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Archive for February 21st, 2010

Copper, Lead, Nonferrous Metal, Nonferrous Metals Prices

February 21, 2010

Base Metals Rise, Lead Price Get Double-digit Gains

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It was reported from NEW YORK on 19 February that the base metals complex ended its gangbuster week in solidly positive territory on Friday, with some metals logging double-digit gains on the back of improved market sentiment and rising inflation pressures.

Lead recorded the biggest gain, soaring 10.4 percent over the course of the week to close second-ring trade on the London Metal Exchange at $2,319 per tonne on Friday. Nickel and zinc also registered sizable weekly gains, climbing 9.8 percent and 7.5 percent to $20,300/$20,310 (bid/ask) and $2,290 per tonne, respectively.

Copper was up 6.6 percent week-on-week at $7,223 per tonne, while March futures prices on the Comex division of the New York Mercantile Exchange rose 8.9 percent to close at $3.357 per pound vs. $3.0825 one week earlier.

Tin was up 4.6 percent on the week to close.

Metal News, Nonferrous Metal

LME Make Effort for Baltic Alliance

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It was reported that the London Metal Exchange launched a fresh effort on Friday to agree an alliance with the Baltic Exchange with a formal proposal to unite two of the City of London’s most historic financial institutions and transform global freight trading.

The LME suggested a new exchange – the London Baltic FFA Exchange – should be created as a joint venture between it and the Baltic. The joint venture proposed by the LME would bring the trading of Forward Freight Agreements on-exchange. FFAs, the contracts that allow parties to hedge the costs associated with shipping freight, are currently traded in a telephone, over-the counter market. The Baltic Exchange provides the benchmark indices used to price and settle FFAs.

Donald Brydon, LME chairman, said: “This proposal commands some compelling logic for expanding the FFA market in a joint venture with the LME. Our original approaches, based on electronic trading on a regulated exchange, are now even more relevant given the regulatory and political pressures all OTC markets are facing.”

A spokesman for the Baltic Exchange said the LME’s proposals would be “carefully considered”, after an initial approach last year met with a frosty reception.