Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (July 28, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Industrial Metals futures pared losses to end moderately lower on Tuesday weakened by a drop in U.S. consumer confidence readings but helped when U.S. stocks turned higher late in the session.

IN FOCUS

- Chile's state miner Codelco, the world's top copper producer, said its Andina mine was working normally after power outages hit central Chile on Tuesday.

- Norwegian aluminium producer Norsk Hydro said on Tuesday it would consider long term supply deals for its aluminium products to meet growing demand from auto makers.

- Japanese smelters have settled mid-year copper processing fees at levels that are probably near historic lows, a harsh environment that could last for the next two years as miners try to wring out ever more favorable terms.

- Steelmakers painted a gloomy picture for the short-term prospects of the industry on Tuesday as global prices have fallen and industrial demand is not recovering from the recession as quickly as expected.

- South Africa's logistics group Transnet has shut down its iron ore rail line after a train carrying ore was derailed, the company said on Saturday, threatening to slow exports of the raw material.

- Zambia's largest copper miner by output, Konkola Copper Mines, is planning to lay off at least 170 miners from its Nchanga unit on the Copperbelt in a bid to cut production costs, a union official told Dow Jones Newswires Monday.

FUNDAMENTAL OUTLOOK

Industrial metals edged slightly up on LME. We may see some bounce back early in the session today on the back of bargain hunting but overall outlook in industrial metals remains bearish. Selling on rise should be the investor's strategy today. Copper in particular looks weak today.