Metal market strengthens

Metal market strengthens

SINGAPORE (Reuters): Sentiment in Southeast Asia's base metals market improved after recent fund-buying in the West, but there are no signs of an immediate business pick-up in the Far East, traders said yesterday.

"The change is in sentiment, but not fundamentals," said one Singapore trader. "I still don't see many deals."

On the London Metal Exchange (LME), copper held above $1,740, touching a high of $1,761 a ton before slipping back to $1,751 at Tuesday's close, up $11 against Monday's kerb.

Despite recent signs of a recovery in prices on the LME, copper premiums in the Far East were still weak, traders said.

Copper premiums were seen in a wide range by the trade in Singapore at between $35 and $45.

On Wednesday, China's Coordination Committee of Non-Ferrous Metals Industry said 15 small Chinese smelters had cut copper production by 30,000 tons in the first half of 1998 and planned to cut a further 40,000 in the second half of the year.

China's six major copper producers had agreed earlier to cut output by 90,000 tonnes this year.