| Chinese infrastructure spending pledge boosts base | | | | NICKEL VOLATILITY |
| metals prices | | | | Nickel jumped 13 percent helped by short-covering as |
| Base metals prices have been boosted by | | | | investors who had bet on lower prices bought back |
| China’s $600 billion economic stimulus plan. Nickel | | | | their positions. |
| rose 13 percent and copper around 10 percent | | | | "We have seen that over the past couple of weeks |
| Copper jumped almost 10 percent on Monday, pulling | | | | where the gains from short covering have been really |
| all industrial metals higher, on hopes that China's $600 | | | | quite substantial and that is a reflection of how large |
| billion economic stimulus plan will boost demand. | | | | a short position has been established on nickel," said |
| China (cnmining), the world's biggest copper user, on | | | | Berry. |
| Sunday approved 4 trillion yuan ($586 billion) in new | | | | The volatility in nickel prices is likely to continue over |
| government spending between now and 2010. | | | | the next few months, she added. |
| "Overall this is good news for metal consumption but | | | | The metal soared as high as $12,400 a tonne, from |
| it is going to take time," said Barclays Capital analyst | | | | Friday's last bid of $10,975, and was last quoted at |
| Gayle Berry. "It was a slightly larger spending plan | | | | $12,100/12,150 in official rings. |
| than our economists had expected but it is needed | | | | "Nickel has probably fallen further below production |
| because the slowdown in the exports market has | | | | cost than any other base metal, so in the short term |
| been so rapid." | | | | it also has the greatest potential for recovery," said |
| London Metal Exchange copper rallied as high as | | | | Commerzbank in a note. |
| $4,120.5 a tonne, up 9.7 percent, from $3,755 a | | | | Prices have dropped over 50 percent so far this year |
| tonne at the close on Friday. It was trading at $4,025 | | | | on lower demand from stainless steel producers and |
| in official rings. | | | | have remained below $20,000 a tonne since Sept. 1. |
| "While such an injection of cash is certainty | | | | Aluminium rose as high as $2,040, a 4.1 percent gain, |
| constructive, we are skeptical about the "staying | | | | from $1,960 on Friday. It last traded at $2,030. |
| power" of this move on metal prices, and doubt it will | | | | LME inventories posted another jump -- up 11,125 to |
| be enough to propel the complex to a higher trading | | | | 1.55 million tonnes -- but prices were supported by an |
| range," said MF Global in a note. | | | | announcement that a $10.6 billion aluminium joint |
| Prices for copper have slumped more than 50 | | | | venture between Rio Tinto and Saudi-based Maaden |
| percent from a record high of $8,940 in July amid | | | | could be delayed by one or two years due to the |
| slowing demand. | | | | global financial crisis. |
| Inventories of the metal, used in construction and | | | | Zinc rallied 7.2 percent to a session high of $1,170 |
| power, rose 6,050 tonnes to 260,850 tonnes, the | | | | from a last bid of $1,091 a tonne. It last traded at |
| highest since March 2004. Copper stocks have | | | | $1,141. |
| jumped almost 23,000 tonnes so far in November. | | | | Oz Minerals Ltd the world's second largest zinc miner |
| "This is not overly surprising given the state of the | | | | and a major supplier of copper, lead and nickel to |
| physical markets, particularly in the U.S. and Europe," | | | | China (cnmining), was the latest miner to say it is |
| Berry said. | | | | reviewing operations amid sharply lower metals prices |
| China's stimulus plan and a pledge by the G20 group, | | | | and tighter credit markets. |
| representing 90 percent of the world's economy, to | | | | Lead jumped 6.2 percent to $1,445, from $1,361 a |
| take all necessary measures to get financial markets | | | | tonne, and was quoted at $1,425/1,426. Tin gained |
| back on their feet lifted all industrial metals as did the | | | | 4.8 percent to a high of $15,300 and was bid at |
| weaker dollar. | | | | $15,100 a tonne from the last bid of $14,600 on |
| A weaker U.S. currency makes dollar-priced metals | | | | Friday. |
| cheaper for holders of other currencies. | | | | |