After a bit of stability last week, the LME continues its recent volatile pattern of shifting up one day and then back down again.
Despite hitting the £6,000 mark again on Monday at $9,846, copper was back down to $9,644 (£5,927) for three month delivery on Tuesday. This followed union leaders saying that workers at the Escondida copper mine in Chile will vote on a new pay deal, potentially ending a 12-day strike that has cost the world an estimated 28,000 tonnes of new copper supply. Additionally, US consumer data was poor, putting extra pressure on the metals market.
However, market analysts remain confident that this one step forward, one step back pattern in the price of copper is temporary.
Australia and New Zealand Banking Group senior commodities strategist Nick Trevethan said: “Markets like copper are very tight. Chinese consumers are going to come back, and there will be a need to rebuild stockpiles.”
Aluminium was also down to $2,574 (£1,582) from $2,633 (£1,604) on Monday.
While aluminium alloy increased to $2,350 (£1,444) on Tuesday from Monday’s $2,335 (£1,423).
Lead settled at $2,557 (£1,572) from $2,640 (£1,609) on Monday. Nickel finished at $24,500 (£15,059) on Tuesday following Monday’s $25,125 (£15,312).
Tin ended at $27,850 (£17,118) down from Tuesday’s $28,600 (£17,429). Zinc closed at $2,436 (£1,497) on Tuesday down from $2,508 (£1,528).
Steel closed at £590 (£363) unchanged in dollars, but up in sterling from Monday’s £360.