LME base metals prices consolidate after recent highs

Base metal prices fell across the board on the London Metal Exchange in morning trading on Wednesday October 11, with lead and zinc leading the downward trend.

The three-month zinc price was recently trading at $3,237.00 per tonne, down nearly 1.7% while the three-month lead price dropped 1.8% to $2,513.00 per tonne.

The drop was attributed to profit-taking by investors following recent high prices.

“This morning’s weakness seems to show consolidation as recent high prices attract scale-up selling,” Metal Bulletin senior analyst William Adams said in a morning note.

Base metals drop; more than 34,000 tonnes of metal cancelled 

  • The three-month copper price traded at $6,737.00 per tonne, down $17. Inventory fell 2,950 tonnes to 286,925 tonnes, with 5,925 tonnes of freshly cancelled stock.
  • The three-month aluminium price was $21 lower at $2,141.50 per tonne. More than 28,000 tonnes of material were freshly cancelled. Overall inventory fell 5,025 tonnes to 1,234,025 tonnes.
  • The three-month nickel price fell $100 to $10,940 per tonne, with stocks down 672 tonnes to 383,148.
  • The three-month tin price dropped $120 to $20,710 per tonne. Stocks were steady at 1,995 tonnes with 10 tonnes of freshly cancelled metal.

Currency moves and data releases 

  • The dollar index ticked 0.03% lower to 93.22.
  • In other commodities, the Brent crude oil spot price rose 0.7% to 56.93.
  • In the USA, markets are awaiting the release of Federal Reserve meeting minutes.