DJ BASE METALS: Buoyed By Positive Sentiment, Tin Hits Record Tue, Aug 7
2007, 17:15 GMT
http://www.osterdowjones.com/
Tin shot to a record high on the London Metal ExchangeTuesday, although the
session's equities-inspired gains are expected to wane asthe week progresses,
market participants said.
LME tin skyrocketed as the U.S. opened to a record $17,050/metric ton, as
anuncharacteristically large bid on electronic platforms hit an illiquid
market,brokers and analysts said.
A U.S.-based commodity-trade advisory fund is likely to have caused the
move,said one analyst, while a trader noted the start of the fund rolls
Tuesday."Fresh fund allocations this month had to go somewhere," he added.
Tin closed off its highs, but remained at record levels.
Despite early positive sentiment triggered by stronger European equities
andgains on Wall Street overnight, the mood in base metals trade remains
"fragile"said analyst Ed Meir of Man Financial, and are likely to remain so
until theU.S. Federal Reserve releases its statement on the economy at 1900
GMT.
Copper, aluminum, zinc and nickel look in "poor technical shape," withseveral
major support points having been taken out over the last few days, henoted.
Meanwhile, a reversal of fortune after Monday's slide saw LME lead inchhigher
Tuesday, as speculative players looked to pick up an oversold market inthe
short term after Monday's 8% slide, said Triland's Michael Khosrowpour.
"No sign of improvement in the fundamentals as Ivernia's timeline to
getMagellan mine shipments back on track had to be extended...helped force
gains,"he said.
A break out of the $3070-$3200/ton range is likely to trigger near
termdirection, he said.
Lead miner Magellan Metals, a subsidiary of Canada's Ivernia Inc. saidTuesday
it has no firm expectation that it will begin shipments throughFremantle port
in Western Australia before the end of the year.
Magellan's 100,000 metric-ton-a-year lead mine, equivalent to 3% of
worldsupply, has been on care and maintenance since April after the Port
ofEsperance suspended lead shipments because of lead contamination.
Meanwhile, Xstrata PLC (XTA.LN) said Tuesday its production and sales ofcopper
are expected to "increase significantly" in the second half of the year,citing
repairs to a mill at Collahuasi in Chile and lower ore grades at severalof its
operations for lower production volumes in the first half.
Total group copper sales were 720,257 tons of payable metal in the firsthalf
of the year.
Prices in dollar a metric ton. 3 Months Metal Bid-Ask Change from Monday PM
kerb Copper 7745.0-7750.0 Up 55 Lead 3150.0-3151.0 Up 57 Zinc 3370.0-3380.0 Up
20 Aluminum 2664.0-2665.0 Up 12 Nickel 28850.0-28900.0 Up 250 Tin
16750.0-16755.0 Up 575 Aluminum Alloy 2170.0-2190.0 Dn 5 Aluminum Alloy
2160.0-2170.0 Up 25 (-NASAAC)
-By Melanie Burton, Dow Jones Newswires; +44 (0)20 7842 9412;[EMAIL
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(END) Dow Jones Newswires
08-07-07 1315ET
Copyright (c) 2007 Dow Jones & Company, Inc.
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