LME base metals end higher, Copper up

Speculative buying from the U.S. helped to perk up copper on the London Metals Exchange Monday, turning sentiment modestly positive in what was otherwise a low volume trading session.

Earlier, copper was pressured after a strike at Freeport Indonesia's Grasberg mine ended with a settlement over the weekend. But speculative inflow once the U.S. opened triggered a return through $8,000/ton resistance, said a trader, which in turn kicked off technical buys.

News of a potential strike at Southern Copper in Peru also added to price support, said a trader.

Peru's National Federation of Mining, Metallurgy and Steel Workers is threatening to begin an indefinite national strike April 30 if the government doesn't meet a series of demands, the head of the federation said Monday.

Meanwhile, the latest CFTC data showed tactical investors continue to scale back net short exposure to the Comex copper market, Barclays noted.

The net short position in copper was cut by 1,200 lots in the week to April 17, primarily on the back of fresh long positions, it noted. The net short position is now at its lowest since Sept. 5, 2006.

Traders maintain a broad trading range between $7,600 a metric ton and $8,100/ton will continue over the near-term. In other metals, three-month nickel continued to climb after prices pushed above the 10-day moving average of $47,617/ton, an LME broker said.

Demand from China continues to underpin prices, with nickel concentrate imports in March coming in at 1035.8 kilotons, noted Barclays, up more than sevenfold on the year.

Also, China's net exports of tin came in at four kilotons, the highest level since June 2004, the bank noted. This week, the base metal markets will keep a close watch on key U.S. economic data to be released later this week including durable goods, home sales, and the Reuters/University of Michigan index.

The three month lead contract also drifted 0.7% lower amid gaining inventories and low turnover, a trader said.

Prices in dollar a metric ton.
3 Months Metal     Bid-Ask        Change from
                                 Friday PM kerb
Copper           8009.0-8010.0     Up 59
Lead             1960.0-1970.0     Dn 19
Zinc             3735.0-3740.0     Up 65
Aluminium        2862.0-2863.0     Up 22
Nickel          49350.0-49400.0    Up 650
Tin             13700.0-13750.0    Up 50