Short covering pushes tin to record high
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LME tin jumped 5 per cent to a fresh record high of $17,050 a tonne on Tuesday on short covering in thin summer trade, a London – based broker said.
“It looked like short covering triggered a few (buy) stops,” the broker said. “There was a 50-lot bid at $16,650 / ton that went in through LME select,” she said “that’s quite rare in tin.”
Another trader noted the start of the fund rolls Tuesday. “Fresh fund allocations this month had to go somewhere,” he added. Tin prices have climbed some 20% on speculative buying since mid-July, seemingly following the path of LME lead and nickel.
Reuter reports :
Copper prices rose alongside equities as markets speculated that the US Federal Reserve could act to reassure investors with an interest rate cut sooner rather than later. Copper for delivery in three months on the London Metal Exchange was up at $7,710/7,720 a tonne versus $7,680 on Monday.
Lead slipped towards the psychological $3,000 a tonne level and was last at $3,100 / 3,125 a tonne from $3,104 on Monday, when it tumbled more than 6 per cent.
Stocks of lead in LME warehouses have fallen to around 35,000 tonnes, less than two days global consumption and the lowest since early April.
Aluminium was firmer at $2,658 / 2,663 a tonne from $2,652 on Monday when the metal hit a six-month low of $2,630 on expectations of growing supplies from China. Nickel gained to $29,300/29,500 from $29,100/29,200 on Monday, tin was steady at $16,150/16,350 and zinc rose to $3,400/3,420 from $3.
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Source : Business Line |
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