950824

LME trims gains by

close, still finish higher

LONDON: Base metal markets settled back

from their highs during afternoon trading, but still finished

the LME floor session in the plus column after an earlier

copper-induced rally.

Traders said there was some profit-taking in the copper

market, while the cash/threes backwardation also settled back

from around $45 to $32/36 by the close. This took the shine off

prices, although analysts still envisage a test of $3,057 soon.

In the short-term, stocks are likely to resume their

downtrend, and some talk of metal being taken out of U.S.

warehouses could result in a fall tomorrow, some said.

However, others noted that some Russian off-grade copper has

arrived in Rotterdam recently and more could be en route, which

may slow offtake from LME warehouses until demand picks up in

the final quarter.

Last three months business on the kerb was at $3,031 a

tonne, below highs of $3,040, but still $22 up from Wednesday.

Aluminium's movements were similar to copper, with the

market closing $12 higher at $1,929, but $5 off midday peaks.

News Russian production in Jan/July this year rose 0.8 percent

but exports fell 10 percent to 1.15 million tonnes according to

the state statistics committee was encouraging, traders said.

Nickel prices settled back this afternoon after an earlier

advance to the best levels for nearly seven months which had

been sparked by a constructive interpretation of the Russian

output and export data.

The official figures showed output up 19 percent in the

first seven months of this year over the year-ago period and

exports up 36 percent to 74,000 tonnes. However, LME stocks have

fallen consistently recently, which suggests there is good

demand.

Last LME business was at $9,345 a tonne, down from a $9,380

peak, but still $95 up from yesterday.

Zinc business slowed this afternoon as the market

consolidated gains notched up earlier. Final business today was

at $1,041, an $8 gain from Wednesday.

News of a strike at South Africa's Zincor Springs-based zinc

plant which produced 93,000 tonnes in 1994 provided a supportive

backdrop, traders said.

The lead market was helped by the overall trend in base

metals today as well as news output in Russia fell one percent

in the first seven months of 1995. Prices closed $11 higher at

$644.

Tin prices resumed their uptrend today, shrugging off news

Australia's Renison plans to boost output by 4,000 tonnes to

20,000 tonnes in 1995/96 due to higher prices. Prices ended $80

higher at $7,140.

Alloy was a slow market throughout the session, finishing at

a stable $1,730/1,740 a tonne.-Reuter