Base Metals Market Update and Commodity Trading Strategy: Nirmal Bang

CopperIndustrial metals showed mixed reactions Thursday on the back of better-than-expected U.S. GDP numbers and lingering demand concerns from China. Lead and Zinc remained the laggards and settled slightly lower.

IN FOCUS:

Top copper producer, Chile, will increase output by 6 percent or 400,000 tonnes in 2010 from this year as the global economy picks up, a leading mining trade group said late on Wednesday. The National Mining Society expects the South American country's copper output at 5.4 million tonnes in 2009, slightly above the 5.3 million extracted last year.

London-listed miner Xstrata said a shortage of concentrate is forcing its Kidd Metallurgical Site in Canada to temporarily suspend its copper operations. Kidd Metallurgical produces about 145,000 tonnes of copper cathode a year.

In Italy, copper and alloy semi-finished product demand is forecast to rise 4.7 percent to 936,600 tonnes in 2010, according to data from Italy's non-ferrous metals association Assomet.

Cuban plans to produce around 70,000 tonnes of unrefined nickel and cobalt this year are behind schedule, official media in Holguin province reported this week, apparently due to hurricane damage sustained in 2008.

FUNDAMENTAL OUTLOOK:

The momentum in industrial metals may remain sideways to up as a weaker dollar and better economic sentiment number may result in an upside. Lead continues to look strong.