LME copper came under selling pressure in yesterdays morning ring activity, giving up most of its pre-market gains, but some players saw it as an opportunity to buy the dip, traders said.
Three-month copper ended the morning kerb at $2,128, up $4 from Wednesday's afternoon kerb, but well off the earlier $2,150 peak.
The market felt the weight of profit-taking and other selling throughout the rings and dipped to a low of $2,123 on the kerb before seeing a slight pick-up.As long as the market closes above $2,120/25, it was well placed for some more short-term gains towards the recent high of $2,180, traders said. "I think these dips will be bought into, but you have to be wary, it's not as strong as some people think," a floor trader said.
Referring to the official ring, another floor trader said: "There wasn't any volume on the way down. I think people were offering it down so they can buy some more at lower levels."
After a positive close on Wednesday, the market broke above a downtrend at around $2,025 and hit stops above $2,140 in early follow-through business on the pre-market, when prices touched $2,150, the highest so far this month. The spreads contracted, with the benchmark cash/threes coming into to an $18/$16 contango compared to $22/$20 at Wednesday's close.
