Metals slightly higher on LME, await US data
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London Metal Exchange base metals were slightly higher in the European morning, but traders said the markets were unlikely to pull themselves out of their current doldrums before the release of US consumer confidence data.
As of 11.25 GMT, London Metal Exchange copper was trading at $6,715 a tonne, up 2 per cent overnight, while lead was up 1.8 per cent at $3,030/tonne and zinc was up 3.2 per cent at $3,395/tonne.
EYE ON CHINA
Fresh fundamental news was largely absent, with the exception that China’s top economic planning agency hinted that it would take a closer look at the country’s fast-growing lead industry.
The move has fuelled speculation that the Government may raise the export tax on lead to 15 per cent from 10 per cent, as widely expected by industry participants. This would restrict supplies of lead to the market but may create a sudden rush on exports ahead of the measure, traders said. China is the world’s biggest lea exporter.
Elsewhere, LME aluminium was up 0.7 per cent at $2,523/tonne as of 11.25 GMT, with nickel and tin unchanged at $29,150/tonne and $16,725/tonne, respectively.
Across the complex, technical traders are seen continuing to play the markets from the short side and cover positions on any positive economic news. But those market players that follow from a fundamental perspective will likely draw comfort from the fact that disruptions to supplies will still sway the market balance, traders said.
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Source : Business Line |
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