Copper slips; lead down to 2-year low
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London, Nov 28
Copper prices slipped on Friday as tumbling industrial production data from Japan highlighted bleak prospects for demand in an oversupplied market. Battery material lead fell to $1,076 a tonne, its lowest since July 2006, as traders priced in falling demand from the auto sector, where sales have plunged.
Benchmark copper for three-month delivery on the London Metal Exchange (LME) traded at $3,615 a tonne in official rings compared with $3,696 at the close on Thursday. The metal, used extensively in power and construction, is down about 60 per cent since hitting a record high of $8,940 a tonne in July, when doubts emerged about whether top consumer China would be able to offset falling demand elsewhere.
The latest data to hit sentiment was industrial output in Japan, which dropped 3.1 per cent in October, raising fears that the recession in the world's third-largest economy could be longer and deeper than previously expected.
Others too slip
Aluminium traded at $1,755 a tonne from $1,792 at the close on Thursday. Stainless steel material nickel was at $9,800 from $10,250, zinc at $1,180 from $1,220 and tin was bid $12,150 from Thursday's last bid at $12,400.
Lead was lower at $1,085 from $1,106. The metal is expected to come under further pressure as battery makers cut production in line with car manufacturers. Analysts say the problem is that falling copper demand has not been matched by falling supplies. "As long as you have an oversupplied market, prices will remain under pressure,'' said Michael Widmer, an analyst at BNP Paribas.
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Source : Business Line |
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