Copper slips on fears of economic slowdown

Print this page Posted on : 08-30-2007 by recycleinme.com

Copper prices slipped one per cent on Wednesday as rising London Metal Exchange stocks and heightened economic fears weighed on sentiment.

“If you are going to see a continued sell-off in the other markets then eventually it will wash over to base metals,” economist MR.John Kemp at Sempra Metals said.

Copper for delivery in three months fell to $7,210/7,230 per tonne by 0930 GMT, down $70 from Tuesday’s closing price.

Rising stocks in LME warehouses, up over 40 per cent since mid-July, capped prices. In the previous session inventories rose by 8 per cent and on Wednesday stocks increased another 3,025 tonnes to 138,650representing just under three days of global consumption.

The price of copper at its Wednesday’s low of $7,194 was still well above this year’s low of $5,250 set in February, and lead prices are still up by 84 per cent this year.

Three-months lead fell to $3,075/3,095 from $3,165/3180 on Tuesday.

Three-months aluminium was at $2,520/2,540 a tonne versus $2,525, tin was steady at $,14750/14,950 and zinc fell to $3,035/3,055 against $3,070.

Nickel fell to $27,400/27,700 a tonne against $27,700.

Stocks of nickel in LME warehouses stand at 15-month high of 23,436 tonnes, up 330 tonnes on Wednesday after rising almost 10 per cent in the previous session.

Source : Business Line