Base Metals Higher In Early Trade

Metals tacked higher in early LME. Base metal prices were uniformly higher during early Tuesday LME pre-market trading, reacting to the late gains seen overnight, principally in copper, traders said.

But the level of business was again lower than average and there was little real substance to the upturn which was showing signs of petering-out mid-morning.

The copper market made most of its gains in thin conditions overnight, and initially made further upside headway on Tuesday before running into some Far Eastern sales around the $1,830 level. Recent trade was at $1,824, up $20 from Mondays kerb close. On the upside the target is $1,850, but the market may not have the legs for this.

Rallies are going less and less at the moment, one said. Aluminium edged higher on some Far Eastern buying, although the 150-tonne stock increase was a sobering factor the market touched $1,584 before settling $11.50 higher at $1,582.

Zinc skipped up above $1,120 to trade at $1,127, up $9, while lead rose $2 to $536.

Nickel extended above $6,000 and was $30 higher at $6,070. Tin, however, slipped to $5,530, down $20, but remained focused on the cash/threes backwardation and December tightness.

Alloy was indicated at $1,445/50 a tonne.