Metal Markets Digest Impact Of Peruvian Quake

Mining companies throughout Peru are currently assessing the impact and possible damage caused by Wednesday's earthquake. The U.S. Geological Survey reports the earthquake hit at 7:40EDT in an area 90 miles southeast of Lima at a depth of approximately 25 miles. The quake had a magnitude of 7.9

Mining-Profits.com will have updated news and information as it becomes available.

Companies with mining operations in Peru:

* NEWMONT MINING CORP
* SILVER STANDARD RESOURCES INC.
* CHAPLEAU RESOURCES LTD.
* CIA. MINERA ALGAMARCA S.A.
* EQUINOX MINERALS LIMITED
* GITENNES EXPLORATION INC.
* INCA PACIFIC RESOURCES INC.
* MACMILLAN GOLD CORP
* SOUTHERN PERU COPPER
* PERU COPPER INC
* FREEPORT-MCMORAN COPPER AND GOLD

Copper Aims To Test Record Highs...........

Copper closed the week at 359.30, and remains well above the 50 day moving average of 345.58

ADVFN
is your source for free stock and commodity quotes from around the world.

Copper closed the week up 7 dollars and now sits just below the 50 day moving average of 345.62

Copper remains range bound and continues to trade below the 50 and above the 200 day moving average.

Copper has strong support at the 200 day moving average of 315. Prices have bounced off this level twice in recent weeks.

Industrial Metal Closing Prices 6-01-07

Metal LB in USD Cash 3 Month 15 Month

Copper 3.4067 3.3657 3.0663

Aluminum 1.2589 1.2755 1.2256

Nickel 22.8838 21.5888 17.6765

Lead 1.0664 1.0682 .9367

Zinc 1.6831 1.6831 1.5073

Industrial Metal Closing Prices 5-25-07

Metal LB in USD Cash 3 Month 15 Month

Copper 3.2396 3.2296 2.9778

Aluminum 1.2487 1.2623 1.2188

Nickel 23.1332 21.3438 18.0076

Lead .9779 .9866 .8868

Zinc 1.6375 1.6332 1.4869

Industrial Metal Closing Prices 5-18-07

London Metal Exchange May 18 '07
USD/LB Cash 3m 15m
Nickel 23.7229 22.2283 18.1551
Lead .9049 .9163 .8292
Tin 6.3049 6.2596 5.8627
Zinc 1.6468 1.6520 1.4982

USD/LB Cash 3m 15m
Aluminum 1.2614 1.2769 1.2261
Alum Alloy .9938 1.0138 1.0591
NA Alloy .9893 1.0115 1.0433
Copper 3.2931 3.2749 3.0028

Copper rallied on Tuesday on stronger than anticipated demand from China.

China's imports of copper and copper products from January through April are estimated at 1.1 million metric tons.

China's imports of refined copper, anode and copper alloy in April stood at 304,672 tons.

That was down by 6.5 percent from March's record of 307,740 tons but exceeded expectations.

Nickel prices gained $1,800 to $50,850 a ton

Zinc traded down by $19 at $3,936 and Lead moved up by $9 to $2,084 a ton

Zinc is currently up almost 40 percent since early February.

Copper prices fell in Shanghai trading on Monday, after a 25% rise in copper stocks last week. However, dealers said London prices could regain $8000 a ton on a positive technical outlook.

Shanghai July copper was at 68 880 yuan a ton at the close, down 540 yuan from Friday. Prices earlier climbed over 1 percent before easing.

"Imports will probably be fairly high again for April and I think that is why there is some selling around. May is quite often the peak for metals prices in the first half, so the market may be under pressure," a dealer in Shanghai said.

China'a refined copper imports were up nearly 150% in March to more than 200 000 tons and imports in the first quarter were almost 500 000 tons.

Peru's largest mining union has declared an end to their 5 day strike.

Union officials report that the government has responded to a number of its demands for greater benefits and improved conditions for contract workers.

"We have agreed to suspend our strike starting today," Luis Castillo, leader of the National Federation of Metallurgic and Steel Miners, told a news conference.

Copper hit a new 11 month high on Friday and nickel and lead set new contract highs.

Concerns over supplies and inventories, as well as a decline in the US Dollar continue to buoy price.

Many markets in Asia were closed this week due to the May Day holiday thus reducing liquidity across the global markets.

Peru continues to be an area of concern as 30,000 mining workers remain on strike. The miner are demanding higher wages and will vote later today on extending the strike.

A continued nationwide strike among miner in Peru, as well as strong demand from the US and Europe, moved copper prices higher on Thursday.

The LME reports further decline in copper inventories. Stocks have dropped by nearly 30,000 tonnes since the beginning of April. At 2.46 pm, LME copper for three-month delivery was up at 8,015 usd a tonne against 7,745 usd at the close Friday.

China's copper use will rise to 6.5 million metric tons by 2020

China's state-owned Xinhua News Agency reported on Wednesday that China's copper use will rise to 6.5 million metric tons by 2020 , citing estimates from a conference.

According to an estimate by London-based research company Bloomsbury Minerals Economics Ltd. China's consumption will rise 11 percent this year to 4.45 million tons.
Copper use has expanded in line with the nation's economy, which grew 11.1 percent in the first quarter.

Copper pulled back on Monday after a strike in Indonesia came to an end. However, analysts say strong Chinese demand should continue to drive prices.

China's refined copper imports in March hit the highest level ever, with total imports exceeding 200,000 tonnes for the first time, data from China's customs bureau showed.

Copper for three-months delivery on the London Metal Exchange fell to a session low of $7,820 a tonne before recovering to $7,900/7,910 at 0931 GMT, still down around 0.7 percent from Friday.

"Freeport McMoRan has reached a wage agreement with workers at its Indonesian Grasberg mine...This is going to ease the tight supply situation and thus weighs on copper," Dresdner Kleinwort said in a research note.

A four-day strike at the Indonesian Grasberg mine of Freeport-McMoRan Copper & Gold Inc. lifted copper prices above $8,000 last week but conditions are now returning to normal, the company said on Monday.

"During the strike our production was below average but with the situation normalising, we hope that production can return to normal," Mindo Pangaribuan, a spokesman for Freeport said.

The company will meet copper and gold output targets this year at its Grasberg mine despite the stoppage, a senior official at Indonesia's mines and energy ministry said on Monday.

Freeport McMoran Copper & Gold Inc. announced via e-mail that shipments of copper concentrate continue but the company is mining and milling copper at reduced rates due to labor issues at it's Grasberg mine in Indonesia.

Copper pulled back in Thursday's London trading.

July Copper fell $70, or 0.9 percent, to $7,915 a metric ton in trading on the London Metal Exchange.

Copper has gained more than 25 percent this year.

Copper for delivery in three months on the London Metal Exchange advanced for a fourth day on Wednesday, gaining as much as $41, or 0.5 percent, to $8,090 a ton. The contract, which settled at $8,049 yesterday, the highest close since July 14, traded at $$8,070 at 10:31 a.m. Jakarta time.

Copper prices rose on Monday to near seven-month highs as the market continued to show concern over supply delays in Argentina and a strike threat in Indonesia.

Copper for three-month delivery on the London Metal Exchange rose to a session high of $7,928, but came off in the afternoon on profit taking and ended at $7,730, still up $25 from Friday.

Copper is up almost 50% from the lows set in February. This 18 month chart of Comex Copper Futures ($COPPER) shows prices that are approaching the highs set in 2006. Unprecedented global demand should push copper prices to new records in the coming months.