Metal has raisen about 20 percent this year

Tag : zinc strip
 London Metal Exchange copper was littlechanged on Monday with prices capped by global demand growth fearsand turnover was thin with most investors in the NorthernHemisphere on summer holidays.
Lead for delivery in three months, mainly used in batteries, jumped3.8 percent to $2,195 per tonne as LME stocks fell 525 tonnes to90,725. By mid-session lead traded at $2,180, up $65.
Copper was up $20 at $7,976 a tonne, with the metal -- often seenas a key gauge of economic activity -- rising around 20 percentthis year.
"People are worried about demand but it is difficult to strip outwhat is normal seasonal weakness from an overall concern," saidanalyst Robin Bhar at Calyon.
"We will obviously have a much better idea after the summer -- ifthe stocks continue to rise -- then sure these metals are going tostruggle," he said.
LME copper stocks rose 2,575 tonnes to 136,050, putting a lid onprices. However, stocks only account for less than three days ofglobal consumption and with around 11 percent of the stocksearmarked for delivery, risks to supply were high.
"It is a slow period now, you tend to get increases in August andSeptember," Calyon's Bhar said.
Recent strikes in Latin America and lower producer copper gradeswould support prices at these levels, Bhar said.
Last week Chile's Codelco and U.S.-based Freeport McMoran loweredproduction guidance, while BHP Billiton (nyse: BBL - news - people ) Ltd/Plc warned output from its Escondida mine --accounting foralmost 10 percent of world supply -- would drop 10-15 percent inthe 2009 financial year.
Aluminium for delivery in three months gained $3 to $2,973 pertonne. The energy-intensive metal, mainly used in the automotive,packaging and construction industries, has risen by 23 percentsince the beginning of January.

MARKET EYES DOLLAR AND OIL
Just like in recent weeks the market would take direction from thedollar and the oil price, traders said.
"We could drift in either direction depending on the dollar, but Idon't expect to see much action until the end of the week whenimportant U.S. data is due," an LME floor trader said.
A soft dollar underpinned prices, making dollar-priced metals lessexpensive for holders of other currencies. Higher oil prices gavealso gave underlying support as the metals tend to move togetherwith oil due to index-based funds buying or selling a basket ofcommodities.
Later this week, a flurry of U.S. data should cast more light onthe health of the second most important metals market after China,with real second quarter GDP figures due on Thursday and U.S.Institute of Supply Management manufacturing on Friday.
"If they are pretty positive that might give a boost to metals butthat might also strengthen the dollar," Bhar said, referring to afirmer dollar making metals more expensive to investors holdingother currencies.
Zinc traded at $1,830 a tonne, down $15, while tin gained to$22,450/22,475 from $22,300/22,400 and nickel slipped $120 to$18,330. Metal Prices at 1211 GMT Metal Last Change Percent MoveEnd 2007 Ytd Percent
move LME Cu 7960.00 4.00 +0.05 6670.00 19.34 SHFE Cu* 61470.00450.00 +0.74 56880.00 8.07 LME Alum 2975.00 5.00 +0.17 2403.0023.80 SHFE Alu* 19135.00 30.00 +0.16 18180.00 5.25 COMEX Cu**370.00 -0.40 -0.11 303.05 22.09 LME Zinc 1835.00 -10.00 -0.542370.00 -22.57 SHFE Zinc* 15305.00 85.00 +0.56 18950.00 -19.23 LMENick 18300.00 -150.00 -0.81 26350.00 -30.55 LME Lead 2155.00 40.00+1.89 2550.00 -15.49 LME Tin 22400.00 50.00 +0.22 16400.00 36.59 **1st contract month for COMEX copper * 3rd contact month for SHFEAL, CU and ZN SHFE ZN began trading on 26/3/07
(Additional reporting by Jim Regan, editing by Michael Roddy) Copyright 2008 Reuters, Click for Restriction