Metals subdued in LME trade

Print this page Posted on : 06-26-2008 by recycleinme.com

The base metals market awaited the US Federal Reserve's statement on the economy due later Wednesday, with little activity expected prior to this. The statement will provide impetus to the dollar, traders said, which is moving in a range, as well as further details on the Fed's thinking on the state of the world's largest economy. The Fed is widely expected to leave interest rates unchanged, with the decision due around 1815 GMT.

Trading conditions on the London Metal Exchange are subdued as a result, with prices drifting sideways to lower through the session. As of 1020 GMT, LME copper was trading at $8,365 a tonne, down 0.5 per cent from Tuesday's high, while aluminum was down 1.9 per cent at $3,085/tonne.

No moving in pack

The absence of any fresh fundamental news and the diverging prospects of the individual base metals means that the markets are not expected to move in a pack. Copper and aluminum are still the favorites of the commodity trade advisory community, but sliding prices could trigger technical selling as players take profits, traders said.

But lead, zinc and nickel remain in the doldrums, with rising stocks and increased supplies for the first two metals weighing on sentiment. As of 1020 GMT, LME zinc was down 3 per cent from Tuesday's high at $1,890/tonne, lead was down 3.3 per cent at $1,803/tonne and nickel was down 1.4 per cent at $21,700/tonne.

Source : Business Line