Three-month copper was trading at exactly £6,000 on the LME on Monday, but fears persist despite the US appearing to sort out its debt crisis.
The metal was up to $9,846 (£6,000) at settlement on Monday from $9,745 (£5,979) on Friday but any sterling gains were mitigated by a strengthening dollar as a result of the US debt agreement and poor construction output in the UK.
However, in early trading, copper had dropped down to $9,673 at 9:44am GMT as the markets considered poor global economic news. Manufacturing data in both China and the US are weak, but supply worries from the continuing strike at Chile’s Escondida mine helped to limit losses.
However, Credit Suisse beleives a pick-up in prices is likely. In a note it said: “Together with falling inventories and the ongoing strike in the Chilean mining industry, we think industrial metals should be well supported on the downside.
“We expect renewed price increases before too long and see the current weakness as a buying opportunity. Our preferred markets are copper and aluminium.”
Aluminium closed at £2,633 (£1,604) up from the $2,608 (£1,600) seen on Friday. Aluminium alloy traded at $2,335 (£1,423).
Lead ended at $2,640 (£1,609) from Friday’s $2,630 (£1,614). Nickel was at $25,125 (£15,312) from $24,520 (£15,044) at the end of last week.
Tin settled at $28,600 (£17,429) from $28,000 (£17,179) on Friday. Zinc finished at $2,508 (£1,528) compared to Friday’s $2,489 (£1,527).
Steel was at $590 (£360) down a little from Friday’s $592 (£363).