Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (August 20, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

U.S. industrial metals futures finished lower on Thursday, ending a three-day winning streak, as investors sold off the metals after two dreary U.S. economic reports showed a jump in jobless claims filings and negative readings in manufacturing activity.

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.

- India's state-run National Aluminium Co Ltd (NALCO) has issued a tender to export 3,000 tonnes of aluminium ingots, a senior company source said on Thursday.

- Farallon Mining Ltd. announces that it has extended its zinc and copper concentrates contracts for 2 1/2 years with Trafigura Beheer BV Amsterdam, up to December 2014. More favorable terms have been agreed in both contracts reflecting the current market situation and adjusted to Farallon's quality.

- Indicator Minerals Inc. today announced that it has entered into a Letter of Intent to acquire all of the issued and outstanding shares of Bluestone Resources Inc., a private company with a 100% interest in the drill-ready Mohave Copper-Moly-Silver porphyry Project, Mohave County, Arizona.

- Europe's No.2 copper miner is expected to raise its 2010 earnings outlook by at least a quarter next month, which could prompt Poland to hold off from selling its stake in hopes of a juicy dividend.

- Russia's Norilsk Nickel said on Thursday that Glencore, the world's biggest commodities trader, had sought to buy all of its nickel output.

FUNDAMENTAL OUTLOOK

Industrial metals prices are trading down on LME. Metals are expected to extend previous day's losses tracking weak international bourses and weak jobs data that spurred concerns over the global economy and demand for the industrial metals are likely to pressurize the metals prices today. Selling on every rise is recommended today.