Industrial metals (copper, aluminium, nickel, etc.) daily review (December 22, 2009)

MARKET ROUNDUP Industrial metal prices defied a stronger dollar to climb on Monday as investors poured money into industrial metals, betting that demand will escalate next year as the world economy recovers. Nickel prices rallied to their highest in nearly six weeks despite inventories nearing record highs, while zinc rallied to 21-month highs on the back of fund buying. Aluminum too traded firm as it posted an upside of alomiost 1.5-2% on LME. IN FOCUS - A Chinese mining company has withdrawn from a deal with Nevada mining company Firstgold after the Obama administration objected on national security grounds, Firstgold's chief executive said on Monday. - China's refined copper imports rose 14.8 percent in November, rebounding from a 40 percent fall in October on investor buying and the arrival of delayed shipments. Arrivals of contracted shipments also drove up imports of primary aluminium 121.8 percent on the month to 57,565 tonnes in November. - On aluminium, merchants and investors had booked large amounts of primary metal for delivery in April-December, and they had delayed or cancelled some shipments following weaker Chinese prices. - Global steel production rose for a third month in a row in November but edged down from October as Chinese output slowed, while improved demand prompted steelmakers to bet on a strong recovery in 2010. - Credit Suisse said annualised world production excluding China was running at 732 million tonnes versus 711 million tonnes last month and compared with a low of 519 million tonnes hit in December 2008, at the worst of the downturn. - World refined copper consumption exceeded production by 52,000 tonnes between January and September this year, versus a deficit of 92,000 tonnes in the same year-ago period, the International Copper Study Group said in its latest monthly bulletin. - World refined copper output in January to September was 13.556 million tonnes, while consumption amounted to 13.608 million tonnes, the Lisbon-based ICSG said. - Russia has reinstated a 5 percent tariff on nickel exports, waived since February to help top producer Norilsk Nickel and others cope with the economic crisis, a government publication said on Monday. - Indonesia's Earthstone Metals Group has acquired exploration rights for the Mufumbwe copper project in Zambia as it continues to look for expansion opportunities in Africa, the company said on Monday. FUNDAMENTAL OUTLOOK Industrial metals are expected to continue with its ongoing rally. We have GB Final GDP and US final GDP number. Any improvement in these data we further support industrial metal prices. Aluminum and nickel in particular looks extremely strong for the day.