Copper gains with improved economic outlook

Print this page Posted on : 03-06-2010 by recycleinme.com

Reuters London, March 5 Copper rose 1.8 per cent on Friday, rebounding from losses in the previous session, as equities gained on an improving economic outlook, and investors eyed the release of key payrolls data in the US.

By 1041 GMT, copper for three month delivery on the London Metal Exchange traded at $ 7,500 a tonne from $ 7,370 at the close on Thursday and compared with a session high at $ 7,503.75.

Prices of the red metal, used in power and construction, were also buoyed by a fall in LME inventories — a possible sign that demand outside China is improving.

Copper stocks fell 1,075 tonnes to 543,150 tonnes —levels not seen since early February and maintaining a downward trend that has developed throughout March.

Copper touched a fiveweek peak in prices on Monday after a weekend earthquake forced top producer Chile to temporarily shut down nearly a quarter of its mine capacity.

Aluminium traded at fiveweek highs at $ 2,248 versus $ 2,215.

LME stocks for the metal, used in transport and packaging, slipped 6,850 tonnes to 4.5 million tonnes.

Industrial metal prices were also supported by China, the world’s largest metals consumer, which signalled it would maintain its economic stimulus, supporting hopes that demand would remain firm.

NICKEL GAINS

Among other base metals, steel making ingredient nickel traded at $ 22,725 from $ 22,300.

Battery material lead was at $ 2,198 from $ 2,170.

Zinc traded at $ 2,293 a tonne from $ 2,259 and tin was at $ 17,525 from $ 17,250.

Source : Business Line