Base metals have closed mostly higher on the London Metal Exchange as hopes for a successful Greek debt-swap deal continues to support prices, although initial gains were pared somewhat following cautious comments on the euro zone economy by European Central Bank (ECB) President Mario Draghi.
At the PM kerb close, LME three-month copper was 0.4 per cent higher at $US8,329 a metric ton, while nickel lagged the complex, closing 0.5 per cent lower at $US18,800/ton.
Most metals spent Thursday’s session in positive territory, buoyed by confidence that a Greek debt-swap deal will go through later in the European day.
However, enthusiasm was dented somewhat after ECB President Mario Draghi announced a cut in euro-zone growth forecasts for 2012 and 2013, yet stopped short of hinting at more supportive policy measures for the region.
At the ECB’s monthly news conference, in which the bank’s key interest rate was left unchanged at one per cent, Draghi said the ECB has upped its inflation forecast for 2012 and admitted that the euro-zone’s economy will likely contract by 0.1 per cent this year.
For 2013, Draghi says the ECB expects growth of 1.1 per cent compared with 1.3 per cent previously forecast.
While the news didn’t have a significant impact on risk appetite – with equities, the euro and copper remaining in positive territory following the news – it did damp the upbeat market tone somewhat, said traders.
Still, Friday’s session may see base metals extend their gains, should US nonfarm payroll data come in strong as expected, said a London-based trader.
Economists surveyed by Dow Jones Newswires expect total nonfarm payrolls rose by a solid 213,000 slots in February, following 243,000 the previous month.
“A reading of 200,000 or over should see copper move back above $8,375/ton again,” said the trader.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Wednesday PM kerb
Copper 8329.0-8330.0 Up 36
Lead 2124.0-2125.0 Up 34
Zinc 2048.5-2049.5 Up 34.5
Aluminum 2205.5-2206.5 Dn 3.5
Nickel 18800.0-18805.0 Dn 100
Tin 22750.0-22800.0 Up 500
Aluminum Alloy 2150.0-2170.0 No change
Aluminum Alloy-NASAAC 2205.0-2215.0 Dn 5