Metals underpinned by record $ weakness
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London Metal Exchange metals were underpinned by record dollar weakness on Tuesday, and are keeping a sharp eye on all matters related to the US financial market against the background of a potential meltdown, said analysts and traders.
Copper slips
As of 1011 GMT, LME copper traded at $8,265 a tonne, down $15 from Monday, with LME aluminium also lower, down $35 at $3,270/tonne. LME zinc slipped $55 to $1,950/tonne and LME nickel was unchanged at $20,750/tonne.
LME lead and tin were both modestly higher, up $10 at $1,975/tonne and $225 at $23,475/tonne respectively.
Base metals are steady so far in London Tuesday, taking a ''wait-and-see approach'' said a London-based broker, with the focus on the wider financial climate.
Given Chinese aluminium smelter cutbacks to alleviate power supply problems during the Olympics, Commerzbank has raised its aluminium forecast $100 to $3,600/tonne by the end of the year.
LME zinc's big day will be Wednesday, when further news is expected on production cutbacks in China to shore up domestic prices. Standard Bank said the key issue will be from which level the proposed 10 per cent cut will be measured, as many of the operations are already running at sub-optimal capacity and have been doing so for some time.
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Source : Business Line |
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