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  • Aug 3rd, 2004
  • Comments Off on LME prices drift lower on light selling
London Metal Exchange (LME) prices were slightly lower by Monday's kerb close on light technical liquidation in thin trading conditions, traders said.

Only nickel bucked the trend to end $250 higher.

"We've had no news today, and although prices have been under pressure for most of the day from light technical and small-scale CTA selling, a bit of short-covering at the close clawed back some of the losses," one LME trader said.

Copper ended the day at $2,815 a tonne, down $1 from Friday's kerb close, however after Monday's close copper had firmed to $2.825/29 by 1640 GMT.

"Copper has picked up since the close as the short-covering continued," the trader said.

Tightness remained a feature of the market with the cash-to- three-months spread bid at $100 backwardation.

"We're not seeing a tremendous amount of volume. People won't be interested in copper unless we can break $2,850 on the upside or $2,750 on the down," a second trader said.

"Even if we do get to $2,900 I don't think it will stay there for long," he added.

Aluminium was down $1 at $1,695. Nickel ended the day at $13,900, up $250.

"Nickel came under a bit of technical selling early on, but, like copper, short covering pushed it back up," the first trader said.

Lead fell $16 to $865 and cash-threes tightness eased to $77/82 backwardation from above $80 on Friday.

A third trader said cash to August was $35 backwardation while August-September was $30 backwardation.

Zinc lost $2 to $1,040 while tin was indicated at $8,750/800 from $8,800/850.

Copyright Reuters, 2004


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