Introduction
By Guy Isherwood, Editor, Commodities Now.

Solid Business Complemented by New Products
Guy Isherwood interviews Simon Heale, London Metal Exchange Chief Executive.
By Guy Isherwood, Editor, Commodities Now.

Worldwide Non-Ferrous Exploration Budgets Reach US$5.1 Billion
Metals Economics Group's preliminary analysis of budgets from the 2005 edition of Corporate Exploration Strategies shows that exploration budgets in 2005 have increased for a third consecutive year to almost US$4.9 billion.
Corporate Exploration Strategies from Metals Economics Group.

Re-Inventing the London Metal Exchange
There is a deep structural change taking place within the base metals trading market. Here, John Browning assesses this trend and the future for customer order routing at the LME.
By John Browning, Barclays Capital.

Base Metals Outlook
The base metals bull is now running in its third year. Metal prices began rising in earnest during the third quarter of 2002 and have been climbing steadily higher ever since. Today, prices are some 75% above what they were at the start of the ascent. The Economist Intelligence Unit's base metals index, which tracks prices of all the LME traded metals, rose by 10% in 2003, 37% in 2004 and in 2005 should see another rise of 11%. The growth has been fuelled by a combination of bullish market forces that have caused the supply/demand fundamentals to tighten progressively.
By Kona Haque, Senior Commodities Economist, Economist Intelligence Unit.

Aluminium: Pressure Mounts as Supply Increases & Demand Softens
At the start of 2005 the metal markets were flying and aluminium and zinc were seen as the two metals that were most likely to continue on a firm footing. The other metals were expected to suffer as new production came on stream. But in aluminium's case, although new production was due, shortages of alumina and changes in China's tax laws were expected to curb exports and leave the Western market in short supply. As a result, aluminium prices ended 2004 at a high of US$1,972/mt and the bullish outlook and declining stocks pushed prices even higher during the first quarter of 2005, reaching a fresh high at US$2,015 in March. The up-trend has, however, since stalled and the market has consolidated with prices oscillating between a low of US$1,680/mt and a high at US$1,950/mt.
By William Adams, BaseMetals.com.

The Changing Nature of the Base Metal Cycle: A Producer's Perspective
Whatever the precise terms used to describe it, there is little doubt that the mining and metals industries have been going through something extraordinary. Quite how extraordinary we won't know for certain for some time to come. Meanwhile, we can enjoy debating the exact nature of the experience, its origins and its sustainability. For producers these have unquestionably been good times. However, they are also potentially dangerous times because of the expectations they engender.
By David Humphreys, Chief Economist, Norilsk Nickel.

Managing Physical Operations Contributes to Metals Traders' Bottom Line
Companies are seeing the advantages of a sophisticated system that tracks complex shipments, transportation, documentation and storage: Anna Fratczak is manager, metals products, at Triple Point Technology, which provides complete trading, risk management and logistics solutions for metals, oil, gas, power, coal, softs and freight. Special thanks to Carlos Lebrija, product manager, PhysOps, and Malcolm Strong, delivery services project manager and metals specialist, for their contributions to this article. Triple Point's Commodity XL for Metals combined with the PhysOps 'Visual Cockpit' provides the full solution for front, middle and back-office metals trading with real-time access to the same data for traders, schedulers, risk managers, back-office and executives. The system streamlines operations, delivers enhanced business intelligence and keeps records for compliance and reporting requirements.
Triple Point Technology: email info@tpt.com

A Rational Alternative to the Commodities Super-Cycle Theory
The prices of many - but not all - commodities have been rising sharply over the past two years. There are many good reasons for this. The increase in prices reflects the combination of several fundamental trends. Fabrication demand for many commodities is rising, reflecting strong economic growth in many quarters of the world and an overall expansion in demand for basic commodities due to the emergence of new consumer economies in India, China, Russia, and elsewhere. Economic development conditions have increased the demand for many commodities at any given price. Investment demand is also rising. Supply increases meanwhile have been slower than the increases in fabrication and investment demand, reflecting the lagged effects of many years of low prices and structural under-investment in the productive sectors of the commodities markets.
By Jeffrey Christian, CPM Group.

DUBAI: Taking Centre Stage in the Gold Markets?
It may seem a little premature to suggest that Dubai might, in short order, become the epicentre of global gold trade - particularly as its exchange, the Dubai Gold and Commodities Exchange (DGCX), is not yet fully operational. But things move fast in Dubai which has an enviable record for doing things well - and on time.
By Ross Norman, TheBullionDesk.com

The Changing Face of Steel
The global steel industry has been subject to a number of significant changes since the start of the millennium. It began with China's emergence as the major force in a whole range of commodities - including steel, iron ore, copper, soybeans, oil etc.. Steel prices suddenly came to life with unprecedented increases through 2004 followed by substantial decreases in 2005. Moreover, e-business portals came and went and a potential LME steel contract was postponed in favour of plastics. At the same time, the MEPS on-line price service was put in place to provide benchmark steel product prices to meet the needs of steel customers. Consolidation within the steel sector is now high on the agenda and the once impossible is now becoming a practical necessity.
By Peter M. Fish, Managing Director, MEPS (International) Ltd.

Minerals-Based Sustainable Development - One Viable Alternative
Metals and minerals have been synonymous with power throughout history. From prehistoric times societies have flourished economically and culturally whenever and wherever metals have been found and exploited. In the late 19th and early 20th century the transnational companies (TNCs) that now control the global supply of metals and minerals were established. During the 20th century many big mining companies have seen their fortunes grow and vanish. Some are still active while others have long disappeared or been absorbed. The purpose of this article is to discuss mining industry practices and responsibilities and to consider the options available for using mineral wealth as a lever for economic, social and cultural development.
By Magnus Ericsson, Raw Materials Group (RMG), Stockholm & Pentti Noras, Geological Survey of Finland (GTK), Espoo