MEE metex resources limited

metals article - good section on ni

  1. 164 Posts.
    Good article on metals ie Nickel. So you don't have to all of it here is the portion on Nickel.

    ""We are expecting growth of between 4-5 percent for...nickel, aluminium and copper," thebank said.Soaring Chinese stainless steel production will add to Western nickel demand, the report said. "The underlying fundamentals in the nickel market look very bullish...Standard Bank is forecasting that cash prices will average $8,950 a tonne in 2003 before rising to average $9,500 a tonnein 2004 and $9,925 a tonne in 2005."
    A boom in Chinese copper demand and stronger economic growth in Western industrialised nationswill result in growing deficits in that metal through to 2005, the bank said. "We maintain a bullish stance towards copper...and forecast that average annual LME cash prices will continue to rise to reach $1,985 a tonne by 2005," the report added."


    LONDON, Oct 13 (Reuters) - Base metals prices on the London Metals Exchange (LME) scored
    fresh highs on Monday amid frenetic fund buying as market players gathered for the global industry's
    biggest annual event.
    Nickel hit a new 13-year peak, copper and tin were at 2-3/4 year highs, zinc and aluminium
    reached their highest for 2-1/4 years, while lead was at levels not seen for nearly six years.
    Monday marked the start of LME Week, and a bullish mood among participants in London percolated
    through the market.
    "The market is in the grip of euphoria, and the only one meeting any real resistance is aluminium,"
    one trader said.
    Copper was last quoted in floor trading at $1,934.50 a tonne, up $51.50 from Friday, with
    analysts seeing little to prevent a move towards $2,000.
    Nickel broke above $11,000 in early trade, and then extended the advance to $11,260, by the
    close, a $265 gain. Aluminium nudged $1,500, with final business at $1,499.50, up $18.50.
    Market sentiment has become progressively more positive based on a growing perception that
    2004 will see a broad-based economic recovery.
    Investment funds are switching cash from other assets, and although technicals are overbought,
    there is little sign of a downward correction taking place.
    The annual LME gathering brings the industry together for a series of lectures, seminars
    and other events that traditionally mark the start of the so-called mating season, when miners
    and refiners negotiate treatment charges.
    Some suggest metals prices may need to pause before moving higher, but others say any decline
    would only prompt more buying as metals ride high on prospects for revived demand, a weak dollar
    and mounting interest from speculators.
    BASE METALS PRICES SEEN RISING
    Standard Bank London said on Monday that recovery in western economies was set to provide
    robust demand growth for base metals in the next year,
    Prices were set to race higher as a dearth of new production meant there would be little
    metal to fill this demand, the bank said in a report.
    "We are expecting growth of between 4-5 percent for...nickel, aluminium and copper," the
    bank said.
    Soaring Chinese stainless steel production will add to Western nickel demand, the report
    said.
    "The underlying fundamentals in the nickel market look very bullish...Standard Bank is forecasting
    that cash prices will average $8,950 a tonne in 2003 before rising to average $9,500 a tonne
    in 2004 and $9,925 a tonne in 2005."
    A boom in Chinese copper demand and stronger economic growth in Western industrialised nations
    will result in growing deficits in that metal through to 2005, the bank said.
    "We maintain a bullish stance towards copper...and forecast that average annual LME cash
    prices will continue to rise to reach $1,985 a tonne by 2005," the report added.
    GAINS IN COPPER
    Barclays Capital said the copper market faced a supply deficit of 150,000 tonnes in 2004,
    the first since 2000, and the LME cash price was heading for a peak of around $1,950-2,000.
    Ingrid Sternby, analyst at Barclays Capital, told delegates at an LME seminar that the world
    was moving towards shortage this year and LME prices would be around 10 percent higher on average
    in 2003 compared with last year, rising at a similar pace in 2004.
    "We expect this will occur ahead of the peak in the economic cycle expected during the first
    half of 2005," Sternby said.
 
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