Copper steady, monetary tightening worries weigh

Print this page Posted on : 03-24-2010 by recycleinme.com

London, March 23

Copper was flat on Tuesday, trading range- bound as stronger equities helped lift sentiment, but a lack of fundamentals and persistent worries about monetary tightening weighed.

By 10: 44 GMT, copper for three- month delivery on the London Metal Exchange traded at $ 7,447.25 a tonne from $ 7,450 at the close on Monday.

Copper, used in power and construction, earlier touched a session low at $ 7,407, compared with a high of $ 7,490.

STOCK DRAWDOWNS

Drawdowns in LME inventories in recent weeks have boosted expectations of a pick- up in demand outside of China. Copper stocks eased 1,400 tonnes to 520,675 tonnes, while aluminium inventories fell 6,925 to 4.59 million tonnes.

Aluminium traded at $ 2,250.75 versus $ 2,255. Steel- making ingredient nickel traded at $ 22,300 from $ 22,275 while battery material lead was at $ 2,173 from $ 2,165. Nickel looks set to remain the top performer on the LME this year, as supply tightness and a demand pickup boosts prices, analysts said. Zinc traded at $ 2,281 a tonne from $ 2,277 and tin was at $ 17,575 from $ 17,550.

On Monday, zinc cancelled warrants were at 13,825 tonnes from 4,775 tonnes on Feb. 22. Nickel cancelled warrants were at 5,160 tonnes on Monday, compared with 3,606 on Feb. 22.

Source : Business Line