Copper Updates

Copper Updates

LME base metals were mixed and trading in tight ranges on Thursday due to lingering concerns about Greek debt and the U.S. fiscal situation. Copper showed signs of further correction after it settled down by $ 62 per tonne at $ 7743 per tonne. Indian Copper futures are likely to find resistance at Rs 441 per kg and support at Rs 434 per kg. The prices of February expiry closed at Rs 437.8 per kg.
LME Zinc ended at $ 2185 per tonne when last checked, down by $ 16 per tonne. A further increase of 3125 tonnes was noted in Zinc inventories today with total stockpiles at record high of 1200450 tonnes. MCX Zinc settled trading at Rs 110.2 per kg, up 0.23%.
Dollar was largely stronger last night before the US data after which it closed down. However till the time damage was done in metals and it induced selling pressure. Dollar closed marginally lower against the Euro at 1.295.
In the U.S., the Commerce Department reported earlier that new home sales fell by 0.3% to a seasonally adjusted 368000 units in October. There are also concerns about the need for the US Congress to reach a compromise to avoid $600 billion in tax increases and spending cuts due to start in January, a combination known as the fiscal cliff that could hurt the world's largest economy.
In Eurozone, National Institute of Statistics said that Spanish retail sales rose to a seasonally adjusted annual rate of -9.7% in October, from -11.0% in the preceding month.
Greece lenders reached an agreement this week to reduce country's debt-reduction target by EUR 40 billion to 124% of gross domestic product by 2020. But the lack of detail on how Greece will implement reforms needed to meet its new debt targets has affected investor confidence.

Copper Updates

Xstrata Copper's Antapaccay copper mine in southern Peru commenced production of commercial grade copper in concentrates at the beginning of November and has delivered its first shipment to Matarani Port for delivery to customers worldwide.
Plant commissioning activities continued as Antapaccay progressively ramps up to the nameplate processing capacity of 70,000 tonnes per day in the first half of 2013. The mine will produce an average of 160,000 tonnes of copper in concentrate per annum, plus gold and silver by-products, in the initial years of production.
Antapaccay is a major copper operation with a mine life of more than 20 years, including a new mine and state-of-the-art concentrator facility. The mine is located approximately 10 kilometres from our Tintaya open pit mine, where mining activities are scheduled to end in the coming months, and benefits from Tintaya's existing administrative and logistics infrastructure and experienced workforce.
The Antapaccay mine will employ a permanent workforce of around 1,400 people, with the majority of workers transferring from the existing Tintaya mine as it closes, and will create further opportunities for local employment.
Xstrata Copper Chief Executive Charlie Sartain said:
“I am delighted to announce that we commenced production at our major Antapaccay project on schedule and in line with the original budget of $1.5 billion, a significant achievement for a project undertaken through a period of industry inflation and global economic uncertainty.
Antapaccay extends and increases Tintaya's contribution to important local infrastructure, ongoing opportunities for local suppliers, skills training and enterprise development, royalty and tax payments and substantial voluntary annual investment in community projects and partnerships.”
The Antapaccay deposit has recently been expanded by 30% to an estimated total Mineral Resource of over 1 billion tonnes at a grade of 0.49% copper using a cut-off grade of 0.15% copper, including gold and silver by-products. The Mineral Resource contains 5 million tonnes of copper metal.
The highly attractive Tintaya geological district also hosts the Coroccohuayco deposit, with a current Mineral Resource of 324 million tonnes at a grade of 0.93% copper, and a number of exploration targets within our extensive mineral tenements.

Copper Trading Level's

TUESDAY 27-11-2012

TRADING LEVELS FOR MORNING SESSION


S1 RS 431.60 , S2 RS 428.70 , S3 RS 424.80


R1 RS 436,30 , R2 RS 438.40 , R3 RS 441.30

Copper updates

Base metals are mixed in tight ranges as the market remains focused on a meeting of eurozone finance ministers regarding Greece's bailout package. The meeting is scheduled to start later in the global trading day. Last week business confidence data and fall in Dollar elevated the base metals.

Germany business climate index increased to 101.4 in October compared to 100 in the month of September. In France, the business confidence rose more than expected. INSEE said that French Business Confidence increased to 88 in the quarter ending September 2012, compared to 85 in the previous quarter.

In US, Federal Reserve Chairman Ben Bernanke warned on the US budget crisis. Bernanke remained worried on the pace of recovery and improvement in jobs markets at a slower pace. Bernanke remained worried on the percentage of budget deficit. The budget deficit now stands at 7 percent of the GDP.

World Bureau of Metal Statistics (WBMS) showed that copper market recorded a deficit of 267000 tonnes in January to September 2012 which follows a surplus of 248000 tonnes in the whole of 2011. The total reported stocks rose by 3700 tonnes during September and ended the month 129000 tonnes lower than at the end of 2011.

World Lead market was in surplus of 11000 tonnes in January- September 2011. Lead markets were in surplus of just 600 tonnes in full year ended 2011. The total stocks at the end of September were 86200 tonnes lower than at the end of 2011.

In currency markets, Dollar slowed sharply down against the Euro ending at 1.2977 compared to 1.2827 on Monday. Dollar is now seen trading at 1.2956 against Euro and is expected to bring some profit booking in the metals space.

LME Copper ended the last session at $ 7692 per tonne, down $ 42 per tonne. MCX Copper ended at Rs 431 per kg, compared to Rs 425 per kg at the beginning of the week. MCX Nickel closed at Rs 920 per kg last week compared to Rs 916 per kg on Monday. LME Nickel three month forwards closed at $ 16595 per tonne, down $ 130 per tonne.

Copper Updates

The copper market recorded a deficit of 267000 tonnes in January to September 2012 which follows a surplus of 248000 tonnes in the whole of 2011. The total reported stocks rose by 3700 tonnes during September and ended the month 129000 tonnes lower than at the end of 2011.
World mine production in January to September was 12.46 million tonnes which was 3.7% higher than in the same period in 2011. Global refined production rose to 15.06 million tonnes up 1.6% compared with the first nine months of 2011 with significant increases recorded for Spain of 66500 tonnes and India of 16800 tonnes. Chilean output fell by 132900 tonnes. Refined Copper production in September 2012 was 1.69 million tonnes.
Global consumption for January to September 2012 was 15.33 million tonnes and the comparable figure for the 2011 calendar year was 14.54 million tonnes. Chinese apparent consumption in January to September 2012 rose by 1.01 million tonnes to 6.60 million tonnes which represented just over 43% of global demand. EU27 demand was, at 2.30 million tonnes, 8.6% below the January to September 2011 total. Refined Copper consumption was 1.72 million tonnes in September 2012.
On Thursday, LME three month Copper forwards was trading at $ 7731 per tonne, up $ 6 per tonne. MCX Copper was trading at Rs 427 per kg, up 0.3%.

MCX Copper Updates

Antofagasta group Copper production gained 4 percent in third quarter ending 2012. The production report from the company showed that the Copper production was 179800 tonnes in the third quarter ending 2012. The production in the first nine months of the year was 515800 tonnes, up 11.5 percent from the corresponding period last year. Higher production in Esperanza mine increased the overall production of Antofagasta. The company is expected to produce 700000 tonnes of Copper in full year ended 2012.

Esperanza mine produced 45600 tonnes of payable Copper in Q3, up 21 percent from 37700 tonnes in Q2 12. This was due to a 12.5 percent increase in ore grades as well as a 6.8 percent increase in average plant throughput from 79700 tonnes per day in Q2 2012 to 85100 tonnes per day in the current quarter.

Los Pelambres produced 98800 tonnes of payable copper in Q3 2012 compared with 101300 tonnes in Q2, reflecting a decrease in ore grades from 0.71% in Q2 to 0.67 percent in Q3, partly offset by a slight increase in plant throughput. Copper production in the first nine months of 2012 was 296000 tonnes compared with 297400 tonnes in the comparable period in 2011, due to a decrease in ore grades, partly offset by an increase in plant throughput and higher recoveries.