Zinc Tips

US zinc mine production increased by 6% in September, report from United States Geological Survey (USGS). Total recoverable zinc mine production was 60100 tonnes in the month of September from 56800 in August.

The total mine zinc production in January-September 2012 was 525000 tonnes. Average daily mine production in September was 2000 tonnes, 9% higher than that in August 2012 and slightly higher compared with that in September 2011.

Apparent consumption of refined zinc totaled 71700 tonnes in September compared to 74600 tonnes in the month of August. Meanwhile, reported consumption of Zinc in September was 36700 tonnes compared to 37000 tonnes in the month of August.

Zinc Tips

Large chunk of Aluminium is getting deposited in LME warehouses these days. Steady production levels from China and other parts of the globe and destocking of producers is resulting in the stocks getting accumulated in the London warehouses.
Aluminium inventories have been at all time highs and if the current inflows continue it would be a huge chunk capable of controlling prices at these levels for next year as well. LME inventories of Aluminium increased by 65200 tonnes to 5172500 tonnes today.
The heavy rise in inventories is due to attractive financing deals that allow traders to put their produce in warehouses with deliveries at a later date. Cost of funding is generally lower that makes these deal an instant hit. However with metal getting delivered in warehouses at a rampant pace prices are getting support of near term tightness.
LME Aluminium forwards was trading at $ 1978 per tonne on Tuesday. The metal settled at $ 1946 per tonne last night. Higher inventories is expected to be a dragger for long term appreciation in Aluminium though in short run spot markets supply tightness is aiding.

Base Metal Updates ( Copper Tips )

Copper & other Base Metals may rally too:

Copper & other Base Metals may also rebound from recent slumps to rise substantially on expected easing from China, the world’s largest consumer of Base Metals. There have been reports that Chinese leader Wen Jiabao said China may have to ease monetary policy soon. Copper production in 2012 has picked up, but not to the level that industry expected. Scrap supply has become the savior of the copper market for the past two years, bridging the gap between growing Copper demand and stagnant mine supply. Chilean Copper production is starting to pick up after a shaky start to the year, with a rise of 2.5% in the first half of 2012 in the world’s largest copper-mining country. Chinese Copper production is running higher than expected, growing at 20% year-over-year. Copper Trading remains on the weaker side yet because of the modest global growth seen in the first half of 2012.

Data out of China shows Lead acid battery production rose by 45% year-over-year in July alone and has risen 25% year-to-date. This should be supportive for the Lead market. Battery production represents nearly 70% of total Lead demand in China. Lead supplies have tightened because of the strength of demand, and its likely solid demand will continue into year end.