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Copper prices higher, other metals mixed on LME

LONDON: Copper prices rose on the London Metal Exchange (LME) on Wednesday, closing above $3,000 a tonne and poised for further moves higher, traders said.

Volumes throughout the complex were higher than the very depressed levels seen in recent weeks, they added.

"Today has been a day of consolidation for copper. We have seen a bit of profit-taking, but the close is not a bad one," one trader said. "Volumes have picked up, which is a good sign for the market," he added.

The red metal closed at $3,005, up $13 from Tuesday's afternoon kerb close but $5 down from the high.

Investment fund buying, which buoyed values on Tuesday, was not a major feature. But general shortcovering and a tightening in nearby spreads were supportive.

Cash moved to around $80 above three month values by the close against around $51 late Tuesday.

The surge in the dollar may have contributed to higher base metal prices this week as consumers covered forward against further strengthening in the U.S. currency, some analysts said.

But others were more sceptical. "I don't think it's very influential in terms affecting dollar (base metal) prices," said Angus MacMillan of Billiton Metals.

Several traders said copper may move up further this week, although good resistance is expected to emerge at $3,010, $3,026, $3,038 and $3,075.

Aluminium finished lower after a late sell-off, again on profit taking. Premiums eased further on the physical markets, reflecting soft demand and slow trade.

Physical traders also said off-warrant stocks in the Far East had built up rapidly in the first half of the year.

Aluminium ended $3 lower at $1,938.

Nickel rose to within $10 of the recent six-month peak of $9,210 at one point before retreating.

Prices finished $45 higher at $9,150.

Tin ended $5 lower at $7,070 after moving in a very narrow range all day. Cash over three months was also little changed at around $35 by the close.

Zinc rose strongly, ending the afternoon kerb session $11 higher at $1,051. But prices may retreat near-term now the indicators are registering well overbought.

Lead gained $7 to $634, the day's high.

Alloy closed at $1,750 compared with $1,740/50 Tuesday.-Reuter