Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (36290)	3/19/2007 10:48:09 AM
From: LoneClone	Read Replies (1) \| Respond to of 78422

Copper edges lower on Chinese rate hike; tin hits new record high Source: AFX metalsplace.com Mon, 19 Mar 2007 – Copper edged lower on worries an interest rate hike in China might slow economic growth and crimp demand for the metal, while tin hit a new record high amid continued worries over supply disruptions in Indonesia. LME copper for 3 month delivery was down at 6,575 usd a tonne at 12.57 pm, against 6,610 usd at the close Friday, when it hit a three month high of 6,620 usd a tonne. The Chinese Central Bank said at the weekend it will raise interest rates by 0.27 percentage points for the third time in eleven months, in a bid to temper credit and investment growth. RBC Capital Markets analyst Alex Heath said copper was lower today as news of the interest rate rise in China sparks fears demand for the metal could ease. He added, however, the rate hike 'is thought to have limited impact in the long term' as 'past hikes have made little difference to fundamentals and ... demand continued to thrive'. Copper has gained 3.5 pct this year, underpinned by declining LME stocks – down 9 pct from a month ago – and strong demand from China. Data out last week showed China's copper concentrate imports rose an annual 30 pct to 390,000 tonnes in February, while the country's copper output fell 4.8 pct on the year to 222,000 tonnes. 'The short term outlook for base metals as a complex remains favourable in our opinion and will most likely be underpinned by further short covering in the copper market and robust physical demand,' said JP Morgan in a note. It noted China is set to import more and more copper this year to meet an expected spike in consumption in the second half. Meanwhile, stocks of the metal in China are declining, it said. Tin bucked the falling trend in the metals complex today to trade up at 14,000 usd a tonne against 13,845 usd at the close Friday. Earlier, the metal hit a new contract high of 14,125 usd. A crackdown by the Indonesian government on illegal tin mining has sent the metal to ever higher levels this year. Indonesia is the world's second largest tin producer. On Friday, the metal hit a fresh contract high even after Indonesia pledged to maintain annual supply of 90,000 metric tonnes in a bid to stabilise prices. According to tin industry organisation ITRI, Indonesian output in 2007 will be 28 pct lower than the 125,000 tonnes produced last year. Nickel was down at 47,050 usd a tonne against 47,700 usd at the close Friday, when it hit a record high of 48,500 usd amid critically low inventories and strong demand from the stainless steel market. 'Stainless steel markets are primarily the cause of the shortage in nickel availability as stainless steel production remains strong, particularly in China, and supply struggles to match consumption,' said Numis in a note. Stainless steel demand accounts for about 70 pct of total nickel consumption. Numis said it is considering raising its nickel price forecast for the year ahead even though it does not rule out a sharp correction at some point. 'Price may average at very high levels versus historic for this year,' it said. The broker's current nickel price forecast for 2007 is 22,046 usd a tonne. In other metals, zinc was down at 3,230 usd a tonne against 3,250 usd at the close Friday, aluminium edged down to 2,812 usd against 2,814 usd while lead fell to 1,920 usd against 1,926 usd.