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Base metals close higher on LME |
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The London Metal Exchange complex firmed Friday, recouping this week's losses
after some fund buying and short covering reaffirmed base metals' bullish tone,
traders said.
LME three-month copper rose strongly to an intraday high of $7,520 a metric
ton, up 3% on the Thursday PM kerb.
Meantime, LME zinc rose as much as 7% to a four-week high as steady
system-driven buying by commodity trade advisory players lifted the market, a
broker said.
Fund buying, expectations of strong Chinese demand for copper during the
fourth quarter and a higher annual producer premium from Chile's Codelco at
$125/ton for 2007, up from $105 for 2006 have kept sentiment strong this week
despite earlier losses on the back of plunging energy prices.
However, firm fundamentals for copper, nickel and zinc prevented short
selling of the base metal sector, analysts said.
"Copper's move came despite the much weaker dollar (against the euro) this
afternoon, which bodes well for further gains next week," a trader said.
Metals industry participants gather for LME week in London from October 9, a
time when reduced liquidity in the market often results in violent market moves.
The yearly meet also acts as a platform for annual contract negotiations and
barometer for general market sentiment.
For most base metals, the bull run is tipped to stretch further into 2007,
though most participants are braced for "much volatility" along the way.
LME nickel also performed strongly Friday, given persistently low stocks. LME
stocks rose slightly by 72 tons to 4,854 tons. back |
