Lme Copper Perched Above $2,000

The other base metals remained quiet but found support from coppers ability to hold above $2,000.

Three months delivery copper was last at $2,011, a loss of just $7 from Thursday when it surged higher through $2,000.

Traders said an LME stocks fall of 7,775 tonnes, around what was expected, helped to buoy copper, and overall it continued to consolidate at the higher end of a range.

Nearby spreads flared during the morning. The cash to three months backwardation was bid at $70, versus earlier levels of $58/$63 and Thursdays $60 close.

Traders said the activity in the spreads reflected a short covering. The borrowing of the spreads has given the market a boost, one said.

 

To make upside gains prices need to breach a recent high at $2,018. Next resistance was pegged at $2,040. Key support was seen at $1,9 85.

Aluminium slipped from a fresh two-month high of $1,468 to settle at $1,459, a loss of $7.50.

Nearby spreads was also a focus of attention in aluminium.

Tight dates in January saw the cash to three months contango at around $20, versus levels of around $34 last week.

Traders said lending of the nearby spreads had become freer following investment fund buying ot cover their short position.

The tightness is not so acute this morning, one trader said.

Elsewhere, nickel slipped by $15 to $7,210 despite astocks fall.

Zinc was down $2 at $1,066, while lead settled at $744, a loss of $5. Tin was last at $5,940, a loss of $10. Alloy was quoted at $1,300/$1,3, versus $1,305.