Metals News
UPDATE 2-ETF Securities Sees Aluminium ETP Listing Q1 2011
industry news
Dec 17,2010

LONDON, Dec 16 (Reuters) - UK-based ETF Securities expects its aluminium, zinc and lead physical exchange-traded products to be listed in the first quarter of next year, as it seeks to cash in on demand fuelled by U.S. and emerging market growth.

"We are looking at releasing these products in a series of tranches, and for (the other three ETCs) I'd envisage that being in the first quarter next year," Scott Thompson, co-head of European sales at ETF Securities, told a media briefing.

UK-based ETF Securities said it expected the allure of hard assets against a backdrop of depreciating paper currency to fuel demand for its physically backed industrial metal securities, which have since their Dec. 10 launched attracted $25 million.

Its copper PHCU.L, nickel PHNI.L and tin PHSN.L physical metal exchange-traded products listed on the London Stock Exchange on Dec. 10. Of the $25 million, $13 million has flowed into the copper ETP.

Nicholas Brooks, ETF Securities head of research and investment strategy, sees rising metals demand on good growth figures in the United States and emerging markets, as well as looser monetary policy following the global financial crisis.

"If growth numbers were to disappoint in 2011 or it looked as if the Fed was stepping back from some of the quantitative easing, well then one would expect that industrial metals would be hit. It's a simple as that," said Brooks.

"But at the minute, the numbers are looking very good."

Copper touched a record high at $9,267.50 a tonne on Tuesday, a rise of more than 50 percent since early June. Benchmark copper CMCU3 on the London Metal Exchange was around $8,980 a tonne at 1500 GMT on Thursday from $9,095 at Wednesday's close.

ETF Securities, which owns some of the world's largest ETPs backed by precious metals, sees its client base in the commodity ETC set consisting mostly of multi-asset fund managers, or a fund for absolute returns and private banking wealth management.

Investors can trade the ETPs as shares with daily liquidity rather than investing in funds or commodity-index products which mostly use futures and lock up capital for long periods of times -- often years.

Metal held backing the ETP for copper, used in power and construction, totalled 25 tonnes as of Dec. 14, according to the company's website on Wednesday. Total holdings in the physical nickel and physical tin were 6 tonnes and 5 tonnes respectively.

ETF Securities said on Thursday that it expects regulators to focus more closely on the sector as investment expands.

Copper consumers complain that these products will distort market fundamentals and prices at a time when falling ore grades, disruptions and project delays mean supplies could be restricted.

Aluminum Al
copper Cu
zinc Zn
For queries, please contact Frank LIU at
For more information on how to access our research reports, please email
Related Price

No Data