Falling stocks buoy copper in LME trade

Print this page Posted on : 03-28-2008 by recycleinme.com

Copper rose to its highest level in more than a week on Thursday as London Metal Exchange inventories fell and the dollar headed for its worst quarterly performance since 2004. Copper for delivery in three months was quoted at $8,365/8,375 a tonne, up $185, at 1103 GMT after rising to an intraday high of $8,380. In the previous session copper, a metal used in the power and construction industries, rose 1.3 per cent and so far this year copper has gained 25 per cent.

''It's largely a dollar story ... and it's benefiting copper more than the other base metals which follow suit,'' said Mr Stephen Briggs, analyst at Societe Generale Corporate and Investment Banking (SGCIB), adding a decline in stocks also helped pushing copper higher.

Metals were sold off heavily last week in a broad commodity correction, with copper down nearly 7 per cent. One trader said copper could rise towards $8,500 in the short-term.

Stocks of copper in LME warehouses fell 825 tonnes to 117,225 tonnes-enough for just over two days of world consumption. Inventories have fallen more than 40 per cent since the beginning of January.

Aluminium gains

Aluminium gained 1.1 per cent or $31 per tonne to $2,975/2,980, zinc rose $10 to $2,340/2,360 a tonne and lead was up $15 to $2,815/2,825. Three-months tin was at $20,500/20,600 from $20,300/20,350 and nickel gained 1.3 per cent or $400 to $30,200/30,400.

Source : Business Line