Lme Copper Higher, Other Metals Down
The exception was copper, where tight nearby spreads and the possibility of further stock drawdowns were buoying values.
The metals have mostly eased because we havent seen much follow-through buying from late Friday, said one dealer.
Three month copper futures were last indicated at $1,965/68 a tonne by 1100 GMT, down slightly from Fridays afternoon kerb close of $1,958.
Nearby spreads were still strong, with cash holding a $50/55 premium to three months from $50 at the close on Friday.
I think the tightness nearby will only be sporadic. There are one or two dates in December of some concern which should underpin spreads, but otherwise it is people being just a bit careless with their cash (positions), said a trader.
Also supporting copper was the expectation among traders that LME stocks would continue to dwindle and the possibility of greater volatility in the run-up to the November options declaration on Wednesday.
Aluminium edged back to $1,418/21 from $1,425, with first support pegged at $1,410/15.
Zinc was last quoted at $1,069/70 from $1,073.50. Some traders were doubtful whether resistance at $1,075/80 could be broken near term because the market was heavily overbought.
Funds had bought as much as 10,000 lots of zinc during the last few weeks which had been met by heavy trade selling.
But the fact that the long futures position originally belonging to Spanish producer Asturiana appeared to have been absorbed in the market was bullish medium term.
It has taken a cap off the market, said one dealer.
Nickel eased to $7,100/10 from $7,190 in line with the general trend. Weak demand for primary metal continued to dog the market, traders said.
Lead demand was also slack. Values were last quoted at $745/48 from $751 and could ease further.
Volumes have been pretty poor on lead and the market is fundamentally overvalued, said a trader.
Tin was knocked lower by fairly aggressive selling to $5,915/30 from $5,975.
Alloy moved to $1,270/80 from $1,275.