Copper declines in LME trade

Print this page Posted on : 03-31-2009 by recycleinme.com

Copper led a decline in industrial metals in London as the Obama administrations warnings on banks and carmakers increased speculation that the economic slump wont end any time soon.

Copper for delivery in three months fell $140, or 3.5 per cent, to $3,910 a tonne by 2:47 p.m. on the London Metal Exchange. The metal reached a four-month high of $4,168 on March 27 and is poised for a quarterly advance of 27 per cent, the best performance since 2006. Copper futures for May delivery fell 6.65 cents, or 3.6 per cent, to $1.7695 a pound on the Comex division of the New York Mercantile Exchange.

Hedge-fund managers and other large speculators cut their net-short position in New York copper futures in the week ended March 24. Speculative short positions, or bets prices will fall, outnumbered long positions by 18,415 contracts, or 2 per cent lower than a week earlier.

Economic Climate

Given the economic climate we do feel that demand remains depressed, Mr William Adams, an analyst at London-based Basemetals.com, said in a report. Prices are likely to return to lower levels again.

Aluminum for three-month delivery fell $17, or 1.2 per cent, to $1,403 a tonne. LME-monitored stockpiles rose to a record 3.48 million tonnes, with most of the gains in the US.

Lead dropped $22, or 1.7 per cent, to $1,258 a tonne. Zinc dropped 1.7 per cent to $1,326.75 a tonne. Nickel lost 1.6 per cent to $9,510 a tonne and tin fell 0.2 per cent to $10,220 a tonne.

Source : Business Line