As we roll on into the new financial year, conflicting articles can be found as to what we should expect for the next 6 months in metal markets. Metal markets have drifted slightly lower since the start of trade this month, however the Australian Dollar has also done the same (currently trading around 1.02) so prices in Australian dollar terms remain steady.
**** Alcoa Still Believes in Second Half Rebound **** Since the minute the calendar flipped to 2012, metals and mining analysts (and many companies) have been forecasting that the second half of the year would be healthier than the first. Temporary headwinds abounded, the thinking went, from China’s slow start to the year to Europe’s debt drama. Nine days into the second half, Alcoa (AA) CEO Klaus Kleinfeld tells CNBC he expects things to get better, and the company holds the line on its 2012 demand-growth forecasts for most markets. The company increases its outlook for industrial turbines and automotive, but cuts commercial transportation. AA flat after hours.
**** Copper Traders See Glimmer of Hope in China Data **** NEW YORK–Copper futures took a shine to China’s inflation data, bucking a downward trend in equities, as investors hoped that slower inflation will free the government to pursue easier lending policies and new stimulus projects focused on low-cost housing.
**** Anglo American to Decide on Peru Copper Mine in October **** LIMA–The board of directors of Anglo American PLC (AAL.LN, AAUKY) plans to meet in October to vote on approving its $3 billion Quellaveco copper project in Peru, the company said Monday.
**** LME Members to Vote on Proposed Hong Kong Sale July 25 **** Shareholders in the London Metal Exchange will vote on the proposed sale of the 135-year-old exchange to Hong Kong Exchanges & Clearing Ltd. (0388.HK) on July 25, the LME said Monday.
**** Bank of America Merrill Lynch Cuts 2012 Metal Forecasts **** Bank of America Merrill Lynch on Monday cut its 2012 forecasts on a range of metals, citing headwinds posed to mined commodities by the apparent inaction of euro-zone and U.S. politicians in tackling fiscal issues.