Metals Steady In Slack Pre-Market

Base metals were generally steadier during slack Wednesday LME pre-market trading, taking their cue from copper, traders said.

Copper, which edged above $1,700 last night, held that ground, helped by another fall in stocks -- the third successive daily decline. Inventories fell by 800 tonne with metal leaving a variety of locations, traders noted.

It was just enough to keep the market stable, the trader said.

Some Far Eastern consumer buying was offset by forward selling which kept the market close to overnight levels.

Technically, there is support around $1,680 while resistance is pegged at $1,720/25, and then $1,740/45. Recent business was at $1,710, up $14 a tonne from Tuesday's kerb close.

Aluminium held tightly above $1,500 but was hesitant as there is downside pressure building up from negative chart readings. However, copper's steadiness is allaying this to some extent.

Three months settled at $1,504, a $6 gain. The overhead resistance is expected around $1,520.

Nickel pushed up to $5,685 at one stage before settling at $5,670, a $40 gain from yesterday. Speculation of output cuts continues to help the market with Canada's Inco holding an analysts conference call later today, traders noted.

Zinc eased back from early steadier levels near $1,100 after stocks rose 2,200 tonne. Prices were still $2 higher at $1,092.

Lead inched up to $530, a $3 gain from Tuesday while tin was just $5 higher at $5,280.

Alloy was quoted at $1,333/40 a tonne.