Copper prices were buoyed by buying interest below $8,000 per tonne in pre-market trading on the London Metal Exchange on Friday May 11 after briefly trading below the psychological support level on macro concerns.
Three-month copper traded at $8,014.5 per tonne at 10:21 BST, down from an opening price of $8,066.75 per tonne, but above its intraday low of $7,993.25 per tonne.
The red metal began a downward trend ahead of the opening of European markets as first-quarter earnings reports disappointed investors and dragged equity markets lower, while the stalemate in negotiations to form a government in Greece also weighed on risk appetite.
“From a fundamental perspective, I’m starting to feel a bit more bullish. Prices are lower and because of that we’ve seen some decent buying interest in copper, aluminium and nickel. Things are looking brighter, but the macro situation is dragging the market down,” a category I broker told Metal Bulletin.
Copper stocks in LME-listed locations stood at 221,275 tonnes, up a net 1,425 tonnes after 4,475 tonnes arrived in Busan, marking the first inventory increase seen since April 17.
The Korean delivery could be the first of several large-scale shipments expected to arrive from China after Jiangxi Copper and other smelters declared that they would deliver against LME shorts to put pressure on the backwardation
“We could see 20,000 tonnes or so going into South Korea, but I think the market is going to remain tight. What’s happened in the copper market can’t be reversed overnight, my guess is it will be tight for another six months,” the broker said.
Three-month aluminium prices traded at $2,036.25 per tonne at 10:13 BST, down from an opening price of $2,041 per tonne, near a mid-point of a tight trading range.
The light metal recorded a high of $2,045.75 per tonne and a low of $2,032.25 per tonne as European trading got under way.
Aluminium stocks in LME-listed locations stood 4,951,125 tonnes, up 4,300 tonnes after deliveries into Vlissingen.
Three-month tin traded at $20,385 per tonne at 10:17 BST, up from an opening price of $20,300 per tonne. It was the only base metal to make ground on its opening price in pre-market trading.
Tin stocks in LME-listed locations stood at 14,490 tonnes, down 25 tonnes after a withdrawal from Johor.