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Copper wilts

LONDON: Copper swung lower on the LME on Wednesday, extending an early gentle drift below $2,600 and pulling its companion metals lower during a mostly unexciting session, traders said.

The writing was on the wall for copper once some liquidation emerged in midmorning, with some of the weaker longs flushed out down to near $2,580 before a better-than-expected Nymex opening encouraged a snap rally of some $10.00.

But prices may remain below $2,600 for the rest of the day, with spreads easing slightly to $75/78 backwardation for cash/threes and news awaited from Chile labour talks.

On Tuesday, Codelco handed over its final offer to the mine unions at Chuquicamata, who held a meeting at 0100 GMT on Wednesday to decide whether to accept the offer. The current labour contract at the 600,000 tonne/year mine expires April 30.

Copper prices bottomed out at $2,581 before concluding the kerb at $2,590, still down $15 from Tuesday's closing kerb.

Most other metals saw only intermittent trading interest with not enough movement to breach current ranges.

Aluminium held in a tight slightly lower band with expected support around $1,600 not coming under serious pressure. Last kerb business was at $1,605, down just $2.

Nickel was pushed below $8,100, with the market becoming increasingly wary of expected stock increases in Rotterdam soon as Russian cathode held by AIOC's banks is cut and delivered.

Key support around $8,020/30 held, however, and the market finished the session at $8,090, still down $40.

Tin corrected back below $6,600, having raced to 6-1/2 month highs on Tuesday, finishing the kerb at $6,545, down $80.

Lead and zinc were both subdued, failing to trade on the kerb. Lead was indicated at $807/808, against $810, while zinc held steady at $1,060/62. Alloy was also stable at $1,370/75.-Reuter