Anglo says commodity prices stabilising, Rio sees Chinese steel rise in second half, De Beers sees diamond improvement signs

The prices of most commodities appear to have stabilised, says Anglo American CEO Cynthia Carroll. Read on page 5 of this edition of Mining Weekly of the copper price increasing by more than 50% off its December low, platinum going above $1 200/oz from its sub-$800/oz October lows, nickel going to $12 000/t and zinc to $1 455/t.

Anglo expects the economic recovery of the industrialised countries and the ongoing industrialisation of the major developing countries to drive long-term demand for commodities, stimulated by government spending programmes in many major economies, including the US and China. The company says that commodities supply is likely to be hit later by the lack of new projects coming through.

Rio Tinto sees Chinese demand for steel recovering in the second half of 2009. Rio CE Tom Albanese is keeping his global iron-ore guidance for 2009 at 200-million tons. He has also kept Rio’s iron-ore production in Q1 2009 at the level of Q4 2008. Also, Rio’s net debt position is stable and Anglo says it is able to manage sustainably with an ongoing net debt of $11-billion.

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