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.