Copper trades in ranges as strikes end

Print this page Posted on : 07-25-2007 by recycleinme.com

Nickel shed more than 3 per cent on Tuesday and copper traded sideways with prices capped after labour disputes in Chile and Canada ended, but a soft dollar supported most markets, analysts said.

London Metal Exchange nickel fell to $32,300/32,500 a tonne by 1028 GMT versus $33,400 on Monday, when it dropped nearly 5 per cent. It has lost 38 per cent since its high of $51,800 on May 9.

Copper for delivery in three months was unchanged at $8,030/8,040, facing stiff resistance at $8,200, traders said.

NICKEL DROPS

The record high nickel prices have triggered a wave of substitution to non-nickel containing stainless steel and, despite strong demand for stainless steel, the market has been saturated by too much production, especially in China.

“We are seeing quite a lot of weakness in the stainless steel production over the next few months with a few extended shutdowns of mills in Europe and elsewhere” Mr. Lennon said.

The oversupply of nickel mainly in the form of nickel scrap, which had been offered at 70 per cent of the LME price, and non-LME deliverable units dampened prices, Mr. Lennon said.

“Prices could go a little bit lower in the short run, possibly to $25,000, but it may bounce in the fourth quarter when demand starts to kick back in.”

Aluminium was up $11 at $2,833/2,838. Tin fell $25 to $15,300/15,500, zinc was up $25 at $3,715 /3,730 and lead gained $30 to $3,715/3,730.

Source : Business Line