Monday, November 22, 2010

Copper Gains as Dollar Drop Boosts Demand; Aluminum, Zinc Rise


Copper advanced in London as the dollar weakened against its major partners, increasing the investment appeal of the metal. Aluminium and zinc also have experience.

The metal for delivery three months climbed as much as 1.3 percent to $ 8,514.75 per tonne on the London Metal Exchange, and traded at $ 8,493.5 0.04 in Shanghai. Aluminium rose gained 2 percent to $ 2,305 per tonne and zinc 2.1 percent to $ 2,205 per tonne.

"The buyer for the direction of the search in an uncertain macro picture in China, so they will move quickly to the dollar and outdoor markets," Haisan Liang, an analyst at CITIC Newedge Futures Co., said over the phone Shanghai.

The U.S. currency fell against 14 of the 16 most-traded counterparts for the Federal Reserve released the minutes of Federal Open Market Committee meeting this month. The dollar index, which tracks the dollar rose against the currencies of six major U.S. trading partners, including the euro, yen and sterling, fell for the fourth day, losing 0.5 percent to 78 096.

Make sure that the tightening measures to cool inflation in China is an important negative impact on the demand for raw materials can be a bit excessive, JPMorgan Chase & Co. in a research note by e-mail said today.

"While the real estate industry in China will probably slow start in 2011 and is over-supply concerns in the industry next year, there are many infrastructure projects to ensure in the pipeline, that the fundamentals for commodities in China, the demand to remain strong next year's report .

Ratio Hike

China, the world's largest consumer of metals, banks set aside larger reserves ordered for the second time in two weeks by an increase in demand of 50 basis points on 29 November, said the central bank on its website in Chinese markets closed on 19 November. The aim is to strengthen liquidity management and "adequate control" loans and loans, he said.

China's reserve ratio increase provided temporary relief in the market today, "said Tan Wentao, HNA TopWin Futures analyst, by phone from Shanghai. "In this round, should the price controls, agriculture in focus, ie metals less affected," said Tan.

Copper for delivery in March in Shanghai fell by 1.5 percent to 63,230 yuan ($ 9,522) per tonne to close at 63,910 yuan to 11:30 Break.

China's inflation 6.3 percent reached in the next year, so the country can increase combat the interest rate and reserve ratio of at least 150 basis points next year for inflation, citing the Times Securities Tao Dong, Credit Suisse Economist Group AG in Hong Kong, as meaningless.

Chile strike

In Chile, challenged Anglo American plc and Xstrata Plc Collahuasi mining unit, a union statement that only five or six employees had accepted a wage proposal for a 15-day strike in the fourth world's largest copper mine end. The figure is "significantly" more than that, the company spokeswoman Bernardita Fernandez said in an e-mail statement on 19 November, without saying how much has been accepted.

Employees have until 23 November of the company's offer November 1917, to accept the pay a bonus of 14 million pesos ($ 29,154), includes up from a previous offer of 13.5 million pesos.

The production is usually on mine and the port, after the company decided to create a contingency plan with non-union employees.

Lead in London advanced 1.2 percent to $ 2,305 per ton of nickel rose by 0.5 percent to $ 21,950 per tonne and tin rose by 1 percent to $ 25,250 per tonne.