Copper down on US bailout concerns

Print this page Posted on : 09-26-2008 by recycleinme.com

Copper prices slipped and aluminium touched an 8-month low on Thursday as sidelined investors waited for news on a $700-billion US rescue plan designed to stabilise the banking sector. "Markets are waiting for the rescue package, wondering what it means for the economy," analyst Ms Barbara Lambrecht at Commerzbank said. "Copper prices will continue to fall in the medium-term, there is a slowdown in demand and there are recession risks in the US and in Europe - and this could spill over to China." Copper for delivery in three months on the London Metal Exchange copper hit a one-week low of $6,835 per tonne before trading at $6,865 in official rings from $6,905 at the close on Wednesday. Eye on market

The market is focused on US Treasury and Federal Reserve officials wrangling with the US Congress to win approval for a financial markets bailout plan, which could influence the long-term outlook for metal consumption.

Aluminium eases

Aluminium eased to $2,485 against Wednesday's close of $2,503. Earlier the light metal, used in the power, transport and packaging industries, fell 1.3 percent to $2,470 -- the lowest since Jan. 25.

Lead was untraded, but bid at $1,950 from $1,995 on Wednesday, zinc traded at $1,784 from $1,790.

Tin also untraded, was bid at $17,350 from Wednesday's last quote at $17,275/17,300 and nickel was bid at $16,900 from $17,150.

Source : Business Line