Base metals pricesstaged a mixed performance in Monday’s official trading on the London Metal Exchange, as copper, aluminium and nickel tracked the euro and European equity markets lower.
Three-month copper settled at $8,376/377 per tonne compared with $8,440 per tonne at the open.
The contract traded to an intraday high of $8,496.75 per tonne per tonne and dipped as low as $8,347.25 per tonne.
“I think this is a continuation of what we’ve seen from the end of last week. Some people have been surprised by the uptick in prices, but those are the people that don’t follow the fundamentals,” he said.
“The backwardations are still steady. We’ll struggle to see anything of note while the Chinese are out [for the May holiday] but I think there’s still some short covering to be done,” he added.
Copper stocks in LME-bonded warehouses fell by 3,475 tonnes to 248,350 tonnes overnight.
“With China on holiday for both Monday and Tuesday, European and US markets will likely hold sway, while month-end activities may also come into play as we head into the afternoon,” an analyst said in a note.
Three-month nickel fell back below $18,000 per tonne after starting the day at $18,200 per tonne.
The contract settled at $17,900/910 per tonne after trading as high as $18,310 per tonne and as low as $17,875 per tonne.
Nickel stocks in LME-approved warehouses rose by 2,142 per tonne to 103,902 tonnes.
Aluminium, basis three months, settled at $2,097.50/098 per tonne compared with an opening price of $2,108.25 per tonne.
The light metal found its high at $2,118 per tonne and dipped as low as $2,093.75 per tonne.
Aluminium stocks in LME-listed warehouses fell by 10,725 tonnes to 5,024,900 tonnes.
Three-month tin settled at $22,675/680 per tonne, compared with an opening price of $22,550 per tonne.
Stocks of the soldering metal fell by 60 tonnes to 14,345 tonnes.