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Metal prices continue to be favourable apart from nickel and zinc, which have both fallen around 8% in value in the past month. Nickel is trading around $27,500 a tonne, some 22% lower than a year ago as production and stock piles increase. Zinc at $2,375 per tonne is 24% down on the year. Snow storms in China could ease the falling trend if supplies get disrupted but in general the market is negative about the metal’s prospects this year. In contrast, gold remains strong, trading above $900 an ounce and silver at $17 per ounce is 28% up on the past six months. Citigroup is bullish about iron ore this year, raising its forecast to 60% price gains hikes in 2008, which compares to its prior view of 30%.

by: Dan Coatsworth