Macquarie: JBM - Base metals volatile again - Metals News - Metals Place: "Another day, and another highly volatile and at times illiquid trading day on the London Metals Exchange (LME) overnight. Most LME Base Metals finished the session lower as the previous session's rally faded. – copper down by 4.6% and aluminium down by nearly 2%. Zinc was the only metal to record an increase, climbing by 1.3%. With LME inventories falling, and tightness looking especially acute in the nickel market, Macquarie Research Equities (MRE) reiterates its view on nickel producer Jubilee Mines (JBM).
Nickel softened overnight, along with most other base metals, but at $21,950, down $245, was cushioned by falling warehouse stocks and increased technical tightness. LME inventories were down 420 tonnes at 18,948, the lowest since early-November 2005, while the cash/threes backwardation widened to $600/645 at one point, the tightest since June 2005. On Tuesday nickel hit a fresh record high of $22,250, boosted by potential labour stoppages at Inco's Sudbury plant. MRE believes that this tightness in nickel is highly apparent and is increasingly getting more acute."
No comments:
Post a Comment