Copper hits 16- month high as US data show recovery

Print this page Posted on : 01-07-2010 by recycleinme.com

Reuters London, Jan. 6 Copper hit 16- month highs on Wednesday, after US new factory orders data added to indications of economic improvement and raised prospects for industrial metals demand. Lead, zinc and tin also hit multi- month highs, as well as aluminium which rallied on supply concerns as harsh cold weather hit parts of China. Copper for three- month’s delivery on the London Metal Exchange traded at $ 7,634 a tonne at 1106 GMT, up some 2 per cent versus Tuesday’s close of $ 7,485. Gaining for a fourth straight day, the metal used in power and construction earlier hit $ 7,648, it’s highest since late August 2008. ALUMINIUM Aluminium traded at $ 2,329.75 from $ 2,302. The metal used in transport and packaging earlier hit $ 2,338.50, its highest since mid- October 2008, as analysts said weather conditions in China were supporting prices. Zinc was at $ 2,644.5 from $ 2,575, earlier hitting $ 2,654.75, its highest since mid- March 2008. Battery material lead was at $ 2,612.75 from $ 2,523, having hit $ 2,633, its highest since early May 2008. A fresh rise in LME copper stocks reminded investors that OECD demand is still poor and buying by China, the world’s top consumer of the metal, has cooled. Inventories climbed 2,050 tonnes to a 9- 1/ 2 month high of 507,400 tonnes. Tin traded at $ 17,588 from $ 17,350 and hit a 15- month high of $ 17,665. Nickel was at $ 19,030 from $ 18,710.

Source : Business Line