Base metals traded haphazardly in late Monday open-outcry sessions on the London Metal Exchange (LME), ending mixed, traders said.
"It was a bit uncertain today. There were a few sell-offs in copper because of the stocks (increase), but it was not across the board," a trader said.
"That's a good sign as it shows metals like zinc and lead can go their own way at times," he added. Analysts saw a likely spell of sideways trading and consolidation after the sharp jump in prices of most metals last week.
Some notched up fresh 2004 highs on the charts and are looking overbought, while Wednesday brings the October traded option declarations.
Copper, which hit an early high of $3,015.50 a tonne, was under pressure for most of the session after LME inventories rose 8,350 tonnes, largely due to inflows into Singapore warehouses.
"Emergence of material against a wide nearby backwardation is unsurprising, and we regard this as a healthy feature to a very tight market," Barclays Capital analyst Ingrid Sternby said in a daily report.
Traders saw resistance at $3,000 and above as the market had stumbled there more than once in recent sessions.
Lending was seen against the spread, but the cash/threes spread mostly held firm at $127/131.
Three months trimmed losses during the afternoon kerb, finishing at $2,983.50, still down $11.50 from Friday's kerb.
"There was a bit of support expected at $2,950/2,960, and that is where it held," the trader said.
Technically, the market's recent performance had opened the way for a re-test of March's near nine-year high of $3,055. Copper peaked at $3,019 last Thursday.
Aluminium also eased from highs just above $1,840 after a 1,950-tonne stock increase, but was supported on dips towards $1,810. Last trade was at $1,823, up $3.
Nickel was $325 lower at $15,575 after a 606-tonne stock increase as more full-plate Russian cathode was delivered into Gothenberg.
The market was wary after last week's extreme volatility. The metal gained nearly $1,600, or 10 percent, last Thursday, only to give back most of that in the following session.
Lead rose $19 to $925/926, with the cash/threes backwardation at $45/48. Zinc remained resilient above $1,100, closing at $1,127.50, up $20.50.
Tin was quiet, ending $100 lower at $9,050/9,075.
Comments
Comments are closed.