Copper eases in LME trade
|
|
|
Copper eased on Friday as speculators took profits, but analysts expect tight supplies and strike threats to boost prices over coming days.
Copper for three months delivery on the London Metal Exchange was at 0940 GMT slightly lower at $7,840/7,850 a tonne from Thursday’s close at $,7860. Earlier it hit an eight-week high of $7,880.
Stocks of copper in LME warehouses have fallen over the last two weeks to around 105,475 tonnes, little more than two days of global consumption and the lowest since last August.
POTENTIAL SQUEEZE
Scanning below the headline inventory data is the fact that only about 80 per cent of LME copper stocks are available to the market.
“The primary factor behind … (this) is that consumers are seeking to secure more material than usual in an effort to hedge against greater supply volatility,’ Deutsche Bank said.
Also weighing on the market is a potential squeeze by one large holder with claims on up to 90 per cent of copper in LME warehouses, reflected in the premium for cash metal over material for delivery in three months time.
The backwardation, as it is known, has eased a little to around $112 a tonne from around $123 earlier this week, but it is still around the highest since last July.
Aluminium was at $2,795/2,799 from $2,790 on Thursday. Earlier it touched $2,803, matching the high on June 6.
Nickel slid to $35,600/35,800 from $36,00, zinc shed $15 to $3,415/3,430, tin was steady at around $14,050/14,150 and lead lost $30 to $2,815/2,845.
|
|
|
|
Source : Business Line |
|
|
|
|
|
RecycleINme.com. All Rights Reserved
