Dahlman Rose Has Notes On The Metals & Mining Sector (RTP)

Dahlman Rose & Co. is out with an industry report on the metals & mining sector. It has Buy ratings on BHP Billiton BHP, Freeport McMoran FCX, and Rio Tinto RTP. It has price targets on these three companies at $100, $120 and $115, respectively. In the research report, Dahlman Rose writes, "Tight physical supplies are behind the continued decline in inventories and should be supportive of base metal prices in the near-term. This is most pronounced in copper, which may face a supply/demand deficit this year. Consequently, the price of copper is approaching levels not seen since April, when economic recovery concerns began to take hold of overall investor sentiment." It goes on to say, "Steel prices rebounded last week following a pull-back in the prior week that broke a six-week streak of rising prices. Further, it is believed that North American carbon steel price increases of $40 per short ton are forthcoming. We believe that demand and low service center inventories should allow for price increases to stick despite overcapacity concerns."