Industrial metals (copper, aluminium, nickel, etc.) daily review (January 21, 2010)

MARKET ROUNDUP

Industrial metals ended down on Wednesday after China's tightening monetary policy ignited demand worries and a stronger dollar dampened sentiment in the metals complex.

IN FOCUS

- CHINA'S COPPER OUTPUT INCREASED BY 28.1 PCT YOY TO 418,000 MT IN DECEMBER

- CHINA'S ALUMINIUM OUTPUT UP 38.9 PCT YOY TO 1.369 MLN TONNES IN DECEMBER

- CHINA'S ZINC OUTPUT UP 44.8 PCT YOY TO 462,000 TONNES IN DECEMBER

- CHINA'S NICKEL OUTPUT UP 5.4 PCT YOY TO 21,271 TONNES IN DECEMBER

- CHINA'S LEAD OUTPUT UP 15.2 PCT YOY TO 374,000 TONNES IN DECEMBER

- Shanghai copper fell nearly 1 percent on Thursday, after data showed China's economic growth accelerated in the last quarter of the year, fuelling fears that Beijing might move to further tighten its monetary policy.

- World refined copper production exceeded consumption by 78,000 tonnes between January and October of 2009, versus a deficit of 58,000 tonnes in the same year-ago period, the International Copper Study Group said in its latest monthly bulletin.

- The global copper market was in a surplus of 191,000 tonnes in January to November of 2009, down from 205,000 tonnes in the same period of 2008, the World Bureau of Metals Statistics (WBMS) said on Wednesday.

- Japanese crude steel output could ride strong exports and resurgent automobile demand to reach about 100 million tonnes this year after hitting a 40-year low in 2009, when the global financial crisis slashed demand.

FUNDAMENTAL OUTLOOK

Outlook for industrial metals remains bleek for the day. We expect industrial metals to witness some upside during the early trade session on the back of robust China's industrial and CPI numbers. But such a rise should be used as a good selling oppurtunity.