Pre-Market Trade Slow, Zinc Edges Up

Early trading in LME metals yesterday was slow, with interest yet to develop following Monday's US Labour Day holiday, traders said. Most prices were drifting in gentle conditions, gravitating towards the floors of current technical bands, although there was little serious downside pressure.

'It is still pretty quiet at the moment and they are tending towards the lower end of the ranges,' a trader said. Zinc was an exception to the overall trend, pushing higher against a background of a 75-tonne stock fall and a still-extreme $145/155 cash/threes backwardation.

Traders noted continued talk in the Far East of sizeable tonnages being shipped into the Singapore warehouse to deliver against September short dates, but these have yet to materialise. 'The big long is still out there,' one noted. Three months prices edged up to $1,492 a tonne, a $6 advance from Monday's kerb close. Aluminium absorbed some investment sales, as well as a 3,200-tonne stock increase, and held above projected support around $1,610/1,615. Prices settled at $1,620, down $4.

 

Copper ranged fitfully at slightly lower levels, with the market devoid of physical interest and direction. Business at $2,178 was $7 down from Monday. Tin held steady at an unchanged $5,405, helped by some short-covering. Stocks fell 40 tonnes on Tuesday, a more normal move after Monday's big 1,050 tonne increase. Traders continue to see this as a financing deal that had reached its end, although some analysts said the metal could have been Russian stockpile tin, with more to arrive.

Lead drifted away from the $650 level to trade at $643, down $7, while nickel was unchanged at $6,625.

Alloy was quoted at a stable $1,460/70.