Zinc, lead Hit Two-Month Lows

  • Tuesday, June 16, 2015
  • Source:ferro-alloys.com

  • Keywords:non-ferrous,metal,price,zinc,copper
[Fellow]HOWEVER copper prices held steady on hopes of improving demand in top metals consumer China.

HOWEVER copper prices held steady on hopes of improving demand in top metals consumer China.

Zinc and lead hit their lowest levels in more than two months on inflows of inventories into warehouses, increasing concern about potential oversupply.

During most of the day a strong dollar also pressured the market, but the US currency rebounded late in the European session.

"The stronger dollar, after Chancellor Merkel's comments about the euro, and worries about Greece, are the major reasons for the generally weaker tendency on the market," said Eugen Weinberg, head of commodity research at Commerzbank in Frankfurt.

In the morning, the euro sank after German Chancellor Angela Merkel said a "too strong" single currency made it harder for euro zone countries to reap the benefits of reform, but it bounced late in the day after Greece said it was getting closer to a debt deal.

A firmer US dollar weighs on commodity markets priced in the US unit since it makes the products more expensive for buyers using other currencies.

Three-month zinc on the London Metal Exchange hit a low of $US2,095 a tonne, the weakest since April 2, after LME data showed an inflow of nearly 10,000 tonnes of inventories into warehouses. It recovered on bargain hunting to close up 0.2 per cent at $US2,122.

Lead ended down 0.2 per cent at $US1,862 a tonne after touching $US1,836, also the weakest since early April. LME inventories shot up by over 30,000 tonnes on Thursday and continued to creep up on Friday.

LME copper closed up 0.5 per cent at $US5,912 a tonne.

"The market is treading water and is still looking for a definitive direction from Chinese data," Weinberg said.

Copper slid to a seven-week low on Thursday, prompted by a slowdown in growth in China's fixed-asset investment to a rate not seen since 2000, which raised fears of a deeper economic downturn.

"I wouldn't be surprised if prices range in the very near term. It's difficult to get a good sense of direction until we see more clarity in terms of how Chinese stimulus will filter through into the economy in the second half," said analyst Lachlan Shaw of UBS in Melbourne.

LME nickel was the biggest mover, sliding 1.3 per cent to finish at $US13,125 a tonne.

In Shanghai, the volatile nickel contract slid 3.2 per cent amid speculation global nickel brands could be registered for delivery, freeing up supply.

Aluminium slipped 0.6 per cent to end at $US1,739 a tonne, while tin failed to trade in closing rings and was last bid down one per cent at $US14,750.

  • [Editor:Yueleilei]

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