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3 February 2010


LME metals rise

Source: Reuters

LME copper closed at $6,820/mt, up $93.

"We're having some more encouraging economic data coming through," said Gayle Berry, analyst at Barclays Capital in London. "The pieces of the jigsaw do seem to be falling into place to suggest that we will see a recovery in (developed world) demand begin to pick up pace over the first half of this year."

"I think all of these commodities have just been selling off so much that any of sort of bullish news that comes up from here is just going to get the shorts caught with their pants down," said Michael K. Smith, president of T & K Futures and Options Inc in Port St. Lucie, Florida.

"People worry it means growth will slow down," said Standard Chartered analyst Daniel Smith, referring to the credit-tightening measures that had surfaced in China's financial system since mid-January. "But we've still got loose monetary conditions in China that are conducive to growth. The fact it is becoming tighter is not the same as it being a tight monetary policy."

Aluminium closed at $2,120/mt, up $35. Nickel was at $18,300/mt, up $300/mt, while zinc was last quoted at $2,160/mt, up $15.

Lead was up $73, at $2,118/mt, while tin was at $16,450/mt, up $300.