Tin at 3-week high in LME trade

Print this page Posted on : 09-26-2007 by recycleinme.com

London Metal Exchange base metals consolidated gains amid lackluster trade on Tuesday as the market awaits fresh direction which may come from US economic data later in the session, market participants said.

LME lead gave back more than 2 per cent from Monday to $3,395/tonne, while LME copper drifted to $8,020/tonne as of 1045 GMT. LME aluminium climbed 1.5 per cent to $2,444/tonne from Monday, while zinc and nickel contracts held flat at $2,925/tonne and $33,100/tpnne respectively. LME tin edged to a three-week high of $15,500/tonne, a gain of 0.5 per cent.

In the bigger picture, ongoing dollar weakness against most currencies, especially the euro, is underpinning gains the complex, said market participants, although concerns have been raised for US demand going forward.

In the short term, “momentum suggests that prices are set to go higher” said analyst Mt. John Kemp of Sempra Metals, noting fresh buying interest from commodity trade advisors in both copper and lead. Further out, however, “ther must be concern of darkening demand” going forward with “poor” US construction figures, he said.

LME copper failed to charge higher Tuesday following a two-month high of $8,070/tonne touched over night despite a strong close Monday and a 500 tonne drawdown from LME warehouse stocks. LME aluminium is caught in a lull between $2,400 and $2,500 / tonne, with a breakout unlikely until the 30-day moving average at $2,480 /tonne is breached.

LME nickel stocks rose almost 300 tonnes in data Monday to close to 31,000 tonnes, up over 30 per cent from a month ago.

Source : Business Line