Copper surges in LME trade

Print this page Posted on : 02-12-2010 by recycleinme.com

London, Feb. 11

Copper prices surged more than 3 per cent on Thursday as risk appetite improved, the dollar dipped versus the euro ahead of an EU summit, and prospects for Chinese demand brightened.

Benchmark copper for three- month’s delivery on the London Metal Exchange traded at $ 6,733 a tonne at 1042 GMT from a close of $ 6,540 on Wednesday, having earlier hit a one- week high of $ 6,784.75.

Also, with the arbitrage or premium for Shanghai copper over LME still open, Chinese import buying is holding up well. Latest LME data showed cancelled warrants —material set to leave warehouses — jumped to 6,350 tonnes from 3,850 on Tuesday.

Copper prices have declined nearly 10 per cent this year, reversing last year’s 140 per cent surge, on worries over Chinese monetary tightening, sovereign debt in Europe and proposed changes to banking regulation in the US.

ALUMINIUM

Among other industrial metals, aluminium was at $ 2,056 a tonne from $ 2,030. Latest LME data showed stocks fell 4,950 tonnes but remained near record levels at 4.56 million tonnes.

Nickel stocks rose 330 tonnes to 166,356, near their highest ever levels, but against that, cancelled warrants rose to 3,648 from 3,468 on Tuesday, indicating demand might be improving.

Nickel was at $ 18,100 a tonne against $ 17,710, zinc was at $ 2,156.50 from $ 2,114, while battery material lead was at $ 2,078 from $ 2,045. Soldering metal tin was at $ 16,095 from $ 15,700.

Source : Business Line