Metalnewsnet 26 Apr:

Base metals failed to maintain their opening levels in Friday's official session on the London Metal Exchange, after a subdued pre-market and overnight trading. The euro weakened on gloomy data released on Thursday revealing that Greece's deficit is worse than previously thought and that the UK deficit has risen to record levels.

 "The markets are having trouble sustaining the levels they were at because the euro's getting such a hammering," a category II trader told MB. "It's one step forward, two steps back at the moment. With stocks doing what they are because of the US data, it all contributes to a feeling of nervousness and inconsistency." "Liquidity is getting smaller and smaller every day, with lower levels of turnover. This is reflected by some members of the investment community not knowing what to do." Three-month copper closed at $7,695-700 per tonne, down from an intraday high of $7,759 per tonne.

The red metal had been the only one to stay above Thursday's official price in Asian trading and had opened at $7,715. Three-month aluminium closed at $2,296/97 per tonne, down from its opening price of $2,320 per tonne. The light metal traded as high as $2,340 per tonne and as low as $2,290. "In the short term we may well look at the downside," the category II trader told MB. "But we're still in a very low interest rate environment and the commodity sector is still an attractive one for investors." "We'll probably finish the month a little lower than we are now," he added. Three-month nickel opened at $27,150 per tonne, but failed to revisit this level for the rest of the day, eventually settling at $26,725/50. "If the market closes below the ten-day moving average, it would be the first time in a month.

That could be negative and prompt further selling," another category II trader told MB earlier on Friday.

Editor: KylinTse