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Base metals prices

higher on LME

LONDON: Copper dominated afternoon London Metal Exchange (LME) trading as prices at one stage moved towards $3,000 to be met by resistance and profit-taking.

After a quiet morning session copper came to the boil when it moved above an upside barrier between $2,960 and $2,965.

Fairly robust charts supported the move, though the red metal could not ignore a 1,625-tonne LME stocks rise.

Several traders had expected a flat return. Alalysts said uptick was constructive but believed a close above $3,000 was needed to lift the market significantly higher.

Final business wass at $2,992, against $2,946 on Monday. Copper ranged between $2,953 and $2,994. If copper manages to break $3,000 several market operators expect an attack on chart points at $3,026 and $3,038.

Support is pegged at around $2,930, the August 8 and 9 lows. Aluminium rallied above recent resistance at $1,928 with copper and looked set to probe the August 3 high of $1,973 near-term.

Underlying consumer buying is likely to steady the market on any heavy downside moves.

Three monthss aluminium settled the LME kerb at $1,941, up on Monday's $1,915 close.

Lead after an earlier dip to $620 found moved higher on late short-covering to end $6 higher at ^627.

Traders said a fairly tight physical market was offering background support, though several were alert to recent deteriorating charts. One technical analyst expects a move towards $600 near-term.

Zince sneaked higher with copper but remained thinly traded. It was last at $1,040, up $5.

A lack of quality metal and recent robust charts aided tin during the LME session. It climbed to $7,075 against $6,920 and may return to recent three-year highs of $7,150 near-term.

Nickel on trade buying and buy-stops ended at $9,105 against $8,935.

Alloy was quiet, finishing last quoted at $1,740/50 versus $1,720/25.

Another rise in stocks (this time of 1,720 tonnes) was already factored in to the market, traders said.-Reuter