Volatility in the metals markets continues to be driven by outside factors rather than the fundamentals of the market.
Yesterday for example, metals edged lower over fears that the Slovakian government would not vote to give its backing to the European Financial Stability Facility (EFSF) that is designed to contain the European debt crisis. These fears were proven to be true, when Slovakia voted not to support it. While a deal is likely to be made that will ensure one of Europe’s smaller members will not be able to disrupt the process, with all other eurozone countries having voted in favour of the EFSF facility, it still spooked the markets.
However, with Chinese equity markets rallying strongly today, copper responded in early trading to wipe out its losses yesterday to reach $7,359 (£4,710) at 2:41am GMT.
Yesterday, three month copper was down to $7,240 (£4,634) compared to Monday’s $7,346 (£4,695).
Aluminium edged up a little to $2,224 (£1,423) from Monday’s $2,221 (£1,420). Alloy was up on Tuesday to $2,210 (£1,414) from $2,195 (£1,403).
Lead was up a touch to $1,960 (£1,254) from £1,956 (£1,250) on Monday. Nickel was up to $18,940 (£12,122) from $18,800 (£12,016) the day before.
Tin fell to $22,200 (£14,080) down from $23,025 (£14,716). Zinc was lower at $1,903 (£1,218) down from $1,920 (£1,227).
Steel dropped to $545 (£349) from $570 (£364) a day earlier.