Copper reversed early losses to trade back up on Tuesday supported by expected positive trade data out of top consumer China and continued supply concerns. Benchmark copper closed at $8,350 a tonne versus Monday's close of $8,290. The metal used in power and construction had earlier touched a session low of $8,165.
-- Zinc, aluminium, lead hit highest since April
Aluminium, zinc and lead tracked higher copper prices to touch their highest levels since April. "It's a pretty strong rebound (for copper). This underscores what we think is a pretty good outlook fundamentally," Citigroup analyst David Thurtell said. Traders also underlined volatile trading during London Metal Exchange (LME) Week, an annual global industry gathering.
The event, which gathers miners, smelters, consumers and investors for meetings, seminars, receptions and cocktail parties in London, historically generates volatility and tends to set the tone for the final quarter. Copper has benefited from a tightening market, where stocks in LME warehouses have tumbled more than 30 percent since the middle of February. Latest data showed LME stocks down 725 tonnes to 371,750 tonnes.
Among other metals, aluminium closed at $2,437 a tonne versus Monday's close of $2,400 a tonne. It earlier hit its highest since April at $2,445 a tonne. UK-based ETF Securities said on Monday it would introduce physical exchange-traded products for copper, aluminium, zinc, lead, tin, nickel and a basket of the six major base metals.
"The potential announcement of a physically-backed aluminium ETF could see that market outperform," ANZ said in a research note. Zinc closed at $2,370 a tonne from $2,330 on Monday, having earlier touched $2,390, its highest since April. Battery material lead closed at $2,375 a tonne versus Monday's close of $2,315 a tonne. It earlier touched $2,380, its highest since April. Tin closed at $26,500 versus Monday's close of $26,195. It touched a record peak last week at $26,790, underpinned by tight supply from top exporter Indonesia and low stocks. Stainless steel material nickel closed at $24,050 a tonne versus $24,375 a tonne at Monday's close.
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