Aluminium at 3-month high

Print this page Posted on : 06-25-2008 by recycleinme.com

Industrial metals aluminium and copper held within ranges in early London trade on Tuesday, as long-term prospects for aluminium looked strong, analysts said. The light metal, used in aircraft and cars, hit a three-month high in the previous session, before falling to a quote of $3,125/3,135 per tonne by 1003 GMT, down $18 from Monday's close.

''Aluminium is holding steady and is poised to move higher,'' RBS Sempra Metals economist John Kemp said. ''There is the long-term story of power constraints in China, and the short-term tactical story of power outages in China and South Africa,'' he said.

On Monday aluminium touched $3,169, its highest since March 14 and a gain of about 25 per cent since the beginning of this year. Traders said the market could be closing in on the record high of $3,310 a tonne seen in May 2006.

Copper slips

Copper fell $45 to $8,355/8,375 per tonne from Monday's close, after touching $8,490 in the previous session, its highest since mid-May and less than $400 short of its record high of April 17.

In the longer term, limited stocks and threats to supply in Africa and Latin America could lift prices above the all-time peak. Zinc was down $26 at $1,900/1,920 per tonne and nickel was down $110 at $21,740/21,940 per tonne. Lead was down $45 at $1,820/1,840 per tonne, while tin was up $40 at 23,340/23,640 per tonne.

Source : Business Line