The only way I can describe prices today would be to say that they are “cautiously steady”. Since our last issued price list, prices on LME have steadied and we have seen buyers cautiously return to the market. Although prices are still a little soft, it seems for the time being the freefall has stopped.
Notwithstanding the steady markets the lower LME and rising AUD/USD has resulted in the Sell & Parker Scrap Copper (as published in the SMH,Australian, AFR) being at its lowest level in almost 2 months. The Sell & Parker Scrap Aluminium Base is now at its lowest level in 9 months ( November 2010). Our scrap base prices are listed below for your information;
AUD – 16/8/11
Copper Scrap Base Price $8,477
Aluminium Scrap Base Price $2,253
Lead Scrap Base Price $2,262
Nickel Scrap Base Price $20,539
*All prices quoted are in Australian Dollars
Please see the following article for your perusal;
Close Mixed; Await Cues From Macro News, Equities By Rhiannon Hoyle Of DOW JONES NEWSWIRES
Base metals closed mixed after drifting sideways in quiet trade throughout most of Monday’s session, and market participants say they expect prices to await cues from macro developments and world equity markets in the days ahead. While analysts expect the red metal’s volatility to lessen after a turbulent few weeks across world financial markets, copper continues to struggle with resistance around the key $9,000/ton market, they say. “The markets have been largely drifting today, oh-so-quietly,” a London-based trader said.
While a weaker dollar also supported the dollar-denominated metals’ prices, the markets remain nervous, with many investors unwilling to significantly rebuild their risk exposure given the uncertain growth outlook. Standard Bank analyst Leon Westgate said: “Its worth noting that the overriding theme across much of the base metals complex has been one of higher LME open interest and falling prices, signifying the addition of new short positions. “While this opens up the potential for short covering, if the prevailing sentiment is now for lower prices, the metals may find it hard work to sustain any rallies,” he said.