Nickel is now expected to average 48,000 usd in the second quarter, 40,000 usd in the third quarter and 35,000 usd in the last three months of the year compared with previous forecasts for 36,750 usd, 30,750 usd and 27,750 usd respectively.
Tin prices, which today struck a new all time high of 14,575 usd, are predicted to average 15,000 usd in the second quarter, 16,000 usd in the third quarter and 15,000 in the final quarter of the year from 10,800 usd, 10,000 usd and 9,500 usd respectively Barclays ups most metal price forecasts for 2007 but sees zinc at lower levels 03.26.07, 12:30 PM ET LONDON (AFX) - Barclays Capital has raised its nickel and tin price forecasts for the second quarter amid a bout of supply problems. However, the investment bank has shaved its estimate for zinc prices as exports from China have surged. Further, 'stock inflows' of zinc into London Metal Exchange certified warehouses forced the bank to rethink its earlier estimates. 'While we expect nickel prices to correct from their current record levels, delays and disruptions to bringing new supply to the market and the critically low level of LME nickel stocks continues to underpin prices,' said Barclays (nyse: BCS - news - people ) analysts in their latest report. Critically low nickel stocks stored in LME-certified warehouses are so depleted now that the volume available to the market would not be enough for one day's worth of global consumption. Nickel is now expected to average 48,000 usd in the second quarter, 40,000 usd in the third quarter and 35,000 usd in the last three months of the year compared with previous forecasts for 36,750 usd, 30,750 usd and 27,750 usd respectively. This is the second time Barclays has raised its price forecast for nickel. Tin prices, which today struck a new all time high of 14,575 usd, are predicted to average 15,000 usd in the second quarter, 16,000 usd in the third quarter and 15,000 in the final quarter of the year from 10,800 usd, 10,000 usd and 9,500 usd respectively. 'The ongoing supply side problems from Indonesia's Bangka island in an environment of positive demand and low inventories should support tin prices higher through 2007,' said the report. A government crackdown on illegal small-scale mining in Indonesia, the world's second biggest producer trailing China, is still hitting production levels. Indonesian officials have reportedly indicated that private tin smelters look unlikely to receive export permits in the near future after being ordered to obtain new mining permits. However, Barclays has cut its zinc forecasts, with prices now expected to reach 3,000 usd in the second quarter, 2,800 in the third quarter and 2,500 usd in the last three months of 2007, down from a previous forecast of 4,100 usd, 3,500 usd and 3,300 usd respectively. [EMAIL PROTECTED] as/slm COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited Neither the Subscriber nor AFX News warrants the completeness or accuracy of the Service or the suitability of the Service as a trading aid and neither accepts any liability for losses howsoever incurred. The content on this site, including news, quotes, data and other information, is provided by AFX News and its third party content providers for your personal information only, and neither AFX News nor its third party content providers shall be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon.
