Copper, aluminium fall on demand worries
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London, Nov 27
Copper fell nearly 3 per cent on Thursday, shrugging off a softer dollar, dragged lower by the persistent weak demand outlook, while aluminium dropped towards a three-year low after a hefty jump in stocks.
Copper for three-months delivery on the London Metal Exchange fell to a session low of $3,653 a tonne and was at $3,699 a tonne in open outcry trade, versus $3,755 a tonne on Wednesday when it rose to its highest in almost two weeks.
Lack of demand
The lack of demand could be mirrored in the huge jump in aluminium inventories, which are now close to 1.8 million tonnes, almost doubling since the start of the year and at their highest since December 1994.
On Thursday, stocks jumped by 44,325 tonnes. Three-months aluminium dropped by $30 to $1,770 atonne, nearing a three-year low of $1,765 a tonne struck last week.
Zinc was down $47 at $1,213, while nickel was lower at $10,260 from $10,600. Tin fell to $12,550/12,600 compared with $12,950 on Wednesday.
DOOM & GLOOM
''The fundamentals {ndash} all doom and gloom {ndash} has not changed,'' analyst Mr Robin Bhar at Calyon said, adding fears over weak demand still haunted investors. He said the market had already priced in demand weakness in aluminium as investors hear from manufacturers that demand has evaporated.
Macroeconomic data from the United States and Europe continued to be grim.
Growing pessimism in industry and services pulled euro zone economic sentiment to its lowest in more than 15 years in November, data showed on Thursday, underlining a bleak outlook for the single currency area.
''The base metals are...just feeling that the broader economic issues are still going to weigh heavily on the market,'' analyst Mr William Adams at Basemetals.com said.
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Source : Business Line |
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