LME nickel at 4-month low

Print this page Posted on : 06-30-2007 by recycleinme.com

Copper prices rose on Friday to near two-week highs as strike threats took precedence over the risk aversion that roiled markets earlier this week, while nickel touched a four month low.

Copper for three-month delivery on the London Metal Exchange was at $7,620 / 7,630 a tonne at 0942 GMT up from $7,451 at the close on Thursday.

Earlier on Friday the metal used extensively in the power and construction industries touched $7,640 a tonne, the highest since June 18.

DOWNWARD SPIRAL

Investor confidence –battered in recent days by trouble in credit markets – appears to be stronger. That has helped base metals, as has falling stocks.

Copper stocks in LME warehouses at 114,700 tonnes, less than three days global consumption and the lowest since October, while stocks monitored by the Shanghai Futures Exchange fell 5.6 per cent last week to 90,167 tonnes. Low lead stocks in LME warehouse at 45,075 tonnes – little more than two days global consumption –also boosted the metal used mainly in batteries.

Lead was at $2,680/2,690 a tonne from $2,650 on Thursday. Earlier this week it touched a contract high of $2,745 a tonne as the market factored in output cuts in China.

Nickel saw $35,500 a tonne, the lowest since February 13, a loss of around 30 per cent since the record high of $51,800 seen on May 9. It was last at $35,800/36,000 from $36,750. Aluminium was a touch higher at $2,748 / 2,753 from $2,740 on Thursday, zinc was unchanged at $3,380 and tin was at $13,800/ 14,000 from $13,875.

Source : Business Line