LONDON (Dow Jones)--Traders expect further gains for London Metal Exchange tin Friday after the metal hit a record high earlier due to ongoing supply uncertainties in Indonesia.
Three-month tin reached an all-time high of $13,300 a metric ton at 1030 GMT, up roughly 1.5% from Thursday due to Indonesian problems, said brokers.
Earlier Friday, an Indonesian trade official said state-owned tin producer PT Timah Tbk. can no longer legally export tin, as it hasn't been reissued an export license under new regulations.
Indonesia recently shut down its private mining and smelting operations on Bangka island, where the country's largest tin reserve is located.
Indonesia's PT Koba Tin - a key industry player - said recently that it is still allowed to mine and smelt tin from Bangka-Belitung province while it is under police investigation. Industry sources say Koba, which produces around 24,000 tons of tin a year, is only shipping about 20% of its normal amount.
At the same time, uncertainty over the fate of Bolivia's Vinto smelter since it was seized from Switzerland's Glencore International AG and renationalized provided underlying price support.
In addition, a decline in tin stocks by 20 tons to 10,225 tons Friday has provided a price boost. Inventories have fallen roughly 20% since the start of 2007.
In other metals, three-month nickel traded just off Thursday's record high of $39,501/ton due to trade selling, said a base metals trader. Adding to price pressure, nickel stocks rose by 162 tons to 4,152 tons Friday.
However, with canceled warrants - or material accounted for and to be drawn down at a later date - at 52% Friday, available stocks comprise less than half a day's worth of global nickel consumption.
Nickel eyes $40,000 a ton in the near-term, said the trader. At 1030 GMT, nickel traded at $39,200/ton, down 0.7% from Thursday.
Meanwhile, three-month copper consolidated after Thursday's run-up. At 1030 GMT, copper traded at $5,832/ton, down 0.3% from Thursday.
A sharp drawdown in lead stocks by 900 tons to 33,300 tons Friday bolstered lead prices up to a two-month high. Lead inventories have fallen over 20% from the start of 2007. At 1030 GMT, lead traded at $1,760/ton, up 0.3% from Thursday.
At 1030 GMT, three-month aluminum traded at $2,809/ton, down roughly 0.2% from Thursday while three-month zinc traded at $3,405/ton, down 0.7% from Thursday.
Friday, February 16, 2007
LME MIDDAY
LONDON (Dow Jones)--Traders expect further gains for London Metal Exchange tin Friday after the metal hit a record high earlier due to ongoing supply uncertainties in Indonesia.
Three-month tin reached an all-time high of $13,300 a metric ton at 1030 GMT, up roughly 1.5% from Thursday due to Indonesian problems, said brokers.
Earlier Friday, an Indonesian trade official said state-owned tin producer PT Timah Tbk. can no longer legally export tin, as it hasn't been reissued an export license under new regulations.
Indonesia recently shut down its private mining and smelting operations on Bangka island, where the country's largest tin reserve is located.
Indonesia's PT Koba Tin - a key industry player - said recently that it is still allowed to mine and smelt tin from Bangka-Belitung province while it is under police investigation. Industry sources say Koba, which produces around 24,000 tons of tin a year, is only shipping about 20% of its normal amount.
At the same time, uncertainty over the fate of Bolivia's Vinto smelter since it was seized from Switzerland's Glencore International AG and renationalized provided underlying price support.
In addition, a decline in tin stocks by 20 tons to 10,225 tons Friday has provided a price boost. Inventories have fallen roughly 20% since the start of 2007.
In other metals, three-month nickel traded just off Thursday's record high of $39,501/ton due to trade selling, said a base metals trader. Adding to price pressure, nickel stocks rose by 162 tons to 4,152 tons Friday.
However, with canceled warrants - or material accounted for and to be drawn down at a later date - at 52% Friday, available stocks comprise less than half a day's worth of global nickel consumption.
Nickel eyes $40,000 a ton in the near-term, said the trader. At 1030 GMT, nickel traded at $39,200/ton, down 0.7% from Thursday.
Meanwhile, three-month copper consolidated after Thursday's run-up. At 1030 GMT, copper traded at $5,832/ton, down 0.3% from Thursday.
A sharp drawdown in lead stocks by 900 tons to 33,300 tons Friday bolstered lead prices up to a two-month high. Lead inventories have fallen over 20% from the start of 2007. At 1030 GMT, lead traded at $1,760/ton, up 0.3% from Thursday.
At 1030 GMT, three-month aluminum traded at $2,809/ton, down roughly 0.2% from Thursday while three-month zinc traded at $3,405/ton, down 0.7% from Thursday.
Three-month tin reached an all-time high of $13,300 a metric ton at 1030 GMT, up roughly 1.5% from Thursday due to Indonesian problems, said brokers.
Earlier Friday, an Indonesian trade official said state-owned tin producer PT Timah Tbk. can no longer legally export tin, as it hasn't been reissued an export license under new regulations.
Indonesia recently shut down its private mining and smelting operations on Bangka island, where the country's largest tin reserve is located.
Indonesia's PT Koba Tin - a key industry player - said recently that it is still allowed to mine and smelt tin from Bangka-Belitung province while it is under police investigation. Industry sources say Koba, which produces around 24,000 tons of tin a year, is only shipping about 20% of its normal amount.
At the same time, uncertainty over the fate of Bolivia's Vinto smelter since it was seized from Switzerland's Glencore International AG and renationalized provided underlying price support.
In addition, a decline in tin stocks by 20 tons to 10,225 tons Friday has provided a price boost. Inventories have fallen roughly 20% since the start of 2007.
In other metals, three-month nickel traded just off Thursday's record high of $39,501/ton due to trade selling, said a base metals trader. Adding to price pressure, nickel stocks rose by 162 tons to 4,152 tons Friday.
However, with canceled warrants - or material accounted for and to be drawn down at a later date - at 52% Friday, available stocks comprise less than half a day's worth of global nickel consumption.
Nickel eyes $40,000 a ton in the near-term, said the trader. At 1030 GMT, nickel traded at $39,200/ton, down 0.7% from Thursday.
Meanwhile, three-month copper consolidated after Thursday's run-up. At 1030 GMT, copper traded at $5,832/ton, down 0.3% from Thursday.
A sharp drawdown in lead stocks by 900 tons to 33,300 tons Friday bolstered lead prices up to a two-month high. Lead inventories have fallen over 20% from the start of 2007. At 1030 GMT, lead traded at $1,760/ton, up 0.3% from Thursday.
At 1030 GMT, three-month aluminum traded at $2,809/ton, down roughly 0.2% from Thursday while three-month zinc traded at $3,405/ton, down 0.7% from Thursday.
LME INVENTORY REPORT
Copper down 1,500 tonnes at 213,800 tonnesLead down 900 tonnes at 33,300 tonnesNickel up 162 tonnes at 4,152 tonnes Aluminium down 950 tonnes at 761,825 tonnesTin down 20 tonnes at 10,225 tonnesZinc up 50 tonnes at 97,025 tonnes
China CB decision weighs down miners
China central bank hikes bank reserve requirementBEIJING (XFN-ASIA) - The People's Bank of China said it has hiked bank reserve requirements, to take effect on Feb 25.The central bank said reserve requirements have been raised by 50 basis points, which would bring the reserves most banks would have to maintain up to 10 pct.
ZINC
0843 GMT [Dow Jones] Zinc's recent move through the psychologically important $3400 a metric ton level is attracting fresh money to the London Metal Exchange market and will likely trigger further gains, a broker notes. Short covering and technical buying adds to the momentum, with prices holding either side of $3400/ton in early trade. LME zinc trades last at $3395/ton, up from $3380/ton overnight and a gain of 10% on the week. (ADH)
Shanghai copper
SHANGHAI (Dow Jones)--Copper futures traded on the Shanghai Futures Exchange settled up Friday for the third consecutive session, as investors expect more gains in three-month London Metal Exchange copper in the coming week.
The benchmark April 2007 contract gained CNY640 to settle at CNY55,500 a metric ton, after trading between CNY55,210/ton and CNY55,960/ton.
Turnover for all Shanghai copper futures fell to 50,888 lots from 92,222 lots Thursday. One lot equals five tons.
"Charts indicate three-month LME copper will likely test higher (levels) in the coming week, when markets are closed here," said Gu Yuan, an analyst at Jinpeng Futures Co.
"Psychological resistance at $6,000 still looks strong," but positive sentiment point to room for further gains, Gu said.
Shanghai's benchmark April contract rose 8.7% this week, while three-month LME copper gained 4.7% this week by Thursday's PM kerb.
Three-month LME copper rose $120 to end the late kerb Thursday at $5,840/ton. It was quoted higher at $5,865/ton around 0700 GMT, when the Shanghai market closed.
At the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, copper was quoted at CNY56,000-CNY56,200/ton, almost unchanged from Thursday.
Meanwhile, copper stocks at exchange-monitored warehouses rose 4,355 tons from a week ago to 31,007 tons as of Friday, the exchange said after the session closed.
Analysts said market participants had expected the rise due to slower buying ahead of the holiday, which weighed on near-month contracts Thursday and Friday.
Markets in China will be closed next week for the Lunar New Year holiday.
Shanghai's aluminum futures settled higher.
The benchmark May 2007 contract settled CN100 higher at CNY19,800/ton.
China's futures markets are off-limits to foreign investors.
Friday's closing prices in yuan a metric ton versus LME late kerb prices from Thursday in dollars a metric ton:
Copper Change Aluminum Change
Shanghai Apr 55,500 Up 640 May 19,800 Up 100
LME 3Mo $5,840 Up$120 3Mo $2,814 Dn $14
The benchmark April 2007 contract gained CNY640 to settle at CNY55,500 a metric ton, after trading between CNY55,210/ton and CNY55,960/ton.
Turnover for all Shanghai copper futures fell to 50,888 lots from 92,222 lots Thursday. One lot equals five tons.
"Charts indicate three-month LME copper will likely test higher (levels) in the coming week, when markets are closed here," said Gu Yuan, an analyst at Jinpeng Futures Co.
"Psychological resistance at $6,000 still looks strong," but positive sentiment point to room for further gains, Gu said.
Shanghai's benchmark April contract rose 8.7% this week, while three-month LME copper gained 4.7% this week by Thursday's PM kerb.
Three-month LME copper rose $120 to end the late kerb Thursday at $5,840/ton. It was quoted higher at $5,865/ton around 0700 GMT, when the Shanghai market closed.
At the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, copper was quoted at CNY56,000-CNY56,200/ton, almost unchanged from Thursday.
Meanwhile, copper stocks at exchange-monitored warehouses rose 4,355 tons from a week ago to 31,007 tons as of Friday, the exchange said after the session closed.
Analysts said market participants had expected the rise due to slower buying ahead of the holiday, which weighed on near-month contracts Thursday and Friday.
Markets in China will be closed next week for the Lunar New Year holiday.
Shanghai's aluminum futures settled higher.
The benchmark May 2007 contract settled CN100 higher at CNY19,800/ton.
China's futures markets are off-limits to foreign investors.
Friday's closing prices in yuan a metric ton versus LME late kerb prices from Thursday in dollars a metric ton:
Copper Change Aluminum Change
Shanghai Apr 55,500 Up 640 May 19,800 Up 100
LME 3Mo $5,840 Up$120 3Mo $2,814 Dn $14
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