Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 04, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Industrial metals fell on Wednesday and grains markets also declined sharply as the dollar's rebound weighed on commodities that had risen in the past two sessions after slumping for most of January.

IN FOCUS

- South Africa's mining sector needs to work closely with utility Eskom to find ways of cutting power consumption in the face of planned steep rises in electricity prices, the head of Anglo American Plc said.

- Zimbabwe's plans to impose local ownership rules on foreign firms threaten the diamond operations of mining group Rio Tinto, a company official said.

- Zinc concentrate production has resumed at Australia's Century zinc mine after being suspended last week due to a tropical storm, the mine's owner, Minmetals said on Wednesday.

- Shanghai copper was seen plunging at the open on Thursday, possibly to its 5 percent downside limit, after a reversal in sentiment sent London metal sliding to 2-? month lows in the previous session.

- Swiss-based bank UBS said on Wednesday it had revised up its copper forecasts because it expects strong demand to meet supply problems over coming years. UBS expects copper prices to average $3.80 a lb or $8,377 a tonne this year compared with a previous forecast of $3.30 a lb. For next year the numbers are $3.90 a lb or $8,958 a tonne from $3.20 a lb respectively.

- India's copper demand will likely grow by at least 7 percent in financial year 2010/11, fed by power sector, while demand from real estate and construction remains weak, a top industry official told Reuters on Wednesday.

- Antofagasta PLC Group 2009 copper production reached 442,500 tonnes versus 477,700 tonnes in 2008 Full year molybdenum production at los pelambres was unchanged from 2008 at 7,800 tonnes Group cash costs for 2009 were 96.3 cents per pound compared with 87.3 cents per pound in 2008 2010 production of payable copper at los pelambres is expected to be approximately 407,000 tonnes. 

- Brazilian miner Vale will restart one nickel mine and boost production at another at its Sudbury, Ontario, operation despite a sevenmonth strike at the complex, a company spokesman said on Wednesday.

- China's mining investments favoured Australia and Canada, although Africa was gaining ground as Beijing pushed to secure minerals for its booming economy, a senior World Bank official said on Wednesday.

FUNDAMENTAL OUTLOOK

Industrial metals may extend the losses during the day broadly on remergence of Chinese liquidity co0ncerns and mild strenght in dollar overseas. Unwinding of positions in China on account of holidays ahead and risk aversion following the debt concerns from Portugal are likely to add to the on going pressure in industrial metals.