Copper, tin in backwardation

Print this page Posted on : 07-17-2009 by recycleinme.com

Copper slipped away from one month high on Thursday as the dollar strengthened and investors remained cautious on demand prospects, despite strong US earnings and robust growth data from China. By 0935 GMT, copper for three month delivery on the London Metal Exchange fell to $5,170 a tonne from $5,263 at the close on Wednesday and compared with a session low at $5,163.

Investors were concerned over tightness in the copper market as data showed a dominant position controlling between 50 per cent and 80 per cent of LME stocks.

Analysts said this was partly behind copper moving into backwardation - a premium of about $11.50 for LME cash copper over the three-month contract. This compares to a contango of $14.50 on July 8.

ALUMINIUM

Aluminium fell $8 to $1,647. The metal, used in transport and packaging, has been boosted by Chinese stockpiling efforts in recent weeks but analysts say this is now starting to fade as the summer lull approaches.

Nickel traded at $15,800 from $15,940 while battery material lead was at $1,590.25 from $1,635. Zinc shed $34 to $1,508 a tonne and tin edged down to $12,930 from $13,300.

Source : Business Line