* Aluminium revisits 3-year low on auto industry concerns
* Rising stock weigh on copper, aluminium and tin
* Analysts expect to see higher aluminium stocks
(Recasts, adds closing prices)
By Anna Stablum
LONDON, Nov 19 (Reuters) - Aluminium matched a three-year
low on Wednesday after a hefty rise in stocks reinforced the
weak demand outlook, particularly from the auto industry.
Higher inventories also helped push copper down more than 4
percent and tin by nearly 8 percent.
Three-month aluminium on the London Metal Exchange fell to
$1,870 a tonne, matching Tuesday's lowest level since October
2005. The energy-intensive metal ended at $1,878 a tonne from
$1,918 at the close on Tuesday.
"Aluminium is an energy play and energy is coming down and
there is a massive oversupply looming," analyst Marc Elliott at
investment bank Fairfax in London said.
LME stocks of aluminium, widely used in transport and
packaging, rose 81,975 tonnes to more than 1.7 million -- the
highest since January 1995. Detroit saw the largest inflow of
stocks -- up 55,550 tonnes.
"With the market moving further into surplus, demand weak
... we believe that there will be more large deliveries
onto exchange," said Barcalys Capital in a note.
Aluminium prices have been further undermined by the bleak
outlook for car makers, which has threatened the survival of
Detroit's Big Three -- General Motors Corp, Ford Motor Co and
Chrysler LLC .
CRITICAL LEVELS
Copper prices sagged on news that construction starts on new
U.S. homes fell to a record low in October, as did new
applications for building permits, signalling that the housing
downturn may extend well into the future.
Also weighing on copper was news that LME stocks rose above
280,000 tonnes, the highest since March 2004.
Benchmark copper fell to a low of $3,540, down nearly 6
percent. The metal used in power and construction ended at
$3,590 a tonne from $3,750 on Tuesday. Last week it hit $3,520 a
tonne, its weakest since September 2005.
Edward Meir, analyst at MF Global sees support for copper at
$3,590.
"We're watching to see if we get two days of closes below
this level. If we do, the $3,500 mark is the next critical stop,
as there is nothing below that until $3,000," Meir said.
Three-month copper prices could average at $4,307 a tonne
next year, a Reuters survey showed.
Zinc fell 5 percent to $1,168 a tonne. The metal used to
galvanise steel closed at $1,184 a tonne from $1,229.
Battery material lead slid more than 5 percent to end at
$1,228 a tonne and ended at $1,230 from $1,300.
Nickel ceded 5 percent to $10,200 a tonne. It closed at
$10,300 a tonne from $10,750 on Tuesday.
Tin tumbled more than 9 percent to $11,750, the lowest since
October 27, as stocks of the metal in LME warehouses rose 225
tonnes to 3,825 tonnes. They are up 810 tonnes since November 7.
Tin ended at $11,905 a tonne from Tuesday's last bid at
$13,025.
Metal Prices at 1709 GMT
Metal Last Change Percent Move End 2007
Ytd Percent
move
LME Cu 3570.00 -180.00 -4.80 6670.00 -46.48
SHFE Cu* 29050.00 560.00 +1.97 56880.00 -48.93
LME Alum 1875.00 -43.00 -2.24 2403.00 -21.97
SHFE Alu* 13840.00 90.00 +0.65 18180.00 -23.87
COMEX Cu** 160.50 -5.00 -3.02 303.05 -47.04
LME Zinc 1172.00 -57.00 -4.64 2370.00 -50.55
SHFE Zinc* 9715.00 165.00 +1.73 18950.00 -48.73
LME Nick 10225.00 -525.00 -4.88 26350.00 -61.20
LME Lead 1229.00 -71.00 -5.46 2550.00 -51.80
LME Tin 11725.00 -2175.00 -15.65 16400.00 -28.51
** 1st contract month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07
(Additional reporting by Pratima Desai; editing by James
Jukwey)
- 
- 
- 
Welcome,
Guest!
News
