Copper hits new record official at LME on fresh fund interest

Copper pushed through the low pre-market levels to a new record in the official pricing session at the London Metal Exchange on Tuesday as funds focused on the red metal and zinc but sold other base metals.

Copper posted $5,066.5/67 per tonne basis three months at the end of the second ring, even through it failed to hit the $5,090 per tonne briefly seen in the morning trading. The metal had ended Monday afternoon kerb trading at $5,060 per tonne.It is still in the uptrend, still buoyant, still looks like there is room to go up, an LME trader said. The move of course is fund driven. They've taken as much profit as they thought they could in the morning and bought in again.

Zinc basis three months gained $6 to a three-month official of $2,405/06 per tonne, also reversing the morning moves, as decreases in global inventories pushed up the price. LME zinc stocks fell by 1,500 tonnes to total 363,700 tonnes.

Nickel consolidated pre-market gains, rising to a three-month official of $15,375/380 per tonne from $15,025 on Monday. Nickel had a temporary setback below the $15,000-per-tonne mark on producer forward sales interest and a lack of consumer buying. We expect nickel to make renewed attempts on the upside, but because the market is still in surplus, price action is likely to be volatile, as signs of fundamental improvements in that market are still erratic, said Barclays commodities analyst Ingrid Sternby.

Aluminium for delivery in three months, which gained some ground in the morning, lost $4 in the official session to change hands at $2,664/65 per tonne in line with recent inflows of metal. Traders said, though, the sentiment is still positive.

Tin for delivery in three months lost $60 to change hands at $7,725/740 per tonne, down from $7,800 at the previous kerb close.Tin's inventories were also up at 16,060 tonnes, after a 115-tonne inflow of the metal into Singapore, which accounted for the net 100-tonne increase.Still, cancelled LME tin warrants have shot up to 3,500 tonnes. Barclays commodities analysts said this suggested renewed outflows ahead.

Lead basis three months traded $20 lower compared with the previous final kerb price, at $1,354/55 per tonne. The metal's stocks rose a net 800 tonnes, bringing the total to 63,225 tonnes. Most stock, 775 tonnes, came into the LME's Singapore warehouses.