Lead, Aluminium prices to remain firm: Nirmal Bang

Nirmal Bang has come out with its report on base metal. According to the research firm, industrial metals prices are trading higher on international bourses today. Expect Lead and Aluminium prices to remain firm for the day on account of high physical premiums in major markets.

Industrial metals prices hit two-month lows yesterday as the US presidential election, a leadership transition in China and two central bank meetings this week kept risk-prone investors on the sidelines of financial markets. Oyu Tolgoi, Rio Tinto's flagship Mongolian copper-gold mine, is set to begin production in less than three months after finally resolving the issue of power supply from neighbouring China that had caused delays to the nearly $6bn project. Indonesia's Supreme Court has upheld a challenge to a government ban on the export of unprocessed minerals, a decision that could pave the way for a resumption of exports by junior miners who have been hit hard by the restriction imposed in May.

Indonesia is the world's largest exporter of refined tin and nickel ore and a significant exporter of iron ore and bauxite. Codelco, the world's largest copper producer, will probably reduce the premium charged to Chinese buyers for a second year as increasing domestic production lowers demand for imports. The fee may drop to $100 a metric ton in 2013 from $110 this year.  Uganda has invited bids for the restart of production at its Kilembe copper mines near the border with the Democratic Republic of Congo (DRC) and expects the winner to invest about $100 million in the project. Bloomberg reported that Antofagasta Plc, the copper miner controlled by Chile's Luksic family, Q3 output rose 9% as volumes from its Esperanza mine increased. Antofagasta said that production climbed to 179,800 tonnes from 165,000 tonnes a year earlier. Volumes of molybdenum used to harden steel advanced to 3,000 tonnes from 2,400 tonnes. 

Fundamental Outlook:

Industrial metals prices are trading higher on international bourses today. We expect Lead and Aluminium prices to remain firm for the day on account of high physical premiums in major markets.

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