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 prices extended their upward rally as global inventory draw downs and gains in the euro boosted the metals despite a surprise decline in U.S. orders for long-lasting goods.

IN FOCUS

- Chile, the world's No. 1 copper producer, said Wednesday its output of the metal fell 0.6 percent in June from the same month a year earlier.

- Zambia's largest mine workers' union said on Wednesday it aimed to block Brazilian firm Vale's planned development of a $400 million copper mine because of concerns about its bad labour relations record.

- Canada's First Quantum Minerals will suspend production at its Bwana Mkubwa copper processing plant in Zambia in August after running out of raw materials, technical manager Andre Scott said on Wednesday.

- Japan's output of rolled copper products rose to 73,120 tonnes in June on a seasonally adjusted basis, up 29.1 percent for the eight straight month of year-on-year gains, preliminary data showed on Wednesday.

- Japanese shipments of aluminium products jumped 13.5 percent in June from a year earlier, increasing for the seventh straight month, industry data showed, highlighting their recovery from the economic meltdown.

- Brazilian crude steel output surged 55% in the first half as domestic demand rebounded from last year's economic slump, the Brazil Steel Institute, or IABr, said Wednesday.

FUNDAMENTAL OUTLOOK

Industrial metals prices are trading slightly lower on international bourses today. We expect industrial metals prices to be a victim of profit-taking today after a series of continuous upward rally in previous trading days. Also, a weak expectation of US GDP growth data for Q2 due to be released tomorrow will weigh on the prices of industrial metals.