Sharekhan Commodities Buzz dated January 25, 2007

[Sunil]

 

Commodities Buzz [January 25, 2007] Please see the attachment for details Share khan www.sharekhan.com

Summary of Contents   COMMODITIES BUZZ Copper: Exhibiting strength The red metal closed higher yesterday despite a huge buildup of 3,725 tonne in the LME warehouses. Copper surged on the prospects of the Chinese demand and the possibility of a strike at BHP's Cerro Colorado copper mine. It appears that the workers are likely to reject the company's offer of a 2% increase in the wages as against their demand of a wage increase of 7.8% in voting that could be held on the January 30, 2007 (the contract expires on January 31, 2007). The buyers emerged after Jingaxi, China's second largest copper cathode producer, warned that its stocks were critically low. Shutdown maintenance by some of the Chinese smelters in the days ahead also stoked supply concerns. The market would closely watch the US existing home sales. As of now, the red metal appears to be stable and is well positioned to move higher.

Regards, The Sharekhan Research Team myac...@sharekhan.com

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