Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (May 17, 2012)

Contributed by Nirmal Bang

MARKET ROUNDUP

Industrial metals came close to wiping out its year-to-date gains after the red metal and the euro hit four-month lows on Wednesday amid mounting fears of a Greek exit from the euro zone.

IN FOCUS

- The head of Freeport-McMoRan Copper & Gold said on Tuesday that although copper markets were weaker than last year, an expected jump in Chinese consumption should boost investment to find new reserves.

- Copper prices will be strong this year and the red metal's market fundamentals remain solid, but volatile price fluctuations are likely, Chile state copper giant Codelco's CFO Thomas Keller said on Tuesday.

- The head of Freeport-McMoRan Copper & Gold said he was concerned about violence around its vast mine in Indonesia but was confident the company could resolve issues with the Jakarta government over moves to limit foreign miners' operations and profits.

FUNDAMENTAL OUTLOOK

Industrial metals are trading higher on International bourses today. We expect prices to trade lower for the day on account of deepening debt crisis in Europe exacerbated by Greece's political instability.