With no major moves over the last week in the base metals segment7 prices have given up some of their recent gains The upward trend in inventories for most LME metals: this week - particularly for aluminium1 copper and zinc - has added to the negative sentiment. Physical demand for base metals does not appear to be benefiting from the somewhat improved economic climate. This is mainly due to the recovery, which is underway, being more focused on the less metal-intensive service sector; manufacturing in many regions remains weak. Physical premiums are in almost all cases below year ago levels and downstream markets are still characterised by short lead times and weak offtake.
NSTL
