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Contact Us <[EMAIL PROTECTED]> Request For Trial <http://www.platts.com/Request%20More%20Information/> The base metal complex was indicated higher in London morning trade on Friday with "significant volumes" of copper and aluminium going through the LME Select system, a London-based trader said. He noted that about 1,929 mt of copper and 1,920 mt of aluminium had been through the system, which "for this time in the morning" was considerable. "We are seeing a bit of short-covering and there may be a bit more of a run up to be had," he said, adding that despite the stronger floor trade closes on Thursday, trade had been "as dull as dishwater." He said that there was some action expected later in the day when the US came in, and there would probably be an attempt to set the complex up for a strong start on Monday. He said even though the complex had gained ground on Thursday, despite the weak US trade data released, it did not necessarily mean the consolidation phase for metals was over. "Bad US data knocked the dollar down, which has boosted metals, gold and oil," he said. "This morning everyone is trying to figure out if the market has run out of steam," the trader said, adding however that the fourth quarter outlook for copper was quite good. "It is further forward than that when it gets a bit hazy," he said, adding that zinc was also "probably due a last hurrah." Copper was bid at $7,808/mt at 0927 GMT on Friday, up $43 from its Thursday close, while aluminium inched up $3 to $2,517/mt. Zinc was indicated at $2,885/mt at 0927 GMT on Friday morning up $20 from its previous close. Basemetals.com analyst William Adams said in a report Friday that after days consolidating at lower numbers, Thursday's trading on the LME "at last looked as though the consolidation phase had run its course and that the metals were even contemplating rising off their recent lows." He noted too that since this had happened despite a slew of bad US economic data, it was even more suggestive that sentiment may have turned. Adams noted that the up tick in the metals had lasted "even though Wall Street was in negative territory for most of [Thursday], but adding fuel to the metals was a stronger oil price...and gold challenging its highs just below $770/oz." He added that the markets were looking bullish, which for the equities seemed to be on the back of further Fed rate cut hopes. Meanwhile, lead also gained in morning trade, up $42 to $3,642/mt. Nickel was also indicated higher at $31,850/mt, up $250 from Thursday's close. Tin was up $150 to $16,400/mt at 0927 GMT. There were no bids available for aluminium alloy and North American alloy after both contracts went untraded on Thursday. UBS said in a report Friday morning that copper had been tracking crude oil and the macro environment, but could see a bounce to $7,850/mt as long as $7,700/mt holds, while support for aluminium was evident $2,485-95/mt. This commentary was first published in Platts Metals Alert. If you have any feedback about this commentary or want to find out more about Platts Metals products and services, please contact [EMAIL PROTECTED] Updated: October 26, 2007 This content first appears in Platts *Metals Alert<http://www.platts.com/Metals/Real-Time%20Information/Metals%20Alert/> *. Platts Metals Alert is the metal industry's leading real-time data feed service. It provides continuous breaking Metals news from the editors of *Platts Metals Week*, a long-term global team of metals specialists dedicated exclusively to metals reporting, 24-hours-a-day. Copyright (c) 2007 - Platts, All Rights Reserved [image: The McGraw-Hill Companies]
