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Metals end LME mixed, pace of trading slow

LONDON: Base metal prices ended mixed on the LME today, encouraged by technical bounces in copper and aluminium, although the general level of business was slow.

In the absence of significant physical interest with manufacturers and end-users in the grip of summer shutdowns, business is mostly restricted to technical trade. Both copper and aluminium tested key levels at $3,000 and $1,900 respectively which were successfully defended, traders said.

"They have tested the supports and held, but it is difficult to get enthusiastic, due to the low volumes at the moment," one said.

Copper prices pivoted near $3,000 before ending at $3,009, still down $12 a tonne from Tuesday's close.

The general lower trend reflected an easing in the cash/threes backwardation to near $30 from around $50 yesterday, although traders still expect cash premiums to flare up in September and October.

Aluminium traded in a wide range today, bouncing from a morning low of $1,890 back up to finish the kerb at the high of $1,917, up $2. However, the wideness of the intra-day move reflected low trading volumes, traders added.

Nickel prices comfortably held above the $9,200 level this afternoon, aided in late trading by resilience in copper, although the market was unable to make significant headway. Last business was at $9,250, up $5.

Zinc business was restricted to a fairly narrow range today, with little movement seen from overnight levels. A mid-afternoon dip below $1,030 was supported, and prices edged up to close at $1,033, up just $1.

Lead sagged from early levels just below $640, but spent most of a slow session in the mid-$630s, lacking incentives. The market finished at $633, down $3.

Tin prices continued to re-trace from last week's peaks against a background of a narrowing backwardation but successfully stabilised above $7,000.

Three months finished at $7,060, still down $55. Cash/threes narrowed to around $5 at one stage before ending at $10/20 backwardation.

Alloy was largely neglected, closing at $1,720/40, against Tuesday's $1,715/35.

Martin Hayes, London Newsroom +44 171 542 8080.-Reuter