Nirmal Bang has come out with its technical report on industrial metals. According to the research firm, industrial metals prices are expected to take support from improving economic conditions in the US. However, deteriorating manufacturing conditions in China is likely to keep a check on the upside.
Nirmal Bang's fundamental outlook on industrial metals
Industrial metals prices fell to its lowest level in 20 months, hit by further evidence that the economy of top metals consumer China is slowing down and the US Federal Reserve's stated intention to begin scaling back stimulus measures later this year.
Rio Tinto said its plan to start exporting copper from the USD 6.2 billion Oyu Tolgoi copper mine on Friday has been delayed at the request of the Mongolian government, ahead of a presidential election on June 26.
India's state-controlled National Aluminium Co (NALCO) has sold 6,000 tonnes of aluminium ingots at USD 226 per tonne premium to the average LME cash price on a cost, insurance and freight (CIF) basis, company officials said on Thursday.
Daily average primary aluminium output excluding China fell to 68,100 tonnes in May, against a revised 68,400 tonnes in April, data from the International Aluminium Institute (IAI) showed on Thursday.
Makers of products such as cans and packaging foils face record high aluminium surcharges in the U.S. Midwest as more of the metal gets sucked into backlogged warehouses in Detroit that are registered by the London Metal Exchange (LME).
Ibris Nickel, a nickel miner, and China's Yong-Xing Alloy Materials Technology Taizhou signed a MoU to build a nickle processing facility in North Konawe, South East Sulawesi province. The facility will have the capacity to process up to 8 million tons of nickel and produce 600,000 tons of nickel pig iron a year.
Fundamental Outlook: Industrial metals prices are trading higher on international bourses today. We expect industrial metals prices to take support from improving economic conditions in the US. However, deteriorating manufacturing conditions in China is likely to keep a check on the upside. SHFE warehouse stocks data which is due to be released today afternoon remains a vital indicator.
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