst, Jason Stevenson, has discussed at length.

The current trajectory is certainly looking positive. We’re hopeful it could mean some tidy profits for local suppliers.

Iron ore stable

Iron ore: +0.23% to US$74.99

The price fluctuations of iron ore have been nothing short of turbulent this year. The price crashed in June and has slowly been recovering since.

The price has steadied this week, but long term most speculators believe it will continue to trend higher.

Copper continues its climb

Copper: +1.9% to US$6,688

Copper has closed in on a three-year high, with prices up almost 20% for the year.

It’s largely thanks to supply disruptions and strong demand from China.

There are also rumblings that China will ditch imports of scrap copper by the end of next year. Meanwhile, BHP, which released its results on Tuesday, has flagged scrap copper as crucial for the copper market.

Turning to the outlook, we expect the copper market to be roughly balanced through to the end of the decade, with solid demand growth met by existing and committed supply. A key uncertainty is the balance between primary mine supply and scrap that will meet the solid growth in demand that we project in the next few years.

Gold awaits Fed decision

Gold: -0.25% to US$1,286.50

Despite Trump’s threat to shut down the US government if his US-Mexico border wall doesn’t go ahead, the gold price is still down slightly.

Investors are awaiting news on interest rates from the nation’s central bankers. Tai Wong, director of base and precious metals trading for BMO Capital Markets, comments,

Gold traders were ambivalent today keeping the metal in a tight range with the market hoping that the dashing duo of Draghi and Yellen can dazzle tomorrow at Jackson Hole and provide fresh inspiration.

Poeticism aside, gold traders — and most investors for that matter — will be closely watching the Fed’s decision tomorrow.

Regards,

Ryan Clarkson-Ledward,
Junior Analyst, Markets & Money


Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


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