Proactiveinvestors recommends

Additional Information

Market:	ASX 200
Sector:	Investments and Funds
EPIC:	XJO

1 year chart

1 day chart

Australia Market Wrap

A summary of all the major stories on the Australian Stock Exchange

Indaba delegates hear certain metals prices heading for the roof

Tuesday, February 09, 2010 by Metals Place

Speakers at the Mining Indaba 2010 in Cape Town this week seemed as one in warning of a near-term supply-demand squeeze and some solid price increases for a swathe of metals.

They made the point that China and India will be central to minerals demand growth. And among the so-called rare-earth metals that are crucial to many of today's high-tech products, China is the leading producer and is curbing exports unless they are already processed into manufactured products. As consultant Jack Lifton saw it, stronger demand has not (and cannot) lead to greater production.

Many of the metals that are needed for items such as solar panels, super-conductors and jet engines are produced as by-products of lead, zinc, copper, manganese or aluminium mining. There is no chance of increasing production of indium, gallium, germanium, rhenium, thorium and tellurium from primary mines.

It is not the same for copper, the metal showing the second-highest price increase over the past year – lead was first and zinc third. These are metals that better reflect the state of demand in the real economy.

Chinese demand is growing and, there are supply constraints. New mines cannot be brought on stream at the flick of a switch. Iron ore is in much the same boat. Price rises will be far more restrained than they were a year or two ago.

Metals Place

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.