LME base metals pressured by profit-taking

Profit-taking amid a lack of follow-through buying pressured London Metal Exchange base metals Monday, as market players watch newswires for fresh direction, market participants said. LME nickel had given back near 5% by London close, while LME lead finished down 3% and 3-month copper, aluminium and tin slipped 1% from Friday. LME nickel handed back most of last week's gains Monday, hit by some bearish statistics out of China and a chunky stock build, a London-based analyst said. Chinese imports of pig iron ore jumped by 1,540.6% to 442,000 tons for 1H 2007, according to customs data Monday. This only suggests that nickel pig-iron production, a lower nickel content version of stainless steel, has continued at full steam, the analyst said said. But LME nickel prices are supported at $32,000/ton, following news that China's Baosteel has reverted back to refined nickel production, he added. LME nickel stocks now stand at a 1-month high, with inventories nearing 12,000 tons, noted BNP Paribas analyst David Thurtell. News Monday that a wage dispute at Xstrata's CCR copper refinery in Montreal has been resolved added fuel to LME copper's decline that began early Monday, said traders. "Copper was in a downtrend (on profit taking) from about 0730 GMT," said one, adding that as strike pressures ease, copper is likely to retrace further. The only way copper will retest it $8,335/metric ton May high is if shorts are forced to cover, he added. A union official confirmed Monday that workers at CCR have voted to accept an agreement to end the strike, with workers back on the job over the next two weeks. The workers have been on strike since June 11. But some strike concerns remain. Wage negotiations at five divisions of copper miner Corporacion Nacional del Cobre de Chile, or Codelco, are to continue this week, a union leader said Monday. The three-way negotiations among Codelco, contracted workers and the contracting companies that employ them haven't advanced significantly and workers will continue protesting, he said. Prices in dollar a metric ton. 3 Months Metal Bid-Ask Change from Friday PM kerb Copper 8020.0-8025.0 Dn 90 Lead 3390.0-3395.0 Dn 108 Zinc 3690.0-3695.0 Dn 10 Aluminium 2824.0-2825.0 Dn 31 Nickel 33400.0-33405.0 Dn 1400 Tin 15325.0-15330.0 Dn 120