Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 22, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Industrial metals futures reversed to close lower Friday, feeling the heavy hand of the strong dollar and chart-based pressure, while demand concern in China and India's interest rate hike also gave pressure.

IN FOCUS

- Mineral exploration company Taseko Mines Ltd said it expects 2010 production to be more than 80 million pounds, primarily depending on the performance of its Gibraltar mine, and it intends to use available cash on hand to prepay senior secured debt facility. In 2009, the company produced 70.3 million pounds of copper and 600,000 pounds of molybdenum.

- China's refined copper imports rose 12 percent in February from the previous month on attractive margins for spot arrivals, data released by the General Administration of Customs showed on Monday.

- Refined copper imports to the world's top consumer of the metal stood at 220,530 tonnes in February, up from January's 196,926 tonnes, the customs data showed.

- Peru's production of copper and silver fell in February from the same month last year, while gold and zinc output rose, the Ministry of Energy and Mines reported on Sunday.

- Copper scrap shipments to China may fall in April as a new customs rule to fight duty evasion takes effect and demand falls as the government tries to cool a construction boom.

- Deliverable copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 9 percent from one week earlier, while deliverable aluminum inventories rose 2 percent - exchange. Deliverable copper inventories rose to 169,101 tonnes from 155,469 tonnes a week ago, while copper stocks on warrant gained 545 tonnes to 50,962 tonnes.

- Deliverable aluminium inventories rose to 394,328 tonnes from 387,549 tonnes one week earlier. Stocks on warrant rose 26,510 tonnes to 347,076 tonnes.

- Deliverable zinc inventories were unchanged from a week earlier at 223,433 tonnes, and stocks on warrant rose 2,331 tonnes to 198,837 tonnes.

FUNDAMENTAL OUTLOOK

Industrial metals are trading a tad lower on international bourses. We expect industrial metals to trade sideways to down during the day on the back of Chinese monetary tightening fears on the cards. Selling on rise is recommended during the day.