Metal prices capped by demand fears
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Industrial metals were firm on Thursday with other commodities such as gold and oil trading at record high levels, but rears about a slowdown of global demand capped any real advances, analysts said.
“There is certainly a bit of optimism coming into January,” analyst MR. Daniel Hynes at Merrill Lynch said.
Copper for delivery in three months on the London Metal Exchange was up $55 at $6,810/6,830 a tonne. Copper, widely used in the power and construction sector, lost some 5 per cent during the last three trading days in 2007.
“There is a bit of a belief that the end-of-year correction was a little bit overdone,” Mr. Hynes said. Copper gained some 5 per cent in 2007, far off a 44 per cent gain in 2006 when the metal hit and all-time high of $8,800.
Traders said copper was stuck in a range with the top at $6,900 and the market lacked a clear sense of direction. Aluminium traded at $2,455 /2,458, up $17.
Three-months zinc was at $2,480/2,490 against $2,451. Zinc was the biggest loser among LME metals in 2007 falling around 44 per cent on the year, aluminium dropped 14 per cent and nickel shed 21 per cent. Nickel gained 2.2 per cent or $600 to $27,800/28,000 as recent LME stock drawdowns supported prices.
Tin was at $16,250/16,450 against $16,350/16,400 and lead fell $15 to $2,600/2,620.
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Source : Business Line |
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