Commodity trends for 2012

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Yesterday P&C attended a luncheon that featured presentations by two junior resource companies and a talk by Joel Crane, commodities analyst at wealth management firm Morgan Stanley Smith Barney.

Crane discussed trends and forecasts into what 2012 might bring to the commodities industry. Among his top picks were commodities that China is ‘structurally short’ in, including iron ore, copper and gold. Crane also recommended exposure to coal and uranium, of which China is a marginal importer.

Commodities in which China is ‘structurally long’ included aluminium and alumina, which the country is self-sufficient in, as well as zinc, lead, nickel and rare earths.

A prevalent theme was that China is particularly short on energy sources, making uranium an interesting focus for 2012.

Uranium explorer Aura Energy will be hosting an investor roadshow next week in Melbourne and Sydney, giving interested parties the opportunity to find out more about the scoping study that was recently completed on the massive Häggån project in Sweden and its impact on the company.