Strike threats likely to support copper
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Copper slipped on Tuesday. but analysts expect a slew of strike threats at mines and low inventories to underpin prices and limit further losses.
Lead hovered near Monday’s record high levels, while nickel was weaker as talk of cuts in stainless steel production continued to weigh on prices.
Copper for three-months delivery on the London Metal Exchange was at 1025 GMT at $7.435/7,445 a tonne, down $105 from Monday when it rose to a five-week high of $7,695.
Copper, mainly used in the wire and pipe industry, has gained more than 30 per cent to hit an eleven –month high of $8,335 earlier in the year. Currently the metal trades almost $1,300 away, from its all-time high of $8,880.
STRONG FUNDAMENTALS
Lead edged down $5 to $2,385 / 2,395, still within range of its record high of $2,430 hit on Monday. The metal, mainly used by battery makers is up 46 per cent since the start of this year.
“Lead fundamentals remain strong, with significant production losses hampering supply growth,’ Barclays Capital said in a research note. The market is fretting that a 10 per cent tax on Chinese lead exports will hit shipments from China, the world’s biggest producer.
Weakness in nickel persisted as the metal came under pressure on reports of stainless steel cutbacks and changes to LME rules that will free up more metal for the market.
Aluminium edged up $2 to $2,707/2,712, while zinc shed $50 to $3,635/3,645.
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Source : Business Line |
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