The prices of base metals on the London Metal Exchange posted major gains last week.
This happened due to positive sentiments on demand front despite dollar strengthening, which, in general, reduces the appeal of commodities as an alternative investment as a weaker dollar makes dollar-priced metals cheaper for non US investors.
The recovery on the was mainly due to relative market stabilization after investors learned more about progress made on creating a strategy to help Greece solve its debt crisis.
US Federal Reserve decision to raise the discount rate to 0.75% from 0.50% left the benchmark federal funds rate, its main policy tool, unchanged near zero.
In addition, Japan''s economic growth of 1.1% for the fourth quarter of 2009 compared to Q3 and a 0.9% MoM increase in January industrial production in the US also positively impacted prices during the week. The data included a surge in weekly US jobless claims and a faster than expected rise in US January producer prices as higher producer prices stoke concerns about inflation.
1. Zinc
Friday closing - USD 2,300 a tonne
Zinc stocks fell 75 tonnes to 541,300 tonnes but the fall did little to combat the previous day''s rise of nearly 40,000 tonnes, which traders believe was sparked in part by tightness around the May prompt date.
2. Nickel
Friday closing - USD 20,450 a tonne
3. Tin
Friday closing - USD 17,050 a tonne
4. Aluminium
Friday closing - USD 2,114 a tonne
LME aluminium stocks fell 3,900 tonnes to total 4.6 million tonnes - near record levels, while cancelled warrants fell to 289,425 tonnes from 293,175 tonnes. However, cancelled warrants remain near their highest ever levels, indicating demand is increasing.
5. Copper
Friday closing - USD 7,435 a tonne
Copper inventories monitored by the LME increased 0.9% to 555,075 tonne the highest since October 2003, according to daily figures. Including stockpiles monitored by the Shanghai Futures Exchange and Comex, they total 767,012 tonne