Metals Edge Lower In Pre-Market

London Metal Exchange (LME) base metal prices continued to slide in Tuesday pre-market trading in thin volume as sentiment took another negative turn, traders said.

Copper was last bid at $1,733 -- $31 down on Monday's close. LME copper stocks showed an increase of 2,900 tonne which, traders said, was expected.

Other base metals, which had been under pressure since the beginning of the year, all edged down after a poor close on Monday.

They are pressed across the board. Sentiment appears to be turning down again, one dealer said.

He said volumes in the market were quite thin which saw most metals drifting.

 

Analyst Nick Moore of Flemings Global Mining Group said in a report that January was the worst month for base metal prices since April 1994.

The palpable air of relief in world equity markets as Asia (improves) cannot be extrapolated to commodity markets, Moore said.

Copper's January average price was 30.4 per cent down on the corresponding period in 1997. Aluminium was down 5.4 per cent, lead 22.7 per cent and nickel 22.1 per cent.

Traders said they expected all base metals to come under renewed pressure on Tuesday.

Zinc came under pressure after earlier European trade selling.

Dealers said some speculative buying could emerge around the $1,090 level.

Chartwise, it crossed the 30-day moving average which was a bearish sign, traders said.

Aluminium was last bid at $1,527, from Monday's $1,540 close. LME aluminium stocks were down 1,725 tonne.

Nickel was last bid at $5,470 from Monday's $5,525 close.

Tin was quiet and last bid at $5,180, $45 down from Monday's close.

Lead was last bid at $528, $2 down on Monday's close.

Aluminium alloy was $8 down at $1,347.