With Christmas now only weeks away, some of our customers are now taking the opportunity to clean up before Christmas. Our yards are well staffed and ready to get you unloaded and paid quickly.
In market news, the Christmas gods seem to be smiling on us at this stage with prices this week at quite a healthy level. This may not be long lasting however as historically as we head into the Christmas period, manufacturer demand for raw material tends to decline removing upward pressure from metal markets.
Please find attached the following articles for your interest;
**** DJ BASE METALS: LME Metals Softer; Await Cues From Europe **** By Francesca Freeman Of DOW JONES NEWSWIRES
Base metals are mostly lower in cautious trade on the London Metal Exchange Monday, as investors await fresh macroeconomic headlines and the dust settles on last week’s heady rally. Copper gained over 9% last week, after a coordinated liquidity-injecting move by the world’s central banks and a reserve ratio cut in China Wednesday sparked a market-wide short-covering rally. This week is expected to be a pivotal one for the euro zone, culminating in Friday’s European Union Summit.
**** RBS : Rio Expects Commodity Price Swings as Markets Consider Economic Prospects ****
Rio Tinto Group (RIO), the world’s third- largest mining company, said metal prices will fluctuate further as markets weigh economic prospects for next year amid concern Europe’s debt crisis will derail a global recovery. “We should expect more of these gyrations of all of our prices as we move forward to 2012,” Tom Albanese, chief executive officer of the London-based company, said yesterday on the Australian Broadcasting Corp.’s “Inside Business” program. “The markets are trying to react and anticipate to what they think the economy is going to look like next year.” Commodities are set for a “difficult environment” in 2012, according to UBS AG, citing a possible dissolution of the European Union and a “hard landing” in China, the biggest raw- materials consumer
**** China aluminium capacity to rise 60 percent by 2015 ****
ZHUHAI, China, Nov 30 (Reuters) – China’s annual production capacity of primary aluminium may rise by 60 percent in the next four years as smelters build new facilities in resource-rich provinces, a director at a state-backed industry association said on Wednesday. Hu Changping of the China Nonferrous Metals Industry Association said capacity would jump above 40 million tonnes by 2015 from 25 million tonnes forecast for the end of 2011.
**** Rio Tinto Alcan Eyes UK Aluminum Smelter Shutdown ****
LONDON (Dow Jones)–Aluminium producer Rio Tinto Alcan plans to close its UK-based Lynemouth aluminium smelter due to rising energy costs, stemming in part from more stringent EU environmental legislation.
“It all about the economics of the plant,” the smelter’s spokesman John McCabe said. The 180,000 ton a year aluminium smelter located in northern England is still producing aluminium at just below production capacity but energy costs are rising and are likely to continue rising, he said.
A European Commission decision in April changed the way free carbon dioxide emission allowances will be allocated from 2013, bringing in auctioning as the main tool. Energy intensive users such as aluminium smelters will receive less allowances in the next phase of the EU emissions trading scheme than in the current phase.