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Copper, aluminium lower on LME

LONDON: London Metal Exchange (LME) base metals slipped a few dollars lower in trade thinned by the absence of the funds on Thursday.

"The medium-term funds are short and sitting on the sidelines until they see how far the prices will be pushed down," a dealer said.

"Everyone is fairly confident that the prices will go up again soon," he added.

Three-months copper ended the late kerb at $1,782 a tonne, down $12 from Wednesday's close, while aluminium last traded $5 lower at $1,592.

Zinc also slipped on Thursday, falling $9 to $1,135.

"Copper and aluminium were pushed to their lows earlier and zinc was targetted in the kerb," a dealer said.

Nickel moved independently of the other metals, ending $90 higher at $10,080.

Dealers said that although demand from stainless steel producers has begun to wane, the threat of strike action at Inco Ltd later in the year is proving supportive.

"There's only so much stainless you can produce, but people are starting to look for a possible strike in May," one said.

Inco, the western world's largest nickel miner, and its 3,500 unionised workers in Sudbury, Ontario will start preliminary contract negotiations in two weeks.

The current three-year contract expires on May 31.

The other metals in the complex drifted lower in quiet trade by the end of the kerb.

Lead fell $3 to $452 while tin was also indicated lower at $5,440/$5,450.

Alloy was indicated at $1,305/$1,310 and silver at 511/515 cents an ounce. -Reuters