LME copper slips, awaits US Fed move on rates

Print this page Posted on : 04-30-2008 by recycleinme.com

London copper futures drifted lower on Tuesday ahead of a welter of US economic data that could hint at the longer term outlook for US interest rates and influence the direction of commodities markets. Copper, often seen as a good gauge of real economic activity, was quoted at $ 8,580/ 8,590 per tonne at 0941 GMT, down $ 70 from Monday’s close.

The copper market was supported by a strike in major producer Chile, but the performance of the dollar was more of an influence on trading sentiment, analysts said.

A strike at Chile’s Codelco, the world’s leading copper producer, has idled its Andina and Salvador divisions, so far causing a loss of around 15,000 tonnes of copper against an annual world market of around 18 million tones. However, the International Copper Study Group forecast on Monday that copper’s surplus may reach 85,000 tonnes this year and 429,000 tonnes in 2009 as consumption growth slows from 6.4 per cent in 2007 to 2 per cent this year.

In 2007, there was a deficit of 37,000 tonnes.

TIN DIPS

LME tin fell $ 150 to $ 23,750/ 23,850 per tonne.

Aluminium was down $ 32 at $ 2,980/ 2,990 per tonne, zinc down $ 25 at 2,275/ 2,285 per tonne, nickel down $ 440 at $ 28,850/ 28,950 per tonne, and lead was down $ 20 at $ 2,745/ 2,755 per tonne.

Source : Business Line