Metals Drift Lower In Routine Trade
Base metals markets were mostly subdued during Monday LME ring and kerb trading with a lower bias prevailing, traders said.
The tone was set during early dealings when copper confirmed a late Friday fall back to the psychological $1,700 level. Other markets, to varying degrees, followed suit. Nickel, firm at times, was an exception.
As the morning progressed, copper showed little sign of regaining the $1,700 level, despite a surprise 1,100-tonne stock decline.
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The more important chart level of $1,680 is now being signalled, traders added.
Even though inventories fell on Monday, the stock trend remains upward.
The only short-term supportive factor will be if scrap market tightness continues to feed through into the standard off-grade market, some said.
By the end of the morning kerb, three months was trading at $1,697 a tonne, down $13 from Friday's kerb close.
Zinc prices came in for some punishment after an initial quiet start.
The catalyst for the morning's decline was a move under $1,100 which triggered the inevitable sell-stops.
Liquidation and pricing sales compounded the pressure during the rings, and by the kerb close, prices were $17 easier at $1,085.
Nickel trading was volatile with technical buying driving prices above $5,600 at one stage. Profit-taking emerged above this level which, combined with pricing business, sent prices back down to $5,560 against Friday's close of $5,580.