Thursday, September 8, 2011

20110908 1559 Global Market & Commodities Related News.

Asia Stocks Swing Between Gain, Loss as Share Sales Temper Stimulus Hopes (Source: Bloomberg)
Asian stocks swung between gains and losses as job declines in Australia, share sale concerns and a report China may raise interest rates countered speculation the U.S. will do more to stimulate economic growth. Samsung Electronics Co., which counts America as its second-biggest market, rose 3.2 percent in Seoul. Commonwealth Bank of Australia slumped 0.6 percent in Sydney. Belle International Holdings Ltd., a Chinese retailer of women’s shoes, tumbled 8 percent after saying some staff may sell its shares. Industrial & Commercial Bank of China (1398) Ltd., the nation’s biggest lender by market value, fell 1.2 percent ahead of China’s inflation data tomorrow and after the Securities Times reported the country may raise rates.
The MSCI Asia Pacific Index climbed 0.1 percent to 121.84 at 4:23 p.m. in Tokyo, having swung between a gain of 0.9 percent and a loss of 0.2 percent. The gauge slumped 8.6 percent last month, the most since May 2010, amid concern global economic growth is slowing as Europe’s sovereign debt crisis spreads and after Standard & Poor’s cut the U.S. credit rating.

European Stocks Are Little Changed Before Obama Jobs Speech, Rate Meetings (Source: Bloomberg)
European stocks slipped, following the Stoxx Europe 600 Index’s biggest rally in three weeks, before the European Central Bank and the Bank of England hold interest-rate setting meetings. U.S. futures declined and Asian shares were little changed. The Stoxx 600 slid 0.5 percent to 227.72 at 8:37 a.m. in London. The gauge has tumbled 22 percent from this year’s high in February as concern grew that Europe’s debt crisis is harming the economic recovery. The decline cut the index’s valuation to 9.5 times estimated earnings, near the cheapest since March 2009, according to data compiled by Bloomberg. Futures on the Standard & Poor’s 500 Index expiring this month declined 0.6 percent. The MSCI Asia Pacific Index rose 0.1 percent.
Equities rallied around the world yesterday as investors speculated that President Obama will introduce a $300 billion plan to create more jobs in a speech to Congress today. Obama will propose a stimulus plan in the Republican-controlled House chamber as job growth stalls and the unemployment rate hovers above 9 percent.

Corn Seen Advancing on Speculation U.S. Production May Drop Below Estimate (Source: Bloomberg)
Corn futures in Chicago advanced on speculation that production in the U.S., the top producer and exporter, will be lower than estimated after dry conditions harmed crops. December-delivery corn gained as much as 0.5 percent to $7.515 a bushel on the Chicago Board of Trade before trading at $7.50 by 2:20 p.m. in Singapore. Futures extended gains to 19 percent this year after a 15 percent rise last month. U.S. corn production probably will be smaller than the government forecast last month after unusually warm, dry weather in July and August damaged Midwest crops, according to a survey of as many as 30 analysts by Bloomberg News. Informa Economics Inc. and Allendale Inc. also said this week that production of the nation’s largest crop will fall below the U.S. Department of Agriculture’s forecast in August.

Oil Trades at 5-Week High in New York as Gulf Storms Threaten U.S. Supply (Source: Bloomberg)
Oil traded near the highest close in more than a month in New York on speculation a storm building in the Gulf of Mexico poses a threat to supplies in the U.S., which were reduced last week by an earlier cyclone. Futures were little changed after the industry-funded American Petroleum Institute said inventories fell 2.97 million barrels. An Energy Department report today may show supplies dropped by 2 million as Tropical Storm Lee shut output, a Bloomberg News survey showed. Three weather systems are churning in the Atlantic basin after Nate formed yesterday. “The number of hurricanes in the Gulf and the east coast is a bit higher than usual, so that could push down production levels,” Tetsu Emori, a commodity fund manager at Astmax Co. in Tokyo, said by telephone today. “Inventory levels of oil and products in the U.S. aren’t getting much higher so the down side should be quite limited.”

EU to develop rare earth substitutes with US, Japan
BRUSSELS, Sept 7 (Reuters) - The European Union, United States and Japan will work together to find substitutes for coveted rare earth minerals whose exports China controls and has been cutting back, under an EU plan published on Wednesday.
Under the proposal, which centres on how the EU can secure reliable supplies of energy from outside the bloc, researchers from the three countries will coordinate their efforts to cut down their dependence on the Chinese minerals to make goods from catalytic converters to battery cells.

Top China antimony plant 2011 output flat or up slightly - parent
HONG KONG, Sept 7 (Reuters) - China's top antimony producer Hsikwangshan Twinkling Star Co will produce similar or higher output of antimony in 2011 from last year, a top executive at parent Hunan Nonferrous Metals Corp Ltd  said on Wednesday.
Executive Director and General Manager Li Li also said Hsikwangshan, based in Lengshuijiang, Hunan province, would maintain normal output and had no plan to halt production for environmental checks.

China probes some steel imports from Japan, Europe
BEIJING, Sept 8 (Reuters) - China has begun an anti-dumping investigation of some high-grade stainless steel seamless tubes imported from Japan and Europe, the Ministry of Commerce said on Thursday.
In an announcement on its website, the ministry said it would evaluate the impact of such imports on the Chinese stainless steel industry.  

Mexican steel output growth seen slowing in 2012
MONTERREY, Mexico, Sept 7 (Reuters) - Growth in Mexican steel production will probably ease to 3 percent in 2012 as a U.S. economic slowdown drags down the local economy, the country's iron and steel industry association said on Wednesday.
In 2011, the association, known as Canacero, expects steel output to grow by around 3.6 percent to some 17.3 million tonnes.

Steelmaker Aperam ready to talk to rivals
MUNICH, Sept 7 (Reuters) - Stainless steel maker Aperam , spun off by Arcelor Mittal this year, is open for consolidation talks with rivals in Europe, its chief financial officer told Reuters on Wednesday.
"There's some movement in the industry; the companies are spinning off their businesses," Julien Onillon said on the sidelines of a stainless steel conference sponsored by Metal Bulletin.

China nickel ore imports to slow in H2 vs H1 - Jinchuan exec
SHANGHAI, Sept 7 (Reuters) - China's nickel ore imports are expected to slow in the second half compared with the first, an executive at the country's top nickel producer Jinchuan Group told Reuters on Wednesday.
Wu Jun, vice president of Jinchuan Group Ltd, which is also China's third-largest copper producer, said the company expects to achieve its 2011 output targets of 130,000 tonnes of nickel and 500,000 tonnes of copper.

S.Korea says seeks 5,000 T aluminium ingot for Nov
SEOUL, Sept 8 (Reuters) - South Korea is seeking 5,000 tonnes of high-grade London Metal Exchange (LME) registered primary aluminium ingot via tenders to close at 2 p.m. (0500 GMT) on September 16, state-run Public Procurement Service said.
The procurement agency said on its website that it would buy the metal of western and non-western origin with 99.7 percent purity.

China probes some steel imports from Japan, Europe
BEIJING, Sept 8 (Reuters) - China has begun an anti-dumping investigation of some stainless steel tubes imported from Japan and Europe, the Ministry of Commerce said on Thursday.
In an announcement on its website, the ministry said it would evaluate the impact of such imports on the Chinese steel industry.

LME approves Erus as metals warehousing company
LONDON, Sept 7 (Reuters) - The London Metal Exchange said on Wednesday it has approved UK-based Erus Metals as a warehousing firm for metal traded on the exchange.  Investment bank Barclays and steel trading house Metalloyd will both be equal majority partners and Alec Gunn, who will act as the CEO, will take a smaller stake in the company.
Erus Metals Limited will be used by companies in the physical metals market, providing them with a fully-integrated trading and warehousing facility, it said in a statement.

Indonesia may impose tax or quota on ore exports
JAKARTA, Sept 7 (Reuters) - Indonesia may impose a tax or quota on mineral ore exports ahead of a planned regulation to ban all exports of raw minerals by 2014, the industry ministry said on Wednesday.
The industry ministry has proposed this as a transition before the export ban, in a move that could hurt nickel firms INCO  and Antam  and copper miners Freeport McMoRan Copper & Gold  and Newmont Corp .

Philippines says H1 metals output value up 31 pct y/y
MANILA, Sept 7 (Reuters) - The value of the Philippines' metallic mineral output in the first half of 2011 jumped 31 percent from a year earlier as miners ramped up production to take advantage of higher prices, a senior government official said on Wednesday.
With the first half output, the Southeast Asian country was on track to hit an estimated 24 percent rise in value of metallic mineral produce to 137.6 billion pesos ($3.3 billion) this year, the highest in at least four years.

METALS-Copper edges down, tracks fall in equities
SHANGHAI, Sept 8 (Reuters) - Copper prices edged down, tracking a downturn in Asian equities and the euro as worries about the euro zone debt crisis and faltering U.S. economy undermine confidence.
"I think there is a cautious optimism that Obama could announce greater plans to boost jobs. If he does, I think that could be positive for risk assets in general," said Phillip Futures analyst Ong Yiling.

PRECIOUS-Gold rebounds more than 1 pct after sell-off
SINGAPORE, Sept 8 (Reuters) - Gold prices rebounded more than 1 percent following a drop of 3 percent in the previous session, as sharply lower prices attracted bargain hunters, but improved risk appetite is likely to cap gains.
"Some investors, speculators and physical buyers have shown a lot of buying interest at current prices, as they are much lower compared to a few days ago," said a dealer at a Tokyo-based bullion house.

FOREX-Euro loses momentum, Aussie stung by jobs surprise
TOKYO, Sept 8 (Reuters) - The euro slipped in Asia and faces headwinds from suspicions that Europe's efforts to fix its debt crisis may not be fast enough to keep markets happy, while the Australian dollar was knocked by a surprise decline in the country's employment levels.
"If Trichet makes cautious remarks on bond buying, Italian and Spanish spreads could rise again and hurt investor sentiment," said Junya Tanase, chief strategist at JPMorgan Chase.

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