Copper gains in LME trade
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Base metals traded on the London Metal Exchange are slightly higher in Europe on Monday, getting support from a rise in crude oil, but traders and analysts said the metals still look vulnerable to further losses barring any major strike news or renewed energy problems. At 0926 GMT LME copper was trading at $8,168 a tonne, up 0.2 per cent from Friday's high. LME aluminium was trading at $3,055/tonne, down 1.9 per cent from the high, but up from Friday's low.
Following the recent sharp declines in commodity prices this week may show some relief for LME base metals, said UBS analyst Mr John Reade. If the US reporting season doesn't produce too many negative earnings surprises or guidance then a relief rally may result, Mr Reade said.
Global demand
However, slowing global demand and perhaps some reduced supply disruptions are expected to weigh on copper through the summer, Mr Reade said, with aluminium expected to fall further unless there is a major escalation of Chinese power problems. The downside in lead, zinc and nickel is more limited given they have already fallen a lot, he said.
LME aluminium should find strong support at $2,980/tonne and if it holds above that, it will halt any short-term attempts to charge lower, said Triland Metals. Lehman Brothers released new metal forecasts, raising its 2008 average price outlook for copper and aluminium but lowering it for nickel, lead and zinc. At 0927 GMT, LME nickel was trading at $20,702/tonne, down 0.2 per cent from Friday's high. LME lead was trading at $2,040/tonne, up 2.5 per cent. LME zinc was trading at $1,850/tonne.
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Source : Business Line |
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