Copper falls as mkt retreats after 3 days of gains

LONDON - Copper prices fell amid another gain in LME stockpiles and as the market retreated from three days of increases.

At 2.33 pm, LME copper for three-month delivery, which earlier hit a low of 5,775 usd a tonne, was down at 5,815 usd, against 5,895 usd at close yesterday.

"We seem so be stalling as we approach the 6,000 usd mark," said Man Financial analyst Ed Meir.

Copper prices closed slightly higher yesterday, but gains were limited by huge losses in crude oil prices.

Meir said that, should crude prices stabilise next week, he believes the metals will push higher.

He added, however, the "relative laggards will continue to be copper and aluminium, weighed down by fundamentals that are more comfortable".

LME said in a daily report earlier copper stocks in its warehouses put on another 1,400 tonnes to total 196,850 tonnes.

Stocks are now nearly double what they were at the start of last year, capping gains in copper.

Copper lost around 12 pct of its value in the first week of the year as other commodities like oil plummeted and fund money exited the complex.

However, it has staged a modest recovery this week.

"This week's recovery from the lows in base metals continues with dips new well supported by trade and investor buying," said UBS Investment Bank analyst Robin Bhar.

Elsewhere, nickel was up at 34,250 usd a tonne against 33,500 usd at close yesterday amid further declines in LME stockpiles.

Nickel gained nearly 8 pct yesterday on the back of declining stocks.

"Zinc and nickel remain our preferred plays in the base metals complex as low stocks and supply constraints mean that only higher prices can achieve equilibrium on the demand side," Bhar said.

In other metals, zinc edged down to 3,855 usd a tonne against 3,874 usd, aluminium fell to 2,727 usd a tonne against 2,735 usd, tin dropped to 10,360 usd against 10,690 usd, while lead was flat at 1,629 usd.