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Aug 13, 2010

Gold up, oil, copper down on tepid U.S. data

NEW YORK (Reuters) – Lukewarm U.S. economic readings on Friday left many investors questioning the strength of the U.S. recovery and buying more gold as a safe haven, sending that precious metal to its second consecutive weekly gain, but oil and copper fell on fears demand could wane.

“I think what you’re seeing now is traders questioning whether or not this economy is going to dip into another leg lower,” said Adam Klopfenstein, senior market strategist with Lind-Waldock.

Aug 11, 2010

Novelis at capacity, sees strong fiscal Q2 demand

NEW YORK, Aug 10 (Reuters) – U.S. aluminum producer
Novelis Inc [NVLX.UL] said on Tuesday it sees current strong
demand for flat-rolled aluminum products continuing into its
fiscal second quarter and beyond, and that its own shipments
are limited by its capacity.

The company, based in Atlanta but acquired by Hindalco
Industries (HALC.BO: Quote, Profile, Research, Stock Buzz) in 2007 after a spin-off from Alcan Inc,
projected 34 percent demand growth in the flat-rolled aluminum
segment over the next five years.

Jul 29, 2010

Copper hits 3-mth high as euro, jobs data improve

NEW YORK, July 29 (Reuters) – Copper hit a three-month high
on Thursday as the euro too strengthened to a 12-week peak on
month-end buying and as investors took their cue from improved
U.S. labor market data to add riskier assets like industrial
metals, betting on an better demand prospects.

Benchmark copper CMCU3 on the London Metal Exchange
closed at $7,231 a tonne from Wednesday’s last price at $7,165.
Earlier, the metal used extensively in power and construction
hit $7,283, its highest since May 4.

Jul 28, 2010

Copper rises to 3-month high as inventories fall

NEW Y0RK, July 28 (Reuters) – Copper jumped on Wednesday,
matching its May 10 high as global inventory drawdowns and
gains in the euro boosted the red metal despite a surprise
decline in U.S. orders for long-lasting goods. Inventory draws in Shanghai indicated strong demand in China, the world's top copper consumer. The Chinese central bank said on Tuesday the country would not have a double-dip recession, even though economic growth would slow from its recent fevered pace. Benchmark copper for three-month delivery on the London Metal Exchange CMCU3 closed at $7,165 a tonne, up from $7,059 at the close on Tuesday, after matching the high from May 10 at $7,205 per tonne. In late business, the euro pared its gains and so did copper prices. Despite conflicting readings on the economy, consistent declines in warehouse inventories have underpinned copper. London Metal Exchange copper warehouse stocks have fallen sharply to 411,425 tonnes, down 2,375 tonnes on Wednesday, from a 6-1/2-year high set at 555,075 tonnes in mid-February. "China's LME (warehouse) movements are going to drive this price over absolutely everything else," said Frank McGhee, head precious metals trader with Integrated Brokerage Services LLC in Chicago. "The outflows are flying in the face of all the rest of the markets right now." Copper prices shrugged off a surprising drop in orders for durable manufactured U.S. goods. New orders for U.S. manufactured durable products fell for a second straight month in June, posting their largest decline since August. (STORY: [ID:nN2796989] TABLE: [ID:nCLASIE62J] ) The dollar fell against the euro as the weaker-than-expected reading on orders for U.S. durable goods added to fears about the U.S. economic outlook. [USD/] The euro's earlier gains made copper prices more attractive in euro-based markets. Some analysts pointed out that underlying manufacturing results in the U.S. report were actually positive, boding well for economic growth and demand for copper. "If you strip out aircraft and defense, you're left with a respectable rise of 0.6 percent. That core figure is encouraging, and if you look on a year-on-year basis, it's up 15.2 percent. That's consistent with a strong recovery in industrial production and durable goods orders," said Michael Woolfolk, senior currency strategist, BNY Mellon, New York. In after-hours trade, copper prices briefly added to closing levels after the Federal Reserve released its Beige Book survey of regional economic growth. Overall, the U.S. economy kept growing in recent weeks, but unevenly, and actually slowed in a few regions as housing markets softened once a popular tax break ended, the Federal Reserve said. [ID:nN28200227] China's central bank said on Tuesday that Chinese economic growth would slow, but there would be no double-dip in the economy. [ID:nTOE66Q07U] These remarks followed well received comments last week from Premier Wen Jiabao, who said China would keep working to boost consumption. "There's some seasonal weakness coming through, but generally I don't think there are any great worries about China," said Robin Bhar, an analyst at Credit Agricole. Often seen as an indicator of economic activity, China's benchmark Shanghai Composite Index rose more than 2 percent to a two-month closing high. [ID:nTOE66R061] "Sentiment has turned bullish again this morning following comments from the Peoples Bank of China regarding the nation's economic outlook," said James Moore, analyst at BaseMetals.com. Among other metals, aluminium traded at $2,068 versus $2,056, down from an earlier two-month high at $2,086. Steel-making ingredient nickel was at $20,405 from $20,550, while battery material lead traded at $2,017.50 from $1,977. Zinc rose to $1,955 a tonne from $1,910, earlier touching its highest level since May 17 at $1,967.75. Tin edged down to $19,525 from $19,550 a tonne. For a story on the LME's tie-up with the Singapore Exchange, click [ID:nSGE66R00Y] [ID:nLDE66Q16K] Metal Prices at 3:10 EDT (2010 GMT) Metal Last Change Pct Move End 2009 Ytd Pct move COMEX Cu 323.80 -0.75 -0.23 334.65 -3.24 LME Alum 2065.00 9.00 +0.44 2230.00 -7.40 LME Cu 7170.00 111.00 +1.57 7375.00 -2.78 LME Lead 2010.00 33.00 +1.67 2432.00 -17.35 LME Nicke 20400.00 -150.00 -0.73 18525.00 10.12 LME Tin 19450.00 120.00 +0.62 16950.00 14.75 LME Zinc 1950.00 40.00 +2.09 2560.00 -23.83 SHFE Alu 15480.00 180.00 +1.18 17160.00 -9.79 SHFE Cu* 56200.00 1100.00 +2.00 59900.00 -6.18 SHFE Zin 16215.00 330.00 +2.08 21195.00 -23.50 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Additional reporting by Michael Taylor and Rebekah Curtis in London; Editing by David Gregorio)

Jul 22, 2010

Nucor steel scrap business sees medium-term pick up

NEW YORK, July 22 (Reuters) – Nucor Corp.’s (NUE.N: Quote, Profile, Research, Stock Buzz) steel
scrap processor has recently seen some improvement in its
business that it expects will last for the next 2 to 3 months,
helped by exports as the dollar declines, executives said on
Thursday.

“I don’t see a run-away bull market. Just seems to be a
stabilization around this range and possible strengthening as
we look out the next 60 to 90 days,” said Nucor Executive Vice
President Keith Grass and President and Chief Executive Officer
of The David J. Joseph Co scrap operation.

Jul 14, 2010

Gold drops with euro

NEW YORK (Reuters) – Gold turned moderately lower in late trade on Wednesday, chasing the euro and U.S. equity markets down after the Federal Reserve issued a report saying it should be ready to take additional measures to combat a softening economy if necessary.

Spot gold pared gains to $1,209.05 by 2:42 p.m. EDT from a high at $1,217.85 an ounce, compared with the previous session’s late quote at $1,210.65.

Jul 13, 2010

Alcoa raises demand outlook

NEW YORK (Reuters) – Citing improved end-market demand, Alcoa Inc (AA.N: Quote, Profile, Research) increased its outlook for 2010 global aluminum consumption on Monday, with China, not surprisingly, expected to grab the lion’s share of global supply.

“China is obviously an important market, but also an important market for Alcoa. We have sales of around $1 billion in China. If you look at the last five years, we’ve had average growth rates of around 29 percent in that market,” Chairman and Chief Executive Officer Klaus Kleinfeld said on Monday.

Jul 13, 2010

Alcoa raises demand outlook; China to be major consumer

NEW YORK, July 12 (Reuters) – Citing improved end-market
demand, Alcoa Inc (AA.N: Quote, Profile, Research) increased its outlook for 2010 global
aluminum consumption on Monday, with China, not surprisingly,
expected to grab the lion’s share of global supply.

“China is obviously an important market, but also an
important market for Alcoa. We have sales of around $1 billion
in China. If you look at the last five years, we’ve had average
growth rates of around 29 percent in that market,” Chairman and
Chief Executive Officer Klaus Kleinfeld said on Monday.

Jul 7, 2010

Gold recovers as equities, euro also rise

NEW YORK (Reuters) – Gold prices recovered from early losses late Wednesday, rising from a 6-week low to above $1,200 an ounce, as equity markets rallied, the euro renewed its advance on the dollar and a corrective decline was seen to have run its course.

Gold’s technical losses were viewed as therapeutic, shaking out players with weak long positions and dropping prices to levels where fresh demand could emerge after the precious metal’s June 21 rise to record highs, analysts said.

Jun 23, 2010

Nucor sees some 2nd half slowing in steel demand

NEW YORK, June 23 (Reuters) – Looking at economic
fundamentals, expect a bit of a slowdown in U.S. steel demand
over the next six months, Daniel DiMicco Chairman, CEO and
President of Nucor Corp. (NUE.N: Quote, Profile, Research), said on Wednesday.

Speaking with Reuters on the sidelines of the American
Metal Market’s 25th Steel Success Strategies conference about
the outlook for Nucor’s orders in the 2010 second half, DiMicco
said, “Nucor goes with its customer orders.”

    • About Carole

      "Based in New York, I cover all North American commodity markets, with a primary focus on metals and more specifically steel and aluminum. I have also covered economics, international economics, foreign exchange, bonds and stock markets for both TV and Reuters wire."
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