960415

Base metal prices mostly lower on LME

LONDON: Copper prices were sold off during late Monday LME kerb trading, although the market still ended steady having flipped to the upside earlier.

Other metals trended back with copper during a relatively routine afternoon session, with Monday's pricing for "third Wednesday" having earlier passed without incident. Most metals finished in the minus column, although pockets of tightness helped tin and lead, they said.

"It was a case of "follow-my-leader' this afternoon, with copper falling back as spreads softened, so the others came back as well," one said.

Copper's cash/threes backwardation eased in to $26 this afternoon from levels in excess of $30 at midsession, and when fund buying faltered around $2,570 the market eased back to conclude the kerb at $2,559, down just $1 a tonne from Friday.

But there is an undercurrent of support in copper from the spectre of supply disruptions. Labour talks at Codelco's Chuquicamata are said to be making slow progress, while the strike on the Zambia/Tanzania railway is continuing, although ZCCM is making alternative arrangements to transport material.

LME warehouse stocks, meanwhile, are expected to register a fall of some 5,000/6,000 tonnes on Tuesday.

Aluminium was pressured by stale bull liquidation and speculative selling and ended the kerb $21 lower at $1,604. Another rise is forecast in stocks tomorrow, which may usher in a sub-$1,600 sell-off, they said.

Nickel prices were depressed for most of the session, meeting resistance around $8,300, although the slippage was modest given expectations of a stock fall tomorrow. Last business was at $8,370, down $60.

Lead slipped back in late trading, but remains underpinned by the tightness which is now centred around June and a likely stock fall tomorrow. Last kerb trade was at $810, down $2.

Zinc similarly retreated with copper, and ended the day $9.50 easier at $1,076.50.

However, tin moved higher, helped by June tightness, and closed $15 higher at $6,475.

Alloy was quiet, but prices were marked lower with primary metal. Three months ended at $1,375/80, compared with last Friday's $1,390/93.-Reuter