Base metals prices fall on reports, inventories

Base metals prices were lower Thursday on concerns that demand will continue to fall after a report said that copper production will exceed demand this year, after zinc inventories in London Metal Exchange warehouses were up during the session, and on a new report from the US Labor Department said that new jobless claims rose in the United States again last week.

March copper was down 3 cents to $1.50 per pound in New York while three-month copper dropped $65 to $3,350 per tonne in London after an analyst report said that refined copper production will outstrip demand by 915,000 tonnes this year.

Meanwhile, zinc fell $38 to $1,142 per tonne as LME inventories added 2,350 tonnes to a total of 348,975 tonnes, the most on hand in three years.

This gain in zinc stockpiles was taken by many traders as an indication that demand for the metal is on the decline.

Other base metals also saw prices decline as aluminium fell $6 to $1,433 per tonne, lead was down $40.25 to $1,149.75 per tonne, nickel was $200 lower to $11,450 per tonne, and tin dropped $425 per tonne to $10,850 per tonne.

On the other hand, precious metals prices were higher on the session.

April gold was up $12 to $914.20 per troy ounce in New York, while March silver added 28 cents to $12.75 per troy ounce and April platinum gained $12.30 to $982 per tonne.