Further to that article, here was one later in the day: Good to get a feel for what is twsiting and turning the world economics wrt base metals etc.
http://news.alibaba.com/article/detail/metalworking/100251311-1-metals-copper-down-dollar%252C-investors-eye.html
METALS-Copper down on dollar, investors eye stimulus
Published: 23 Feb 2010 07:16:08 PST
* Market talks about targeted stimulus
* Aluminium hits highest since Jan 27
* Investors keep eye on Chinese monetary policy
LONDON, Feb 23 - Copper fell on Tuesday as the dollar recovered early losses, but expectations of further government stimulus packages to boost the construction and auto sectors helped limit losses.
Benchmark copper on the London Metal Exchange traded at $7,277.50 a tonne at 1457 GMT from $7,330 at the close on Monday. The metal used in power and construction hit a day's low of $7,215, but has gained about 15 percent since Feb. 5.
The dollar rose after a dip in U.S. home prices and ahead of testimony from U.S. Federal Reserve Chairman Ben Bernanke on monetary policy and the state of the economy on Wednesday and Thursday.
A stronger dollar makes metals more expensive for holders of other currencies.
Major economies such as the United States, Japan and Germany show few signs of robust, sustainable growth and analysts are talking about further stimulus packages.
"Right now you can't escape the feeling that people think commodity prices are a bubble," said Alex Heath, head of base metals at RBC Capital Markets.
"Everyone's concerned about a double-dip recession," he added. "Governments should take good care not to withdraw funding packages too quickly. It could snuff out this recovery."
The International Monetary Fund (IMF) said on Tuesday economic conditions were too weak in most countries to justify removing emergency supports this year.
Aluminium, a crucial material for the auto industry, earlier rose to an intra-day peak of $2,179 a tonne, the highest since Jan. 27, partly because of a rise in cancelled warrants. This material earmarked for delivery rose to around 300,000 tonnes from about 215,000 in early January.
Aluminium traded at $2,137 versus $2,150 on Monday.
Cancelled warrants account for more than 6 percent of total LME stocks of aluminium, which stand at 4.58 million tonnes. A significant proportion of aluminium inventories are also tied up in financing deals to release cash for producers.
PLAY ON CHINA
China is the world's largest producer and consumer of aluminium. It is also the world's largest consumer of copper and accounts for more than 30 percent of demand.
"Many investment funds also see base metals as a play on China, and on the recovery in global economic activity," Natixis said in a note.
"Although it is difficult to double-guess the funds, many of the factors that attracted investors to the base metal sector are still in place."
However, data from Barclays on Monday showed investments in commodities fell to $245 billion in January from $257 billion in December. It was the first fall since November 2008.
Analysts say a major reason behind the fall was concern about policy tightening in China, where the central bank has raised banks' required reserves, effective from Thursday.
Zinc traded at $2,254 a tonne from $2,290 on Monday, battery material lead was at $2,295 a tonne from $2,325, tin was at $16,995 from $17,175 and stainless ingredient nickel traded at $20,450 from $20,475.
Nickel saw a peak of $20,734 a tonne, its highest since Aug. 14. Gains have partly been built on falling LME stocks, down more than 5,200 tonnes since Feb. 5 to 161,178 tonnes.
"People are talking about stronger demand growth and a lower nickel market surplus," a London-based trader said.
Stainless steel mills are estimated to account for two-thirds of global nickel consumption, estimated this year at about 1.4 million tonnes. A recent Reuters survey showed the nickel market surplus at 15,000 tonnes this year. Metal Prices at 1459 GMT Metal Last Change Percent Move End 2009 Ytd Percent
