LONDON, Sep 17, 2010 (Dow Jones Commodities News via Comtex) --
Base metals closed mostly higher on the London Metal Exchange Friday, but pared gains made earlier in the day as the euro eased against the U.S. dollar.
The EUR/USD climbed as high as $1.3159 in early European trade. It pulled the metals somewhat lower, however, as it slipped throughout the afternoon to trade at $1.3044 by 1630 GMT, down 0.2% on the day.
LME three-month copper closed at $7,720 a metric ton after hitting an intraday high of $7,810/ton--its highest level in almost five months.
But the red metal was still up 0.3% on the day.
Analysts said the complex is finding good support from eroding inventories, with LME stocks across all the metals except tin having declined Thursday.
Inventories of copper stored in LME-monitored warehouses fell 2,950 tons, leaving them at 10-month low of 384,200 tons.
And the week finished "with risk appetite on the mend," with gains in the stock markets supporting risk sentiment, said Gluskin Sheff economist David Rosenberg.
Meanwhile, copper in particular is finding support in tightening nearby spreads and sustained higher premiums in Asia, Standard Bank said.
Reports that workers at Codelco's Radomiro Tomic mine rejected an early wage proposal was also "significant," and further negotiations will be closely watched, said Gayle Berry, base metals analyst at Barclays Capital.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Thursday PM kerb
Copper 7720.0-7721.0 Up 24
Lead 2202.0-2202.5 Unchanged
Zinc 2151.0-2152.0 Up 4
Aluminum 2180.0-2183.0 Up 15
Nickel 23200.0-23225.0 Dn 45
Tin 23600.0-23650.0 Up 105
Aluminum Alloy 2145.0-2150.0 Up 5
Aluminum Alloy-NASAAC 2130.0-2140.0 Dn 10