The price of metals on the LME increased yesterday after central banks around the world pumped cash into their economies on Wednesday, in an attempt to prevent another credit crunch through putting more liquidity into the market.
Wednesday also saw the news that the Purchasing Managers Index in China had fallen below 50 for the first time since February 2009. Any number below 50 tends to show a contraction. However, the markets saw this positively as it believes China will not introduce any more measures to cool its economy as those that it already has appear to be working, and it might even loosen some of those controls.
As a result of this, the price of metals were up as traders felt more optimistic about economic prospects.
Three-month copper was up to $7,825 (£4,978) on Thursday from Wednesday’s $7,429 (£4,761).
Aluminium increased to $2,109 (£1,342) yesterday compared to $1,987 (£1,273) the day before. Alloy was priced at $1,950 (£1,241) on Thursday from $1,890 (£1,211) a day earlier.
Lead moved up to $2,082 (£1,325) yesterday compared to Wednesday’s $2,007 (£1,286). Nickel increased to $17,125 (£10,894) from $16,925 (£10,847) on Wednesday.
Tin was up to $20,345 (£12,943) on Thursday from $20,025 (£12,833) the day before. Zinc increased to $2,035 (£1,295) from $1,939 (£1,243) the day before.
Steel was up to $515 (£330) from $510 (£327).