Goldman Sachs, JP Morgan, Deutsche Bank, and BlackRock are leading investors behind new Copper ETFs that would trade on leading stock exchanges like NYSE, while investors derive prices from LME copper index and comex copper futures.

There are already a few Copper ETFs listed across exchanges in the USA, like:

• First Trust ISE Global Copper (NASDAQ: CU)
• Global X Copper Miners ETF (NYSEArca: COPX)
• iPath DJ-UBS Copper (NYSEArca: JJC)

Several ETFs backed by physical copper are hitting the global markets these days. Copper-backed ETFs have turned out to be the big commodities news recently as many analysts have predicted that they would become bigger than Gold ETFs (the biggest ETFs in the world currently).

JPMorgan Chase recently traded $1.5 billion in copper on the London Mercantile Exchange (LME). JPMorgan has filed an application with the US SEC for a physically backed Copper ETF which, if fully taken up, would result in a holding of 61,800 tonnes of copper metal stored in the bank’s Henry Bath warehouses. JP Morgan’s ownership of Henry Bath warehouses was viewed as a key element in the launch of its fund as the cost for storing copper would be low.

BlackRock also wants to launch a physically backed Copper ETF. It plans to issue up to 12,120,000 shares. The metal will be stored in London Metal Exchange-registered warehouses owned by Metro International Trade Services LLC. BlackRock’s initial unit of the iShares Copper Trust Fund will consist of 2,500 shares, called a basket, backed by 25 tonnes of copper. One share would equal 10 kilos of copper (22.0462 lbs) but Black Rock intends that only “baskets” are tradable.

Our focus has been to look at businesses that are net exporters to the world, and have solid assets that will appreciate with time, even if the current economic weakness drags on for 1-2 years more. For some reason, many people in the UK automatically associate investment opportunities with property investments in the UK, but it does not have be like that because by investing in UK property, you are missing out on the growth happening in emerging economies like Brazil, Russia, India and China.

Many UK companies have business interests in these growth economies, and you must profit from them. Given the QE2 and overall positive liquidity in the global capital system, we believe natural resources are present a strong investment opportunity for anyone with 4 to 5 year timeframe.

Within the UK, Internet services, financial services, renewable energy, and pharma/biotech industries also present great investment opportunties that could give 25-50% return on investment in 2011-2012 timeframe. If you are interested to know more, please contact us .

We generate business leads by placing ads (text and/or image) on our website network, and by having a custom page for each campaign, which is used to share initial information and collect the contact info/inquiry from the interest person/lead.

We have lead generation experience in the following industries:

• Financial Services
• Insurance
• Health Care
• Real Estate
• Software Services
• Business Opportunities
• Self Development/Coaching

The cost for each campaign has two parts: (a) One time set up fee, and (b) quarterly/annual maintenance fee, which is a fraction of (a) to allow for updates to information from the client.

In each case, we will mutually agree on a fixed fee per lead, which varies significantly by the industry. Please contact us to for any questions and to get started.

SMX is the first pan-Asian multi-product commodity and currency derivatives exchange. The Monetary Authority of Singapore (MAS) granted ‘Approved Exchange’ status to SMX to operate out of Singapore as a regulated and licensed exchange, a company release said here. SMX has announced four products, which will be traded when the exchange goes live:

• Gold futures contract with physical delivery
• West Texas Intermediate (WTI) Crude Oil
• Brent-Euro Crude Oil and
• Euro-US Dollar futures contracts

“SMX will create a new generation international commodity and derivative trading platform at par with best global exchanges in New York and London,” Financial Technologies Group CEO and SMX’s Vice Chairman, Jignesh Shah said. SMX is a wholly-owned subsidiary of Financial Technologies Group.

Earlier in 2010, RIL had bought a 40 per cent stake in Atlas Energy Inc’s Marcellus Shale acreage for $1.7 billion. Then in June 2010, it had agreed to buy a 45 per cent stake in Pioneer Natural Resources Co’s Eagle Ford shale natural gas asset in Texas for about $1.36 billion.

Reliance would have a net share of 62,600 acres of Carrizo’s shale acreage, smaller than the 137,000 acres in the Atlas venture and 118,000 acres in Pioneer’s assets. The resource potential in the Carrizo areas is a gross 3.4 trillion cubic feet of gas compared with 10 trillion cubic feet in the Pioneer areas. Reliance said its “subsidiary, Reliance Marcellus II, Llc, has signed definitive transaction agreements to enter into a Marcellus Shale joint venture with US-based Carrizo.”

Under the proposed transaction, Reliance will acquire a 60 per cent interest in Marcellus Shale acreage in Central and Northeast Pennsylvania that is currently held in a 50:50 joint venture between Carrizo and ACP II Marcellus LLC, an affiliate of Avista Capital Partners.

“Pursuant to the transaction, Reliance will acquire 100 per cent of Avista’s interest and 20 per cent of Carrizo’s interests in the joint venture,” it said. “Upon completion of the transaction, Reliance and Carrizo will own 60 per cent and 40 per cent interests respectively.”

The Marcellus Shale is a giant rock formation underlying Pennsylvania, New York and other states. Shale has long been known to contain natural gas, but this was not worth extracting with conventional technology. But now, shale gas is turning has become one of the most active M&A areas in the energy industry with several multi-billion dollar deals in the last 12 months. Industry Analysts feel this trend is being driven by the technical advances that enable more efficient shale natural gas extraction.

Also, its worth noting here that Natural Gas is today at the lower end of its multi-year commodity cycle, and it won’t remain there forever (that’s the beauty of commodity cycles). Companies buying shale gas resources today are making solid investments that can give 100% ROI in 3-5 years. Overall, we can be confident that there will be sufficient natural gas supply once its prices move up, to make it attractive for the natural gas exploration companies.

The iron ore prices are very likely to double this year with the new Quarterly Pricing System, which will provide more price volatility due to the spot price market. Very interesting update from March 30th is that there is now an agreement between the top iron ore miners like Vale of Brazil and BHP Billiton of Australia and Japanese and Chinese steel companies that the 40-year old iron ore benchmark system which meant that prices will be done once a year has now been done away with and from now onwards iron ore prices will be decided on a quarterly basis, and that’ the starting of iron ore spot price market.

For those who are not aware, iron ore is the second largest traded commodity in volume terms after oil.So it’s a very large market but without its own index as of now and we believe that this decision is a very major step for a very strong rise in the iron ore prices in the coming quarters and also coming years because a spot price means that the market is going to mature and that the iron ore miners will have much better negotiation power ongoing from now onwards.

What it also means is that along with increasing iron ore prices we will also have increasing steel prices this year because iron ore is the main component for steel manufacturing and just like we are seeing 80 to 100% revision in iron ore prices we could 50 to 60% rise in steel prices in the next year or two. That will have cascading effect in terms of pricing in construction, automobiles and other steel import industries.

So overall the iron ore price increases are going to push up steel price for sure. And this is a major development for manufacturing industry worldwide and we think that their input costs could move up 10-20% depending on how much steel they use. The net beneficiaries of this entire price increase will be the iron ore miners. It is estimated that the just top three miners alone will boost their net profits by about $5 billion this year. So this is a major development in the global steel industry and iron ore miners in different countries are likely to profit as well.

In 2006 the prices did go as high as US $500 but they came back by the end of the year and the prices were in a range throughout the duration of 2007, 2008 and early 2009, and then the tremendous price rally happened in sugar prices where prices went as high as US $720-725 which was almost double the starting price in the year in 2009.

So that was a major rally in sugar that we saw and what we have seen within the first three months of 2010, from January to end of March, is a severe correction in the prices.

Prices are now back below US $500.00 at around US $480-490.00 and based on the chart it appears that the correction is not complete yet and that we could see the sugar prices go even below US $400.00 looking at the five-year charts and also the three-year and one-year charts.

So in that sense we think that it is better to be very cautious in the sugar stocks and sugar futures currently and the position would either be a short position still, or best would be to remain in the cash and not take any call till a stable pattern appears which could take another few weeks from now and once the price stabilizes at a certain level then that is the price at which we should enter the sugar futures or sugar stocks.

At this point looking at the chart it doesn’t give any confidence that the prices are stabilizing. The selloff has been very intense looking at the chart and the volumes have been very high in the selloff and therefore we think that right price probably to enter the sugar stocks and sugar futures for a buying or a call will be around US $400 which is still a good 20% down from where we are currently.

The short term iron ire pricing contracts would be linked to the iron ore spot price, which would see iron ore prices more than double from the present $US 60 per ton top $US 130 per ton or more.

The Financial Times London reported unknown company executives as confirming the move away from annual pricing agreements. If the new system evolves, it will in fact mirror the quarterly pricing arrangement BHP won earlier this month for coking coal with customers in Japan, Europe and Korea. That saw BHP Billiton win price rises of 55% for hard coking coal, the best quality coal there is for the steel industry.

The FT said in its report that “The miners, including Vale of Brazil and UK-based BHP Billiton and Rio Tinto and steelmakers such as Nippon Steel, JFE, Sumitomo Metals and Kobe still need to resolve significant obstacles to reach a final agreement”.

The FT said the deal was just with the Japanese mills. Posco, the giant South Korean steel group, plus Arcelor Mittal, the world’s biggest steel maker and other mills in Europe, have not yet agreed to the new pricing structure, because obviously, it will put tremendous pressure on their margins.

Under the current iron ore contract system, the first price agreed between a miner and a steelmaker became a benchmark followed by the rest of the industry for a year. That’s why the 33% cut agreed to by the Japanese mills and the big iron ore companies last year became the industry benchmark, even though China had insisted on a 45% cut. That demand went unanswered and the Chinese and the big iron ore groups went to a mixed system of unofficial pricing based on spot prices and the Japanese price cut.

A surge in the iron ore spot price soon saw BHP and Rio shift more and more ore sales onto that market, so much so that 50% or more of their sales were being made at spot market pricing. Surging demand for steel and iron ore from China, and then Japan and Korea later in 2009 saw prices continue to rise.

A tax on iron ore exports in India saw prices jump sharply, to around $US130 a tonne and more (including freight from Australia).

Current spot prices are around $US 143.80 per to, which when adjusted for the cost of freight, are more than double the $US60 per ton 2009-10 year contract price in Japan which ends on March 31.

So whichever way we see it, iron ore prices are expected to increase about 80-100% in theyear 2010-11.

European steelmakers declined to comment on Monday about their iron ore price negotiations but market talk is that they are looking at the end of the decades-old annual benchmark system.

The Financial Times reported earlier that Japanese steelmakers had reached a tentative deal with iron ore miners to adopt short-term contracts linked to the spot market, and talk is that the deal will set a precedent.

The Company has run-of-mines contracts for two iron ore mines situated at Nuagaon and Maharajpur in state of Orissa, two bauxite mines situated at Yelwan Jugai and Mahalmiriya in the state of Maharashtra, and one Soapstone mine situated at Dhelana in the State of Rajasthan. The Company’s subsidiaries include Warana Minerals Private Limited and Shri Warana Minerals (India) Private Limited.

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