Copper eases on profit taking

Print this page Posted on : 03-25-2009 by recycleinme.com

Reuters

London, March 24

Copper tracked back from 4-1/2 month highs on Tuesday as doubts over the extent of demand continued and as investors banked profits after a rally fuelled by a new plan to revive the US banking sector.

Copper for three-month delivery on the London Metal Exchange fell to $3,950 a tonne in official rings, off a session low at $3,930. The metal used in power and construction closed at $4,060 on Monday.

On Monday, copper hit its highest level since Nov 10 after the US government unveiled a plan to eliminate up to $1 trillion in banks' bad assets in a bid to pull the economy out of recession.

But copper prices are still down about 50 per cent since a record of $8,940 in July 2008.

Aluminium down 2.6%

Aluminium fell 2.6 per cent to $1,408 in LME rings from $1,445. Steelmaking ingredient nickel was last bid at $9,720 in official rings from $9,850 at the close on Monday, and battery material lead slipped 6.2 per cent to $1,262 from $1,345.

Zinc traded at $1,244 in rings from $1,292 and tin drifted $95 lower to $10,135.

''A little bit of profit-taking and a little bit more reality. Whatever spending plans the Federal Reserve put in place will take half a year at least to seep through,'' said Mr David Wilson, director of metals research at Societe Generale.

Offering limited support however, copper stocks fell 2,900 tonnes to 505,425 tonnes.

Source : Business Line