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Copper prices depict

higher trend on LME

LONDON: Firmer London Metal Exchange (LME) copper prices helped to lift other base metals from their lows by Wednesday's close, but market makers believed the flagship contract could struggle to rise significantly.

Options-related business and a higher trending Comex market helped to trigger buy-stops and lift benchmark three months delivery by $27 to $2,502.

"The copper market really picked up over lunch on options-related buying," Martin Squires of Rudolf Wolff said.

"But we really need to get above $2,555 to start looking bullish again," Squires was quick to add.

Traders said the recovery could prompt further short-covering if prices manage to breach medium term trendline resistance pegged at $2,520/25.

Referring to Wednesday's activity one trader said - "Volumes were abismal in the morning and reasonable from then on."

Aluminium held unchanged levels of $1,632 by the close of business, but did find some support from higher trending copper.

Earlier prices hit a low of $1,623. The International Primary Aluminium Institute reported Western total smelter stocks in February fell 69,000 tonnes to 3.625 million tonnes, but the news had little impact on prices.

Traders said while smelter stocks fell, LME stocks rose, pointing to stock redistribution rather than a real supply deficit.

Nickel, after surviving a downside test of support at $8,000 bounced by $95 to end at $8,150. "Nickel is one to watch after support at $8,000 held," one trader said.

A physically tight market saw lead claw away from its lows of $804 to finish at $815, around a $7 gain.

"Lead was subdued this morning while the others were under a bit of pressure, but as copper started picking up the buying resumed," Wolff's Squires said.

Zinc moved $4 higher to $1,081, while tin under trade and speculative selling bucked the trend and ended lower at $6,385, a $25 loss.

Alloy remained sluggish throughout and was last indicated at $1,390/$1,400, versus $1,400/$10.-Reuter