Global rally sets markets on fire

DOMESTIC REVIEW/NON- FERROUS METALS

The domestic non-ferrous metal market zoomed up in the last week following the international trend.

Copper touched 8-year high, tin hit 7-year peak and nickel soared to a 23-year high on the London Metal Exchange (LME). This ignited a rally in the domestic market.

Price of copper heavy scrap zoomed up from Rs 141 to today's close of Rs 146, copper utensil scraps jumped from Rs 124 to Rs 128 and copper wire bar shot up from Rs 162 to Rs 165.

Price of tin slabs rose from Rs 418 to Rs 435 while nickel cathodes gained from Rs 915 to Rs 1001.

During the last week the price of brass utersil scraps edged up from Rs 97 to Rs 99 and brass sheet cutting from Rs 102.50 to Rs 105.

Price of aluminium utersil scrap increased marginally from Rs 75 to Rs 76 and aluminium ingots gained from Rs 97 to Rs 98.

Price of zinc slabs and lead ingots was stable at Rs 76 and at Rs 46, respectively.

On the National Multi Commodity Exchange (NMCE) the futures prices in all base metals jumped with higher volumes.

In overseas markets, London Metal Exchange (LME) copper futures extended 6-½ year highs in morning trade, gaining more than $10 on Asia's second trading day of 2004.

By 0550 GMT on Monday, LME copper was trading at $2,361/2,365 a tonne. This was up from $2,349 at kerb close on Friday, which was the highest price since July 1997.

Funds were still long and saw potential for further price rise before the Chinese New Year at the end of January, traders told Reuters.

Shanghai copper futures rose across the board on strong Chinese buying. By 0550 GMT the most active contract, August traded at 23,990 yuan, up from 23,540 yuan at Friday's close.

COMEX most active March firmed to 108.00 cents per lb from New York's Wednesday settlement of 104.55 cents per lb.

LME three-month aluminium inched up to $1,619/1,622 a tonne by 0550 GMT from $1,618 at Friday's kerb close, although in Asian morning trade it touched a high of $1,621/1,625 a tonne.

Shanghai aluminium futures rose across the board from Friday's close. The most active, June rose 260 yuan to 16,570 yuan a tonne.

LME three-month nickel firmed at $16,800-16,900 a tonne versus $16,830 at London close on Friday. Lead was bid at $739 a tonne, up from $738 at Friday close in London. But bids for zinc fell slightly in Asia to $1,037 from $1,040 a tonne.