Metal Minings News

Base metals ended modestly higher today, as the US$ weakened, strikes continued in parts of the copper industry and data indicated that China’s economy continued to steam along. New record highs on oil also gave the complex some strength: mine costs will be pushed higher as the cost of running heavy equipment surges. Industry news was unambiguously bullish, with strikes continuing to affect both the mining and transport of copper mine output. China’s February retail sales climbed 20.2%, matching the fastest pace in at least 9 years, a sign that consumer spending may sustain the world’s fastest-growing major economy as export demand weakens. The figure was boosted by the fastest inflation in 11 years. Chinese money supply growth recorded its fastest pace in 20 months in January, at 18.9%. Japanese Q4 GDP was affirmed at 0.9% q/q, as exports helped the nation weather a housing slump. Chinese industrial output and US retail sales are important data released tomorrow.

Aluminium rose by $65 to $3,125, despite a second consecutive hefty rise in LME stocks. Copper added more than 1.4% to $8,400, as industrial disputation impacted on a number of stages of production. Stevedores began the second day of a strike at the port of San Antonio in central Chile. Codelco stated that it may use alternative ports to ship metal from the company’s El Teniente mine (its second-largest) during the strike. Grupo Mexico and a labor union resumed talks to end strikes that have idled the Cananea, Taxco and Zacatecas mines since July 30. Ok Tedi said workers at its mine remained on strike, stopped mining and shipping at the operation for a 2nd day. The company has asked the Department of Labour and Industrial Relations for assistance in resolving the dispute. Ok Tedi’s Managing Director confident the strike will be settled and that employees will return to work in the next 24 hours. Zinc tracked copper, ending almost 3% higher at $2,635. LME stocks have levelled out over the past fortnight. After a poor night in Asia, lead surged in afternoon trade, adding more than $130 in a few hours to end at $3,115. Nickel added 1% to $31,875, after selling pushed it lower in Asia. Stocks are drifting down here too. Tin posted a fresh record close. Provisional official figures show that Bolivian mine production of tin-in-concentrate fell by 9.6% to 15,966 tonnes in 2007, while refined tin output by the country’s two smelters also dropped to 12,251 tonnes.