Copper dips on rising LME stocks

Print this page Posted on : 05-30-2008 by recycleinme.com

Copper eased on Thursday on waning Chinese demand and rising London Metal Exchange stocks, but nickel recovered after falling more than 20 per cent over the past month on sluggish demand from stainless steel producers. Copper for delivery in three months eased $55 to $8,040/8,060 at 0833 GMT after losing 1.2 per cent in the previous session. Stocks rose by 600 tonnes to 126,400 tonnes, and are up around 15 per cent in a month on sluggish demand for copper, mainly used in the construction and power sectors.

Nickel recovers

Nickel recovered to $22,700/22,900 a tonne, up $200, after shedding 3.4 per cent in the previous session.

Aluminium eased $21 to $2,939/2,944 a tonne. Nearby support was seen at $2,930, a Triland Metals report said. Aluminium's longer-term outlook remained positive, analysts said, despite more than a million tonnes of metal sitting in LME warehouses, with prices supported by high energy prices and the risk smelter capacity expansion will outpace power supplies. Lead and zinc continued to suffer from rising LME inventory levels, up by over 40 per cent since the start of the year. Lead shed 2.4 per cent or $48 to $1,980/2,000 with stocks up another 1,550 tonnes to 65,125. Three-months zinc traded at $2,065/2,085, down $55. Tin, this year's top performer up by over 40 per cent, was indicated at $23,250/23,450, down $350 from Wednesday.

Source : Business Line