Metals mixed in LME trade
|
|
|
Base metals traded sideways on Monday, holding off pressure from the weaker euro and lower equity markets.
The metals are likely to consolidate until US manufacturing data from the Institute for Supply Management later in the day, analysts said.
At 1108 GMT, three-month copper was trading at $3,670.25 a tonne, up $50.25 from the Friday kerb.
Aluminium was down $7 at $1,765/tonne, zinc was $9 lower at $1,200/tonne, lead dropped $2 to $1,01/tonne, nickel lost $90 to $10,100/tonne and tin was up $200 at $12,500/tonne.
A London-based metals trader said short covering pushed prices higher in the morning. Volumes were low, though, indicating the moves weren't significant, he added.
A plan by China's Yunnan province to stockpile large quantities of mineral ores and base metals may have supported prices, analysts said.
The province will buy 1 million tonnes of base metals to support struggling smelters, according to a report posted Monday on China's Ministry of Land and Resources Web site.
The purchase comprises 150,000 tonnes of copper, 300,000 tonnes of aluminium, 150,000 tonnes of lead, 300,000 tonnes of zinc and 100,000 tonnes of tin, it said.
''I guess the market's trying to digest this Chinese Yunnan news,'' said Citigroup analyst Mr David Thurtell in London.
Mr Thurtell said the Government will most likely be buying ores rather than metals since there aren't enough tons of refined tin available to carry out the plan.
The benefits are likely to be limited to prices in the short term, Mr Thurtell said. If the plan delays necessary shutdowns, surpluses can build up, stocks accumulate and prices go down, he added.
|
|
|
|
Source : Business Line |
|
|
|
|
|
RecycleINme.com. All Rights Reserved
