MARKET ROUNDUP
Industrial metals futures settled up at a twomonth high on Friday as investor appetite for risk improved and the dollar surrendered recent gains against the euro after euro zone leaders agreed on a plan to help debt-strapped Greece. Nickel and Lead in particular was the outperformer in whole metals pack.
IN FOCUS
- World refined copper production exceeded consumption by 365,000 tonnes in 2009, up by 63 percent from 2008, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
- World refined copper output last year rose to 18.353 million tonnes, while consumption amounted to 17.988 million tonnes, the Lisbon-based ICSG said.
- Refined copper imports to the world's top consumer of the metal stood at 220,530 tonnes in February, up from January's 196,926 tonnes, the customs data showed.
- KME Group, a leading maker of copper and copper alloy products, sees demand for the red metal in Europe rising 10-15 percent in 2010 and boosting KME's output after a fall in 2009, a senior executive said.
- Consumption of copper, widely used in the power and construction sectors, is very sensitive to economic shocks. Europe's demand fell 25-28 percent in 2009, hit by the economic crisis, said Domenico Cova, chief executive of KME Group's main copper unit.
- Healthy global demand and the possibility of supply disruptions mean the copper market could see a small deficit this year compared with previous forecasts of a surplus, a survey showed.
- The survey of 13 metal analysts carried out over the last two weeks showed the copper market was expected to have a deficit of 23,000 tonnes. In the January survey expectations were for a surplus of 115,000 tonnes.
- Global demand for copper - used widely in power and construction -- is expected to rise 4.5 percent to 18.5 million tonnes this year, the survey showed.
- 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 higher on international bourses. Copper in particular is up by almost 2.5% on Shangai metal exchange on the back of robust US GDP data released ealier on Friday. Nickel too is almost 2% up on LME in the early trade session on the back of renewed stainless steel demand and overall deficit faced by the nickel market. We expect industrial metals to trade firm during the day. Copper, Lead and Nickel in particular looks strong for the day.
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