Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (August 18, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Expectations of strong physical demand and a weaker dollar drove Industrial Metals prices to a one-week high on Tuesday, despite growing doubts about economic growth prospects in the United States, the world's largest economy.

IN FOCUS

- Three of China's largest steelmakers, including bellwether Baosteel Group Corp., raised some of their September prices this week, with the relatively limited hikes refocusing attention on China's slower growth rate.

- U.S. steel shipments were down 0.7% in June on the month but were up 52% from the same period last year, the American Iron and Steel Institute said late Monday.

- Canadian mining company Gold Hawk Resources Inc said it plans to acquire copper miner Oracle Ridge for C$17.5 million ($16.78 million) in cash and stock to enter Arizona, one of the leading copper producing states in the United States.

- A physically-backed aluminium exchange-traded product (ETP) planned by Glencore International and Credit Suisse is likely to be launched on a Swiss exchange, a source familiar with the matter said.

- Declining ore grades will keep copper production by Kazakhmys in check until 2014, beyond which the Kazakh miner plans to boost output by as much as 60 percent by bringing several major projects on stream.

FUNDAMENTAL OUTLOOK

Industrial metals prices are trading side-ways on LME. Metals are expected to follow international leads today. Outlook for metals are bearish on the back of weak fundamentals. Copper and Zinc in particular look weak during the day. Selling on rise should be the investor's strategy today.