Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 09, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

MARKET ROUNDUP

Industrial metals future prices ended higher on Wednesday, recovering from earlier losses along with rising stock markets as investors grew less worried about European banks.

IN FOCUS

- Fresh clashes erupted on Wednesday between union workers and company contractors at the massive Cananea copper mine in northern Mexico leaving several people severely injured, the local government said.

- Global metals markets are expected to have a nickel deficit of about 85,000 tonnes this year and return to a demand/ supply balance from next year due to new capacity coming on stream, a leading analyst said on Wednesday.

- Bjoern Wiggen took the helm of Norwegian pizza-to-metals group Orkla on Wednesday, promising to reduce its exposure to solar energy and pare down the conglomerate to focus on its strongest businesses. Wiggen, previously head of Orkla-owned aluminium firm Sapa, took over as president and chief executive from Dag J. Opedal, who resigned in July after leading the group since 2005.

- Antamina, a leading copper-zinc mine in Peru, said on Wednesday its copper output would rise by up to 40 percent after a $1.2 billion expansion is concluded.

- Trinidad and Tobago's government said on Wednesday it was cancelling a $600 million project to build a 125,000 tonnes-per-year aluminum smelter in the Caribbean nation.

FUNDAMENTAL OUTLOOK

Industrial metals prices fell sharply on LME today. Metals are expected to trade down on talk that China will likely expand an existing real estate tax and government investigating illegal bank loans being channeled into financial derivatives. Selling on rise is recommended today.