Copper gains in LME trade

Print this page Posted on : 05-22-2007 by recycleinme.com

Copper rose in London after posting the largest weekly decline in more than three months, underpinned by a 23 per cent decline in metal stockpiles this year that suggested more demand. Nickel dropped.

Inventories of copper monitored by the London Metal Exchange fell 1,250 tonnes, or 0.9 per cent, to 140,075 tonnes, the exchange said in a daily report, the lowest level since Nov.2.

Copper for delivery in three months gained $75, or 1 per cent, to $7,347 a tonne as of 10:07 a.m. The contract posted the largest weekly decline last week, falling 7.9 cent.

Copper has dropped 12 cent from the 11-month high traded on May 4 on concern China’s demand growth may slow following a price rally and the Government’s interest rate increases, Goldman Sachs said.

NICKEL STOCKPILES

Nickel stockpiles gained 162 tonnes, or 3.4 per cent, to 4,986 tonnes, according to the LME report, the highest since the end of April. The price of the contract for delivery $400, or 0.8 per cent, to $50,000 a tonne.

Nickel will average $40,327 a tonne this year, up 8.4 per cent from a previous forecast, according to Goldman Sachs. The bank estimates a supply shortfall 7,000 tonnes for the year, wider than an earlier estimate of 3,000 tonnes.

Among other metals traded on the LME, aluminium added $6 to $2,856, lead gained $5 to $2065 and tin was unchanged at $14,000. Zinc advanced $28 to $3,748 a tonne.

Source : Business Line