LME nickel at 3 – week low

Print this page Posted on : 06-13-2007 by recycleinme.com

Nickel dropped by over five per cent on Tuesday and copper shed more than one per cent as Chinese imports fell in May, analysts said.

Nickel for delivery in three months on the London Metal Exchange (LME) fell by 5.6 per cent to hit $40,100 a tonne in early trade. By 1032 GMT it was indicated at $40,500 / 40,700 down by $2,000 against Monday’s close. Nickel stocks rose by 42 tonnes to 8,922, with over two days of global consumption or 8,478 tonnes available to the market.

Three-months copper was down $185 or 2.6 per cent at $7,170 / 7,190, after rising 3 per cent in the previous session.

WORLD ECONOMY

The past week saw a significant sell-off in base metals on the re-rating of interest rate risk as bond markets have had to price in a stronger-than-expected US economic data and a greater degree of inflation risk.

Higher interest rates could dampen economic growth and lower commodity demand prospects, analysts said.

Aliuminium was at $2,700/2,705 against $2,724. Lead was softer at $2,320 / 2,340 against the last quote on Monday at $2,345 / 2,350 when it jumped 3.3 per cent. LME stocks have fallen by nearly 10 per cent during the last month to 44,175 tonnes.

Zinc was down at $3,640 / 3,660 versus $3,745 / 3,750 in the previous session. Tin was lower at $13,850 / 13,050 from $13,975 /14,000.

Source : Business Line