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Archive for the ‘commodities’

Coal

February 21, 2008 By: Bolkie Category: commodities, stock market 1 Comment →

With oil prices touching $100 a barrel again and the ongoing drive to develop affordable alternative fuels, coal has reemerged as a major opportunity area in the energy sector. Coal futures, for instance, have soared 83% in the past six months.

Worldwide, coal is the largest source of electricity generation, accounting for over 40% of power supply.  Although coal is one of the dirtiest energy sources — emitting carbon dioxide, ash and sulfur — many companies and entrepreneurs are working on ways to make coal cleaner and more environmentally friendly.

The United States holds the world’s largest coal reserves.  Coal generates more than half of the energy produced here and is expected to remain a major energy source for several years to come.  The US uses more than 95% of its coal for energy generation, while the remaining amount is used in industrial production or exported. 

Thirty-eight states engage in mining practices with Wyoming, West Virginia, and Kentucky mining the most coal. One third of US coal is derived from the Central Appalachian region.

Coal Facts

  • The US industry exports coal to more than forty countries.
  • Coal accounts for over 95% of the United States’ fossil energy reserves.
  • Worldwide, the coal industry employs an estimated seven million people.
  • Coal is used to make coke, which is used in the steel making  process.

Top Producers

  • China
  • USA
  • Australia
  • India

Top Consumers

  • China
  • USA
  • India
  • Japan

About two-thirds of all coal is transported via railroads.

Main US indices higher on Wednesday

February 21, 2008 By: Bolkie Category: bonds, commodities, credit, forex, money, mortgage, stock market 2 Comments →

In New York the main shares indexes are closed Wednesday higher. After a lower startup as a result of inflation fear the market knew himself during the day to fix. Higher then expected quarter results of Hewlett-packard cared about optimism under the technology values and the petroleum related shares knew to profit from the persistent increase of the oil price.

The Dow Jones-index ended 0,7% higher 12,427.26 points. The wide S&p won 500 0,8% 1,360.03 points and the technology climbed heavy Nasdaq 0,9% 2,327.10 points.

The oil price finished in New York for the second day on file above the USD100. The price for a barrel scabrid petroleum for shipment in March lifted with 0,7% to USD 100.74, after previously still an interim record to have found on USD 101,32

The Fed in the protocol of the latest interest gathering prepared to are confirmed the interest further to reduce to support the economics, but warned there well that the upwards inflation can lead to hard-wearing interest increases in case the economics improves again.

The American Central Bank growth expectation reduced besides for 2008 and the inflation expectation adjusted up. The Fed provides now an economic growth with 1,3%-2, 0%, against an earlier expectation of 1,8%-2, 5%. The inflation, exclusive nourishment and energy, will result as expected this year 2,0%-2, 2%, compared to an earlier expectation of 1,7%-1, 9%.

Previously on the day was announced already that the American consumer prices in January on month grassroots with 0,4% are lifted, light above the expectation of economists, that expected an increase of 0,3%. The consumer prices exclusive food and energy - the so called core CPI - increased in January with 0,3%, as well 0,1 percentage point above the expectation of economists.

The ten-year-old wrote down American T-association 1/32 bearings on 102-23/32 in a return of 3,91%. The euro fell 0,1% with respect to the dollar to USD 1,4710.

The Dow knew 22 climbers and eight descendants. Hewlett-packard biggest climber with a profit was by far of 7,9% on higher then expected quarterly figures and good prospects. Rival IBM was with a plus of 2,7% the second biggest climber in the Dow. Telecommunication company AT&T was the biggest descendant with a loss of 4,3%. General motors followed with a nurse of 1,8%.

Kellogg closes 1,1% bearing. ‘S Worldly biggest producer of breakfast grains the expectation for a profit per share in an ordinal has of USD 2,92-2, 97 for 2008 repeated. Analysts will mediate from of a profit per share in 2008 of USD 2,99.

Also Pepsico reconfirmed the expectation for 2008 of a profit per share of at least USD 3, 72. Analysts reckon for 2008 on a profit per share of USD 3, 73. The soft drink manufacturer intends to purchase in 2008 for USD 4.3 billion on own shares. The share ended unaltered with USD 71,12.

Garmin finished 7,5% bearing. The rival of tom tom reported a higher then expected profit over the fourth quarter. Exclusive fragments resulted the profit per share on USD 1.31, whereas analysts USD had expected 1.11. For 2008 Garmin expects a sale of more than USD 4.5 billion and a profit of USD 4.40 per share.

Investing in Aluminum

February 20, 2008 By: Bolkie Category: commodities, forex, money, stock market No Comments →

Aluminum is a relative young metal, that just since the end of the 19de century on an efficient manner wanted to become produced.  This prevented not that aluminum in short time grew into it mostly used industrial metal in the world.  In 2005, the consumption amounted to about 32
million tons.  This is almost the double of buyer.  Aluminum knows sees to in large lines the same applications as a steel only over a number of extra trumps.  The metal becomes uses in armies with other metals and is a good geleider of electricity.  Furthermore is aluminum light and
also rust free.  Strictly we can taken consider aluminum not as a basis raw material for come the metal not in pure form in the nature for.  The production process begins by the winning of bauxite, an aluminum mineral.  After purification (raffinage) remains alumina or is melted aluminiumoxide over a little on its turn.  This last step furnishes the end product aluminum on.  A barrel of the end product to produce is approximately two tons of alumina and celebrate barrel bauxite necessarily. 

 

Applications

De weights saving in comparison with glass is the main drove of the success of aluminum in the packing’s sector.  There its numerous advantages connected at the raise of for instance
feeding and drink in aluminum packing’s.  The packing’s can against a push and protect at the same time the quality of the packed products.  The weights saving has also a secondary effect, namely that
the transport expenses less high go up.  Furthermore aluminum easily recycled become can what is again better for the environment.  These qualities make arranged aluminum also extremely as
construction material.  The applications in the building sector its unrestricted.  Think for instance of aluminum rams and doors only also roofs and other constructions which a low weight combined
serves to become with virtue.  Are the applications frequent also in the transport sector.  As more and more car producers make use of aluminum in their models.  At the continuous stricter safeties
prescriptions to satisfy, must be made the cars always more heavily.  In their fight against the overweight, the constructors use about that in increasing extent aluminum in the place of steel.
Until for shorten was this only in the higher market segment the case, but aluminum dives now also always often by the cheaper models on.  With name the wheels and the motor block become these days
many from aluminum made.  The airplane industry makes also eager use of the light and sturdy metal.  Aluminum and aluminum armies make about 80% of the weight of an airplane in  state
out.  Also in take on board, is a lot of aluminum trains and trams to find. 

Approximately 9% of the produced aluminum has electric applications.  Neat as a buyer becomes the metal uses in for instance
stream cable and underground electricity leaderships.  Because of the lower weight is the capacity of aluminum almost double as
large as that of buyer. 

 

Supply and demand

The world-wide question to aluminum grows all decennia steadily.  In 1950 became 2 million tons of aluminum consumes.  This figure walked in 1990 on until 15 million tons and in 2004 became for the first time the cape of 30 million tons
rounded off.  The growth in the question goes with other words always more fast.  From enclosed table falls off to lead that the aluminum market self since 2004 in a deficiency finds.  The question is with other words larger than the offer.  This situation will
remain last also in 2006 with a measured deficiency of 123000 tons.  Pace from 2008 will exceed the offer again the question, come out when the predictions at least.  Nevertheless serves to become from the existing supplies pen.  These Junes begin was found of
corresponds ‘06 on a level that to about 6 weeks consumption.  This is historical seen at the low side.  The strong growth in the question is for a large piece to thank at the industrialization of China and India.  Both countries its a large slokop of industrial
metal below which also aluminum.  Bauxite, the basis raw material, is won almost everywhere in the world, but the largest mines was found of in Australia, South-America, India and Africa.  The large smithereens that aluminum transform till aluminum stand also
over the globe spread.  The melting process is a whole energy-intensive trial by which enormous quantities electricity consumed become.  Recent arose then also a tendency the smelt to move to locations where electric stream yet payable is.  A smelter move
goes naturally not just.  This trial will take then also several years in possession.  Concretely more and more expensive smithereens in (Westerly) Europe and the United States are closed and moves order to for instance Brasil, ICELAND, the Caraïbisch and even
the Middle-East. 

Prospects

Alcoa, the largest aluminum producer in the world, against the year 2020 again a doubling of the question plays till almost 60 million tons.  On longer term, the future smiles at the aluminum producers then also.  But what the near future concerned, lies well a number of dangers on the lookout.  As the rising Chinese production of aluminum can and aluminum for downward
price pressure see to.  China is of the worldly largest aluminum producer with a share of about 25%.  Largest divide of this becomes by the country self consumed, but the last years is a part of the production also intended for the export.  Between 2001 and 2005, the annual production grew with at least 20%.  At this appears come to will an end because of problems with the stream
service in the fastest growing economy in the world.  The Chinese government has announced take already repeated to will checking measures.  This can among many through the levying of tax on the export of aluminum or through the reducing of loans at businesses from the sector.  At the overcapacity in China thus shortly an end can come.  Someone else danger comes self from the
high prices.  Users can decide according to the application to replace aluminum through for instance steel, synthetic material or glass.  This substitute-effect can see to on self for a drop of the question.  A world-wide delay of the economic growth forms possibly the largest risk for the aluminum price.  Less industrial activities see to namely automatically for a lower question
to basis metals.  After years of strong economic growth is it not ondenkbeeldig that China the coming years a growth delay will undergo.,.  On the other hand raise the low supplies the chance on a robust rise in prices when the consumption round some reason or other suddenly increases.  The expected grow can come out expect of the offer also layer then.  Technical problems, a lack
of material and schooled personal and stricter eco rules are factors that the growths can limit. 

Oil hits $100 again

February 20, 2008 By: Bolkie Category: commodities, money, stock market 1 Comment →

The price of a barrel rough oil has reaches today again a record height.  In New York must short 100.10 dollars (68 Euros) for a barrel are paid.  That is 0.01 dollars more than the previous record.  It goes then the Texan rough oil.  In a barrel has Rewarded oil reaches of the north sea kind Brent not yet the 100 dollars. 

The oil price ascended today with more than four per cent because of the general expectation that the OPEC, the organization of OPEC land, shortly the oil production will limit.  Furthermore there is unrest in the oil realm Nigeria and is the extreme cold in the North of America. 

The high oil price had negative consequences for the American purses, that after the whole day in plus to have stood, now in the mean ends. 

According to some, the production has oil reaches of the ceiling, but this has not been proved officially.  There even is spoken over the so-called ‘Peak Oil’ scenario.  Peak Oil is seen as the end of the first part of the oil era: that of cheap, abundantly available energy and an ever rising economic growth.  Only also this is only a theory about which men that of conspiracy theories hold gladly talk.  It not yet has been proved that the though so far is. 

The high oil price has consequences for the gas price.  Already a part in Europe is compensated also by the low dollar course.