Scrap Metal Prices and Scrap Metal Auctions

Base metals remained buoyant. Copper rebounded on the back of global effort to recapitalize banks triggered a broad recovery in financial markets. The recovery came as the U.S. plans to inject $250 billion into its banks, following a concerted European drive to do the same, boosted stock markets. In another development, China’s imports of unwrought copper and semi-finished copper products rose by 20 percent in the month of September as merchants increased spot imports on attractive margins. LME aluminium rose as high as $2,319 a tonne, from $2,255 a tonne, as financial turmoil delayed a $10.6 billion aluminium joint venture between Rio Tinto and Saudi Arabian Mining Co. Alumina refineries in China are shutting down some high-cost capacity as prices fall, refinery sources said on Monday. LME copper touched $5500 a tonne whereas lead climbed to $1645 and zinc made a high of $1520 a tonne.

 Copper prices could face resistance above $5,500 levels as the current revival in prices could be short-lived, i.e. depend on the US Dollar movement. Aluminum prices are expected to trade above $2,200 as prices are as it is below their marginal cost of production. Zinc, Lead and Nickel prices could trade above their lows that they touched earlier as the metals are also trading below their marginal cost of production. Yesterday dollar weakness helped prices to revive from their multi-year lows. Since the macroeconomic picture remains bleak we cannot ignore technical sell-offs and corrections at higher levels and prices will remain susceptible to volatility.

Source www.commodityonline.com

Filed under: Base Metal Prices