Supply fears buoy tin, aluminium
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Copper prices bounced on Tuesday, but analysts said the metal used in power and construction was likely to come under further downward pressure from higher stocks, supplies and falling demand.
Aluminium touched a 3-month high and tin hit record highs on growing concerns about supplies.
Copper for three-month delivery on the London Metal Exchange was up at $7,460/7,480 a tonne by 1049 GMT from$7,410.
Traders said speculators cutting their short positions – bets on lower prices – some bargain hunting below $7,500 and strikes in Peru were behind copper’s price rise.
EXPORT QUOTAS
Aluminium gained to $2,638 a tonne, the highest since August 9 and was last at $2,633/2,638 from Monday’s $2,610. The metal used in power, packaging and contraction has gained more than 10 per cent since early October.
Traders said falling stocks in recent days have helped bolster prices as have fears of falling supplies from China.
Tin hit a record high of $17,100 a tonne on worries about supplies from Indonesia, the world’s second biggest producer after China. It was last at $16,850/16,950 from Monday’s last quote at $16,725/16,775. Indonesia is expected to produce 90,000-100,000 tonnes of tin in 2008, little changed from this year. But the market is worried about export quotas. Nickel was at $31800/32,000 from $31,600, lead was at $3,735/3,745 from $3,695 and zinc was at $2,770/2,780 from $2,725.
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Source : Business Line |
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