Reuters commentary (7-27) LME market: The London Metal Exchange (LME) base metal mostly fell on Tuesday, copper encountered funds and technical selling, but lead was boosted due to supply concerns. Copper fell, falling below support at 2,680. US$2,660 per ton; most other base metals follow the trend of copper. A trader said, “copper suffered some technical selling of commodity trading advisory (CTA) and selling of large funds.†Traders noticed that after the dollar strengthened against the euro Later in the afternoon, further selling took place. The strong consumer confidence index announced by the United States raised the expectation that the US Federal Reserve Board (FED) may increase interest rates faster than originally expected, thereby encouraging the US dollar to rise. Mexico The progress of the Group’s labor disputes has eased market concerns. Cananea miners voted to postpone the strike decision until August 10. Dealers said, “The short-term support is near 2,650/620, but the key support is still at 2,500.†"According to consumer buying, there may be a wave of 2,680/90 and 2,710/730 rally, but the current sentiment suggests that the bottom has not yet been found." In other metals, Lead stabilized, rose 19 US dollars to 895 per ton, the price difference between the previous month contract is extremely tight. Stocks fell 700 tons to 38,225, a low level since August 1990, spot / three-month period reverse price difference rose to record High point of 97.50/102.50. Zinc fell back to 983/984, a decrease of 5 US dollars in light trading; nickel fell 455 US dollars to 13,645 per ton. A trader said, "Technical selling to suppress nickel prices, if the nickel fell 13,500, will quickly explore 12,800." Tin futures held steady, rising 85 US dollars to 8,810/820 per tonne. LME copper: three-month copper fluctuating around the low of around 2,660 and the high of around 2,700, in-zone trading The final price was reported at US$2,664 per tonne, which was a decrease of US$50 from the evening's composite transaction price on Monday. LME Aluminium: Aluminium closed down US$7.5 to 1,658 per tonne. The market is concerned about the progress of aluminum industry (Alcoa) issues. The company stated that Washington State The leader of the Wenatchee Aluminium Union has rejected the new contract, and about 400 workers will be unemployed. The Wenatchee aluminum smelter has been idle since July 2001 and will remain closed in the future. COMEX Copper : Copper futures on the New York Mercantile Exchange (COMEX) closed at three-week lows on Tuesday. Analysts and traders said that the United States The strong data encouraged the USD to rise and the Fund’s exit position. The main September contract fell 2.9 cents to US$1.2210 per pound, a decrease of 2.3%, and it was the lowest close since July 7. Intraday was between 1.2530 and 1.2165. Volatility. The spot July contract fell 2.95 cents to $1.22, and the far-month contract closed down 2.40-2.95 cents. "The demand side of the copper market is closely related to the strength of the dollar against other currencies," said one analyst. A strong consumer confidence index boosted the dollar's rise, so demand for copper fell, causing the fund to sell. "London copper fell, causing the New York market to decline at the beginning of the session, but the early morning market rose after the dollar rose to a five-week high against the euro. A heavier selling pressure emerged. The Economic Consultative Conference announced that in July the U.S. consumer confidence index jumped to 106.1, higher than the revised 102.8 in June and also higher than analysts expected 102.0. In the early afternoon, the euro against the U.S. dollar It had fallen to a low of $1.2036 and has now slightly recovered to 1.2041.
