Lead at 9-week high in LME trade

Print this page Posted on : 09-25-2007 by recycleinme.com

London Metal Exchange lead rose to a nine-week high and copper continues to test key resistance at $8,000 a tonne on Monday, supported by US dollar weakness.

Traders and analysts said prices are expected to edge higher across the complex ahead of a slew of data releases due later in the week.

As of 0943, LME lead was trading at $3,470 a tonne, up 2.4 per cent from Friday’s high. LME copper was at $8000/tonne, down 0.3 per cent.

LME nickel was trading at $32,800/tonne, down 0.5 per cent. LME aluminium was at $2,411/tonne, down 0.3 per cent.

LME lead is the key “out-performer” and unless China starts to deliver more material onto the LME the metal could easily trade towards $3,800/tonne to $4000/tonne area, said JPMorgan analyst Mr. Michael Jansen.

LME Copper continues to test $8000/tonne, hitting $8,005.tonne earlier in the session.

LME copper looks on track to establish a foothold above $8,000/tonne, JPMorgan’s Mr. Jansen said in the near term, supported by dollar weakness, expectations of a pick up in Chinese physical market activity in the fourth quarter, short covering from the speculative community and concerns around supply with labour disputes ongoing in Peru and Mexico.

Source : Business Line