|
|
| | 
201,-Ap-il
|
| |
Base metals eased lower in premarket trade Tuesday as investors were cautious
as the second quarter got underway and the new fiscal year began. Strength in
financial marketd and renewed vigor in the dollar appeared to push investors
away from commodities. One trader contacted by Platts said: "Investors appear
to be rebalancing and adjusting positions as the new financial year gets
going. The volume is moderate in premarket trade. We might see some weaker
longs and short-term longs shaken out." The London-based trader added that
"prices could go lower in the first half of the week with prices building
towards the week's end. I expect to see some consolidation in both aluminium
and copper." The trade noted that the underlying fundamentals in both complex
heavyweights were solid and underpinned support for the base metals in the
long term. However, copper was bid down $145 at $8,245/mt on a three-months
basis at 1010 GMT, having closed Monday at $8,390/mt.
"Copper prices are pressured down by increased profit-taking activity ...
supply in China remains plentiful and prices are under pressure," said one
Chinese trader. However, London-based investment bank Fairfax said in its
daily research note: "LME inventory levels fall to just 3.5 days of global
consumption. Copper prices should remain relatively high on this basis alone
while further funding of commodity futures could pull prices higher." It added
that "market participants are concerned about slowing US growth impacting
copper demand, however, the US is expected to account for 11% of world refined
copper consumption versus China at 28% and rising." The bank is more concerned
with a downturn in Japanese business sentiment which faltered to a four-year
low according to a Tankan quarterly survey. Aluminuim eased $50 at 1010 GMT to
$2,935/mt. Fairfax said, "news that a prominent bank in South Africa has
recommended the closure of a BHP aluminium smelter may underpin prices."
The trader was less supportive of zinc and lead. Zinc dipped $45 to
$2,275/mt
while lead dropped $25 to settle at $2,756. "Zinc giving up $2,600 is
very,
very poor, while lead below $2,900 is shaky," said the trader. Zinc in
particular has been plagued by oversupply concerns. Tin was once again
a
stand-out feature, although down $325 in premarket trade the metal
still
traded above $20,000/mt, at $20,175. As such, Indonesian tin major PT
Timah
posted net profit of Rupiah 1.78 trillion ($191.86 billion), up 757%
from
2006. Timah attributed the higher net profit to better performance and
higher
global tin prices that were supported by a more favorable situation in
the
national tin industry. The trader said: "Tin still looks good, but it
is a
funny market. If you have a big position you need a good entry/exit
strategy."
Nickel was indicated at $29,450/mt, off $450, standard alloy was down
$20 at
$2,750/mt and North American alloy eased $15 to $2,775/mt. This
commentary was first published in Platts Metals Alert. If you have any
feedback about this commentary or want to find out more about Platts
Metals products and services, please contact webeditor@platts.com.
|
| | |
| | |
| |
| |
| This content first appears in Platts Metals
Alert.
Platts Metals Alert is the metal industry's leading real-time data feed
service. It provides continuous breaking Metals news from the editors
of Platts Metals Week, a long-term global team of metals specialists dedicated exclusively to metals reporting, 24-hours-a-day. |
|
|  |
|
|  |
|
Printer-friendly format