Copper gains on weak dollar

Print this page Posted on : 05-27-2008 by recycleinme.com

Copper futures rose in Shanghai after gains in London last week, as weakness in the dollar spurred buying of commodities as a hedge against inflation. London Metal Exchange copper jumped as much as 1.4 per cent on May 23 and has risen 23 per cent this year. The dollar has fallen 6.2 per cent this year against a weighted basket of the euro, yen and four other major currencies.

Copper for August delivery gained 0.7 per cent to close at 62,740 yuan ($9,044) a tonne on the Shanghai Futures Exchange. Metal for immediate delivery in Changjiang, Shanghai's biggest cash market, traded between 63,200 and 63,300 yuan a tonne. Copper for delivery in three months on the London Metal Exchange, which reached a record $8,880 a ton on April 17, rose 0.7 per cent to close at $8,180 a tonne on May 23. Shanghai aluminium advanced 1.1 per cent to 19,230 yuan a tonne and Shanghai zinc added 1 per cent to 17,980 yuan.

China's most powerful earthquake in 58 years has provided some support to aluminium and zinc since it rocked Sichuan province on May 12. Still, zinc prices are now below pre-quake levels as production losses may be small.

Among other LME traded metals, zinc rose 1.9 per cent to $2,150 a tonne on May 23, still near the lowest in two years, lead was little changed at $2,009, the lowest in a year, nickel gained 2.6 per cent to $24,100, aluminium closed up 0.2 per cent at $3,001, and tin was unchanged at $23,750, 7 per cent away from its record.

Source : Business Line