Reuters reported that copper eased as concerns over the economic recovery caused industrial metals to pull back with investors still uncertain over the demand outlook against a backdrop of weak fundamentals.
By 0929 GMT, copper for 3 month delivery on the London Metal Exchange fell to USD 6,024 per tonne from USD 6,240 at the close on August 14th 2009 and compared with a session low at USD 6,000.
Analysts predicted price corrections this quarter that Chinese stock building and improving economic data has boosted base metal prices this year but with the summer lull in full swing.
Mr Gayle Berry an analyst at Barclays Capital said that "It is a continuation from Friday. This is the trend we have been seeing in recent months a week or so of very strong gains and then a pullback. It was to be expected. It does not mark the beginning of a turnaround the market is still positive for the outlook for the H2."
Societe Generale said that "The speed of recovery in base metals prices has caught many in the market by surprise. While there has been a modest improvement in the fundamental picture for most metals, the picture is still somewhat mixed. China remains the key focus for metal demand recovery, driven by the infrastructure focused fiscal stimulus plan but demand in the world ex China remains largely subdued at best."
Analysts predicted price corrections this quarter that Chinese stock building and improving economic data has boosted base metal prices this year but with the summer lull in full swing.
(Sourced from Reuters)
