Copper firm, tracks volatile equities
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Copper firmed on Wednesday, underpinned by falling stocks and a strike in Peru, as industrial metals tracked volatile equity markets.
Copper for delivery in three months on the London Metal Exchange turned higher by 0913 GMT, up $35 at $7,345 /7,365 a tonne.
A strike in Peru was supportive for copper prices as was a tight situation of global LME inventories, analysts said.
Inventories fell by 2,625 tonnes to 137,000, but LME stocks have been creeping higher since early July, up some 40 per cent.
Standard Chartered forecast three-months copper to stay strong trading at an average of $7,106 in the fourth quarter. In 2008, it expected prices to fall to an average of $5,500.
ALUMINIUM STEADY
Three-months aluminium, a metal mainly used in the automotive, construction and packaging sector, was steady at $2,465/2,470 against $2,453 on Tuesday.
Stocks rose for a third consecutive day, up 7,175 tonnes to 854,000, just under ten days of global consumption.
Falling lead stocks, with some 70 per cent used in batteries, underpinned three-months futures, down by 550 tonnes to 24,750.
Lead was indicated at $3,035/3,060 versus Tuesday’s close at $3,000.
Prices have shed over 5 per cent during the past month as traders have expected a halt to inventories outflux.
LME inventories came in 550 tonnes lower totalling 24,750, down by over 360 per cent, from its recent peak in mid-2006 at around 120,000. Stocks are at the lowest level since March 1990.
Nickel fell $325 to $28,175 /28,275, zinc was firm at $2,960/2,980, up $10 and tin was steady at $14,750/14,950 against $14,700 on Tuesday.
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Source : Business
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