Copper dips 2% on weak outlook

Print this page Posted on : 03-26-2009 by recycleinme.com

London, March 25

Copper slipped around 2 per cent on Wednesday as a weak consumption outlook prompted investors to take profits after a rally on Tuesday sent the metal to its highest in more than four months.

Copper for three-months delivery on the London Metal Exchange fell to $3,929 in the open outcry trade, versus $3,975 a tonne on Tuesday, when it neared its four-month high of $4,135 struck earlier this week.

Three-months aluminium was at $1,400 a tonne from $1,412 a tonne on Tuesday, having gained more than 10 per cent in March, while nickel was at $9,550 from $9,750.

Battery material lead was at $1,262/1,263 from $1,284 and zinc dropped to $1,265.5 a tone from $1,275.

Tin gained $15 to $10,040 a tonne, as the backwardation {ndash} premium for cash material over the three-month contract {ndash}has jumped to around $235 a tonne.

Inventories fall

Copper inventories in London fell to 503,675 tonnes, with cancelled warrants slipping to 22,425 tonnes from 22,675 tonnes on Tuesday.

LME-registered inventory fell on Wednesday by 3,000 tonnes but still stands at 3.45 million tonnes, near its record highs while the rise year-to-date is at around 1.13 million tonnes.

Source : Business Line