PERTH (miningweekly.com) – The market capitalisation of Western Australian-listed companies comprising advisory firm Deloitte’s WA Index increased by 1.3% during April, closing the month at $153.3-billion.
 
“Local businesses have much to stay jubilant about, with signs of recovering overseas markets and positive Western Australian projections,” said Deloitte clients and markets partner for Western Australia Tim Richards.

“Our Deloitte Access Economics forecast growth for Western Australia in 2014/15 is now slightly stronger with the forecast gross state product at 1.6%, up from 1.1%”

Richards noted that commodity price performance during April was mixed, with steady gains seen across base metals, particularly nickel, offset by weak performance by uranium and iron-ore. The strong performance by base metals provided relief for Australian markets as iron-ore continued its four-month slide.

Nickel led the base metals pack with a 15.4% increase, its highest price in 15 months, amid supply concerns as tensions rise over Russia’s intervention in Ukraine, and Indonesia continued its ore export ban. Russia and Indonesia combined supply a quarter of the world’s nickel, fuelling concerns about reduced global supply.

Palladium led precious metals’ continued upward growth from the previous month, posting gains of 3.2% over April.

South Africa, the world’s second-largest supplier of palladium was experiencing strike-related supply disruptions, driving the metal’s price up, Richards said. The country’s production has been affected by labour disputes since January shutting down key mines and adding to the most protracted shortfalls in global production since 2005. Signs of continued US recovery dampened potential increases in gold and silver prices amid tensions in Ukraine, with silver falling by 3.5% owing to oversupply and weak demand.

In terms of bulk metals, uranium prices fell 11.4% due to excess supply and discretionary demand after the world’s third largest uranium producer Cameco Corporation announced it did not expect demand improvement in the near to medium term.

China’s efforts to get tougher on loans for iron-ore imports pulled iron-ore’s price down by 6.1%. Richards noted that the recent crackdown stemmed from concerns that steel mills were using import loans to stay afloat in defiance of policies to reduce overcapacity in heavily polluting and loss-making industries.