Lead at new high on tight supply

Print this page Posted on : 07-06-2007 by recycleinme.com

Industrial metal lead hit a fresh high of more than $2,900 per tonne on Thursday, taking its gains since the start of the year to over 72 per cent.

Other metal son the London Metal Exchange were steady, is much in demand by Chinese industry, particularly the car-making sector, which is expanding rapidly as the country modernizes. This strong demand combined with restricted supply has attracted investors to lead, in preference to higher-profile metals such as copper, traders said.

It traded as high as $2,912, up $26 from Wednesday’s close, before slipping to a quote of $2,825/2,835 by 0955 GMT.

COPPER STRIKES

Copper, often considered a gauge of the metals markets in particular and economic growth in general, was steady at $7,800/7,810 from $7,825 at the close. Strikes at mines, both actual and threatened, were dominating the market.

Management and the workers’ union at the Collahuasi mine in Chile have until Friday to agree a new pay deal, while Mexico’s miners have planned a 24-hour nationwide walkout on Thursday unless the labour ministry meets its demands to improve safety in mines.

In other metals, aluminium was up $1 at $2,783/2,788 and nickel, which has tumbled since hitting an all-time high of $51,800 it hit in May, was quoted at $36,100 /36,200, down $200 from Wednesday’s close. Tin was down $35 at $3,415/3,425.

Source : Business Line