Copper eases as stocks rise
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Copper prices slid on Tuesday as inventories rose and the market worried about falling economic growth and demand while waiting for an expected interest rate cut in the United States.
Copper, used widely in the power and construction industries, was down at $6,720/6,740 a tonne at 1117 GMT from $6,825 at the close on Monday.
Other metals also fell, notably lead for three-month delivery which tumbled to a 6-month low of $2,435 a tonne on the London Metal Exchange.
Stocks of copper in LME warehouses rose 2,725 tonnes to 191,200, to show a gain of more than 90 per cent since the middle of July and nearly 50 per cent since early October.
SLOW MARKET
Traders expect subdued activity in base metals markets ahead of the US Federal Reserve’s decision on benchmark interest rates later on Tuesday.
Expectations are the central bank will trim rates by a quarter percentage point cut to 4.25 per cent to help ease the credit market crunch triggered by sub-prime mortgage troubles, boost confidence, demand and economic growth.
Lead was down about 4 per cent at $2,435/2,445 a tonne from $2,540 on Monday, tin was at $16,500/16,700 from $16,700, zinc at $2,365/2,385 from $2,380/2,385 and aluminium at $2,456/2,459 from $2,462.
Nickel was at $26,000/26,200 from $26,300 on Monday.
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Source : Business Line |
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