Base metals prices on the London Metal Exchange were mostly lower at the close on Tuesday February 27, with the dollar index surging to its highest since the start of the month.
The three-month copper price closed 1.2% lower and only just held above $7,000 per tonne. Copper's healthy contango and a lack of market tightness are putting pressure on prices. "We think that copper prices are vulnerable to a consolidation in the next week or so, in part due to a lack of real tightness in the paper and physical markets," Metal Bulletin analyst Boris Mikanikrezai said. "Available stocks continue to go up while LME nearby spreads at the front end of the curve remain fairly loose - the cash/thee month spread has averaged $39 per tonne contango so far this month," he added. Nickel closed $85 lower after...