Base Metals Up On Near-Term Interest

Most base metal markets pushed higher in yesterdays LME ring and kerb trading, with cash demand and nearby borrowing instrumental in lifting copper, aluminium and zinc.

Conditions were fairly active during the open-outcry sessions, reflecting the interest in the spreads, although there was less fund involvement overall, they added. Copper made steady upside progress through the morning, paying little heed to a 1,750-tonne stock increase.

Although inventories are expected to continue rising in the short-term, tonnages may well be smaller.

Meanwhile, the cash/ threes spread moved out to a $13/15 backwardation from Wednesdays $3/5 premium and compared with the small contangos seen early in the week.

Traders said forwards are tightening up, particularly Sept/Oct and Oct/Nov where a backwardation of $22 is in place, against $14 yesterday after some bank borrowing interest.

Three months prices stalled near $2,200, although last kerb trade was at $2,191, up $14 from yesterday. Zinc prices were momentarily knocked by a 3,675-tonne stock rise, with 3,950 tonnes of Chinese metal delivered into Singapore.