Base metals closed down in Tuesday's ring sessions on the London Metal Exchange (LME) as technical selling in Asian copper washed through to London and New York, traders said. "London and then New York caught the selling bug from Asia, but that depth was limited as fundamentals such as tight supply and firm demand remain central," a trader said.
Barclays Capital said in a research note: "All base metal markets are in supply deficit and we expect prices will remain well underpinned in the near term due to strong seasonal demand, falling inventories from already critically low levels, and continued strong demand from China.
"Zinc stands out, with huge upside potential after having been an underperformer so far.
"However, its market dynamics are now starting to show clear improvements, with consistent inventory drawdowns and the potential for China to become a net importer of refined zinc."
Copper ended the rings at $2,944 a tonne, down from $3,004 at Monday's kerb close but up from an earlier low of $2,920.50.
Cash-to-threes backwardation widened to $125 from $105.
Zinc was at $1,125, up $6, bouncing from an earlier low of $1,097.50.
Nickel was down $250 at $14,250 but up from an earlier low of $13,900.
Aluminium eased $5 to $1,793, while lead was $12 softer at $942. Tin dropped $125 to $9,000.
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