Industrial metals lost a little ground on Thursday, capped by a stronger dollar and fears that China may move to tighten monetary policy to prevent its economy overheating after more robust growth data.
IN FOCUS
- The annual rate of primary U.S. aluminum production was down 4.7 percent at 1,725,249 tonnes in March from 1,809,788 tonnes in March 2009, but rose 1.6 percent from February's annual output rate of 1,697,850 tonnes, the Aluminum Association said in its latest report.
- Trade Arabia reported that Dubai Aluminium Company Limited sold a record 1,001,257 tonnes of cast primary aluminium products internationally in 2009. As per report, approximately 24% of the total volume was shipped to Europe, maintaining Dubal's market share in the region.
- Swollen inventories are no longer a problem for the aluminium market, Russia's UC RUSAL, the world's biggest aluminium producer, said on Thursday. Despite high aluminium stocks in London Metal Exchange inventories at 4.57 million tonnes as of Wednesday, RUSAL Chief Executive Oleg Deripaska said growth in global demand would help push up alumininum prices.
- Minara Resources Ltd. said total first quarter nickel production at its Murrin Murrin operation in Western Australia state was 7,832 metric tons, up from 7,762 tons in the previous corresponding period.
- A drought in Yunnan province forced dozens of lead smelters in Gejiu city, China's main lead production centre which houses about 500,000 tonnes of lead capacity, to shut down and the smelters may not restart production until June when supplies of hydropower and water rise.
- Australia's Equinox Minerals Ltd. reported a 37 percent jump in output at its Lumwana copper mine in Zambia in the first quarter, and forecast it would grow production even further this year.
- Russian nickel and copper export volumes fell in January-February 2010 from the same period of 2009, but their value rose, while aluminium export volumes rose and their value declined, customs data showed on Wednesday.
FUNDAMENTAL OUTLOOK
Industrial metals are trading unchanged on international bourses. Outlook for industrial metals is positive for the day. We have US building permits data to be released in the evening session; any positive surprise in these numbers is likely to support industrial metals. Copper looks range bound with and upward bias. Nickel and Zinc looks strong for the day but should bought at declines.
