Demand hopes perk up copper

Print this page Posted on : 07-27-2010 by recycleinme.com

London, July 26

Copper steadied on Monday, underpinned by expectations of improving prospects for demand growth and after European bank stress tests revealed no surprises.

Benchmark copper was untraded in official rings, but bid at $ 7,026 a tonne from $ 7,030 a tonne at Friday’s close.

The metal, used in power and construction, earlier hit $ 7,088 a tonne, within touching distance of a two- month high of $ 7,090 a tonne on Friday when fund buying to cover short positions — bets on lower prices — pushed up prices.

Traders said the jury is still out on the US, the world’s largest economy, where recent data may be pointing to faltering growth.

Three- month aluminium was bid at $ 2,040 a tonne from Friday’s last bid at $ 2,030 a tonne.

Stainless steel material nickel too has been helped by such deals, which release cash for producers and earn returns that are higher than money market rates for banks.

Analysts estimate about 60 per cent of LME stocks are tied up in this way.

Nickel, which reached a two- month high of $ 20,810 a tonne, traded at $ 20,525 a tonne in official rings, up from Friday’s last bid at $ 20,350.

Tin traded at $ 19,260 a tonne from Friday’s last trade at $ 19,495.

Lead was bid at $ 1,977 from $ 1,979 and zinc traded at $ 1,917 from $ 1,910 a tonne.

Source : Business Line