Profit booking hits lead; Copper drops 2.4%
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London Metal Exchange copper fell by more than two percent on Monday, eyeing support at $8,000 a tonne in thin volume with the US on holiday. LME copper for delivery in three months was down 2.4 per cent at $8,015/8,030 per tonne by 0920 GMT, down from its Friday close of $8,210.
“Copper is in need of a technical correction after recent highs and the metal faces additional pressure after falling below $8,100,” an LME trader said. Traders said a technical correction could drive prices down towards $7,500 after a record-low dollar and threats to supply sent copper to a five month high of $8,315 last week.
CHINA BACK?
The Chinese markets resumed trading after their holidays and the disappointment of lower prices spilled over to Europe.
“It’s backing off as Shanghai hasn’t risen as much as people had expected following the holiday. So any hope that you would see a bounce on short-covering driven by the Chinese market has evaporated,” said a European metals analyst. Lead prices fell on profit-taking after touching a record high of $3,725 last week, as the metal used mostly by the battery industry had been underpinned by supply tightness. Zinc was lower at $2,940 / 2,960 against 3,050/3055. Tin was at $15,900/15,975 down against $16,100 on Friday and nickel dropped $500 to $30,900/31,110.
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Source : Business Line |
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