Lead prices rose less kinetic energy
Most base metal prices last week, finishing exhibit oscillatory trends, macro-economic recovery remains steady a boost to the confidence of the metal bull, but the spot weak consumption and rising inventories continue to increase the price of repression. October U.S. retail sales increased by 1.4%, higher than market expectations, industrial production grew by 0.1% to achieve a positive growth for three consecutive months. As the global economic recovery was strong last week, the OECD (OECD) is expected to grow its economy in 2010 1.9%, much higher than expected 0.7% in June. However, the U.S. housing starts unexpectedly fell in October by 10.6%, indicating that the economy is still a distance away from full recovery. In addition, the dollar index last week, encountered in 75 first-line support, beginning to show signs of stabilizing, metal prices which will adversely affect the short-term trend.
Lead: LME lead prices last week, oscillation up, to close at $ 2,350 / ton, weekly gain $ 74.5 / ton. Lead prices rose since the beginning of 150%, rising costs make the battery business is deteriorating living environment, in particular, electric bicycle battery, due to too much competition, rising costs can not effectively passed to the end consumer, capital returns are very difficult, forcing many manufacturers substantial discount on the sale of helplessness, the battery manufacturer's operating rate began to decrease, so the late growth of domestic lead consumption will slow down. From the supply point of view, although lead poisoning caused by environmental finishing off some of backward production capacity, but this year they started the construction of about 116 million tons / year of lead smelting capacity is expected to put into operation in 2010-2011, the supply will lead next year greater growth. Spot, due to weather storm lead to the main producing area, making traffic congestion delayed arrival of the downstream procurement lead ingots, which the spot price is relatively strong. In addition, LME lead stocks continued to climb last week, now stands at 135,125 tons, but fell to 275 tons of canceled warrants, in general, due to falling domestic demand for lead-acid batteries, lead by the stock price will rise and the increased supply of late pressure, late upside momentum will gradually diminish.
Tin: LME tin price Xianyanghouyi last week, to close at 15,000 U.S. dollars / ton, weekly gain of 230 U.S. dollars / ton. Overall domestic consumption of tin is relatively stable, but the consumption of foreign tin beginning to show improvement, large domestic enterprises of overseas orders of tin gradually picked up, tin products, inventory turns, the United States tend to rise, indicating to the inventory of finished goods ongoing . With the stock to the end consumer rebound will face a strong replenishment needs. From the supply point of view, the current dry season in Indonesia over the rainy season, the late supply of tin will be adversely affected. Turnover of the domestic spot market is still very active in tin, tin price in the 115500-117000 yuan / ton within a narrow range order. In addition, there is still a small increase last week, LME stocks, is currently 26,940 tons, but canceled warrants also rose slightly to 265 tons, LME spot price of tin in March from last Friday's premium also rose to 50 U.S. dollars 30 U.S. dollars, is expected to short-term oscillations in tin prices will continue to show the trend.
Nickel: LME nickel prices rose slightly last week, to close at $ 16,735 / ton, weekly gain of 455 U.S. dollars / ton. Lower consumption of nickel stainless steel market is still in the doldrums, the basic does not show signs of recovery, since this is October the main reason for the weak performance of the nickel price. This year a large amount of China's nickel imports, many of which are speculative hoarding up, because no hope of recovery in nickel prices during the year, Wenzhou investors may hold part of the end of the release of nickel inventories, expected up to 5 tons. China's abundant supply has prompted trading companies to cancel orders for next year's imports, including a large trading company imported 3,000 tons of the fourth quarter has been canceled, forcing its overseas suppliers will be transferred Nickel LME warehouse. LME warehouse stocks of nickel up to 132,828 tons, the highest level since the beginning of 1995, from November 1994 created by the record high of 151,254 tons, is only 2 million tons less. Another new project into production will gradually increase the supply of nickel, it was reported Mirabela Nickel-owned nickel mine in Brazil SantaRita has now produced its first nickel concentrate, and the next three months will increase production of its 2010 nickel concentrate output can reach 26,000 tons of production capacity target. Canadian resource companies will also consider the introduction of joint venture partners, to build Fenix nickel project in Guatemala, is expected to commence next year. Overall, due to weak demand, increased supply sufficient stock to make the nickel price continued to decline.
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