London Metal Exchange (LME) prices ended firmly in Tuesday's trading on technical buying, traders said. "It was a very technically driven session today, with aluminium leading the way," one LME trader said. "Aluminium did very well, breaching resistance at $1,860 after dropping just $10 when copper lost $50, something, which later lifted copper and other metals," he said.
ALUMINIUM CLOSED AT $1,875 A TONNE, UP $18: "Aluminium was buoyed on Monday by news that not only may China remove tax rebates on aluminium exports, but also introduce a tax next year in an attempt to restrict over-capacity and high exports of energy-intense production," Barclays capital said in a report.
Copper rose $14 to $3,091, targeting October's high of $3,175. Copper reached $3,102 earlier on Tuesday.
"Copper rose above $3,100 only to meet profit-taking in very thin conditions," the trader said, noting its highest close this month.
"It may trade in its current range in the coming sessions, with a possibility to re-test today's high."
Nickel was $300 higher at $14,950 after Monday's near eight percent rise, with resistance pegged at $15,300.
"Nickel was wild today," the trader said.
"Stops were triggered at the open, which cued a rise to the mid-October high of $14,850, before dropping to $14,650 and then up again.
"It hasn't been this high since the rally up to $15,850 in LME week. It's been mostly short covering as some producers will shut for (year-end) maintenance and de-stocking in China seems to be ending."
Zinc was down $1 at $1,236 after profit-taking knocked prices following a move towards $1,250 - a five-year high.
It peaked around $1,247.50 earlier on Tuesday, its highest since November 1999 and traders expected a re-test in the coming sessions.
Lead was up $1 at $945, while tin was at $8,750/755, down $25.
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