Tag Archives: copper

>Mongolia plans to issue first sovereign bonds


>

The money has not yet come in, but the debt has already started…

Mineral-rich Mongolia plans to issue first sovereign bonds – FT.com

Mongolia plans to issue its first sovereign bonds this month, marking a milestone for capital markets in this resource-rich democracy.


The newly created Development Bank of Mongolia will issue $700m in sovereign bonds to fund lending programmesin areas that include infrastructure, industry, energy and roads. 

the issuance would take place in tranches beginning this month, with the first slice likely to be $100m.

The bond will be in tugrik, the Mongolian currency, which has appreciated by 1.6 per cent against the dollar since January.
investment in the mining sector has soared in the past two years along with global commodities prices.

Government revenues from the mining sector are set to jump next year as the Oyu Tolgoi copper and gold mine comes online, and politicians in Ulan Bator are looking for ways to manage the coming influx into state coffers.

The Development Bank is being set up with training from the Korean Development Bank and the Development Bank of Japan. 
yields on the bonds could be quite low, perhaps 6-8 per cent.


Mongolian sovereign debt has a B1 non-investment grade rating from Moody’s


Read the full article here: FT.com / Capital Markets – Mineral-rich Mongolia plans to issue first sovereign bonds

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JP Morgan confirms its dominant position in Copper


JP Morgan confirms its dominant position in Copper

Making the rounds this morning. Dominant position could be as high as 90% of LME Warehouse inventories!
JP Morgan confirms its dominant position in Copper
The head “raw materials” of JP Morgan acknowledged that his bank has invested $ 1.1 billion on stocks of copper on the London Metal Exchange
Copyright Reuters
Copyright Copyright Reuters Reuters

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      One speaker monopolizes the mysterious Copper LME
    
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      Handling, there’s nothing to see on the copper

Ian Henderson, chairman of JP Morgan Global Resources, has strong convictions about the copper market. He confirmed on Tuesday morning in a meeting for investors in Paris that “JP Morgan had bought more than half of stocks of copper on the London Metal Exchange to $ 1.1 billion. A dominant position which has fueled speculation on the red metal, since it makes the physical metal CCAEC more difficult. In total, the bank now owns about 122,222 tonnes of copper.

For two weeks the market questioned the idendity the holder of these stocks. According to figures published by the London Metal Exchange, a player had between 50 and 79% of reserves in the marketplace, which has warehouses all over the world. Among the potential holders of the metal, the BlackRock fund and ETF Securities, working in prevalence of Exchange Traded Funds on copper, had been cited. The name of JP Morgan also circulated. This is the first time that the bank recognizes.

The manager explained this decision by solid fundamental reasons. “We met there is little the leaders of Codelco, the largest copper producer in the world with 12% market share. They explained that their production would have to be halved in five years,” says the specialist, who has over thirty-five years of experience in commodities. With $ 70 billion of assets under management, JPMorgan Global Resources is the first strike force in the world for raw materials.

(BN) Copper Faces 2-Year Shortage, Peak Over $10,000, Trafigura Says


(BN) Copper Faces 2-Year Shortage, Peak Over $10,000, Trafigura Says
2010-12-07 09:29:56.282 GMT

By Claudia Carpenter
Dec. 7 (Bloomberg) — Copper supplies will lag demand for
at least the next two years, with prices peaking over $10,000 a
metric ton in the second quarter next year, according to
Trafigura Beheer BV, which considers itself the world’s second-
largest trader of industrial metals.
Copper will move from a balanced market this year to
shortages of 800,000 tons in both 2011 and 2012 at current
prices, Simon Collins, head of refined metals at Trafigura in
Lucerne, Switzerland, said in an interview yesterday. That’s
even before demand climbs as exchange-traded funds backed by the
metal are introduced, he said.
Such funds “will result in higher prices, which in turn
will affect price-sensitive demand and price-sensitive supply,”
Collins said. “Consumers are concerned about an ETF.
Inventories are already relatively low.”
Copper prices are up 21 percent this year, and reached a
record $8,973.50 a ton today, partly as manufacturers and other
buyers who anticipate shortages build inventories to meet demand
for next year, Collins said. Imports into China, the world’s
largest consumer, typically are strongest in the second quarter,
helping to boost copper prices and leading gains in lead, nickel
and aluminum, he said. Copper stockpiles tracked by the London
Metal Exchange have slid 30 percent this year.
In 2006, the copper market was also forecast to have a
large deficit when higher prices brought the market further into
balance than originally estimated, Collins said. If prices rise,
next year’s deficit may be only 400,000 tons, he said.
Copper Trading
Trafigura trades about 1 million tons of copper a year,
Collins said. Glencore International AG is the largest trader of
industrial metals, according to Trafigura estimates.
Trafigura is preparing for more metals demand by customers
and increasing its warehouse capabilities through its subsidiary
NEMS, with plans to expand in the U.S. next year for the first
time with storage facilities in Baltimore and New Orleans, as
well as in China, Collins said. He declined to give an estimate
of the investment.
Copper demand may rise if JPMorgan Chase & Co., BlackRock
Inc. and ETF Securities Ltd. start ETPs backed by the metal, in
line with plans announced by all three companies in October.

For Related News and Information:
Top commodities: CTOP <GO>
Top shipping: SHIP <GO>
Searches: NSE <GO>
Commodity curves: CCRV <GO>
–Editors: Dan Weeks, John Deane.
To contact the reporter on this story:
Claudia Carpenter in London at +44-20-7330-7304 or
ccarpenter2@bloomberg.net
To contact the editor responsible for this story:
Claudia Carpenter at +44-20-7330-7304 or
ccarpenter2@bloomberg.net

Copper Will Trade at $11,000 in a Year, Goldman Says – Bloomberg, October 5, 2010


We’ll see…
bloomberg      
October 5, 2010
Copper Will Trade at $11,000 in a Year, Goldman Says
Copper will trade at $11,000 a metric ton in a year, Goldman Sachs Group Inc. said as it raised price estimates because of swelling demand.
The forecast implies a 35 percent gain from the metal’s current price. The bank had predicted on Sept. 17 that copper would trade at $8,050 a ton in 12 months. Goldman today advised investors to buy the December 2011 contract as increasing demand leads to shortages of the metal.
Copper for three-month delivery traded on the London Metal Exchange jumped 23 percent in the third quarter, the most in a year, helped by falling stockpiles and a weaker dollar. LME inventories shrank by 17 percent in the period, and the U.S. Dollar Index, a six-currency gauge of the greenback’s strength, slid 8.5 percent, the most since 2002.
“Supply-demand deficits look set to grow on emerging- market strength and improving demand from developed economies, which we expect to significantly outpace supply growth, drawing down inventories and creating market shortages,” analysts including London-based Jeffrey Currie said in the report. “We don’t believe that the market is fully pricing these shortages and the potential for demand rationing that lies ahead in 2011.”
Zinc Prices
Three-month copper traded at $8,156 a ton at 1:38 p.m. on the LME. The December 2011 contract was at $8,025. Goldman Sachs raised its three-month forecast for the metal to $8,500 and increased its six-month estimate to $8,800.
Copper will average $9,300 a ton next year, the bank said, compared with about $7,215 so far in 2010. Electrical equipment and construction are the main sources of demand.
Goldman Sachs also raised its 12-month forecast for zinc to $3,000 a ton. The metal, used to rust-proof steel, will likely stay in surplus for now because of supply growth, though the market will be more balanced in the year ahead and “possibly swinging to times of deficit” next year, the bank said.
Zinc for three-month delivery was last at $2,288 a ton on the LME, reducing this year’s decline to 11 percent. The metal will average $2,575 in 2011, said Goldman Sachs, which on Sept. 17 predicted a 12-month price of $2,225.