Zinc extends losses on stocks rise
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Copper drifted lower on Tuesday and zinc extended losses as investors worry that a global economic slowdown will dent demand for industrial metals. Rising metal inventories and a soft technical picture, along with a retreat in oil and other commodities, were likely to cap prices. London Metal Exchange zinc for delivery in three months dropped 1.3 per cent of $24 to $1,745 by 0817 GMT after losing almost 4 per cent in the previous session.
Three-month copper shed $35 to $7,575 a tonne, having dropped 3.7 per cent on Monday. Earlier on Tuesday, copper hit $7,550 in electronic trading, its weakest since early February.
Copper stocks up
LME copper stocks rose 2,550 tonnes to 148,750, up over 20 per cent in the past month and their highest since February. The tightness that had underpinned prices in recent months was mainly due to one large dominant position holding over 90 per cent of the LME warrants.
Lead fell 0.7 per cent or $15 to $1,985/2,005 after shedding some 6 per cent in the previous session.
LME warehouse stocks for zinc, mainly used to galvanize steel in the construction sector, rose by 2,500 tonnes to 161,825 - the highest since September 2006. In Shanghai, zinc fell 4 per cent and its daily limit to a lifetime low at 14,480 yuan ($2,114) from Monday's settlement.
Nickel was down $25 at $18,000 a tonne, around its softest since mid-2006, and more weakness was expected. Three-months aluminium rose $3 to $2,885 a tonne, while tin fell 2 per cent or $450 to $20,150.
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Source : Business Line |
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