LME Base Metals Surge following Euro Rescue Package

Posted in Industry News on 10th May 2010

Following a decision by European policymakers, central bankers and the International Monetary Fund to provide a $1 trillion rescue package to boost the Euro, base metals staged a strong recovery in the early trading sessions on the London Metal Exchange (LME) in the aftermath of the announcement.

Upon commencement of the morning trading session, all metals opened above the previous week’s prices and news of the imminent rescue package helped boost a range of mining stocks, sending several share prices up by almost 10 percent.

Despite the initial healthy gains experienced by the base metals, traders are remaining cautious as the price direction remained far from clear.

The announcement of a monetary rescue package has been welcomed as a huge relief in relation to the Euro and the LME, with three month nickel prices gaining around $1000 per tonne, whilst nickel stocks in LME warehouses fell by 762 tonnes.

Experts were warning however that the metals market is still extremely volatile and almost entirely driven by the fluctuation of the Euro and the volatility looks set to continue in times of economic instability.

Nickel wasn’t the only base metal affected by the rescue package, other non-ferrous metals influenced by the fluctuation of the Euro included copper and aluminium, both of which had price increases of several hundred dollars per tonne.

William Rowland Ltd are ferro alloys suppliers, high purity metals suppliers, metal powders suppliers, nickel powder suppliers, nickel alloy suppliers and tin suppliers. If you would like to find out how we can meet your requirements, please contact us using the Quick Enquiry Form on the right-hand side of this website.

Tags: