Speculative selling hits metals in LME trade
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Speculative selling pressured London Metal Exchange base metals lower on Monday, with the market immediately concerned with pricing ahead of the May prompt date and near-term direction to become clearer from Tuesday.
As of 0938 MGT, LME copper, zinc and nickel were down roughly 1.5 per cent at $7,790 a tonne, $3,995 a tonne and $49,800 / tonne respectively.
“The market is taking a small breather today,” said a broker, adding that the market was looking a bit overextended after prices rose far and fast last week.
Speculative selling pushed LME copper lower, after data Monday showed stocks rose 200 tonnes to 142,475 tonnes, a broker said.
Copper prices will continue to be driven in the near term by ongoing stock draw downs, Standard Bank said in a daily note. Given current fundamentals, the bank said, copper prices are overvalued, and it’s looking for a price closer to $7,800 / tonne. The metal is trading at bottom of its current range of $7,700-$8,300 tonne, with strong support seen at $7,650 / tonne.
As of 0946 GMT, aluminium traded at $2,845 / tonne, down 1 per cent from Friday.
In other metals, further rises in LME tin will be triggered if it closes above $14,050-$14,100-tonne, a broker said. Lead was off from recent record highs, down 0.7 per cent at $2,070/ tonne.
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Source : Business Line |
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