Metals edge lower in LME trade

Print this page Posted on : 08-07-2007 by recycleinme.com

Base metals on the London Metal Exchange were slightly lower in choppy trade in Asia on Monday, as the complex awaits further price direction from US financial markets after Friday’s disappointing US service and jobs data.

The overall mood is bearish on concerns of weak fundamentals, said traders.

Traders had an extremely busy morning as manufacturers tried to buy copper at lower prices while some hedge funds executed stop-loss-orders.

Three – month copper by 0630 GMT had fallen $9 from the London Friday afternoon kerb to $7,665 per tonne, the metal plunged $205 on the LME on Friday.

Aluminium was up $22 at $2,666 / tonne and zinc was unchanged at $3,360 / tonne. Lead retreated from last week’s gains to become the biggest loser of the complex, shedding $65 to $3,255 / tonne.

Copper could test $7,300 / tonne if bearish selling persists throughout the week, said traders, noting that there was substantial short-selling in copper futures.

NICKEL DOWN

Nickel remained below the $30,000 / tonne level at $29,000 / tonne, down $100 from the London PM kerp as LME nickel stocks jumped another 400 tonnes.

Tin trade was choppy in the morning, reaching highs of $16,270 / tonne but was last traded at $16,000 / tonne.

Fund interest in tin on an expected supply deficit should support prices around $16,000 / tonne despite the recent market jitters, said analysts.

Source : Business Line