LONDON (MarketWatch) – London Metal Exchange (LME) slumped on Wednesday as investors locked their profits after a sharp rise in prices in recent weeks. The recent rise in zinc prices is due to speculative buying, Not physical demand.
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But helped by the dollar in the Federal Reserve Vice Chairman Fisher announced his resignation after the softening of the decline in zinc narrowed, other metal prices rose to flat above the plate.
When the dollar weakens, dollar-denominated goods are usually boosted, as the weaker dollar will make commodity prices relatively affordable for investors holding other non-dollar currencies.
As of Monday, the London Metal Exchange six industrial metals since the beginning of June soared 21%, but many analysts warned that the price trend is higher than the supply and demand fundamentals can support the level.
Traders said the expiring LME option on Wednesday also affected market trends.
Capitaline chief commodity strategist Caroline Bain in the early days of most of the metal under a flat plate, said: “Today may be some profit taking, taking into account, including analysts, including me that the price rose too much, some investors It may be tense. ”
Bain said the tensions in North Korea did not bring more risk sentiment, which is more surprising, but she added that after the hurricane Harvey, the base metal prices may get some support from it.
LME three-month zinc fell 1.4 percent at $ 3,095 a tonne, down 2 percent on Tuesday, August 23 Zinc prices hit a 10-year high of $ 3,231.75.
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Shanghai rebar futures fell also suppressed the London period of zinc and nickel. Shanghai rebar futures fell 2.5% on Wednesday as spot trading slowed after a speculative buying.
Three-month nickel was 0.7% higher at $ 12,165 a tonne and low at $ 11,910.
The three-month copper ended flat at $ 6,901 a tonne, rising to a three-year high of $ 6,970 on Tuesday.
Three-month lead rose 0.5% to $ 2,341 a tonne. Lead market in mainland China tightened, near the Shanghai lead contract is higher than the three-month contract, due to environmental remediation reasons, China has been shut down lead smelter.
Wednesday released data show that LME lead registered warehouse receipts increased by 16% to 103,175 tons.
Three-month aluminum closed up 0.4 percent at $ 2,104.50 a tonne.
Three-month tin rose 0.3% to $ 20,790 per tonne.
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