The Dow Jones Industrial Average distinguished itself during the report period ended Dec. 16 by again flying past the 10,000 mark — a feat not achieved since March 2002 — and settling up 206.14 points at 10,129.56. This time it was more of a “Bad Santa” rally driving U.S. equities higher, as investors dove into the market following Saddam Hussein’s capture by the U.S. Fourth Infantry Division on Dec. 6.
After months of strong gains, metal shares generally paused for some profit-taking. One exception was Brazilian iron ore giant CVRD, which ended the period up US96, to US$54.29. The company signed a long-term contract with China’s largest steelmaker, Shanghai Baosteel, whereby iron-ore shipments will increase annually to 20 million tonnes in 2010. This new 10-year contract, which expands on a deal struck in 2001, runs from 2006 to 2016.
Another strong gainer was Yanzhou Coal, one of China’s leading high-quality coal exporters, which climbed US$3.16 to US$47.10 on no news and nailed a new all-time high of US$52.30 on Dec. 12.
IMC Global, the world’s largest producer and marketer of concentrated phosphates and potash crop nutrients, jumped US78 to US$8.80 as it and partners Potash Corp. of Saskatchewan and Agrium announced the signing of a previously announced, exclusive, 1-year contract to supply 1.65 million tonnes of potash to China in 2004. Potash rose US56 to US$82.80 while Agrium fell US60 to US$15.79.
Among the juniors, Cleveland-based mineral and aggregate supplier Oglebay Norton continues to rise off a US$2 support level, closing up 24% to US$2.87.
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