With the Australian Dollar trading at a stable level around the 1.07 mark, London Metal Exchange prices are having the greatest bearing on our pricing at the moment.
With yesterday’s LME closing prices available this morning, we have seen the lowest Australian dollar price for all of the major metals since the dates that I have listed below;
1. Copper – 11th January 2012
2. Aluminium – 6th January 2012
3. Lead – 31st October 2011
4. Nickel – 4th January 2012
With LME prices on a steady slide, we may well see traders sit on their hands and hope for metals to continue to fall or come out of the woodwork and start buying with confidence again. The sentiment may well be that with prices at a more realistic level, sales to actual consumers may become more sustainable in the near future.
You may remember our market update last week citing the decline of the Aluminium Industry in Australia. As the following article notes, it seems that as the Australian aluminium industry is in decline, China may be on the increase.
Please find the following articles for your perusal;
**** Chinalco unit sees China 2012 aluminium output up 10.5 pct ****
HONG KONG, Feb 14 (Reuters) – The trading arm of Aluminium Corp of China expects China’s production of primary aluminium to rise 10.5 percent this year as capacity grows, even as weak aluminium prices spurred some smelters to delay the start-up of new capacity in January, said a report on the company’s website (www.chalco.com.cn) . Chinalco is the country’s top aluminium producer through its listed Chalco
**** DJ MARKET TALK: Copper Confidence Up; Rally Unsustainable -Standard ****
1029 GMT [Dow Jones] Confidence appears to be growing in the copper market, as reflected in a further improvement in net speculative length last week. However, it is unlikely the current rally in prices is sustainable, says Standard Bank analyst Marc Ground. The market – which still has quite a high level of speculative shorts – trades below its 200-day moving average of $8,405/ton, and with copper inventories in Shanghai rising and CIF premiums coming under pressure, the downside remains exposed, Ground says. “On the downside, we see value in copper below $7,000/ton,” he adds. LME 3-month copper +1.4% at $8,288/ton. (email@example.com)