Base metals closed mixed in light trade on Monday on the London Metal Exchange (LME), but a firmer tone in zinc and lead helped copper and other metals trim early losses, traders said. "Zinc and lead were the more impressive ones today," a trader said. "They all held high numbers." Three months zinc closed at $1,410 a tonne, up $20 from Friday's London kerb close and just $6 off the 7-1/4-year peak set on February 24. Lead was up $10 at $977.
Traders said the gains in zinc and lead helped copper and other metals recover from early losses amid a lack of fresh buying incentives.
Copper finished up $1 at $3,245 after dipping to near $3,220.
"(It's) pretty rangebound," Standard Bank analyst Robin Bhar said.
"With no fresh development... to move prices one way or the other, they're just trapped in a small range - hardly moving and hardly trading at all this afternoon."
Barclays Capital said in a daily report: "Fundamentals...do justify high price levels, but technical corrections cannot be ruled out after recent gains on thin volumes and price volatility is likely to stay high.
Sempra Metals analyst John Kemp said in a daily note that funds had established the largest net long position since November 2003, with a substantial rise in interest from the long side.
Aluminium was $5 softer at $1,958. Tin went untraded, indicated at $8,465/8,470 versus $8,475.
Nickel was $50 down at $16,100. Nickel was supported by a 120-tonne fall in stocks to 9,294 tonnes, their lowest since August 2004.
Stocks have fallen almost without interruption from January levels of 20,000 tonnes and may continue to fall in the short term, possibly to levels not seen since 1991.
In the mining sector, BHP Billiton Plc, the world's biggest miner, said it might buy a stake in Australia's WMC Resources Ltd, threatening rival Xstrata Plc's A$8.2 billion ($6.5 billion) hostile bid for WMC.
PLASTICS: Over-the-counter plastics were stable on Semprametals.com. September polypropylene (PP) was unchanged at $1,200/1,260, and linear low-density polyethylene (LLDPE) was also unchanged at $1,210/1,270.
Comments
Comments are closed.