London Metal Exchange (LME) prices ended the kerb in negative terrain as investors paused after Monday's rally, but sentiment remained upbeat as supply disruptions could trigger another upside run, analysts said. "It has been quiet, copper traded in a very narrow range and trading conditions have been thin after yesterday's surging prices.
The market is pausing for a rest now, consolidating, and people are stepping back to see what the next move will be," Angus MacMillan, mineral strategist at Bache Financial, said.
LME copper closed Tuesday's kerb at $5,542 a tonne against $5,615 on Monday, when copper hit a record $5,616.
"But, nobody is going to go short as long as you have actual and potential supply disruption problems," MacMillan added.
Copper, used in construction and electronics, has risen nearly 28 percent this year as global inventories declined and worries mounted over deliveries from leading producing countries such as Indonesia, Zambia, Mexico and Chile.
Base metals followed other commodities with gold, silver and oil prices also off slightly on Tuesday.
"Gold is off a bit and oil is off its best, so again we are working in unison and all commodities fall back a little after recent highs," another trader said.
Zinc ended at $2,690, down $50, and off its new all-time high of $2,750 on Monday.
LME stocks fell 1,600 tonnes to 279,000, compared to 400,000 at the end of last year. Zinc prices have risen 44 percent this year due to a shortage of zinc concentrates amid growing demand. In August 2002, zinc prices were at $750 a tonne.
Aluminium was taking the back seat and closed at $2,463 against $2,520.
"Aluminium seems to be struggling a bit, having the worst fundamentals at the moment," the second trader said.
"I think over a period of time it will still continue higher, but in the short term we might see a dip," he added.
Nickel ended at $15,850 versus $16,000.
Inco Ltd said on Tuesday the cost of vandalism at its Goro nickel project in New Caledonia would be $10 million, compared with a previous estimate of $1 million.
Lead was down $23 to $1,158. Tin was indicated at $8,275/8,325 against $8,380.