Daily outlook for base metals prices 08/07/2014 09:25:00
Quotes from Commerzbank Corporates & Markets:
-Base metals: Metal prices are trading somewhat more firmly across the board this morning and are thus ignoring yesterday's weaker equity markets in Europe and the US. The price rises observed since mid-June appear not to have run out of steam as yet despite their speculative aspect.
-Copper is trading at just shy of $7,200 per ton - close to its 4½-month high again - while aluminium is still priced well above the $1,900 per ton mark and nickel is holding its own at above $19,000 per ton. It is zinc that has made the strongest gains, however, rising to nearly $2,300 per ton to reach its highest level since August 2011.
-That said, there are no economic figures or other data that might explain the price increases. They will only be published again on Thursday when the Chinese customs authorities releases the preliminary import data for copper, aluminium and iron ore in June. Until then, market participants will doubtless be concentrating on a handful of events such as the presidential election that is being held in Indonesia tomorrow.
-According to recent polls, both candidates are roughly neck-and-neck. The outcome of the election is likely to dictate what happens to the mineral ore export ban in the country - with all the ensuing medium- and long-term consequences, especially for prices of nickel and bauxite. Indonesia is among the biggest suppliers of both these commodities on the world market.
