Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 15, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Industrial metals mostly flat on Friday, trading in tight ranges with dollar declines supporting prices but with gains limited by worries China might tighten monetary policy and slow metals demand.

IN FOCUS

- The Andina copper mine owned by Chile's Codelco was resuming operations early on Monday after a massive power outage interrupted output Sunday evening, a company official said.

- The Los Pelambres copper mine in Chile operated by Antofagasta Minerals halted output on Sunday after a power blackout hit much of the South American country, a company source said.

- Chinese second-quarter copper imports are likely to remain strong with high Shanghai prices helping to generate imports, Aurubis, Europe's biggest copper smelter, said on Friday.

- Deliverable copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 5 percent from a week earlier, while deliverable aluminium inventories climbed 3 percent, the exchange said on Friday.

- Shanghai copper lost about half a percent as the market opened on Monday, with investors worried about China's inflationary pressure, but the news of a mine halt at Chile's Codelco may lend some support.

- Vale is going ahead with plans to bring in outside workers to increase production at its strike-bound Sudbury nickel and copper mining operations following last week's rejection of a contract offer, a spokesman said on Sunday.

- Indian-focused mining group Vedanta is planning to spin off its aluminium division with an announcement regarding a demerger due as early as this week, said UK newspaper the Independent on Sunday.

- A number of major Chinese steelmakers have asked Premier Wen Jiabao to direct the government to tackle iron ore price negotiations, the official China Securities Journal said on Saturday.

FUNDAMENTAL OUTLOOK

Industrial metals are trading almost a percent lower on intenational bourses. In the evening session we have US industrial production numbers, any positive surprise in these numbers is likely to cap the downside in industrial metals during the day.