Industrial metals (copper, aluminium, nickel, etc.) daily review (March 04, 2010)

MARKET ROUNDUP

Copper rose on Wednesday, hitting a sevenweek high as the dollar fell against the euro, making metals cheaper for non-U.S. investors amid signs that demand was improving cropped up in the U.S. and Asia. Aluminium touched a five-week peak of $2,219 a tonne. Used in transport and packaging, it ended at $2,210 from $2,168. Steel ingredient zinc closed at $2,320 from $2,255, battery material lead at $2,238.50 from $2,200 a tonne on Tuesday. Stainless ingredient nickel hit $22,943, its highest since June 2008. It closed at $22,845 from $22,240 on Tuesday. It is up about 20 percent so far this year.

IN FOCUS

- China's emergence as one of the world's leading economic powerhouses and premiere driver of global zinc demand will set the industry standard for years to come and dictate where future market balances will lie. China has been the main driver of the world's zinc consumption for the last two decades, securing a compound annual growth rate of 12 percent per year.

- Anglo American PLC Affected copper mining operations were able to resume full and safe production during Sunday Expected that the chagres smelter will resume full production by Wednesday Lost copper production during the stoppage was limited to less than 1,500 tonnes Minor damage was reported at Anglo american's copper mining operations Considerable damage at scaw metals' plant near concepcion, preventing resumption of operations until further notice

- South African miner Metorex produced 24,840 tonnes of copper and 1,501 tonnes of cobalt in the six months ended December 2009, up from 13,563 tonnes of copper and 135 tonnes of cobalt a year earlier.

- HudBay Minerals said on Wednesday its fourth-quarter profit fell 54 percent, hurt by declining copper sales and C$6.9 million in executive severance costs. Revenue fell 7 percent to C$166.7 million due to declining copper cathode sales fell. The company said Chinese demand for scrap copper declined late in the year, while North American domestic demand remained weak, prompting HudBay to decide not to sell to the market.

FUNDAMENTAL OUTLOOK

Industrial metals are trading a tad higher on international bourses. Outlook for industrial metals is sideways to up for the day, but at the same time profit booking is not ruled out on account some weakness in Euro. In the evening session we have US durable orders numbers to be released any positive surprise in these numbers may support industrial metal prices later in the day.