According to the quarterly BIR World Mirror, representatives from a host of the world regions, continued volatility in the market is the biggest issue at the present time. Marc Natan, president of the BIR’s non-ferrous metals division, notes that “Erratic variations in quotations – for example, a differential of $100-150 for copper and 500-600 for nickel – are not allowing them to go serenely about their business.”
Inventory levels, he adds, have continued to decrease. LME (London Metal Exchange) stocks of aluminum have fallen by almost 800,000 metric tons in the last few months; nickel inventory levels have rarely been so low; and copper will shortly drop below the 100,000 metric tons mark.
“Of the seven metals quoted on the LME, five of them are currently experiencing a backwardation or, in other words, the cash price is higher than the three-month level. This position is expected to develop further given the extent of the decline in stocks.
Members of the BIR may read the rest of the World Mirror report by logging on to www.bir.org.
Other reports come from the Middle East, Russia, South Africa, the United States, France, Germany, Italy, the United Kingdom, Spain, and Nordic countries.