LME stocks weigh on aluminium
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London Metal Exchange Copper drifted lower on Tuesday with a close eye on global equity markets and aluminium was under pressure after two successive days of inventories rising, analysts said.
“Metals are a bit under pressure, LME stocks are not helpful,” analyst Mr. Stephen Briggs at Societe Generale Corporate and Investment Banking said.
Copper for delivery in three months shed $125 or 1.7 per cent to $7,260/7,280. Aluminium fell $5 to $2,470/2,475 by 0921 GMT, after dropping g $69 on Monday.
LME stocks of aluminium jumped 12,900 tonnes on Monday and rose another 7,200 to 846,825 on Tuesday, their highest level since August 2004.
“However, restrictions of China on aluminium exports and a pick up of demand after the summer season might limit the downside for aluminium prices,” a Dresdner Kleinwort report said.
Metal prices were seen remaining hostage to movements in other markets as long as credit market worries persisted.
However, any dips were likely to be well supported ahead of fourth quarter seasonal strength in demand analysts said.
Copper miner Kazakhmys posted a 22 per cent rise in half-year core profit on Tuesday.
“The outlook for pricing and demand remains firm,” Chairman Mr. Vladimir Kim said in a statement.
“Overall the market remains in consolidation mode after the gains seen at the end of last week and this is likely to remain the case until the US markets provide leadership again,” analyst Mr. William Adams at Base Metals.com said in a report.
Zinc for delivery in three months fell to $2,940/2,950 from $3,035/3,040 and lead was at $2,930/2,940, down $90.
In early trade, prices dropped 3 per cent to an intraday low of $2,920 as traders expected a big inflow of LME stocks.
LME inventories came in 100 tonnes higher totaling 25,300 down by over 360 per cent, from its recent peak in mid-2006 at around 120,000. Stocks are at the lowest level since March 1990.
Nickel eased to $29,200/29,400 from $29,750/29,850 and tin shed $200 to $15,100 /15,300.
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Source : Business Line |
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