Lack of fresh impetus drives copper to week’s low
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London, April 8 Copper dropped to a oneweek low on Thursday in the absence of fresh impetus to keep its rally going and on doubt by investors that supply and demand fundamentals justified prices around $ 8,000 a tonne.
Copper for three- month’s delivery on the London Metal Exchange fell to $ 7,825 a tonne, its lowest since April 1 and was at $ 7,835.50 a tonne by 10: 01 GMT, versus Wednesday’s close of $ 7,945 a tonne.
The metal touched $ 8,010 a tonne earlier this week, its highest since August 2008 and around $ 1,000 away from an all- time high of $ 8,940 a tonne struck in July 2008.
DEFICIT FORECAST
A Reuters poll of 13 analysts predicted the copper market would see a deficit of around 23,000 tonnes in 2010.
In the January survey expectations were for a surplus of 115,000 tonnes.
In other metals, nickel also slipped to its lowest in over a week at $ 24,269 a tonne and last traded at $ 24,400 a tonne from $ 24,725, but was still the strongest performer of the year with a 31 per cent rise since January.
Nickel stocks at LME warehouses dropped by 342 tonnes to 155,670 tonnes, their lowest since late December and down by 6.5 per cent since hitting a record high of 166,476 tonnes in early February.
On Thursday, cancelled warrants — material earmarked for delivery — rose to 6,366 tonnes, their highest level so far this year, with 3,324 tonnes of cancellations having come through this week. Zinc was at $ 2,363.50 from Wednesday’s $ 2,400 and battery material lead was at $ 2,260 from $ 2,290. Tin was at $ 18,580 a tonne from $ 18,575. Aluminium fell to $ 2,333 a tonne from $ 2,352.
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Source : Business
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