Copper little weaker

26 Aug, 2005

London Metal Exchange (LME) three months copper prices ended a little weaker on Thursday in quiet, wary conditions, dealers said. The three-months price closed at $3,578 a tonne from $3,590 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.
"Uncertainty as to stock movements into LME warehouses has cautioned investors," a dealer said.
"Recent moves have been a few hundred here and there, but it will take a short run of days with several thousand tonnes moving one way or the other each day to trigger a strong move."
LME copper stocks have more than doubled in recent weeks to 62,900 tonnes, the highest for nine months, although the market remains gripped by tight supply.
The LME premium for prompt delivery stands at around $210, higher than last week's level.
With supply and demand still finely balanced, premiums have the potential to flare up suddenly.
"If a sell-off does emerge in copper then it is likely to be short-lived, but it could be quite aggressive considering prices have rallied $710 over the summer," Basemetals.com's William Adams said in a daily report.
Aluminium was at $1,885, down $3, while nickel was at $14,825, down $50. Other metals prices were slightly weaker.

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