Lme Aluminium Price Fall Stemmed

Traders said there was little significance behind the mini-recovery, which was overdue after the price falls seen this week from near $1,350.

Consumers are still holding off, and the market is expected to test $1,300 in the near future.

Data from the IPAI earlier, which showed a modest build in producer stocks in August, was construed as slightly supportive, given that inventories could have risen more substantially during the slow summer period, some said.

The market is getting a little bit of relief at the moment, but it is going to test $1,300 soon, one trader said.

Last kerb trade was at $1,322 a tonne, a $1 loss from Wednesdays afternoon kerb.

Copper performed impressively throughout the morning, as a combination of December date tightness and technical buying lifted the market up to near the $1,950 target.

In the background news of a fatal accident at Chiles new El Abra mine, which halted production, underlined the markets vulnerability to supply disruptions.

Some traders said that a new project such as this could well suffer from further teething problems as it progresses.

Last morning trade was at $1,939 a tonne, a $11 gain from Wednesday. Cash/threes was around $11 backwardation, with Dec/threes at a similar premium.

Elsewhere in the metals complex activity was low-key, as Metals Week progressed and many participants were sidelined.

Nickel rallied from under the $7,100 level to close the morning at $7,160, a $30 gain from yesterday. There is likely to be further short-term support down to $7,000, they said.

Zinc drifted lower in dull trading, but may be about to break out of the $1,030/40 band. Last morning trade was at $1,031, down $4. Lead hardly budged and was unchanged at $766.

Tin was equally quiet throughout the session, and closed the morning at a steady $6,050/60.

Aluminium alloy remained under the $1,200 level, with business at $1,190, down $5.