Copper rallies back to pre-correction levels: LME
London Metal Exchange three-month copper jumped 5.6% to the key $7,000 a metric ton Thursday but did so on relatively thin volumes with short covering steering the move higher, traders said Thursday.
Copper prices retraced for a second day to finish the late kerb in London around $85/ton ahead of levels seen before Tuesday's price collapse. Prices were at $7,000/ton at the late kerb in London, up $375 or 5.6% from the previous PM kerb price of $6,625/ton.
Prices surged further still in post-kerb trading, touching an intraday high of $7,130/ton.
"Nothing surprises me any more in this market," one trader said. "Fundamentals don't matter a dime."
Traders said once copper established a support base at around the $6,500/ton level, selling dried up and short covering emerged, as did bargain-hunting. Earlier, UBS analyst Robin Bhar said copper needed to regain the $7,000/ton level to avoid further moves to the downside.
The remainder of the complex moved higher in sympathy with copper though did so on limited buying activity, according to another trader. Aluminium rose $50 on previous PM kerb levels to close at $2,560/ton, up 2% on the session. Nickel traded at $18,900/ton, up $1,000 on the previous PM kerb levels. Zinc gained 3.8% to finish the late kerb at $3,075/ton.
While the move lower in the dollar against the euro helped provide some upside impetus, one trader said the market is currently moving independently of external influences such as inventory changes, inflationary concerns and currency fluctuations.
3 months metal (prices in dollars a ton)
Bid – Ask, Change from Wednesday PM kerb
Copper 7000.00-7001.00, Up 375.00
Lead 963.00-965.00, Up 5.00
Zinc 3075.00-3080.00, Up 115.00
Aluminium 2560.00-2565.00, Up 50.00
Nickel 18900.00-18950.00, Up 1,000.00
Tin 7945.00-7950.00, Up 195.00
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