Strike settlement sends copper lower

The prices of base metals were mixed on Monday, with copper and nickel lower but lead at another new record during the session in London.

Three-month lead had added $90 in morning trade in London, to $3,120 per tonne, after it had gone as high as $3,125 per tonne earlier in the session.

The gain in lead prices came on the probability that exports from at least one port in Australia will remain extended for longer than had been anticipated, fueling expectations that demand will exceed supply for the metal by 14,000 tonnes this year.

The deliveries have been stopped since March 12, sending the price of lead up 62 percent amid an investigation into lead poisoning at the port.

Among other base metals aluminium was up $12 to $2,804 per tonne, and tin traded even at $14,200 per tonne.

The price of September copper in New York dropped 3 cents to $3.56 per pound in early afternoon trade after inventories in London Metal Exchange warehouses were up by 1,325 tonnes during the day.

In London, meanwhile, three-month copper dropped $80 to $7,800 per tonne.

The settlement of a strike in Chile and news that a strike in Peru may be averted by negotiations helped the decline even though another strike, this time in Canada, was ongoing.

In addition to the drop in copper prices, nickel fell by $250 to $32,350 per tonne in London, with the fall attributed to falling demand by producers of stainless steel.

Zinc prices were also lower, by $25 to $3,565 per tonne in London trade.