Mumbai: Copper surged on the London Metal Exchange (LME) on hectic fund activity to briefly touch $1,410-20 levels last week. In fact the red metal had seen a massive 4,725 tonnes drop in stocks in LME warehouses. This will have a continued impact for the next week unless there is a major rise in stocks. Zinc dropped below $1,000 per tonne mark on hectic selling.Generally the market began on a dull note, which was reflected in copper's lack of movement. The metal stayed quite in $1,390-4000 ranges. But except aluminium, which gained a few dollars in the beginning of the week, the rest was seen ruling easy. Aluminium was also came under pressure, each time it edged up. Good supply/stock position will keep the metal in an easy to firm trend for some time, analysts said. In the domestic market, metals were more steady than volatile. Nickel cathodes were in action as it remained firm most of the week after gaining few rupees at around Rs 29,200 a quintal.
"Aluminium producers, Nalco, Balco and Hindalco havetrimmed prices in a narrow range and this was seen giving boost to prices, " said Sharad Parikh of Parikh Metal Industries and a former president of the Bombay Metal Exchange. He expected the LME aluminium to stay firm on steady demand.
"I see most metals keeping steady trend except copper, again spot, fluctuating in $1,400-1450 per tonne range." On nickel, Parikh said the demand is good but then the recent producer cuts will tend to keep the metal firm. "The metal will hang around $4,920-5,000 levels," he said. He, however, expected a surge in zinc this week to little over $1,000 per tonne on strong demand. There was a wide difference in metal prices between last week and the previous week as profit booking ahead of Easter holiday brought most of the London Metal Exchange (LME) metals to new lows with Nato action adding fuel to the depressed scenario.
Copper made a climbdown despite a support at $1,420 per tonne levels close to the Easter holiday while nickel was seen getting support at around $5,000and zinc $1,000 on a reduction in stocks.
Analysts had expected that the LME copper would be subject to further profit taking but a drop in stocks came as handy for the metal to stay firm.
Aluminium was trading in the range of $1,220-30 but was visibly under pressure.
The last two weeks had witnessed most funds indulging in profit-taking and squaring up positions activities. Factors such as the explosion at WMC's Olympic Dam copper and uranium mine in Southern Australia also played a part in influencing prices.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.