Copper recovers on hopes of stocks decline

Print this page Posted on : 02-03-2009 by recycleinme.com

London, Feb. 2

Copper led a recovery in base metals on Monday, getting a boost from an unexpected decline in inventories.

At 1127 GMT, three-month copper was trading at $3,235 a tonne, up $80. Aluminium was $8.25 higher at $1,357.25/tonne, zinc was up $18 at $1,114/tonne, nickel rose $200 to $11,350/tonne, lead gained $10 to $1,130/tonne and tin was up $25 at $10,800/tonne.

Stocks down

LME copper inventories dropped 325 tonnes to 491,200 tonnes, one of the few declines since they began a steady upwards climb last July. ''I think people covered shorts on the back of that,'' said Mr Michael Widmer, a metals analyst at BNP Paribas in London.

However, cancelled warrants for copper, which indicate how much material is due to be withdrawn from the warehouses, still stand at just 1.5 per cent of total inventories. That makes it unlikely the rising trend has come to an end, said Mr Widmer.

Source : Business Line