Read the part about Copper and Nickel

driil it and they will  come

griz

London Metal Exchange traded base metals were indicated mostly higher in premarket trading Friday morning, following a mixed finish to trading on Thursday. Aluminium has been the big shifter, with a move through the $2,520/mt level having alarmed some shorts, according to a trader contacted by Platts Friday morning. Primary aluminium was indicated at $2,555/mt at 0924 GMT, up marginally from the $2,553/mt close on Thursday, but having risen fairly consistently from the $2,505/mt close last Friday. "The next level is $2,580-$2,590. The push through $2,520 led to some short covering, and I think there may be still shorts in the market who might be panicked (if it moves further)," suggested the trader. Standard aluminium alloy and North American alloy three-month contracts were quiet again Friday morning, with no bids and no offers for the former, while NASAAC had no offers and bids were at $2,275 as of 0924 GMT.

Meanwhile, copper, despite being indicated slightly higher than the Thursday close, remains below the $8,000/mt and higher levels, seen in LME Week. Although copper miners in Peru are largely back at work, the trader stressed that a final solution has not been found, and that industrial action was continuing in Mexico. This background ought to be supportive, he admitted, but suggested, "Perhaps the market has got used to it." He pointed instead to pressure on sentiment from LME stocks, which he noted had continued their increases. The LME on Friday morning reported a net increase of 1,225 mt, to 148,950 mt. Lead also saw a 2,000 mt increase in stocks reported Friday morning, to 33,450/mt, but the three-months price continued the gentle rise seen since Thursday, to be bid $3,683/mt at 0924 GMT on Friday, compared with closes at $3,665/mt and $3,550 mt on Thursday and Wednesday, respectively.

Nickel also continued a run up, rising Friday morning to $32,931/mt bid in premarket trading, compared with closes at $32,498/mt, $31,800/mt and $31,700/mt on Thursday, Wednesday and Tuesday, respectively. However, Platts reported Thursday that resistance had been seen at about $33,000/mt earlier in the week, with no follow through. Three-months tin had also climbed in premarket trading, and was bid at $16,275/mt at 0924 GMT, compared with the last bid in kerb close Thursday, at $16,100/mt. Zinc was down on Friday morning, bid $2,965/mt at 0924 mt, compared with $2,970/mt.

This commentary was first published in Platts Metals Alert. If you have any feedback about this commentary or want to find out more about Platts Metals products and services, please contact webeditor@platts.com