The week ended on a rather quiet note on Friday with lower volumes being seen across the board. The economic data didn’t presenting the market with any nasty surprises, with a stronger dollar taking charge of price direction and seeing much of the complex come under pressure.
The metals have again been rather quiet volume-wise on Monday; however, prices are generally higher across the board with copper leading the way. The Martin Luther King holiday in the US, and the lack of economic data, may see the quiet conditions continue this afternoon.
Monday morning has seen copper set the pace, with arbitrage-related buying overnight seeing the metal climb back above $7,500. Copper’s strength has rubbed off on the other metals which, in the absence of any clear direction of their own, have followed suit and tracked the red metal higher. Volume-wise, copper turnover is looking rather disappointing heading into the afternoon, while volumes elsewhere also remain subdued.
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While most of the base metals came under pressure or traded sideways on Friday, nickel bucked the trend to post a 2% gain. There was no conclusive reason for the metal's strength, however good buying interest emerged around the LME second ring close, with the metal continuing to rally thereafter. Nickel has since managed to edge higher during Monday morning, albeit on the back of thin volumes.
In other news, Newmont Mining has meanwhile halted mining operations at its Batu Hijau Copper-Gold mine in Indonesia after a rockslide killed a bulldozer operator. Output has been unaffected so far, with the concentrator continuing to process stockpiled ore. Mining operations will resume once the site receives safety clearance.
