Industrial metals remained subdued earlier in the session but witnessed a significant bounce back later on Wednesday as further weakness in the dollar against the basket of major currencies prompted fresh buying in this complex. Lead was clearly the winner for the day, rising by over 6 percent.
IN FOCUS:
- China's refined copper production in September rose more than 8 percent on the month to a record near 400,000 tonnes, while lead output dipped slightly after a poisoning scandal, official data showed.
- The world's top producer of copper sees China's demand for the red metal staying strong in 2009 and 2010 as the Asian giant's economy booms, Chilean Mining Minister Santiago Gonzalez said on Wednesday.
- The global copper market was in a deficit of 71 thousand tonnes in the January to August period of 2009, compared with a surplus in the same months of 2008, the World Bureau of Metals Statistics (WBMS) said.
- Brazil's Vale has begun mining ore at its Goro nickel mine in New Caledonia and expects the processing plant to begin production early next year, a company spokesman said on Wednesday.
FUNDAMENTAL OUTLOOK:
Industrial metals surged yesterday backed by continuing weakness in the dollar. We expect this complex to open lower on a bounce back in the dollar. However, this trend may reverse later in the day on back of the dollar falling further on strong numbers from the U.S. reports.
