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Trends of Nickel and copper show a confident positive dynamics

6 February 2013
Trends of Nickel and copper show a confident positive dynamics

The quotations of copper and Nickel in the near future

clear prospects — according to analysts of the market of nonferrous metals. At

until the end of the year the situation with the balance of production /

consumption of these metals will contribute to a stable increase in the prices of these

resources.

In particular, relative to the cost of Nickel experts

sure current trend (and it is only at the end of January showed price growth

7.3 per cent) is not due to speculation of traders (which occurred earlier), and the real

a situation where the assessment of the exchange of lots based on demand growth

metal. While analysts expect such sentiments in the market remain relatively

for a long time. The reason is that this year, the world production of alloys

which Nickel participate as alloying element will increase, as

low, 4.5% (that will contribute to a steady reduction

inventory of metal — in contrast to last year — and certainly

will affect the progress of prices in the sector). «The present value of cash metal

(at the level above 18.5 thousand USD on the LME for the 5th of Feb) even allows businesses

with a high threshold of profitability to operate at a profit» — on the current

the situation of the market experts. «And if the price continues the upward movement, the industry, the victim

from a prolonged recession, will recover in the shortest possible time» — experts say.

Regarding copper demand expectations

similar. So in the financial conglomerate HSBC Holdings (London, UK)

the level of sales of the red metal in 2013 will grow by 4.3% and

average annual price will be 8ths. USD per ton. Now copper

trading on the LME at $ 8, thousand 23 per 1,000 pounds, and in the behavior of copper

indexes steadily upward for several consecutive days, the stock experts

anticipate obvious hints active «rally».

We will remind: last year, analysts ' assumptions

for 2013 (concerning the price of copper) was more pessimistic in nature. In

particular, the majority of experts forecast an average price of red

metal in the corridor between 7.5 and 7.8 thousands of U.S. dollars per ton.

5 February 2013
6 February 2013