Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 09, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Industrial metals rose on Monday, bouncing off 3-1/2-month lows amid on bargain hunting and a weaker dollar, but the metal remained vulnerable to worries about the fiscal health of some euro zone countries.

IN FOCUS

- Climbing import prices for iron ore will put upward pressure on domestic ore prices, which could hurt Chinese steel mills facing a surplus of steel products, the China Iron and Steel Association (CISA) said on Tuesday. China, the world's largest steel maker and consumer, imported 42 percent more iron ore last year at 628 million tonnes, official customs data showed.

- Nippon Steel Corp , the world's second-biggest steelmaker, said exports could account for over half its 2010-11 output as it aims to capture growing demand in Asia to offset stagnant domestic growth.

- Around 1,200 Alcoa alumina and bauxite workers in west Australia plan to stage industrial actions on Thursday over stalled wages talks, but Alcoa said it was not expecting production losses.

- Russia's copper exports rose sharply last year following a slump in 2008, while earnings from nickel and aluminium were down on lower prices with export volumes little changed, customs data showed on Monday. Copper exports to countries outside the Commonwealth of Independent States (CIS) were 507,200 tonnes, up 152.3 percent from 2008. Earnings from copper exports outside the CIS reached $2.49 billion, up 103.4 percent from 2008.

- China's imports of unwrought copper and semi-finished copper products are expected to have risen in January, fuelled by strong domestic prices. Imports of refined copper, the most popular form in global and Chinese markets, may rise between 11 and 23 percent on the month, to 270,000-300,000 tonnes in January after rising 25.5 percent to 244,013 tonnes the previous month, traders estimated.

- 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.

- 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.

FUNDAMENTAL OUTLOOK

Industrial metals are trading a hair higher on international bourses. Outlook for industrial metals is sideways to up during the day as we expect some bounce back in industrials metals after plunging more than 15% in last few trading sessions.