Despite central banks from some of the world’s major economies announcing plans for three-month dollar loans to commercial banks yesterday, the LME barely budged.
While welcomed by the markets, the move was seen as treating the symptoms rather than the cause, and all eyes will be on the meeting of European finance ministers in Poland today to see whether measures to solve the eurozone debt crisis can be agreed. The fact that US treasury secretary Tim Geithner has flown in to attend shows the desire from the United States to be involved in order to prevent the crisis further impacting on its economy.
Although economic stimulus would be welcomed by the metal markets, prices on the LME barely budged on this news. In early trading today, copper was just above the official price of $8,725 (£5,519) from yesterday. This official price was down on Wednesday’s $8,730 (£5,526).
Aluminium was up a touch yesterday to $2,374 (£1,502) from $2,366 (£1,498) on Wednesday. Alloy dropped to $2,295 (£1,452) on Thursday from Wednesday’s $2,310 (£1,462).
Lead was up to $2,389 (£1,511) on Thursday from $2,362 (£1,495) the day before. Nickel increased to $21,650 (£13,694) from $21,100 (£13,355) on Wednesday.
Tin remained unchanged on $23,500 but dropped in sterling to £14,864 on Thursday from £14,874 a day earlier. Zinc rose to $2,184 (£1,381) from Wednesday’s $2,175 (£1,376).
Steel dropped to $570 (£361) from $575 (£363) on Wednesday.