Copper gains in LME trade

Print this page Posted on : 07-29-2008 by recycleinme.com

Consumers and investors are in no rush to buy the base metals on Monday and traders said the markets are expected to remain quiet in the absence of any fresh oil- or gold-related drivers. Seasonally quiet trading conditions are thinning base metals volumes and while copper is slightly higher, this is seen to be more technical than demand-related.

China remains the wild card for the base metals, with demand from this major consumer slowing in line with the general slowdown in world economic growth. Traders said lower domestic prices for metal in China have resulted in a sharp contraction in imports which doesn't look likely to be reversed until September at the earliest.

Some mildly positive news for the base metals has come from the People's Bank of China's second-quarter Monetary Policy Report, which signalled the focus will now be more on maintaining economic growth than on curbing inflation as the global slowdown unfolds.

As of 0900 GMT, London Metal Exchange copper was trading at $7,999 a tonne, up 0.5 per cent from Friday's close. Similarly aluminium is ticking higher in line with copper and as of 0900 GMT was trading at $2,979/tonne, up 0.3 per cent from Friday's close.

Zinc was trading up 1 per cent at $1,863/tonne, lead was up 2.3 per cent at $2,165/tonne and nickel was at $18,563/tonne, up 0.6 per cent.

Source : Business Line