Copper drops to 3-week low on strong $

Print this page Posted on : 04-26-2008 by recycleinme.com

Copper fell to a three-week low on Friday, as the dollar's sharp rise against several currencies triggered profit-taking across commodities, traders and analysts said. Copper for three-months delivery on the London Metal Exchange fell to $8,370 per tonne, its lowest since April 2, and was at $8,440/8,460 per tonne, down $85 from Thursday's close.

CHILE STRIKE

A strike at the world's top copper producer Codelco has paralyzed production in several divisions of the company, including the world's biggest underground copper mine.

Analysts say the strike is already priced-in, but nevertheless could be a factor which limits losses.

''There are a lot of strikes in Chile and they tend to be brief and little if any output is lost,'' economist Mr John Kemp at Sempra Metals said.

Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 6,765 tonnes in the week ended Thursday, while aluminium inventories rose marginally, the exchange said on Friday. While LME stocks are down by 1,425 tonnes at 110,775 tonnes, enough for less than three days' of global consumption.

In other metals, tin was $250 lower at $23,450/23,550. Aluminium was at $2,960/2,965 versus $3,000 on Thursday. Lead was $49 lower at $2,710/2,720 a tonne and zinc was $10 softer at $2,230/2,240 while nickel was $305 softer at $28,600.

Source : Business Line