poor supply to spur base metal prices

Hey Mac12,

Managed to pick up some lil more at 48c today.....I think it could be just worth it.....time will tell.....:)


Poor supply to spur base metal prices

VARUN JAITLY
Posted online: Wednesday, June 13, 2007 at 0000 hours IST

NEW DELHI, JUN 12: The key driver of base metal prices for the current month would be a supplyside weakness with the inventory levels of zinc and nickel are reaching significant levels.
The other important indicators are supply side focused on inventory levels and the demand side focused on Chinese imports and exports of metals.

Globally, nickel traded $200 higher at $42,500 while zinc gained $215 at $3745 a tonne on Tuesday. Analysts said the recovery in select base metal prices could be attributed to firming trends at London Metal Exchange (LME).

LME monitored warehouse stocks have gone down to 2.4 days of consumption and now stand at 71,825 tonne. Zinc markets are expected to witness falling stock levels, which can fall to less than two days of consumption and prices can touch highs seen last year.

Zinc markets are facing very tight concentrates markets giving tight outlook to the demand and supply conditions.

With heightened merger and acquisition activity in the aluminium production sectors, prices are expected to be supportive of metal being in control of fewer players.

There is an increase sentiment in the markets of funds pushing the aluminium prices over $3000 levels on LME.

http://www.financialexpress.com/fe_full_story.php?content_id=166948