Base metals put in a mixed performance on the London Metals Exchange Thursday, with copper falling below the key 200-day moving average while lead posted strong gains, said analysts and traders.
Three-month copper hovered below the 200-day moving average of $6,901.78 a metric ton for much of the day, before falling to a low of $6,740/ton. According to LME data, copper stocks fell 125 tons to 151,950 tons Thursday.
"It's been a quiet day after the volatility seen recently," said an analyst. Base metals across the board have slowly firmed up and pushed sideways after prices saw a major correction to the overbought conditions, the analyst added.
However, "there's been no major news and thus you're seeing prices in sideways activity."
In addition, traders said base metals largely ignored the release of lower-than-expected U.S. consumer prices.
In other news, the largest labor union negotiating with Corporacion Nacional del Cobre de Chile's Norte division turned down a company wage offer, newspaper La Tercera reported Thursday. Codelco is the world's largest copper miner, with its 2006 output pegged at around 1.8 million metric tons. About 70% of that production is mined at the Norte division.
Meanwhile, three-month lead prices rose to a high of $1,555/ton, before retreating to trade at $1,535/ton, while three-month nickel prices hit a high of $30,050/ton, before retreating down to $29,875/ton.
LME three-month zinc traded at $4,220/ton, down from Thursday's high of $4,285/ton.
The outlook turned slightly more bearish for LME nickel after 228 tons of stock moved into warehouses in Singapore, even though outflows elsewhere meant net stocks were down by 168 tons at 7,194 tons.
Elsewhere, Russia's Deputy Industry and Energy Minister was quoted by government media as saying the country will increase its 2006 output of primary aluminium by 2% to 3.742 million tons, copper output by 1% to 971,600 tons, and nickel output by 2.51% to 277,700 tons.
3 months metal (prices in dollars a ton)
Bid – Ask, Change from Wednesday PM kerb
Copper 6810.0-6815.0 Dn 95
Lead 1535.0-1540.0 Up 20
Zinc 4220.0-4225.0 Up 40
Aluminium 2668.0-2670.0 Dn 31
Nickel 29600.0-29700.0 Dn 275
Tin 9750.0-9800.0 Up 150
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