Lme Metals Edge Higher, Business Slow

Activity was slow, with many customers in London for the LME Dinner functions this week.

Benchmark three months copper futures ended the morning session at $1,907 a tonne, up $2 from Mondays afternoon kerb close.

A fall in stocks of 8,625 tonnes helped lift the market back above $1,900 early in the day, and from then on it was a low-key battle between speculative selling and trade buying, traders said.

The stocks were supportive, but in line with expectations, said one floor trader. No-one seems to want to chase this market higher for the time being.

A flurry of cash selling towards the end of the official ring knocked the market briefly, but buying, some of it US-based, re-emerged during the kerb.

 

Aluminium also nudged higher to $1,340 from $1,336, going some way to unwinding very oversold conditions in the market.

There was light two-way business in a narrow range, with Far Eastern trade bargain-hunting seen on the pre-market.

Stocks fell 2,450 which was also supportive after several dealers had expected a rise in inventories late on Monday.

But as with copper, trade buying was light and not enough to outgun the overwhelming bearish sentiment, negative charts and ongoing stale long liquidation, traders said.

Nickel stocks rose 336 tonnes, but values managed to rise $30 to $7,060 in quiet business. Support was pegged at $7,000, below which pre-set sell orders were thought to be lurking.

Lead managed a modest $2 gain to $769. A stock fall of 625 tonnes had little market impact. Tin gained $30 to $6,050 as stocks fell 200 tonnes to below the 10,000 tonne total mark.

Three months zinc was untraded during the kerb, but last business was done at an unchanged $1,025 level. Stocks fell 350 tonnes.

Alloy was last traded at $1,215 against $1,205 after stocks fell 700 tonnes.