Copper declines in LME trade
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London Metal Exchange metals were mixed on Thursday as signs of confidence returning to broader markets on Thursday were balanced against lingering concerns over US banks, traders and analysts said. As of 1112 GMT, LME copper traded down $10 at $8,070 a tonne, LME aluminium was down $32 at $3,090 a tonne and LME lead fell to $1,925/tonne, down $35 but still within the prior session's range. Meanwhile, LME nickel was up $100 at $20,500/tonne, LME zinc recovered $25 to $1,820/tonne and LME tin rose $200 to $23,350/tonne.
Oversupply
Elsewhere, a market perception that LME aluminium will hit $4,000/tonne this year is a good reason to short the metal, said JP Morgan analyst Mr Michael Jansen, considering the market oversupply. Mr Jansen said talk of a 10 per cent cut in production in China over the coming 1-2 months is a ''furphy,'' designed to ''spook the market into believing that loose fundamentals are about to tighten.'' The major reason China would cut aluminium production is to shore up domestic prices, he said, with production growing sharply this year towards 15 million tonnes.
LME aluminium inventories fell some 1,250 tonnes in LME data Thursday catching some in the market wrong footed who were expecting another massive build to match Wednesday's new 25,000 tonne rise.
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Source : Business Line |
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