Rus News Journal

Metals: zinc and lead have updated multimonthly minima

On Tuesday, on May, 18th, at the auctions by industrial metals pessimistic moods prevailed. Investors sold almost all kinds of contracts, and growth day could finish only nickel. Decadent moods are connected as with expectation of acceleration of inflation in China following the results of May (experts put that its level will exceed 3 %) and the subsequent actions of a regulator on toughening monetary - the credit policy, and with a situation in the currency market: in spite of the fact that Greece has received a credit tranche from EU on 14,5 mlrd euro, the European currency has again a little receded in relation to dollar.

3 - month Forward Prices, LME (results of the auctions at 18:00 on the London time):

the Greatest losses on Tuesday were incurred by the zinc which quotations have failed on 4,02 % and the point 1922 dollars/ t have reached. A round mark 2000 dollars/ t all - taki has not resisted, and the seven-mouth minimum on May, 18th has been reached. to bulls there is no sense to select the fallen in price contracts at current levels, it is more reasonable to wait approach of quotations to the nearest level of support on a mark 1850 dollars/ t, that is on 3,75 % below level of closing of the auctions on Tuesday.

a three-monthly minimum have updated on Tuesday and the prices for lead, an additional occasion to sales became considerable (on 0,77 %) increase in warehouse stocks of metal on LME. Quotations have fallen to 3,45 % - to 1834,5 dollars/ t. The short-term potential of falling is insignificant and makes 1,36 %.

it is better than the others in intermediate term prospect tin keeps. Even taking into account falling on Tuesday on 2,86 % not reached there are levels of the beginning of March. They will draw in the near future quotations, and tin depreciation, probably, will make a little more than 2,5 %. If this mark does not resist, it is expedient to investors to close positions as the further falling promises to be very impressive.

within the limits of day it is better than the others looked copper (- 1,7 %), nickel (+1,65 %) and aluminium (- 0,2 %). Quotations of the last supported as news about possible closing of manufacture of aluminium giant Alcoa Inc. In Brazil from - for a rise in prices for an electricity, and the published calculations of analysts CBI China Co., according to which aluminium consumption in China in 2010. Can grow on 20 %. As to nickel it has quite good chances to be fixed at current levels. Near to a mark 21000 dollars/ t there passes an important line of support, and on 25 % for last month it is possible to consider falling of cost of nickel as successfully taken place correction to growth.

warehouse stocks of metals on LME as of May, 18th:

Quote. ru