COPPER prices were slightly steadier yesterday as an earlier correction enticed bargain hunting from top consumer China. But concerns about slowing growth in the world's top economies muddied the metal's demand picture.
Lingering fears of a global economic slowdown due to uncertainty involving the United States and Euro zone countries are expected to limit gains.
According to Reuters, the three-month copper on the London Metal Exchange (LME) traded at US$8,976 a tonne, up 0.2 per cent against a close of US$8,960 a tonne on Monday. Earlier in the session prices hit a trough of $8,870 a tonne, the lowest in 10 days, and remained more than 10 percent from record highs of $10,190 touched in February.
A pick up in volumes on the LME and a price differential between London and Shanghai markets moving in favour of imports, suggest that some Chinese consumers see value in copper at current levels. For crude oil, Higher Saudi and Abu Dhabi official selling prices (OSPs) for October firmed the tone in the Middle East crude market yesterday, as producers cash in on rising demand following refinery maintenance.
Top oil exporter Saudi Arabia raised the price of Arab Light crude for Asian customers by a larger-than-expected 90 cents to a premium of $1.65 a barrel to Dubai quotes, up from a 75-cent premium for September cargoes. Northeast Asian refiners said the increase was reflective of higher spot prices for October-loading cargoes.
For brent oil prices open yesterday's trading session tumbling back down to near US$110 a barrel as European stock markets head lower with EU debt problems back in focus, driving markets and oil prices lower. In London, brent crude oil futures for October 2011 delivery were trading at $110.83.
Further, Europe faces a string of political and legal tests this week that could hurt efforts to resolve its sovereign debt crisis and increase pressure for governments to try more radical solutions.
