LME base metals mixed; lead slides

Smaller metal markets on the London Metal Exchange saw steady outflow of speculative funds due to risk reduction Friday, market participants said, with bearish sentiment seen extending into next week. LME lead slipped 3.5%, piercing the $3,000/metric ton mark, down over $500 from its peak earlier this month. Similarly, tin, nickel zinc also marched lower, although strike news kept LME copper from suffering further losses. As fears of a global credit crunch linger, large speculative players continued to liquidate positions to cut risk and ring in profits for margin calls elsewhere, analysts said. "There is an element across the board of people attempting to reduce the amount of VAR (Value at Risk) on the books and that's leading to a certain amount of liquidation," said analyst John Kemp of Sempra Metals. Regarding, the smaller and more illiquid nickel, tin, and lead markets, Kemp said, "These markets...have been pumped up in the past by spec buying and I think some of that is exiting the market and locking in profits now.". LME copper steadied after tumbling 5% this week, underpinned by news that unions at Peru's Southern Copper Corp. could present a strike notice as soon as next Tuesday, a union official said. "We will likely present a strike notice on Tuesday because Monday is a holiday. All three unions will present the notice," he said. Southern Copper officials have forecast production of some 700,000 metric tons of copper this year at the units in Mexico and Peru. In addition, production at the El Teniente division of copper giant Corporacion Nacional del Cobre de Chile, or Codelco, remains idle, and there is no estimate about when it might restart. El Teniente is Codelco's second-largest division, with annual production near 420,000 metric tons of copper, or about 23% of the miner's annual output. Prices in dollar a metric ton. 3 Months Metal Bid-Ask Change from Thursday PM kerb Copper 7810.0-7820.0 Up 50 Lead 3075.0-3085.0 Dn 5 Zinc 3490.0-3500.0 Dn 5 Aluminium 2750.0-2755.0 Up 16 Nickel 30400.0-30450.0 Dn 700 Tin 15450.0-15500.0 Dn 45