950808

Base metals prices suffer mixed trend on LME

LONDONP: Base metals ended below earlier highs by the close of Tuesday's London Metal Exchange business as copper was again rocked by speculative liquidation.

Traders said copper's earlier fall from a high of $2,948 had unnerved the sector and several traders and analysts did not rule out a near-term downside retracement in the metal.

Prices may test support at $2,915, followed by a stiffer level at $2,890 tomorrow, they said.

An easing in the cash to three months backwardation to around $55/$60 from $70 yesterday was also applying pressure, as was an earlier small rise in LME stocks by 800 tonnes.

Final three months copper business was at $2,935, against a high of $2,948 and Monday's $2,959.50 close.

Tin, after reaching a three-year highs of $7,150 yesterday, found investment fund profit-taking.

However, with the physical tightness still firmly in place and uptrending charts, traders believe tin has the potential to retest and possibly breach this level in the coming weeks.

Tin's backwardation also eased today to around $75 at the close of LME kerb trading.on Manday it had settled at $80/$90.

Last business was at $6,940, a $170 loss from Monday's finish.

Lower trending copper saw aluminium drift back below expected support at around $1,925.

Traders said aluminium was likely to find good buying interest on any significant downside moves tomorrow.

Support for aluminium was pegged at $1,910, and if this level is breached prices could slip towards $1,859.

Aluminium was last trading at $1,917, against $1,940.

Nickel eased from an earlier high of $9,140 as market operators became reluctant to hold higher levels in the wake of copper's fall.

Last business was at $9,000, down $150.

Trading in lead and zinc remained fairly quiet.

Lead settled at $637, down $6, while zinc was last at $1,034, a loss of $5.

Aluminium alloy was last indicated at $1,740/$1,750, little changed from Monday's $1,750/$1,760 close.-Reuter