Expecting a slash of interest rates by European Central Bank (ECB) metals are recovering some lost ground. The prices were at multi month lows until yesterday but expected cut of 25 basis points in interest rates by ECB is bringing some hope. Copper tested a 18 month lows on Wednesday and was last seen trading at $ 6911 per tonne, recovering from lows of $ 6897 per tonne.
World refined copper production increased by 1.6 percent to 1708000 tonnes compared to 1681000 tonnes in January 2012. Meanwhile, refined copper usage in World markets declined by 6 percent to 1641000 tonnes in January 2013. The major decline in copper usage was noted in China where consumption fell by 6.8 percent. Chinese apparent net imports were down by 35 percent.
In other metals, Aluminium was trading at $ 1835.5 per tonne, up from $ 1828 per tonne. MCX Aluminium futures for May expiry were trading at Rs 97.9 per kg, up 0.72 percent. The prices tested a high of Rs 98.5 and a low of Rs 97.8 per kg so far in the day. Aluminium is at 31 month low on MCX.
Alcoa announced that it will review 460000 metric tons of smelting capacity over the next 15 months for possible curtailment to maintain the Company's competitiveness, as aluminum prices have fallen more than 33 percent since their peak in 2011. Currently, the company has 13 percent, or 568,000 metric tons of smelting capacity idle.
Nickel prices dipped to a 35 month lows on Thursday and tested a low of Rs 789.8 per kg on MCX platform. The worrying factor is that even after such carnage in Nickel the prices are not in a oversold position. On intraday charts, the sell off can move the metal towards Rs 736 per kg.
Source by Commodity Insights
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