Metals Review: Copper and zinc move up and then down while tin remains stagnant
Editor's Note: Allied-Hunter Corporation has issued its latest review of the current state of the copper, tin and zinc markets. You have been seeing the company's metals and nickel reports on this during the past year. In its latest review, dated December 28, 2000, the company reports on the activity in the market since its last report dated November 17, 2000. To review that report, see Metals Review: Copper continues slide while tin and zinc remain stable. The information below is from the company with some editing to put the report in the third person.
Copper on a roller coaster ride
The November report showed the Comex trading copper at $.83/lb. According to the Allied-Hunter (A-H) report, during the month of December, copper became quite strong, almost reaching $.90/lb. as was predicted by Grupo Mexico, a major copper producer based in Monterrey, Mexico. However, the A-H report mentions that copper dropped to $.85/lb., starting about Dec. 15. The A-H report draws a correlation between this drop and a drop in the London Metal Exchange (LME) stock level. LME stocks were at 364,850 metric tonnes (MT) at the time of the Nov. 17 report, but fell to 331,100 MT on Dec. 15. Since then, they have risen to over 350,000 MT. "The actual amount of the increase is not significant but what is important is that, at least, it signals a slowing of the rate of decline," says the report.
The yearly average price for copper will finish at approximately $.84/lb., says the A-H report, with predictions being higher in 2001 at $.95/lb. to $1.00/lb. "Forecasted increases take into account slower growth in the world economy (2000's growth rate of 5 percent was the highest since 1988," says the report. "However, most also assume a ‘soft landing' scenario in the U.S. and a major reduction in energy costs (the #1 gift topping the wish-lists of our friends in California)."
Tin remains the same
While copper moved up and then down since the last report, tin has been pretty weak. According to the A-H report, tin remained stagnant at approximately $2.40/lb. in the first half of December. However, the report says tin fell a bit to $2.34/lb. during the latter half of the month. "Any further breakdown from this point would lead to lows not seen since early 1999. In more recent history (ending October) when prices dipped to this level, we saw a rebound to approximately $2.40/lb.," says the A-H report.
Zinc rides another roller coaster
Finally, zinc performed much like copper with a strong showing of nearly $.50/lb. but has fallen to $.47/lb., says the report. The yearly average for 2000 will most likely be about $.51/lb. with the predictions for 2001 pointing to $.55/lb. on average, according to the A-H report.
Edited by Marie Pompili
Managing Editor, Surface Finishing.com
Email: mpompili@vertical.net
1 (440) 247-4232
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