Wednesday, April 6, 2011

(06/04) Copper gains, aluminium falls on weak US dollar

April 06, 2011


Base metals delivered mixed performance on the LME on Tuesday with copper, lead and nickel trading in the green while aluminium and zinc ended the session in the red. Troubled sentiments in the global equity markets and China, the world’s largest metals consumer and producer, increased interest rates led metal prices lower.

Nickel prices traded higher by 0.2 percent on Tuesday and touched an intra-day high of $25,800/tonne. Prices gained mainly on the back of slight weakness in the US dollar coupled with fall in the LME inventories of the metal yesterday.

Nickel inventories declined around 0.5 percent to 123,228 tonnes on Tuesday. However, on the MCX, the metal prices dropped by 0.4 percent and closed at `1134.50/kg.

Zinc was the worst performer in yesterday’s trading session, as it was the only metal to decline more than 1 percent on the LME as well as on the MCX. Weak sentiments in the global financial markets and China’s inflation control measures exerted pressure on the zinc prices.

Prices touched an intra-day low of $2386/tonne and closed at the same level yesterday. On the MCX, zinc touched an intraday low of `106.10/kg and closed at `106.35/kg on Tuesday.

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