LONDON -（Dow Jones）- Base metals closed lower on the London Metal Exchange Thursday, as conflicting macro economic news toyed with market sentiment and led to volatile trading.
Copper trading was particularly choppy, fluctuating in the $9,696 a metric ton to $9,555/ton range. The red metal closed down 0.8% at $9,610/ton at the PM kerb close.
Copper recovered some of its early-day losses as successful bond auctions in Spain and Italy boosted risk sentiment. Although the auctions proved expensive, both countries reached their maximum bond targets, with Spain selling EUR3 billion of the April 2016-dated bonds and Italy selling EUR6 billion.
After falling to $9,573.25/ton, copper hit $9,654.50 in the wake of the news.
The release of higher-than-expected U.S. jobless numbers weighed on the copper market later in the day, prompting the metal to hit an intraday low of $9,555/ ton. Copper, which has a variety of industrial uses, is particularly sensitive to any data pertaining to the health of the economy.
U.S. initial unemployment claims increased by 35,000 to 445,000 last week, compared with economists' expectations for a decline.
Copper's moves are a sign of the market's "incredible sensitivity to any dent in economic data," said Barclays Capital analyst Gayle Berry. She added that, in the absence of interest from China--the world's largest consumer of metals--the market has been looking elsewhere for direction.
China is winding down for the Chinese New Year on Feb. 3 and has been largely absent from the copper market in past weeks.
While news that Rio Tinto PLC's （RIO） aluminum business has declared force majeure on supply of the metal from Boyne Smelters Ltd. in Queensland failed to boost the price of aluminum, analysts remained positive about the metal's short- term prospects.
"Combined with the extension of power curbs in China impacting the availability of material domestically there, the development of aluminum market fundamentals offer the logic of further upward momentum in prices in the short term, in our view," said Barclay's Capital in a daily report.
Rio Tinto declared force majeure Thursday after severe flooding cut off road and rail access between the Boyne smelter-near Gladstone in Queensland-and its port in Brisbane. The miner is currently looking for an alternative port to ship from.
LME three-month aluminum traded down 0.8% at the PM kerb close, at $2,484/ton.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Copper 9610.0-9615.0 Dn 80
Lead 2635.0-2640.0 Dn 25
Zinc 2462.0-2462.5 Dn 16
Aluminum 2484.0-2485.0 Dn 21
Nickel 25550.0-25555.0 Dn 250
Tin 26800.0-26850.0 Dn 235
Aluminum Alloy 2260.0-2270.0 Dn 20
Aluminum Alloy-NASAAC 2440.0-2450.0 Dn 10
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