copper down 300 tonnes
lead up 150 tonnes
nickel up 438 tonnes
aluminium up 775 tonnes
tin unch
zinc down 625 tonnes

Global Gold Production on the DeclineBy Jon A. Nones08 Mar 2007 at 12:39 PM GMT-05:00St. LOUIS (ResourceInvestor.com) -- Yesterday, South Africa's Chamberof Mines reported that gold output fell last year to 275 tonnes, down8% from 2005. Some sources say South Africa's decline in goldproduction is now becoming a global affair, as seen in leading goldproducing countries.According to stats from GoldSheets.com, U.S. gold output for lastyear declined from 262 tonnes to 260 tonnes. Australian productionfell to 251 tonnes from 263 tonnes. Gold produced in Peru declined to203 tonnes from 207 tonnes. Russian gold output dropped 4 tonnes in2006 to152 tonnes, while Canada fell from 118 tonnes to 104 tonnes."Production in Australia, South Africa, Canada and Peru is expectedto continue slumping in the next few years, probably stabilizing in2010, but never reaching their peak levels from years past," saidNeal R. Ryan, Vice President and Director of Economic Research forBlanchard and Company, Inc.Ryan said global production for gold peaked in 2001 at 2,604 tonnesor 83.7 million ounces. With 2006 production expected to come in at2,467 tonnes, annual gold mining supply will have fallen 4.4 millionounces in five years. Since 2001, prices have almost tripled from$260/oz to $650/oz."So much for supply/demand economists that always say higher pricesequal more production," added Ryan.However, Dennis Gartman, editor of the Gartman Letter, said lastyear's decline in gold production was the very logical result of highand rising gold prices. As gold moved higher, lower grades of goldore are mined, he said."The Chamber of Mines in South Africa said that its members reporteda 1.5% increase in tonnes of ore mined, but also reported a 9.3%decrease in the average grade mined," he added.Further still, the Chamber noted that the cost of mining gold rose bysubstantially more than inflation, with the total production cost ofmining a kilogram of gold, before capital expenditure, rising 11.9%year-on-year."Mining gold is not an inexpensive venture! Thankfully, it is a bullmarket," said Gartman.China actually expanded production from 224 tonnes in 2005 to 240tonnes last year, according to GFMS."Chinese mine production is ramping up fairly quickly, but that toohas only so much it can increase, while the other major producingcountries continue their downdraft," said Ryan.Source: GoldSheets.comGlobal annual supply is generally considered to be about 100 millionounces, according to stats from the World Gold Council."So just from mine production, we're talking about 4.4% decrease insupply ... add the potential of central bank sales being 6-8 millionounces short this year," Ryan added.Last year, central banks consistent with the Central Bank GoldAgreement (CBGA) of 27 September 2004 ended the year well under the500-tonne quota. Although sources differ on how much was sold, RI hasit at about 370 tonnes.So far this year, CBGA banks have sold about 110 tonnes. At thecurrent rate of sales of about 22 tonnes per month, central banks areon pace to end the year around 230 tonnes short of the 500-tonnequota, and would have to sell about 55 tonnes per month here on outto make up the difference.Ryan said there is potential central bank purchases around 2-3million ounces, should current Russian bank and other third tier bankbuying continue.He said, "we're looking at a combined impact of 12-15 million ouncesof supply being reduced from the market, 12%-15%."Gold futures are currently up $1.10 at $654/oz in New York.

SEOUL (Reuters) - Oil prices rebounded to $58 on Thursday after fuel stocks in the United States were cut by freezing weather and as buyers reemerged following a 2 percent sell-off the previous day.
U.S. crude oil futures gained 27 cents to $57.98 a barrel by 0659 GMT -- after hitting an intraday high of $58.11 -- recovering from a $1.17-fall on Wednesday. London Brent crude was up 39 cents to $57.62.
Analysts say the drop in inventory levels was not significant enough to push up oil prices beyond $60, leading to profit-taking after a nearly 20 percent climb since mid-January. The market was still supported by cold weather in the major heating oil consuming regions of the U.S. Midwest and Northeast, which cut distillate fuel stocks by 3.7 million barrels last week, the biggest distillate decline since October.
"The drop was larger-than-expected but it wasn't enough to move up prices as there is a psychological resistance against the $60-level," said J.J. Kim, analyst at Korea Investment and Securities.
Prices have recovered from a dip below $50 in mid-January as unusually warm winter weather turned into a cold spell hitting the key heating oil markets in the world's top oil consumer.
U.S. crude supplies fell by 400,000 barrels, against a forecast rise of 1.4 million barrels, while gasoline rose by an unexpected 2.6 million barrels, the data showed.

LONDON (Reuters) - Copper prices slipped on Wednesday as a rise in stocks reignited worries about a surplus this year, while tin prices fell on expectations of rising supplies and nickel was hit by profit taking, traders said.
Three-month copper on the London Metal Exchange was untraded in official rings, but was quoted down at $5,380/5,381 a tonne from Tuesday's $5,475 close.
Copper prices are down around 15 percent since the beginning of the year on expectations that demand would slow alongside global economic growth, with the market moving into a surplus of around 200,000 tonnes.
Prices are down nearly 40 percent since copper hit a record high of $8,800 last May.
"The second half of 2005 and the first half of 2006 in particular was a period of very strong, synchronised world growth," said David Thurtell, analyst at BNP Paribas.
"That is not going to happen this year. Chances of supply disruptions are lower and there is an expansion of capacity."
Stocks of copper in LME warehouses rose 3,175 tonnes to 215,750 tonnes on Wednesday. They have doubled in the past 12 months and are about eight times higher than in July 2005.
Copper fell to 10-month lows of $5,250 last Friday after the Wall Street Journal reported $1.5 billion hedge fund Red Kite had lost 20 percent and wanted to extend the redemption notice period for investors to 45 days from 15.
Traders said the sell-off was triggered by worries that Red Kite would have to sell its holdings of copper and other metals to meet redemptions.
SUBSTITUTION
Aluminium traded at $2,655 a tonne from $2,712. Earlier it hit $2,639.75, matching the January 17 low.
Market focus had been on the maturity of options to buy and sell three-month aluminium futures at between $2,750 and $2,800.
Traders said offers at $2,710 had kept a lid on prices and the expiry had passed without any fireworks.
"It failed to get through $2,710 and we saw a sell-off after that," a LME trader said. "It then broke through support at $2,690 and hasn't looked back since."
Aluminium trading has been lacklustre in recent days and dealers expect fund selling will cap prices over coming days.
"Funds are betting that the aluminium surplus in China find its way to other countries," the trader said.
Nickel was bid at $35,350 from $35,800 on Tuesday.
Stocks at around 3,000 tonnes, the lowest since 1991, and expectations of continuing strong demand pushed nickel prices up to a record high of $38,950 on January 26.
Since then profit-taking and talk of substitution in the steel industry has sobered up the market.
"The issue of nickel substitution by stainless steel mills which comprise the major end-user demand sector for nickel is a key factor for future price direction," Barclays Capital said in a research note.
Tin was untraded, but bid lower at $11,775 a tonne from $11,925.
Sentiment was weighed by news that Indonesia, the world's second-largest tin producer, had allowed five small smelters to resume refined tin production after a recent crackdown on unregulated mining.
Shares in London-listed BHP Billiton were up more than four percent after the company posted a 41 percent jump in first-half profits and set aside $10 billion for share buybacks.
Zinc traded down at $3,120 from $3,220 on Tuesday and lead at $1,550 from $1,570.

Markets mixed after US economic figures released
There has been another flurry of economic figures in the United States, with the consumer price measure of inflation recording its biggest rise in eight months.
The CPI was up 0.5 per cent in December.
There has also been an unexpected rise in US housing starts and a report by the Philadelphia Federal Reserve is pointing to a surprisingly sharp increase in factory activity in the US mid-Atlantic region.
Shares in IBM have weighed on the overall market, with investors selling out ahead of the company's profit results expected after the close of trade.
On the New York Stock Exchange, the Dow Jones industrial average has closed down nine points at 12,568.
Technology stocks have come under further selling pressure after disappointing forecasts issued by computer maker Apple and Lam Research Corporation.
The high-tech Nasdaq composite index is 36 points lower at 2,443, a slide of 1.5 per cent.
The British market has managed a small recovery, with London's FT-100 index recouping just six points to 6,210.
Yesterday the Australian share market resumed its upward march, with the All Ordinaries index putting on 25 points to end at 5,651.
The resource and banking sectors were the mainstays.
BHP Billiton shares regained 22 cents to $24.74 and Woodside Petroleum jumped 90 cents to $36.60 after announcing record production and sales figures for 2006.
Overnight on the Sydney Futures Exchange, the Share Price Index 200 contract has closed down eight points at 5,635.
The 10-year bond contract is up 0.5 at 94.13, with the implied yield easing to 5.87 per cent.
On foreign exchange markets, the US dollar has remained close to four-year highs against the Japanese yen after the Bank of Japan decided to hold interest rates unchanged.
The Australian dollar has edged ahead overnight. At 7am AEDT it was being quoted at 78.85 US cents, up one-tenth of a cent on yesterday's local close.
On the cross currencies it was at 60.88 euros, 95.59 Japanese yen, 39.95 pence Sterling and against the New Zealand dollar it was at 1.133.
The gold price has eased to $US627.80 an ounce.
Oil prices have fallen sharply after US inventory data showed a big rise in stockpiles of crude and oil futures in New York have been to 20 month lows.
The spot price of West Texas crude has dropped $1.79 to $US50.51 a barrel.

Copper prices spiral down
by Antony Barton
Copper fell to its lowest price for nine months in early January.It traded at $5,625 (£2,884) a tonne earlier this month, the lowest since April, and suffered a 10 per cent slide within three days. The price was around 36 per cent down from its $8,800 (£4,560) high in May last year but almost triple its price four years ago (News, 11 May 2006).Car production, power grids and construction pushed up copper prices fivefold between 2001 and the end of 2006. Asian countries, which relied on the metal for building projects, were central to driving up the price.Andrew Cole, senior base metals analyst at Metal Bulletin Research, told SM he was not surprised that copper had fallen, but by how far: "It is a combination of weak demand from the US due to the housing slowdown, Chinese consumers playing a waiting game and investors repositioning themselves with a less bullish stance towards this market's prospects."He added the Chinese were likely to buy with vigour over the next few weeks to replace supplies after the government stockpiling agency and manufacturers de-stocked heavily last year.The speed at which copper prices fell was far slower than the speed with which they rose and Cole said copper could soon reach a more familiar price. When asked whether other metals would follow the same trend, he said each was following its own. Aluminium is in strong demand but production is surging, especially from China, pointing to a drag on price through surplus in 2007. Tin prices, which also fell this month, depend on how the Indonesian government's crackdown on the tin smelting industry impacts on its supply. The situation will be easier to determine over the next month.Oil also fell sharply this month, with prices in New York and London falling to below $56 (£29) a barrel for the first time since 2005