Copper up on China buying

Print this page Posted on : 02-05-2009 by recycleinme.com

Copper rose on Wednesday on reports of Chinese buying and as data from China and the US raised hopes the pace of the global economic downturn may be slowing. China has started buying copper from domestic bonded warehouses and overseas markets as a move to gradually triple its state reserves to about 1 million tonnes, trade sources familiar with the situation said.

A rise in China's official manufacturing index coupled with a surge in bank lending led to optimism the world's third largest economy may soon be on the road to recovery. Three-month copper on the London Metal Exchange traded at $3,389 a tonne in official rings compared with $3,370 at the close on Tuesday.

It earlier rose 2.3 per cent to $3,447.75, the highest since Jan. 27.

However, copper inventories on the LME continued to climb, up 4,650 tonnes to 499,950, the highest since November 2003. China's official purchasing managers' index for January rose to 45.3 from 41.2 in December and a record low of 38.8 in November, while the latest data from the US showed a rebound in pending home sales.

Aluminium rose to $1,418 a tonne from $1,405. Zinc was last bid at $1,180 from $1,174 a tonne.

Lead was last bid at $1,195 from $1,170.

Nickel was unchanged at $11,605 a tonne, while tin rose to $11,395 from $11,000.

Source : Business Line