London Metal Exchange (LME) three months copper prices ended a little stronger on short covering on Friday, although sentiment remained edgy after last week's sell-off, dealers said. The three-months price closed at $3,600 a tonne from $3,577 at Wednesday's kerb close.
The market was expected to continue ranging sideways in coming sessions as wariness over stock movements has stalled a resumption of the recent uptrend.
"The backwardation remains strong above $200 a tonne, so nearby tightness is supportive but there is uncertainty as to what big stocks may be lurking ready to jump into LME warehouses," a dealer said.
Dealers said there was industry talk about a possible sharp stock rise, which would maintain the recent pattern of mixed movements.
Stocks have fallen for most of this year, but since July the trend has been erratic.
Inventories have more than doubled to 65,150 tonnes, the highest for nine months, although this is still historically low and the market remains gripped by backwardations.
The LME premium for prompt delivery stands at around $220 and with supply and demand still finely balanced, premiums have the potential to flare up suddenly.
"As the summer slowdown draws to a close in the weeks ahead the market will be waiting to see the level of consumer interest," Basemetals.com's William Adams said in a report.
"Copper needs to hold trend line support at $3,543 and then support at $3,510 otherwise a return to $3,454 would seem likely.
"On the charts the metals have lost a bit of their upward momentum but are generally holding above support levels, which suggests they are still in consolidation mode."
Aluminium was at $1,892.50, up $9.50, while nickel was at $14,825, down $25.
Zinc and lead ended slightly higher, while tin was a little lower.
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