LME copper firm on strike support

Print this page Posted on : 06-29-2007 by recycleinme.com

Base metals crept higher on Thursday, recovering from this week’s cross-asset sell-off as risk aversion eased in the market now underpinned by industrial action, traders said.

Copper for three-months delivery on the London Metal Exchange stood at $7,420 / 7,440 a tonne at 0901 GMT, up $40 from Wednesday, when it rallied by $120.

“The strike news in very mixed. The relative strength is rather carrying on form Wednesday,” said economist Mr. Stephen Briggs at Societe Generale Corporate and Investment Banking.

BEARS AT BAY

“Strikes will likely keep the bears at bay, but only prolonged action and major disruption will lift the copper price,” Standard Bank said in a research note.

LME stocks of copper have fallen around 100,000 tonnes since early February and currently stand at 116,375 tonnes – less than three days of global consumption.

Lead was up 1.5 per cent or $40 to $2,635 / 2,655 a tonne. The metal hit an all-time high of $2,745 earlier in the week.

Nickel, which has lost some $15,000 since early May, when it hit an all-time high of $51,800 a tonne, was softer at $37,300 / 37,500 versus a last quote of $37,500/37,600 while zinc was $25 firmer at $3,370/3,390.

Aluminium edged up $5 to $2,710 / 2,715 and tin was at $13,850 /14,050 against $13,875 on Wednesday.

Source : Business Line