Base Metals Market Update and Commodity Trading Strategy: Nirmal Bang
Industrial metals ended lower on Monday, after hitting their lowest levels in nearly two weeks, as a steadier tone in the dollar and worries about recent supply builds dragged prices down. Moderating copper import levels in China pressurized prices for the fourth straight session.
IN FOCUS: Kazakhstan's copper production fell 9.1 percent in January-August to 229,805 tonnes compared with the same period of
2008, official data showed on Monday.
A Zambian unit of London-listed Vedanta Resources Plc has hired a South African company to mine for copper under plans to raise output to 500,000 tonnes by 2011 from around 200,000 now, the company said on Monday.
Zambia's Mopani Copper Mines (MCM), a unit of Swiss firm Glencore International AG, said on Monday it had reversed a plan to suspend output at its copper mines due to an uptick in prices and falling production costs.
Vale Inco has restarted its Thompson, Manitoba, nickel mining and processing operations following a one-month maintenance shutdown, a spokesman said on Monday.
FUNDAMENTAL OUTLOOK: We expect industrial metals to recover some lost ground in today's session after witnessing a downside rally in last three sessions. Expectations of strong retail sales numbers and sentiment data from the U. S. and Euro zone may support the upside in this complex.