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Metals struggle as global economic news pushes prices down

Date: Thu, 4 Aug 2011 | Author: Paul Sanderson

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Wednesday saw prices drop again on the LME as the economies of the euro nations and the United States continued in crisis mode.

Italy and Spain both appeared to be being dragged into the euro crisis that has bedevilled Greece as bond yields on the debt of both nations exceeded 6 per cent, which is seen as the markets as a warning that trouble may be ahead.

The United States also posted poor results on gross domestic product and consumer spending this week. US employment figures due on Friday could provide a boost, or add to the emerging gloom about the condition of the world’s biggest economy.

There are genuine fears emerging that the world, and particularly the western world, may now see another crisis to equal that of the collapse of Lehman Brothers in 2008 that sent shockwaves across the world economy.

As a result, copper fell to its lowest level since 12 July on the LME trading at $9,570 (£5,838) compared to $9,644 (£5,927) on Tuesday. This means copper has lost almost $600 since the record high seen on 15 February of $10,190 per tonne.

Aluminium also dropped to $2,555 (£1,559) from $2,574 (£1,582) on Tuesday.

Alloy was at $2,370 (£1,446) up a touch from Tuesday’s $2,350 (£1,444).

Lead settled at $2,536 (£1,547) on Wednesday down from $2,557 (£1,572) the day before. Nickel ended at $23,905 (£14,582) from $24,500 (£15,059) on Tuesday.

Tin was at $26,775 (£16,333) from $27,850 (£17,118) on Tuesday. Zinc settled at $2,387 (£1,456) also down from $2,436 (£1,497) a day earlier.

Steel dropped a touch to $585 (£357) from $590 (£363) the day before.  

Category: Recycling
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