Commodity Watch – Look at London Metal Exchange (LME) 3 month forward steel (billet) prices putting a
Iron Ore (IO) has run from $86 per ton to $122 per ton with expectations that prices will hold at this elevated level. According senior resource analyst at Mine Life Pty in Sydney, Gavin Wendt told Bloomberg Network “Prices will stay about where they are now until 2013,”
China’s top securities regulators are speeding up the approval process for qualifying foreign institutional investors, clearing the way to invest in what is now the locally restricted China market.
The iron ore spot price has collapsed from $135 per ton to $111 per ton in just two weeks thanks to steel de-stocking, despite a broad-based commodities rally that began in July. Unlike copper (JJC, quote), iron ore can’t be stored and in an overcapacity situation, producers have to sell distressed stock.
With the world catching Olympics fever during the current London Olympiad, it’s a reminder that savvy investments in companies set to boom in the build-up of hosting a major global event can be very lucrative.
Thursday’s best web covers the Russian natural gas exporting monopoly, increases in steel production by Jindal, Apple’s launch of the new iPad in China, new rules for Indonesian banks, and trouble in Brazil’s FIDC market.
The euro zone appears to be claiming yet another victim – the steel industry. It should be no surprise the steel industry would be one of the first to suffer during a global slowdown, not to mention the crisis brewing in the euro zone.