Copper prices rebounded on the LME during Tuesday pre-market trading, bolstered by a fall in stocks, while aluminium shrugged off a large stock increase, traders said.
Copper jumped from early lows near $1,730 a tonne as a 250-tonne stocks fall calmed fears of another rise. Since last week metal has poured into warehouses in New Haven and Barcelona.
Yesterday's decline mitigated that to some extent, and prompted short covering that took prices to $1,746, up $20 from Monday's kerb close.
"That (the stocks) has probably stopped the rot for now," one trader said. Aluminium perversely ignored a 7,500-tonne stock rise which, after Monday's rise, brought the increase this week so far to 14,700 tonne. There were 8,000 tonne shipped into Newcastle, which was possibly a relocation from other delivery points.
Traders said the market was relatively resilient on the downside. Despite the weight of short sales by funds, the market had attracted consumer interest. Recent trade was at $1,387, up $5. Nickel was depressed by a 174 tonne stock increase, and eased to $5,160, down $10. Technically the market is under pressure and may retreat further. Also fundamentals are weak, with nickel and stainless steel inventories rising.
Other markets were slow and thinly traded. Tin was quoted at $5,700/5,710, up around $10. Zinc shed $1 at $1,092, while lead was little changed at $543/545. Alloy was quoted at $1,270/1,280.
