LME Review: Copper, Nickel End Up In Technical Trade Tuesday, December 21, 2004 5:46:14 PM http://www.osterdowjones.com/
DJ LME Review: Copper, Nickel End Up In Technical Trade
LONDON (Dow Jones)--London Metal Exchange contracts ended higher at the Tuesday late kerb after a technical session in thin volume with copper and nickel adding to recent gains.
Lower inventories boosted LME three-month copper prices during pre-trade to a near three-week high of $3,105 a metric ton, with the Dec. 2 high of $3,127/ton the next target.
LME copper stocks fell by 1,700 tons to now total 52,650. Most of the outflow was recorded in Singapore and New Orleans.
"The spread is steady and lower stocks have been supportive to copper, but thin conditions prevailed (Tuesday)," an analyst said. The cash-to-three-month backwardation stood at $112.50/ton at the close, slightly up from $110/ton Monday. A high backwardation denotes supply shortfall.
By midday copper fell to $3,050/ton, but rose back again to breach $3,105/ton after the kerb close.
Three-month nickel added another 5.3% onto the previous late kerb during pre-trade after rising more than 8% Monday.
Further technically-driven fund buying Tuesday pushed the contract to an intra-day high of $15,400/ton.
However, fund interest is expected to dry up, exemplified by nickel's fall back below the $15,000/ton level by midday.
Later in the day profit taking was frequent, capping price rises.
"Nickel has been having a wild time even by its standards," an analyst said, referring to the typical volatility of nickel.
Fundamentals have contradicted nickel's rise with LME stocks doubling since August, depicting a more balanced market, with stocks rising by 246 tons to total 20,154 tons as of Monday.
Aluminum prices traded quietly Tuesday but made solid advances to an intra-day high of $1,875/ton to close above the technically important $1,860/ton level.
"Funds are on the long side and volumes were small, but the close here presents a very positive technical picture," an analyst said.
Other LME contracts were little changed.
Prices are in dollars a metric ton.
Tuesday PM Kerb Change from Bid Ask Monday PM Kerb bid Copper 3,089.00-3,090.00 up 13.50 Lead 943.00-945.00 up 4.00 Aluminum 1,875.00-1,876.00 up 19.50 Zinc 1,230.00-1,230.50 dn 6.75 Nickel 14,990.00-15,000.00 up 365.00 Tin 8,750.00-8,755.00 up 2.50 Al Alloy 1,680.00-1,690.00 up 5.00 Al Alloy 1,690.00-1,695.00 up 7.50 (NASAAC)
-By Elisabeth Behrmann; Dow Jones Newswires; (4420) 7842 9412; [email protected]
SMY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
