Wednesday, March 18, 2009

Base Metals Technical view As on 18th March 09


Metals: LME copper steady vs PM kerb, last +50 cents at $3,800/ton. Rally likely to run out of steam, prices expected to fall back around $3,100/ton in near term, says ANZ commodity analyst Mark Pervan. Adds recent China data on copper imports, production difficult to digest, blurred by holidays, shutdowns last year due to snowstorms, Sichuan earthquake making interpretation hard to read. Says positive cues fast disappearing; notes jump in China copper output was due to tight scrap, low treatment, refining charges rather than rising demand. Arbitrage with LME discount to Shanghai Futures Exchange now closed.

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