market commentary

From Kitco......worth a read

Basemetals.com analyst William Adams said in a report Monday that having taken time to consolidate, base metal prices "may now be well placed to head higher and recoup the ground lost last week." He said some metals looked better-placed to sustain their rallies than others. "Copper, with falling stocks and a tight spread, continues to look bullish as does tin and to a lesser extent zinc and lead because of their generally low stock levels," he said, adding, however, that he was becoming "increasingly wary of aluminium and find it hard to trust nickel up at these levels." Adams added: "However, while the tide of fund money is flowing in, all metals in the complex are likely to rise, so we would not anticipate tops just yet." He said weakness in China on Monday, thought to be on the back of destocking, did drag down LME prices, but "after Shanghai closed, prices on the LME headed higher again." There were no bids available for aluminium alloy or North American alloy at 0937 GMT.