Copper gets a Diwali shine but nickel dims

BASE METAL REVIEW

Nickel lost its sheen not only in the international market but also in the domestic market. The silvery white metal declined by Rs 1,500 per quintal to Rs 66,000 per quintal today from Rs 67,500 per quintal mainly because of a slump in demand from the steel-galvanising industry.

Meanwhile, tin followed suit, having lost Rs 1,300 per quintal to Rs 37,200 per quintal, from Rs 38,500 per quintal. However, a tin trader said, "Tin moves independently and takes no metal's move either in London or in India."

Copper producers have had a sparkling Diwali with wire bar seeing an upturn of Rs 200 per quintal to Rs 23,700 per quintal after almost a tradeless week because of holidays in the Mumbai non-ferrous metals market. The domestic market responded positively to today's early gain in London Metal Exchange, where the price touched $4,011.

The prices of copper heavy scrap and copper utensil scrap jumped by Rs 100 per quintal to Rs 21,600 per quintal and Rs 18,800 per quintal, respectively, while the copper light scrap price surged by Rs 150 per quintal to Rs 20,650 per quintal and that of copper sheet cutting jumped by Rs 200 per quintal to Rs 20,000 per quintal.

Copper, on a three-month basis, scaled $4,000 to set a new record, as fund buying - especially in China - made a comeback today. Before analysts set the new record of $4,030 (on a three-month basis) copper had started declining on profit taking, coming down to $3,963 (at the time of writing this story).

Traders were concerned over increase in stocks and with much talk of the market moving into surplus in 2006, which forced stockholders to shelve their deposits at this opportune time. This brought back copper at the day's lowest level.

Rising momentum in the international market and a rise in price of Rs 3,350 per tonne by the domestic leaders helped in boosting aluminium ingots and utensil scrap by Rs 200 per quintal to Rs 10,500 per quintal and Rs 8,600 per quintal, respectively.

"The hike in basic aluminium prices by National Aluminium Company can be attributed to the physical market's response to the decision taken by the main producers - at least about their prices - immediately, and the current rise," a trader said.

When all major metals are gaining ground can zinc slabs be left behind? They moved hand in hand with its other virgin metal peers and recorded Rs 200 per quintal growth to Rs 9,900 per quintal. However, lead, tin and nickel continued to be in depression. Lead managed to recover its early loss to end the day at Rs 5,650 per quintal.