Metals slump as economic sentiment turns gloomy again


After the optimism of last week, pessimism has returned to the metal markets.

The decision by the Greek Prime Minister George Papandreou to hold a referendum on the bail-out deal offered by the European Union has spooked the markets.


Yesterday’s news that the Chinese manufacturing index fell from 51.2 in September to 50.4 in October didn’t help. While the surprise collapse of commodities trader, MF Global Holdings, led to its suspension from the LME and a further shock to the market.

Three-month copper was down to $7,650 (£4,807) yesterday from $7,920 (£4,940).

Aluminium fell to $2,121 (£1,333) yesterday from $2,208 (£1,377) on Monday. Alloy was priced at $2,055 (£1,291) down from $2,140 (£1,335) the day before.

Lead was at $2,018 (£1,268) up from $2,005 (£1,251) on Monday. Nickel fell to $18,625 (£11,704) from $19,225 (£11,991) a day earlier.

Tin was down to $21,625 (£13,589) from Monday’s $21,850 (£13,628). Zinc eased to $1,906 (£1,198) from $1,932 (£1,205) the day before.

Steel was down to $532 (£334) from $540 (£337) a day earlier.