Financial Daily from THE HINDU group of publications
Saturday, May 13, 2006
Financial Daily from THE HINDU group of publications Saturday, May 13, 2006 |
|
|
|
|
|
|
|
Agri-Biz & Commodities
-
Interview `Commodities surge: Fundamentals not fair'
Copper breached the $4 per pound mark for the first time in global markets, along with Nickel and Zinc, which are also at all-time highs. Commodity Strategist at Commonwealth Bank of Australia, Mr David Thurtell, says strong Asian demand and falling of the US dollar is causing the rise in these commodities. Excerpts from CNBC - TV18's exclusive interview with Mr David Thurtell: What has exactly been happening in commodities? There is a very strong Asian demand after the rise during last week. The dollar is falling which makes for a cheaper buy in some of these commodities. The other thing we are seeing is short covering by hedge funds that have been caught short. There are a number of factors driving these commodities. Where do you see the copper and aluminium prices going? Some analysts are now talking about $10,000 for a tonne of copper. I think no one knows how far it is going to go. I would say that it has gone way past fundamentals. The demand is unquestionably strong and supply is tight. I think fundamentals are unjustified at these levels. What we saw in the previous asset type bubble was that prices can go well past the fundamentals for an extended time. So it is impossible to say when it will end.
More Stories on : Interview | Metals | Commodities
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|