Zinc declines in LME trade on bearish outlook

Print this page Posted on : 08-27-2008 by recycleinme.com

Rising stocks and a firmer dollar dampened sentiment in industrial metals on Tuesday, while investors awaited US data for more clues about the health of the global economy and future demand.

''We are looking for more downside in copper, towards $7,000 a tonne very short term, until we see any signs of a pick up particularly in Chinese import buying,'' said analyst Ms Gayle Berry at Barclays Capital. London Metal Exchange copper for delivery in three months fell $135 to $7,525 a tonne by 0932 GMT, after diving by 2.6 per cent on Friday before a long weekend with London closed on Monday. Zinc shed 3.8 per cent or $70 to $1,760 per tonne.

FUTURE DEMAND

Worries about the global economy weighed on metals markets as demand was seen slowing on both sides of the Atlantic. World stocks hit their lowest level in almost two years on Tuesday as a worsening German business mood and fresh concerns about financial firms triggered a sell-off in risky assets, lifting the dollar to a 2008 high. Tin was higher at $21,000 against $20,900/20,950, while aluminium shed $15 to $2,765 and nickel fell to $20,150 versus $20,800. Three-month lead eased to $1,860.

Source : Business Line