Base metals on the London Metal Exchange (LME) ended the mid-session mixed in quiet trade, dealers said yesterday.
The LMEs three-month copper contract ended the morning kerb at $1,869, $18 up from Friday afternoons kerb close but unchanged from Fridays late close in London. Its still very dull, the only one that has done anything was zinc, one dealer said.
Dealers disregarded the announcement on Friday by Phelps Dodge Corp that it was to cut copper production at its Chino operation by 30 million to 35 million LBS a year. It will not be enough to make a mark, one dealer said. Flemings Global Mining Group said in a report yesterday that mine cutbacks were still insufficient.
Despite a trickle of production cuts since the new year, fresh additions to capacity remain the hallmark of base metals and outweigh attrition in all the metals, Flemings said.
Zinc closed the mid-session $14 higher at $1,124 and dealers said zinc headed higher on an improved technical picture. Aluminium edged higher in morning trade, ending the kerb at $1,441 from the close at $1,434.
Nickel dropped $30 to end at $5,550. Traders said nickel was a victim of long liquidation and they also cited an increase in LME warehouse stocks.
Tin ended $5 up at $5,745 while lead gained $4 to end the morning kerb at $565. Alloy was quiet and last bid at $1,315.
Meanwhile, gold was expected to trade in a thin range on Tuesday while a more bullish silver was likely to trend higher and test resistance, technical analysts said.
Analysts did not see gold recovering from its losses sustained after rumours on Friday that Belgium was selling more gold -- later denied by Belgian officials.
The market was seen trading in a thin range with hardly any chance of regaining the losses sustained in Friday's sell-off, which had been sparked by talk that Belgium had sold more gold.
SBC Warburg Dillon Read precious metals analysts Hanspeter Hausheer said he expected bullion to trade between $302.50 and $305.00.
"Gold will remain in a tight range. Obviously there is no chance at the moment to recover the losses it suffered after the so-called Belgium announcement, which was later denied," Hausheer said.
He saw no reasons for gold to go higher.
