Metals down on demand worries
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Base metals prices fell on Friday and prices are seen holding lower levels on fears of inflation and a slowdown in demand from China, analysts said.
By mid session copper for delivery in three months on the London Metal Exchange was down $233, or 3.1 percent, to $7,202 a tonne.
Nickel eased to $42,400 / 42,600 after touching an 11 week low of $42,200, against $42,900 at the close on Thursday, When the metal fell by some six percent.
The drop came after the LME moved to change lending rules to free up more metal. The tight market had pushed the backwardation – the premium for cash metal over the three-months price – to $4,000 on May 29 but on Friday the nearby spread was at $900 / 1,000.
Traders said they expected more technical selling in nickel.
Standard Chartered cut its three-months price forecast for nickel to $41,431 from $41,931. It was seen at $35,000 in 2008.
Standard Chartered revised its three-months forecast for copper in 2007 up to $6,458 from $6,195, and in 2008 the metal was seen trading at an average of $5,000.
Traders will watch the US trade balance figures for April due at 12.30 GMT for clues to the strength of the US economy.
Three-months aluminium was at $2,710, down 1 per cent, from $2,736. Zinc shed 1.6 per cent to $3,590, lead dropped $24 at $2,256 and tin was at $13,700 / 13,705 from the close of $13,875 on Thursday
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Source : Business Line |
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