Industrial metals (copper, aluminium, nickel, etc.) daily review (January 29, 2010)

MARKET ROUNDUP

Industrial metals extended their losses in last trading session o the back of overall looming uncertainties in the financial markets. Copper ended down for a third straight day on Thursday with London prices cracking below the $7,000 a tonne level for the first time since late December, as dollar-related pressures and concerns over Chinese monetary tightening fed further bouts of risk aversion. Aluminum to could hold its breath and plunged almost 4% in last trading session.

IN FOCUS

- Chile, the world No. 1 copper producer, said on Thursday its output of the red metal rose 0.8 percent to 5.4 million tonnes in 2009 from the previous year.

- U.S. aluminium producer Alcoa Inc said it plans an orderly shutdown of its two Italian smelters by Feb. 6, despite government efforts to find energy at a competitive price.

- Iron ore output from BHP Billiton, the world's top miner, rose by 11 percent in the last quarter of 2009 to meet demand from import-reliant China. The country's December iron ore imports from Australia surged by 40 percent.

- Zinc in concentrate production from Australia's giant Century mine is expected to rise to 500,000-510,000 tonnes this year, rebounding from technical problems that cut output by 29 percent in 2009, Minmetals said.

- Kazakh copper producer Kazakhmys forecast no output growth this year after shutting mines to save cash in 2009 and seeing fourthquarter production slide by 25 percent.

- Australia's Century zinc mine has ceased concentrate production due to a tropical storm bearing down on Australia's tropical north region, the mine's owner, Minmetals said on Thursday.

- Kazakhmys PLC Annual copper cathode equivalent production of 320 kt, ahead of target Q4 output of 68 kt, with rebuild of work in progress In 2010 ore output will be maintained at similar level to 2009, target for cathode output will be just over 300 kt Q4 copper cathode output from own concentrate 68,100 tonnes, versus 91,300 tonnes previous year.

- China Minmetals Corp, the country's top metals trading firm, plans to import more than 40,000 tonnes of refined copper from Poland's KGHM in 2010, a source familiar with the deal said on Thursday.

FUNDAMENTAL OUTLOOK

Industrial metals are trading almost 1% higher on international bourses on the back of some short covering witnessed by the entire complex. Outlook for industrial metals remians sideways to down for the day. One could wait for a bounce in induatrial metals and than can go short during today’s trading session in industrial metals.