LME base metals drop on Greek uncertainty

The base metals prices on the London Metal Exchange (LME) dropped on Monday with many hitting multi-week and multi-month lows because of concerns that Greece is counting disaster.

Greece pulled out of emergency meetings with creditors over the weekend and called for a referendum to vote on the proposed bailout terms.

The country has shuttered its banks for at least a week and imposed capital controls after the European Central Bank froze emergency liquidity assistance to Greek banks at current levels.

LME nickel hit its cheapest in six years. The three-month unofficial nickel price lost 647.5 U.S. dollars, or 5.19 percent, to 11,840 U.S. dollars a tonne.

LME copper get some momentum from Chinese stimulus. The Chinese central bank lowered interest rates by 25 basis points over the weekend for the fourth time in the last seven months. But it closed lower. The three-month unofficial copper price dropped 6 U.S. dollars, or 0.10 percent, to 5,781 U.S. dollars per tonne.

In other metals, the three-month unofficial aluminium price lost 10.75 U.S. dollars, or 0.63 percent, to 1,697.25 U.S. dollars a tonne. The three-month unofficial lead price lost 15 U.S. dollars, or 0.84 percent, to 1,774 U.S. dollars a tonne. The three-month unofficial zinc price lost 10 U.S. dollars, or 0.49 percent, to 2,016 U.S. dollars a tonne. The three-month nofficial tin price lost 387.5 U.S. dollars, or 2.61 percent, to 14,475 U.S. dollars a tonne. Endit