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LME COPPER

LME copper and aluminium weak in late London trade

LONDON: Copper and aluminium tumbled in late evening business here, extending earlier falls attributed to weak charts and a tail-off in demand from industrial users.

Aluminium was at its lowest for around eight weeks, falling further after closing on the London Metal Exchange (LME) at $1,828 a tonne. In evening trade, the metal slumped to $1,810 and looked set to test the key $1,800 support level soon.

Copper was at a four-week low as prices crashed from its close at $2,945 a tonne to trade just above the psychologically-important $2,900 level

Both were hit by speculative action, with disappointed longs quitting the markets. Weakness also spread to the other metals.

The falls coincide with traditionally slack demand for base metals as end-users wind down their activity for annual holidays and factory maintenance. Traders also noted that the size of warehouse inventory drawdowns had slowed in recent weeks.

Other markets were similarly hit. Nickel, which earlier slumped to a six-week low of $8,550 was quoted well down at $8,300/$8,350 in late dealings. Traders said copper's weakness would continue to weigh on the market.

Tin was also lower, trading at $6,600/$6,650 after a close at $6,725. Lead was off at $628/$633 but zinc was steadier at $1,010. Aluminium alloy was down at $1,665/$1,675.-Reuter