uploads/2015/12/1.bASE-mETALS-fRIDAY1.png

Base Metals Surge and Copper Hits a 4-Week High

By

Updated

On December 11, all base metals except aluminum surged and ended the day with gains. The weak US dollar and momentum generated by news from base metal miners over the week supported base metal prices. LME (London Metal Exchange) three-month copper rose the most of all base metals on Friday.

 

Article continues below advertisement

LME copper closes at a four-week high

After consolidating for 11 trading days in the range of $4,513–$4,657 per metric ton, LME three-month copper broke the consolidation zone and closed higher. LME three-month copper rose 2.5% on Friday and ended the day at $4,703 per metric ton. This is the highest close for LME copper since November 13, which makes it a 4-week high.

The weaker dollar helped copper and other base metals to close the day with gains. Copper rose 2.1% on COMEX on Friday. LME three-month aluminum fell by 0.6% on December 11 and ended the day at $1,482 per metric ton. On Friday, aluminum failed to close above the psychological price level of $1,500 per metric ton.

The weaker dollar helped copper and other base metals to close the day with gains. Copper rose 2.1% on COMEX in Friday’s trade. LME three-month aluminum fell by 0.6% on December 11 and ended the day at $1,482 per metric ton. Aluminum failed to close above the psychological price level of $1,500 per metric ton.

Article continues below advertisement

LME nickel breaks losing streak

LME three-month nickel rose 2% on December 11 and ended the day at $8,695 per metric ton after falling for the first four trading sessions of the week. The momentum in zinc faded last week. After closing unchanged on Tuesday and remaining almost unchanged on the next two trading days, LME three-month zinc surged 1.3% to $1,552 per metric ton on Friday. LME three-month tin has been consolidating for the past four trading sessions. On Friday, LME three-month tin rose 0.4% to $14,600 per metric ton.

LME three-month lead rose for the sixth consecutive day and closed at $1,726 per metric ton, a gain of 1% on Friday. Unlike base metals, miners’ equities fell on Friday. BHP Billiton (BHP) and Rio Tinto (RIO) fell ~5%, whereas Freeport-McMoRan (FCX) and Alcoa (AA) fell 6.3% and 3.4%, respectively, on Friday. The SPDR S&P Metals & Mining ETF (XME) fell 3.4% on the day.

Advertisement

More From Market Realist