Lme Lower By Mid-Session

Base metals amid a lack of any robust buying activity extended their earlier declines in routine trading by Tuesday's London Metal Exchange (LME) morning close.

"The whole market is sluggish and is adopting a downside bias, generally because there is little interest," one trader said.

Market operators expect a further easing across the base metal sector in later trading given the slower pace of physical demand as the traditionally slow summer period approaches.

Three months delivery copper eased under light speculative selling following a downtrending chart close on Monday.

But support was available from tight nearby spreads which at present are showing no signs of easing.

 

Several traders showed surprise that the spreads remained firm given slack demand, though others said spot material was still hard to acquire but believed this shortage could soon ease.

Last business was at $2,504, down from Monday's LME kerb close of $2,511. Prices earlier hit a $2,492 low.

Overbought zinc retreated with copper, though several traders believed after a period of consolidation the market could attempt to take out Monday's 6-3/4 year high of $1,420.

Zinc was last at $1,404, down $4.50.

Elsewhere, aluminium after failing to break initial resistance at $1,590 eased with copper. A stocks fall was supportive but with the lack of physical buying "prices were expected to wilt," one trader commented.

Final morning business was at $1,584, a loss of $6.

Nickel drifted either side of $7,200 and was last at $7,180, down $30, while lead settled quietly at $619, versus $620/21. Alloy was quoted at $1,460/65, against $1,467.