Rus News Journal

Metals: falling of quotations has got almost landslide character

Metals: Falling of quotations has got almost landslide character On Monday, on April, 19th, at the auctions by industrial metals there were confident sales. Preconditions have for this purpose started to develop past Friday, on April, 16th when quotations of metals have considerably grown though there was already an information from China about intention to cool the real estate market. On April, 19th these intentions have been realised, and now the investors having two or more immovable of object, make new purchases cannot. Artificial restraint of demand for habitation will necessarily be expressed in requirement decrease on the metals used in building. Besides, any more the first day becomes stronger dollar that pressure upon quotations of base metals, truth should put, on Friday this factor has been ignored. A situation with claims to one of leading banks of the USA - Goldman Sachs Inc. Has compelled investors to get rid of brave actives that in a combination to excessive optimism of the previous session, has poured out in almost landslide falling of quotations of industrial metals.

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


lead became the Leader of falling, its cost has failed on 7,55 %, to 2205 dollars/ t. Metal quotations were rolled away to level of the beginning of April, having brought to nothing all efforts bulls for last two and a half a week. But the nearest support settles down still hardly more low - on a mark 2178 dollars/ t so decrease can quite have development.

also zinc (- 6,3 %) not very well looked, but its quotations have stopped on the minimum mark of April (2363 dollars/), which bears already tested for durability on April, 8th, but unsuccessfully. Contracts on aluminium have fallen in price on 4,61 % and 2400 dollars have fallen below level/ t over which have spent all last week.

the metals, which stocks on LME on Monday is slightly better looked were reduced most considerably. Tin stocks have decreased on 0,83 %, and it has allowed metal to be limited to loss only 2,61 % of the price. Nickel stocks were reduced to 0,51 %, and its quotations have decreased on 3,77 %. At last, copper stocks have fallen to 0,3 %, and metal became cheaper on 3,27 %.

Warehouse stocks of metals on LME as of April, 19th:



Analysts Economist Intelligence Unit (EIU) expect that in sredne - and long-term prospect of the price for the basic metals will grow in reply to steady growth of economics of underdevelopment and an urbanization occurring there. Unpredictability, in their opinion, dynamics of deliveries of some metals, in particular will show to copper. Despite an investment the Chinese companies in 2009. Great volume of means in the projects connected with the basic metals, the private companies from the crisis beginning with great difficulty found financing sources in other countries. And it can lead to that level of deliveries of the basic metals on the markets in 2011 - will be 2014 more low, than it is expected currently, and the prices - above, predict in EIU.

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