COMMODITIES – PRICES

Supply cuts and firmer demand may lift prices

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Original article by Rose Powell
The Australian Financial Review – Page: 31 : 21-Oct-15

The iron ore price has fallen by 25.2 per cent so far in 2015 and 48.3 per cent in the last year. Oversupply has also prompted the price of Brent crude oil to fall by 15.05 per cent in 2015 and 47.1 per cent over the last 12 months. Julian Jessop of Capital Economics expects the crude oil price to rebound more quickly than iron ore. Meanwhile, HSBC forecasts that iron ore will continue to trade within a range of $US50 to $US60 per tonne for the next several years.

CORPORATES
CAPITAL ECONOMICS LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, MORGAN STANLEY AND COMPANY INCORPORATED, CITIGROUP PTY LTD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, ROY HILL IRON ORE PTY LTD

Citi tips weak recovery in resources for rest of year

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 35 : 24-Sep-15

Citigroup notes that market-traded commodities have delivered flat returns at best during the September 2015 quarter. The firm expects only a modest improvement in commodity prices in the fourth quarter, saying prices will be affected by factors such as the uncertain economic outlook in China and excess supply. Citigroup is also bearish about the outlook for the global economy, and now forecasts growth of 2.7 per cent in 2015 and 3.1 per cent in 2016.

CORPORATES
CITIGROUP INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

Australian dollar wobbles on new China volatility

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 20-Aug-15

The Australian dollar was trading at $US0.7333 in late trade on 18 August 2015. The Australian currency is under pressure because of weak commodity prices. Copper and aluminium prices have fallen to their lowest levels in six years. National Australia Bank global co-head of foreign exchange strategy Ray Attrill says the Australian dollar usually moves in the same direction as the currencies of Asia’s emerging economies.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UNITED STATES. FEDERAL RESERVE BOARD, SAXO CAPITAL MARKETS (AUSTRALIA) PTY LTD

Commodity rout to dog miners

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 22-Jul-15

BHP Billiton recently wrote down the value of its US shale assets by $US2.8bn. Analysts expect many resources groups to announce write-downs of key commodities during the next year, due to the sharp downturn in the prices of commodities such as iron ore, crude oil and coal. BHP, Rio Tinto, Glencore and Anglo American are tipped to report large declines in their underlying earnings as a result of bearish commodity markets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, ANGLO AMERICAN PLATINUM CORPORATION, UBS HOLDINGS PTY LTD, LIBERUM CAPITAL LIMITED

Timing off, but BHP split still on: investors

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 18-Dec-14

BHP Billiton’s Australian-listed shares have fallen by more than 30 per cent since the group revealed plans to spin off its non-core assets. The stock has been hit by the downturn in the prices of commodities on which BHP will focus if the demerger proceeds. Michelle Lopez of Aberdeen Asset Management expects the demerger to go ahead, adding that it would most likely require a sustained decline in commodity prices for the group to abandon the demerger

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED, ABERDEEN ASSET MANAGEMENT LIMITED, NIKKO ASSET MANAGEMENT GROUP, UBS HOLDINGS PTY LTD

Iron ore, coal tipped for gradual recovery

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Original article by Sarah-Jane Tasker
The Australian – Page: 16 : 4-Aug-14

Mark Pervan, global head of commodity strategy at ANZ Banking, says the recent rapid fall in the prices of coal and iron ore may have reached its nadir. However he also warns that the turnaround may occur at a slower pace than that seen during previous cycles. Similar sentiments have been voiced by Lakshmi Mittal, CEO of global steel producer ArcelorMittal. Pervan predicts the coal price per tonne to rise to between $US115 and $US120 by late 2014, and that of iron ore to almost $US100

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ARCELOR MITTAL SA, UNITED STATES. FEDERAL RESERVE BOARD