Lead Update

Profit booking has chipped in metals soon after the Greece debt deal was finalized that will pave way for 44 billion financial aid to the country. On Tuesday, metals looked as they were just waiting for the deal to happen and generation of profits clipped the industrial metals from the highs of the day. Greece's government debt is now targeted to fall to 124% of GDP by 2020, and to substantially less than 110% of GDP by 2022.
Monday markets remained quite fruitful for the non ferrous metals. News of Greece bailout appreciated the metals. The LME three month forwards closed at $ 7789 per tonne, up $ 96 per tonne. The red metal was down by $ 10 per tonne in early Asian trades trading at $ 7779. MCX Copper ended at day's highs. The far month contract for February expiry ended at Rs 439 per kg, up 0.57%.
The Commodity Futures Trading Commission (CFTC) managed money funds remained betting on weakness in Comex Copper futures for coming days as per Commitment of Traders report for the week ended 20 November 2012.
Managed Money Managers sold 1031 bullish bets on Copper while adding another 790 short positions, or bets on lower prices. This took their net positions up 219 percent to 2652 short contracts from 831 long contracts a week earlier.
Aluminium inventories remained at all time high in Shanghai and LME. Shanghai inventories of Aluminium were up by 6673 tonnes to 460649 tonnes. Shanghai Aluminium inventories have gained by 110% to 465679 tonnes in 2012. On LME, inventories are at 5177100 tonnes on Monday. LME Aluminium was trading at $ 1992 per tonne on Tuesday, unchanged from last night. MCX Aluminium closed at Rs 110.9 per kg, up 1.2%.
In Zinc, one has seen the similar situation. London Metal Exchange (LME) has seen a sharp rise in Zinc inflows. In LME, Zinc inventories are at all time highs but due to lower demand and financing deals they are getting dumped in warehouses. LME warehousing stocks of Zinc stand at 1199050 tonnes in November, up 46 percent from 820300 tonnes in January 2012 this year.
In Shanghai, Zinc stocks have declined but that indicates that they are either getting into unreported storage locations or they are routed into LME warehouses. Zinc stockpiles have declined by 15 percent this year to 310558 tonnes.