MARKET ROUNDUP
Industrial metals futures finished Tuesday with moderate losses after setting a 21-month high as enthusiasm over recent strong U.S. economic data fell prey to profit taking once the dollar advanced on the euro, traders said.
IN FOCUS
- Anglo American warned on Tuesday that global copper supply could be constrained for the next decade, with miners struggling to squeeze more metal out of declining grades and a shortage of quality projects.
- Miner Rio Tinto expects to see a “meaningful” deficit in global copper supply next year after a balanced market this year, with China likely forced to draw down strategic reserves to help meet demand, the company's top copper division executive said on Tuesday.
- Harding said that although Rio Tinto's copper output surged almost 15 percent in 2009 to just over 800,000 tonnes, it would likely struggle to maintain production due to declining ore grades until 2013.
- Global miner Anglo American will resume the development plan for its Michiquillay copper project in Peru this year, despite resistance from nearby communities, the company said on Tuesday. But the project, which is seen producing some 300,000 tonnes a year of the red metal once operational, has been delayed in recent years by protests by communities who fear environmental pollution and have made social demands.
- Chile's central bank raised its 2010 copper price forecast by 15 percent on Tuesday, but expects a slight retreat next year, it said in a key report on economic conditions in the world's top producer of the metal.
- Copper miners could face strikes from workers demanding more benefits, higher windfall taxes and resource nationalism if prices for the red metal increase substantially amid the global economic recovery.
- The world's No. 1 copper producer is considering raising royalties to finance reconstruction of towns and industries battered by a Feb. 27 earthquake, although analysts say the likelihood of a tax hike by the center- right government of Sebastian Pinera is low given his pro-business credentials.
- Japan's Furukawa Co Ltd plans to produce 46,350 tonnes of copper in the April-September half of the 2010/11 fiscal year, which began on Thursday, up 14 percent from the same period last year, it said.
- China's implied demand for copper and aluminium rose strongly in February compared to January, calculations based on official Chinese data showed on Monday.
- Implied demand for copper jumped 18.7 percent over the previous month while aluminium demand showed a 13.2 percent monthly increase. After adjusting for a 63 percent increase in copper stocks on the Shanghai Futures Exchange over the month, the rise in copper demand looked less dramatic, at 10.0 percent.
FUNDAMENTAL OUTLOOK
Industrial metals are trading unchanged on international bourses. Outlook for industrial metals is sideways to up for the day, selling should be completely avoided during the day. In the afternoon session we have EZ GDP data any positive surprise is likely to trigger sharp upside in industrial metals.
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