LME Review: Firm amid key US data, prices remain in range
Source: Dow Jones
metalsplace.com
London Metal Exchange prices were firm Tuesday after a quiet day eyeing key U.S. data releases but remained in recent ranges, traders said.
LME three-month lead was the strongest performer, rising to a four-month high of $1,355 a metric ton, up 1.6% on the Monday PM kerb on technical strength against a backdrop of firming fundamentals, Man Financial Inc.'s analyst Edward Meir said.
LME lead stocks have fallen drastically from this year's June high of almost 120,000 tons to 67,450 tons.
"There is little lead availability in Europe, so consumers are relying to LME stocks," a physical trader said.
LME copper traded to an intra-day high of $7,570/ton, firming during pre-market trade on the back of higher oil and gold prices.
Data on U.S. housing starts confirmed the U.S. housing market's weakening trend when data showed a year-on-year decline for August of 6% to 1.665 million on an annualized basis.
"We've known that the housing market is weakening for some time. While this is still bearish for metal consumption, the better-than-expected PPI number seemed to offset the weak housing data, raising hopes that inflation pressure has to some extent been eroded," Meir said.
Wednesday's Federal Open Market Committee monetary policy meeting will provide the next key directional impetus for the market, analysts said.
Possible strikes at two copper mines, BHP Billiton Ltd.'s Spence copper mine in Chile and Teck Cominco Ltd.'s Highland Valley Copper mine also acted as a bullish backdrp for copper. Participants also continue to eye upcoming contract negotiations at Codelco.
LME nickel firmed Tuesday to rise to $27,355/ton, up 2.8% but also remained with its recent range.
3 months metal (prices in dollars a ton)
Bid – Ask, Change from Monday PM kerb
Copper 7495.00-7500.00 Up 45.00
Lead 1355.00-1357.00 Up 21.00
Zinc 3320.00-3322.00 Up 10.00
Aluminium 2452.00-2453.00 Dn 10.00
Nickel 27350.00-27355.00 Up 750.00
Tin 9000.00-9025.00 Up 125.00 |
