Nickel, copper decline on demand worries

Print this page Posted on : 05-29-2008 by recycleinme.com

Industrial metal nickel extended previous session's losses on Wednesday on concern about falling demand for stainless steel, while copper eased on waning Chinese demand and rising stocks in London Metal Exchange warehouses. London Metal Exchange nickel fell $500 or 2.1 per cent to $22,800/22,900 a tonne by 0931 GMT, following a 3.3 per cent slide on Tuesday. Three-month copper fell 1 per cent or $85 to $8,105/8,115 per tonne, after LME stocks came in at 125,800 tonnes. Stocks rose by 1,400 tonnes on Wednesday and they are up almost 15 per cent in a month as demand for copper, mainly used in the construction and power sectors, is sluggish.

Nickel dips

Nickel, the key ingredient in stainless steel, hit a two-year low at $22,350 on Friday and prices are down by almost 15 per cent since the start of 2007. Nickel stocks fell again on Wednesday, down 54 tonnes to 48,504, after falling by around 7 per cent during the past month, but this has not been enough to turn around sentiment.

Aluminium fell $31 or 1 per cent to $2,965/2,970.

Tin, the best performer of the year with prices up some 45 per cent, was indicated at $23,850/24,050, down $350. Zinc shed $50 to $2,101/2,120 and lead dropped $30 to $2,020/2,030. Zinc prices are down 11 per cent so far this year and lead has fallen by over 20 per cent, with LME inventories rising some 40 per cent for both metals.

Source : Business Line