Base Metals Mixed, BHP, Rio to Trade Numbers as They Jockey for Position
Aug 26th, 2008 | By Doug Casey | Category: Financial News, Gold MarketThe base metals were mostly higher on Monday. Copper moved higher, finishing at $3.5657/lb., up nearly 5 cents from Friday. Nickel also gained, closing at $9.526/lb., up 15 cents. Zinc traded spottily, ending little changed at $0.819/lb. up three-quarters of a cent.
Aluminum moved modestly higher, adding a penny to $1.2478/lb., while lead was slightly lower, dropping a half-cent, to $0.8528/lb.
Copper was higher on speculation that the dollar may have run its course against the euro, and is headed lower.
The action in the industrial metals was very muted, with low volume on Monday, due to the LME being closed. Normal trading resumes today.
With nothing doing in the physical market, traders tended to focus on the charts.
Said Larry Young, senior trader at Infinity Futures in Chicago: “We had a sell signal at $3.4370 that we hit, but have moved nicely away from … With the lower volumes today, people are really just trading off of the technicals.”
Copper also benefited from the slightly firmer tone in the housing market, with existing-home sales climbing. “Any sign that the economy is doing better will help copper,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago.
In company news, Mining giant BHP Billiton (BHP) expects to grow its production volumes over the next 12 months by 10% despite some softening in demand from its biggest growth driver, China, says CEO Marius Kloppers.
Yesterday, BHP reported a 30% jump in second-half profit and boosted its dividend, saying it was in good shape to weather any downturn in the commodities cycle. BHP’s growth prospects are under close scrutiny, because the company’s growth plans are central to its hostile $127-billion bid approach for rival Rio Tinto (RIO).
Rio Tinto, under siege from the takeover attempt, is due to report its own half-year results today, and the market will be paying close attention to its numbers as well.
Source: Base Metals Mixed, BHP, Rio to Trade Numbers as They Jockey for Position
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