UBS Says Metals Commodities Could See High Prices Over the Next Several Quarters
Source: Mineweb (9/1/08)
UBS Research recently asserted that--although commodities markets are oversold and likely to remain volatile over the next month or so--"potential upside into 2009 is considerable" for their preferred commodities of thermal coal, uranium, gold, silver and platinum.
In their recent "Commodity Compass," UBS analyst Daniel Brebner, economist Jan Stuart, strategist John Read, and associate analyst James Luke suggested, "there is growing evidence to suggest that much of the concern regarding global consumption growth is now largely factored into current commodity prices levels that the supply issues which have been a key causal factor in pushing prices higher over the past several years are being ignored."
...The UBS team is positive about thermal coal and uranium markets. With thermal coal now trading at around US$162/t, UBS expects catalysts "to remain broadly supportive over the next several quarters" as both Vietnamese and Chinese coal exports fall and Indian imports "grow significantly."