• by IPS Correspondents (london)
• Friday, November 25, 1994
• Inter Press Service

LONDON, Nov 25 (IPS) - Base metals saw a strong downward correction early in the week before the Thanksgiving holiday on Thursday and Friday -- which meant that United States investors were not active.

Copper slid badly mid-week as fund managers pulled their money from the commodity and values crashed down after a strong bull run in the last few weeks.

Traders report that funds were liquidating some of their longer positions in preparation for even greater rises in copper in the next few months -- as the downtrend cannot be sustained given the strength of the base metals market.

Copper started the week on the London Metal Exchange (LME) by closing Monday at 2,876 dollars a tonne for cash, 2,831.5 for three-month. Previously it closed at 2,889 dollars a tonne for cash, 2,892 dollars a tonne for three-month.

Wednesday it ended trading at 2,876 dollars a tonne, 2,781 dollars a tonne for three-month, and Thursday it saw the bell at 2,857 dollars a tonne, 2,825.5 dollars a tonne for three-month.

Thursday morning saw copper prices firm as the metal rallied back up again after the weaker mood of the market in recent days. And this Friday evening the red metal went into the weekend at 2,857 dollars a tonne, 2,827.5 dollars a tonne for the futures position.

Aluminium mirrored copper in the complex. It began by closing Monday at 1,987.5 dollars a tonne, 1,988.5 dollars a tonne for three-month. By Wednesday's close it had slipped to 1,962.5 dollars a tonne, 1,967.5 dollars a tonne for three-month.

With the United States holiday the light metal still trended downward however, and ended trading yesterday on the LME at 1,942.5 dollars a tonne, 1,948.5 dollars a tonne for three-month. It closed today at 1,872 dollars a tonne, 1,887.5 dollars a tonne for three-month.

The news that the proposed Oslo meeting between representatives of the MOU (memorandum of understanding) inter-governmental group is unlikely to take place as planned did not affect the market initially. But with U.S. investors absent, the metal drifted down in London.

The MOU is an agreement between western and CIS aluminium producers to cut production in order to strengthen the market by eliminating excess capacity.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

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