Copper, nickel, lead and tin gain on Chinese Yuan depreciation and potential for greater Chinese domestic demand
Aluminium prices fell as the move is likely to increase the export of Chinese aluminium as local producers become more competitive.
Lower aluminium prices may also increase demand for aluminium and may accelerate the move by automakers to manufacture more auto bodies using aluminium
Stimulating production in China should lead to a stronger Chinese economy and greater local demand for the other base metals.
Renewed investment in infrastructure should drive nickel and zinc demand while a pickup in consumer demand should help tin in terms of electronics demand
A potential pick up in house purchases in China should help copper as Chinese houses are thought to be significantly underwired with copper.
MCR Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
