Base metals prices plummet
By Paul Solman
Base metals plunged on the London Metal Exchange yesterday, with nickel and copper prices dropping to their lowest prices for more than a decade.
Analysts said the metals suffered selling pressure from the bleak outlook for the global economy and indications of continued oversupply. "Stock markets are weak and people keep using the word 'recession'," said Martin Squires at Rudolf Wolff in London.
"There's a feeling that any turnaround in base metals prices will have to come from a pick-up in the global economy rather than cutback in supplies," he added.
By the close, three-month nickel was $3,975 a tonne, $110 below Friday's close and the lowest for 11½ years. Three-month copper had clawed back to $1,601 a tonne, down $19, having touched a 12-year low of $1,578. Tin ended off $50 at $5,220 a tonne.
Crude oil prices retreated below $14 a barrel at one point in London on disappointment at the outcome of Friday's meeting between oil producers in Cancun, Mexico.
The three countries - Mexico, Saudi Arabia and Venezuela - failed to announce plans for further output cuts, emphasising they were more concerned that oil producers comply with existing commitments to reduce supplies.
"The general feeling is disappointment that the Opec and non-Opec producers appear to believe the existing cuts are enough," said Leslie Nicholas at GNI.
However, he said sentiment remained stronger than in recent months. The market was waiting for today's weekly oil stocks data from the US, which would reflect the effects of Hurricane Georges.
In late trading on London's International Petroleum Exchange, November Brent blend was $14 a barrel against Friday's close of $14.36.
Financial Times |
