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5 February 2010


LME copper at 3-months low

Source: Reuters

LME copper fell to $6,329/mt, its lowest since Oct. 19, ending at $6,390/mt, $200 down.

"Everyone has their eyes focused on this dollar rally ... not only in the commodities, but also in the U.S. stock market," said Craig Ross, vice president of ApexFutures.com in Chicago.

"The recent change in sentiment was probably triggered by concerns over monetary tightening in China," said Daniel Major, an analyst at RBS Global Banking & Markets. "They haven't actually done a great deal yet ... there is plenty of scope for surprises out of China in the next 12 months, as they try and drain the liquidity they've pumped in."

"Combined with the fact that China's cash flows are being constrained through bank credit restrictions, they are probably also seeking to hold their cash flows in because it's the end of their year," said Justin Lennon, analyst with Mitsui Bussan Inc.

Aluminium ended at $2,045/mt, down $38. Nickel was at $17,725, down $470 and lead at $1,965/mt, down $55.

Zinc closed at $2,021, down $74, and tin was untraded at the close, but bid at $16,150, $450 down.