Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 08, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Industrial metals finished the week with healthy gains as better-than-forecast U.S. jobs data encouraged investors that demand for the industrial metal would keep improving, and as the euro rallied further on the dollar, traders said.

IN FOCUS

- Chinese steel mills are facing massive difficulties during this year's annual iron ore benchmark talks with big price hikes set to push many of them into the red, the head of China's third biggest steel firm, Wuhan Iron & Steel Group, said on Sunday.

- Demand for global metals should improve radically between now and next year, due in large part to bulk consumption by Chinese infrastructure projects, a top strategist for HSBC metals said on Sunday.

- China's Jinchuan Group expects lukewarm demand growth for nickel in China this year, with prices of the stainless steel ingredient falling back to average $18,000 a tonne in 2010, the firm's chairman told Reuters on Sunday.

- China's copper demand is expected to expand about 7 percent to about 6 million tonnes in 2010, with growth significantly slower than last year, the chairman of Tongling Nonferrous said on Sunday.

- Contract talks between Brazilian iron ore miner Vale's Vale Inco unit and the United Steelworkers (USW) union representing staff at its Sudbury and Port Colborne locations in Ontario, Canada, have broken down, both sides said on Sunday.

FUNDAMENTAL OUTLOOK

- Industrial metals are trading a tad higher on international bourses. Outlook for industrial metals is sideways to up for the day. In the afternoon session we have industrial output numbers to be released by Germany any positive surprise in these numbers should trigger some upside in industrial metals. Copper and Nickel in particular looks strong for the day.