Friday rally fails to sustain, base metals sink lower

LONDON (Scrap Monster) : The rally in base metals on Friday failed to sustain as the markets opened Tuesday after holiday with the base metals mostly sinking lower.

LME three-month copper on Tuesday closed 0.1 per cent lower at $US7,265 a metric ton.

The LME copper which had surged 6.2% on Friday show some amounts of profit taking by the investors.

The global equities rallied on the wings of exceptionally strong US job data. The brilliant German manufacturing data boosted the stock market sentiments.

The Reserve Bank of Australia (RBA) decision to cut the cash rate by quarter percentage dragged the base metals.

The market looks sensitive to any news flow from Australia- one of the top producers of the base metals and China-one of the largest consumers of industrial metals.

The market awaits the Chinese inflation data due this week.

Here’s a wrap up of the price movement of base metals on LME, as on Tuesday (7^th May, 2013)

3 Months Metal Bid-Ask Change from Friday PM kerb

Copper                                    7265.0-7266.0            Down 5

Lead                                        2026.0-2028.0            Down 12

Zinc                                         1872.5-1873.0            Down 12

Aluminum                                 1882.0-1883.0            Unchanged

Nickel                                       15195.0-15200.0        Down 25

Tin                                           20200.0-20205.0        Down 250

Aluminum Alloy                         1770.0-1780.0            Up 20

Aluminum Alloy-NASAAC              1800.0-1810.0            Up 5

Note:-  The above prices are in dollar per metric ton.