Guys, Watch the pon from here...LME inventories are now at only 1806t of live warrants and 2118t cancelled. Thats only 1806t for consumers to draw down on. Talk about a squeeze play. From here, the PON is blue sky when the chinese return.
Tricia, I agree that we should be looking at at least another 20% on the bottom line. Bring on Carnilya and ors is all I can say.
Nickel Advances to a Record in London as Inventories Decline
By Brett Foley
Feb. 15 (Bloomberg) -- Nickel rose to a record in London, leading other metals higher, on mounting speculation that dwindling stockpiles won't meet demand.
Metal due for delivery from warehouses monitored by the London Metal Exchange, known as canceled warrants, more than tripled to 2,118 metric tons yesterday, accounting for 85 percent of stockpiles. Inventories tracked by the LME are at 3,990 tons, equal to less than one day of global consumption.
``The canceled warrants are a major issue, and if these drawdowns continue we could be looking at a case of zero stocks,'' Tariq Salaria, a London-based metals analyst at Standard Chartered Plc, said today in a telephone interview.
Nickel for delivery in three months on the LME gained $1,850 or 5 percent, to $39,350 a ton as of 4:59 p.m. local time, beating the previous record of $38,950 recorded on Jan. 26. Nickel, used in stainless steel, has been the best performer among the six main metals traded on the LME this year, rising 18 percent.
Prices have jumped more than sixfold in the past five years as supply failed to keep up with demand from China, the world's largest producer of stainless steel. China's stainless-steel production soared 68 percent in 2006, the Xinhua News Agency reported this week on its Web site.
The metal may average $35,057 a ton this year, 31 percent more than earlier estimated, Gerald Burg, National Australia Bank's minerals and energy economist, said today in a report. That would be the highest annual average since at least 1986, and compares with an average of $23,223 last year.
Export Regulations
Tin rose to a 17-year high for a second consecutive day on speculation that an Indonesian government plan to tighten export regulations and crack down on illegal mining may curb production.
PT Koba Tin, the country's second-largest tin miner, halted shipments and doesn't know when they'll resume after three directors were held by police investigating illegal ore purchases, Malaysia Smelting Corp., which owns 75 percent of Koba, said this week.
Tin advanced $400, or 3.2 percent, to $13,100 a ton. Earlier it traded at $13,200, the highest in at least 17 years according to Bloomberg data.
Lead also gained as Xstrata Plc maintained a ``force majeure'' at its Northfleet lead plant in the U.K. because of disruption to supplies from Australia.
Lead inventories monitored by the LME fell for a third day, by 800 tons, or 2.3 percent, to 34,200 tons, the exchange said in a daily report. They have slumped 49 percent in the past year.
Zug, Switzerland-based Xstrata said last week that rail deliveries to Mount Isa in Australia had been delayed following a cyclone. Force majeure is a legal clause that allows a company to default on a sales contract due to circumstances beyond its control. Lead increased $50, or 3 percent, to $1,745 a ton.
Among other LME-traded metals, copper gained $135, or 2.6 percent, to $5,865 a ton, the highest since Jan. 25. Zinc increased $110, or 3.3 percent, to $3,420 and aluminum slipped $11 to $2,817.
To contact the reporter on this story: Brett Foley in London at [email protected] .
Last Updated: February 15, 2007 12:04 EST
MCR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
