Base metals showed weakness
All of the base metals in the LME (London Metal Exchange) fell on February 5, 2016. Nickel was the biggest loser on February 5. It fell by 4.5%.
Copper broke its rising streak
After raising for two consecutive trading days, LME 3M Copper fell on February 5. It fell by 1.2% and ended the day at $4,630 per metric tonne. In the LME, copper started the year on a negative note. It continued to fall until January 15. On January 15, copper hit a multiyear low of $4,331 per metric tonne and started recovering. From the multiyear low of $4331 per metric tonne, copper rose 6.9%. It’s trading close to the price levels that it traded at the beginning of 2016. The price level of $4,750 per metric tonne is the nearest resistance level for copper in the LME. On February 5, copper fell by 1.3% in COMEX.
Aluminum and nickel fell
LME 3M Aluminum broke its gaining streak. It fell on February 5. On the last trading day of the week, LME 3M Aluminum fell by 2.3%. It ended the day at $1,499 per metric tonne. This is the lowest daily close for aluminum since January 26. On the downside, $1,450 per metric tonne is the next prominent support level for aluminum. Similar to copper and aluminum, nickel in the LME also fell on February 5 after gaining for two consecutive trading days. On February 5, LME 3M nickel fell by 4.5%. It ended the day at $8,160 per metric tonne. This is the lowest day close for nickel since May 2003. It’s a 12.5-year low.
After gaining for five consecutive trading days, LME 3M Zinc fell by 2.2%. It closed the day at $1,677 per metric tonne. After gaining for eight consecutive trading sessions, LME 3M Lead fell by 1.8% and closed at $1,770 per metric tonne. On February 5, LME 3M Tin gained 1%. It closed the day at $15,150 per metric tonne. The Power-Shares DB Base Metals Fund (DBB) fell by 2% on February 5. Freeport-McMoRan (FCX), Alcoa (AA), BHP Billiton (BHP), and Rio Tinto (RIO) fell by 0.7%, 2.3%, 1.4%, and 2.8%, respectively, on February 5.