Copper, zinc and nickel prices decline on session

Prices on base metals were mixed on Tuesday. Gains came for aluminium and lead, while copper, zinc and nickel saw declines. Aluminium gained slightly to trade at $7,206 per tonne.

The move by China to eliminate tax rebates on aluminium products beginning on 1 July is said by analysts to be a positive development. Lead, meanwhile, added 0.4 percent to $2,400 per tonne.

Copper dropped 1.4 percent to $7,430 per tonne even though London Metal Exchange stockpiles were lower and the possibility of strikes in Latin America.

Zinc was 2.7 percent lower to $3,630 per tonne, while nickel fell 6.2 percent to $37,900 per tonne on reports that stainless steel producers in China are planning on cutting domestic supplies by 20 percent. It was nickel’s lowest price since the middle of February.

In New York trade, precious metals prices were also mixed. Most prices saw gains, but July platinum dropped $1 to $1,298.50 per troy ounce.

Despite the decline, analysts believe that prices could go higher due to political concerns in Russia and unrest in South Africa. Together the two nations supply almost 90 percent of the world’s platinum. As one example of the current problems, one South African mine has suspended production for at least a week after 5 workers have died in the past two weeks.

July silver added 9 cents to $13.325 per troy ounce in New York, while September palladium was $1.50 higher to trade at $376.50 per troy ounce. August gold, up $12 dollars in the past four sessions, added $4.80 to $664.70 per troy ounce.