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Copper sector to witness volatility: An expected revision in Indian copper prices last week is deterring buyers in a volatile market, metal traders and company executives said. There is a lot of talk going on about a downward revision in copper prices," said a marketing executive at a leading copper manufacturer who did not wish to be named. "Because of this, buyers are keeping off the market." Local copper prices have seen sharp price fluctuations in the last few months as demand faltered in a sluggish economy and on domestic political uncertainty.
Copper sector to witness volatility: An expected revision in Indian copper prices last week is deterring buyers in a volatile market, metal traders and company executives said. There is a lot of talk going on about a downward revision in copper prices," said a marketing executive at a leading copper manufacturer who did not wish to be named. "Because of this, buyers are keeping off the market." Local copper prices have seen sharp price fluctuations in the last few months as demand faltered in a sluggish economy and on domestic political uncertainty.
Tokyo palladium up: Yen-based palladium prices gained last week on concerns that Russia's financial woes may further confuse the nation's supplies of platinum group metals (PGM), but prices ended off highs on profit-taking, traders said. Gold futures ended mostly easier due to the yen's firmness against the dollar, while platinum and silver futures tracked New York's losses overnight to end lower, they said. Palladium futures ranged from steady to 15 yen per gram higher. Benchmark June ended up five yen at 1,195 yen.
Gold, silver seen higher: Gold and silver will witness slightly higher prices in the short term on technical strength, traders and analysts said last week. "It looks like the market has a positive tone this morning -people are a little bit bullish," said a trader. A successful defence of $282 support over the last week has allowed gold to correct higher, according to Karen Jones, technical analyst at Credit Suisse First Boston. But the recovery would not lead very far, she said, adding that a move to $287.60 resistance would fail.
Gold firm to close plant: Gold firm Sons of Gwalia said last week it expected that it would achieve its previously announced forecast net profit after tax, but before abnormals, of between A$45 to A$50 million. The company said as at June 30, 1998 its total gold ore reserves were about 3.55 million ounces of gold while combined reserves and resources were about 7.7 million ounces of gold. Sons of Gwalia said its Nevoria gold milling facilities near the Yilgarn Star mine in Western Australia would close and its Laverton mine also in Western Australia would be placed on care and maintenance.
BHP copper cathode output falls: The Broken Hill Pty Co Ltd said last week its cathode and anode copper production was down nine per cent and copper concentrate output rose 17 percent in June from the same period a year ago. Copper anode output totalled 33,300 tonnes in June, while concentrate production was 58,900 tonnes, the company said.
Michael Hill records profit: New Zealand retail jeweller Michael Hill International reported a record annual tax-paid profit of NZ$7.19 million last week, up 39.5 per cent on the previous year's NZ$5.15 million. "The board is very pleased with this result which was again achieved under extremely competitive and difficult trading conditions in both Australia and New Zealand," chairman Michael Hill said.
"The result for the year represents a 24 per cent return on average shareholders' funds, a figure matched by few companies on the New Zealand Stock Exchange." The majority of earnings were generated in the company's growing Australian retail chain, which opened seven new stores during the year.
Furukawa to cut copper production: Furukawa Co said last week it was considering cutting production of refined copper due to slack domestic demand and high prices of copper concentrate.
Confirming a report in an industry newspaper, a company spokesman said Furukawa was looking into possible production cuts. The company will draft a production plan by the end of next month for the second half of its business year starting in October. The daily Materials & Industry News quoted Furukawa vice chairman Ichiro Fujimura as saying: "In addition to poor (domestic) copper sales, tough raw materials conditions make it necessary for us to consider production cuts.
Nickel firm to hike output: Australian nickel group QNI Ltd aims to boost its nickel production this Financial year to 56,000 to 57,000 tonnes from 55,000 tonnes in 1997/98 ended June 30 and to push its production costs below US$2 a pound, managing director Chris Pointon said last week. The company also sees the world nickel price rising,Pointon told Reuters in an interview. QNI's production cost target was produced by the group's new management team in February after Billiton Plc took a controlling stake in the company of about 52 per cent.
China cuts gold price: China has cut the official purchase price of gold by 2.92 per cent to 78.15 yuan ($9.42) per gram, a central bank spokesman said.
Africa mining hopes dashed: In a swanky resort hotel before hundreds of investors, Kambale Mututulo oozed the kind of optimism that swept Africa's mining scene last year. The jazz-loving mines Minister of President Laurent Kabila's Democratic Republic of the Congo stunned his audience with a rendition of "I have a dream" and declared his bankrupt country open for business after 30 years of corrupt rule. Today Mututulo is out of a job, his country is at war again and investors are singing the blues. Africa's mining renaissance has been dented by a widening Congo rebellion, renewed fighting in Angola, a spluttering privatisation effort in Zambia and slumping metal prices.
Mitsui Mining cuts zinc price: Mitsui Mining and Smelting Co Ltd said last week it had reduced its selling price for zinc by 4,000 yen to 192,000 yen per tonne, effective immediately.
Major Japanese smelters periodically review their selling prices, changing them in line with market prices and currency rates.
China copper outlook bleak: China's worst floods in 44 years have begun to strain copper production, shipment and demand, despite a brave face put on by producers, traders and analysts said last week. Jiangxi Copper Co, China's largest copper producer, told Reuters that its mines had only scattered interruptions and operation was back to normal levels. "We heard some producers were asking longer grace periods for shipments," said a trader, who noted that the heavy rains that drenched central China had affected the provinces of Hunan, Hubei, Jiangxi and Anhui, where major copper mines and smelters are located.
Chinese zinc firm's earnings fall: China's Huludao Zinc Industry Co Ltd, one of Asia's largest zinc smelters, said last week that a year-on-year drop of 41.2 per cent in its 1998 first-half interim net earnings was due to price falls caused by the Asian financial crisis. Net earnings for the first-half of 1998 reached 59.74million yuan ($7.20 million), against 101.64 million yuan in the same period last year, under Chinese accounting standards, the company said in an interim report published in the China Securities newspaper. "Our earnings were seriously affected by a year-on-year fall of 30 percent and 20 percent in international and domestic zinc prices, respectively, in the first half of this year," it said.
Rains not to affect mining: Jiangxi Copper Co said last week that all of its copper mines and smelters were operating at close to normal levels after scattered interruptions due to bad weather. The torrential rains in central China forced one of its open pit mines at Dexing to close for about one week, and several secondary mines at Wushan and Tongxiang also had downtime ranging from several hours to a day or so, a spokesman at Jiangxi Copper told Reuters by telephone. "The stoppage was partial under heavy rains and for safety precautions," he said. "Otherwise, production was normal."
Japan crude steel output down: Japan's crude steel output in July fell 12.5 per cent from the same month a year ago to 7.7 million tonnes, the Japan Iron and Steel Federation said last week. Crude steel output fell in July for the eighth straight month on a year-on-year basis, it said.
Metal prices likely to be soft: Capral Aluminium Ltd said last week it expects metal prices to weaken and will focus on reducing costs at its aluminium smelter in the coming year.
"Our planning for metal prices assumes the possibility of some further reduction as a consequence of regional pressures," the company said in a statement. "Our focus will continue to be on cost reduction in the smelter," it said. "In the fabrication business, competition pressures will continue, customer service and cost reduction will remain a priority."
Sims metal net profit rises: Metals recycler Sims metal Ltd said last week its net profit for the year ending June 30, 1998 had risen 20 per cent to A$42.20 million. The group declared a final dividend of 17 cents a share. Managing director John Crabb said profit before interest and tax was up 23 per cent at A$70.69 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) was up 23 percent at A$95.0 million. "Despite volatile trading conditions and adverse foreign exchange hedge rates on Australian export revenues, the group achieved a substantial improvement in profitability in fiscal 1998," Crabb said in a statement.
Capral year profit may fall: Capral Aluminium Ltd managing director Ian Edwards said last week the company was unlikely to match its 1997 year net profit after abnormals of A$40.2 million in calendar 1998 due to weak aluminium prices. "Full year 1998 earnings after abnormals are not likely to match 1997's because metal prices are not as high as they were in 1997," Edwards told Reuters in a telephone interview. However, Edwards said Capral does not expect any more abnormal losses in the second half of 1998 after booking a pre-tax abnormal loss of A$30.1 million in the six months to June 30.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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