Aluminium declines in LME trade
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Short-term traders are sitting on the sidelines or turning sellers in London Metal Exchange trade on Wednesday, pattern traders said they expect to be repeated provided oil prices continue to weaken. The base metals often trade in tandem with oil futures as part of a commodity-wide move. But with energy costs a key component of metals production, the influence of oil prices extends even further.
This is especially the case for aluminium, with energy comprising around one third of its overall production cost. The LME metal is softer as a result of oil's slide lower, with the metal down 2.3 per cent from Tuesday's high at $3,010 a tonne as of 1000 GMT, some 11 per cent down from the record high of $3,380/tonne on July 11.
Copper dips
Similarly copper is down 1.8 per cent at $8,100/tonne, zinc is down 1.3 per cent at $1,890/tonne and nickel is down 1.4 per cent at $20,450/tonne. With base metals volumes also thinned by the seasonal slowdown in trading activity, only lead has shown any signs of life through the session. But even this metal has slipped after an earlier move to a two-month high of $2,195/tonne, with reports of a cut to output at China's biggest lead producer proving unfounded. As of 1000 GMT, LME lead was trading at $2,125/tonne, down 0.7 per cent.
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Source : Business Line |
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