Basemetals intraday

· New orders for manufactured goods in January, down following four consecutive monthly increases, decreased $10.8 billion or 2.5 percent to $429.2 billion, the U.S.

· Census Bureau reported today. This followed a 2.0 percent December increase. Shipments, up four of the last five months, increased $4.7 billion or 1.1 percent to $431.8 billion. This was at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.4 percent December
decrease.
decrease.

· Unfilled orders, up thirty-two of the last thirty-three months, increased $5.3 billion or 0.7 percent to $813.3 billion. This was also at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 2.5 percent December increase. The unfilled orders-to-shipments ratio was 5.38, down from 5.44 in December.

· Inventories, up eleven of the last twelve months, increased $6.7 billion or 1.3 percent to $535.4 billion. This was also at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.9 percent December increase. The inventories-to-shipments ratio was unchanged at 1.24.



Major Headline:

· Copper gained after the dollar slipped against a basket of major currencies, renewing demand
for commodities as a hedge against inflation.

· The U.S. Dollar Index, a weighted measure against the euro, yen, pound and three other currencies, slid for the seventh straight session after touching a record low two days ago.Before today, copper, used in pipes and wires, surged 26 percentthis year.

· Chile's state-owned Codelco, the world's biggest copper-mining company, said a protest by
contract workers delayed some employees from arriving at its second-largest mine, called El Teniente.

· Contract workers hampered some buses carrying Codelco employees today to the mine in central Chile, the company's Santiago-based press office said. El Teniente produces 24 percent of Codelco's copper.

· Output was unaffected by the delay. Yesterday, a five-hour protest by contract workers forced the mine to halt production. Labor unrest in Chile, the world's largest copper supplier, and neighboring Peru will buoy the price of the metal this year, said Mark Turner, an analyst at Hallgarten & Co. in Arequipa, Peru.

· Aluminum Price Forecasts Raised by Macquarie on Power Outage Macquarie Group Ltd. raised its 2008 and 2009 aluminum price forecasts by 15 percent after power shortages in China and Africa cut production.

· Demand from countries such as China, the world's largest consumer, will keep the market ``tight'' this year, decline probably won't last long and lead will rise in the second quarter because of an estimated 18 percent jump in Chinese consumption this year

· BNP Paribas analyst David Thurtell said in a report yesterday that rising mine output and Lead extracted from batteries will create an oversupply of about 100,000 tons this year, causing prices to decline.

· Baosteel Group Says Steel Demand May Slow Amid Rising Cost Baosteel Group Corp., China’s largest steelmaker, said market conditions would be more difficult this year as costs rise and demand may slow because of government measures.

· Anshan Says China Can't Agree to Iron Ore Prices With Rio Chinese steelmakers, the world's largest iron ore consumers, have rejected a Rio Tinto Group demand for a so-called freight premium on its shipments, Anshan Iron & Steel Group said.

MCX Copper April

Technical Outlook:

Momentum studies are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Copper April: Buy at 344 Stop loss at 341.20 Target 354 and 358

MCX Zinc March

Technical Outlook:

Momentum studies are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Zinc March: Buy at 112 Stop loss at 110.20 Target 115 and 117

MCX Nickel March

Technical Outlook:

Momentum studies are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Nickel March: Buy at 1320 Target

1350 and 1365 Stop loss 1308

MCX Lead Feb

Technical Outlook:

Momentum studies are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Lead March: Buy at 133 Target 138 and 140 Stop loss at 131.50

MCXARUN
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