Base-metal prices on move upwards

Is the rise in precious metal prices having a positive effect on base metals?

Copper, which sold for an average price in 1986 of 62 cents (US) per lb, is currently over the 70 cents mark; lead, with a 1986 average of 18 cents , is now running in the mid-30 cents range; and zinc, with a 34 cents average last year, is in the mid-40 cents range.

Even aluminum, which sold for an average 1986 price of 52 cents , and nickel, which averaged $1.76 last year, are riding high, with aluminum currently in the 66.5-69 cents range and nickel in the $1.98-$2.18 range.

In copper’s case, Metals Week reports consumption in the U.S. seems to be running ahead of expectations while inventories are said to be down. Should demand soon peak, as it has in the past at this time of the year, copper prices could find themselves stalled.

Rising lead prices may be tied in large part to a tight supply in Europe. Lead supplies in North America are reported to be sufficient. Secondary smelters are reported running full blast. In the battery scrap market, where demand is said to be high, prices have increased accordingly.

Meanwhile, the hike in the price of zinc is linked to the strike at Cominco Ltd’s refining complex at Trail, B.C. Cominco is reported to have a month’s supply of zinc in inventory. Last year the refinery produced almost 267,000 tons of the base metal.