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LONDON (Dow Jones)--A sharp sell-off in London Metal Exchange three-month
copper late Wednesday saw prices slump 3.1% and puts the remainder of the
complex under heavy selling pressure, trader says.
Three-month benchmark copper contract fell $156 to close the late kerb at
$4,783 a metric ton as the market is spooked by rumors a large fund began
liquidating copper positions, a trader said.
"We are hearing rumors that one of the bigger funds is lightening it's load
and we've probably also seen some long liquidation," he says. "At the moment
it's all downward pressure but whether it will last is yet to be seen."
Aluminum prices plunged through support levels at the 30-day and 50-day
moving average to close $132 lower at $2,349/ton. Commodity-trade Advisory fund
selling was behind the fall, plus some lighter option-related and trade
selling, according to Triland.
Nickel prices closed down $400 at PM kerb at $14,900/ton though the market
remains relatively resilient given its previous pattern of capitulation during
sell-offs, Triland said.
An early fall in tin prices to an intra-day low of $7,725/ton met with
healthy level of trade buying. Tin closed up $65 at $7,750/ton.
Prices in dollars a metric ton.
3 Months Metal Bid-Ask Change from
Tues PM kerb
Copper 4783.00-4785.00 Dn 156.00
Lead 1165.00-1170.00 Dn 58.00
Zinc 2065.00-2070.00 Dn 120.00
Aluminum 2349.00-2351.00 Dn 132.00
Nickel 14900.00-14925.00 Dn 400.00
Tin 7815.00-7835.00 Up 65.00
Aluminum Alloy 2370.00 Dn 30.00
Aluminum Alloy-NASAAC 2120.00-2130.00 Dn 95.00
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