Copper hits 2-week low on grim demand outlook

Print this page Posted on : 02-18-2009 by recycleinme.com

London, Feb. 17

Copper slipped to a two-week low on Tuesday, extending losses for a third straight session as rising stocks and bleak economic and demand prospects dampened sentiment.

Copper for three-month delivery on the London Metal Exchange (LME) traded at $3,300 a tonne in official rings from $3,330 at the close on Monday. Stocks of copper in LME warehouses rose by 3,100 tonnes to 526,425 tonnes, the highest level since late 2003 and a gain of more than 50 percent since the start of the year.

A higher U.S. currency makes metals priced in dollars more expensive for holders of other currencies.

Prices of industrial metals have plunged since the third quarter of last year as demand collapsed. Copper has lost about 60 per cent since a record high of $8,940 a tonne in July, reflecting a trend across most commodities.

RECORD INVENTORIES

Aluminium prices fell to their lowest level this year as inventories of the metal, used in transport, packaging and construction, jumped by more than 10,000 tonnes for the second day in a row to a record above 2.94 million tonnes.

Aluminium for delivery in three months traded at $1,346 from $1,348 a tonne at the close on Monday, having earlier fallen to $1,337.50 {ndash} the lowest price since late December.

Key stainless steel ingredient nickel was untraded in the rings, but bid at $10,050 a tonne from $10,275 at the close on Monday.

Zinc traded at $1,119 from $1,129.

Source : Business Line