LME Market Report

LME Market Report - Fund buying pushes LME zinc higher to a five-year high, while most other metals remain steady or positive. London Metal Exchange (LME) period Zinc set a five-year high, driven by fund buying on Friday Other metals held steady or up. A trader said, "The zinc performance is outstanding. The fund will push it to the sky price. In the next six months or even faster, it may rise to 1,400 US dollars." Three-month zinc rose to one ton. US$1,229.50, which is higher since January 2000, closed at 1,224 points, up by US$16. The market outlook is expected to target 1,225/30 resistance, followed by the 1,250/55 region. Barclays Capital stated in its research report that it expects Zinc will become a better performing metal in 2005, referring to "as China becomes a net importer of zinc, zinc fundamentals will be greatly improved." Barclays Capital set the target price of zinc for 2005 LME spot at one tonne $1,400, 25.2% higher than the current level. This view was supported by the Economist Intelligence Unit, which stated that by the end of 2006, zinc inventory would have decreased by 500,000 tons. Dealers said that as the holiday season approached, LME volume gradually decreased, but Volatility may increase. A trader said, "We may be in the next few weeks See larger speculators trying to manipulate year-end closing levels." Three-month copper rose $11 to 3,033 a tonne, maintaining a steady climb this week. Traders said, "copper in the previous quarter may rise to October again next year." It hit a high of 3,175, but that would be the next wave of longs. "Three-month nickel rose $275 to 13,550. The nickel stock increased by 258 tons to 19,632, which is higher since January." The monthly aluminum price was unchanged at $1,833 per ton, and the three-month lead closed at $930 per ton. However, the three-month tin fell by $25 to $8,775 per ton.