Home »Agriculture and Allied » World » Copper ends lower

London Metal Exchange (LME) three months copper ended lower on Friday after a volatile performance in slim business ahead of options declarations next week, dealers said. The market bounced between a high of $3,906 and a low of $3,825 a tonne before closing at $3,878, down $26 from Thursday's kerb close.

"Business was low-key overall and there was some fund buying at the close to push it a bit higher, but it's an uneasy market given options declarations next week," a dealer said.

"We expect there could be some liquidation once the LME Week event is over later next week, but the fundamentals haven't changed so a big sell-off is unlikely."

The LME annual convention is scheduled to take place in London next week. On Friday the LME said it would add more plastics futures and extend electronic trading next year.

Basemetals.com's William Adams said further consolidation in copper prices was expected, although weaker US equities and mining shares might have an effect.

Barclays Capital said in a daily report: "We recommend buying into selling...fundamental developments remain strongly price supportive in our view."

Aluminium was at $1,950, down $10, while zinc was at $1,543, up $11.

Zinc prices were buoyed by news of a labour dispute at Umicore's Balen plant in Belgium, with germanium and cobalt production also affected as the country was caught up in a national strike.

Lead was at $964, down $4, while nickel was at $12,000, down $100. Tin was at $6,300, up $50.

Copyright Reuters, 2005


the author

Top
Close
Close