Copper falls on worries over China demand

Print this page Posted on : 08-30-2008 by recycleinme.com

Copper eased for a second consecutive day on Friday on persisting concerns about demand from China, the world's biggest consumer of the metal. Inventories in London rose to a six-month high, adding bearish pressure. Copper for delivery in three months on the London Metal Exchange fell to $7,464 a tonne at 1008 GMT from $7,535 at the close on Thursday.

Stocks increase

LME inventories of the metal, used in construction and power cables, jumped 3,325 tonnes to 173,375, their highest level since February 4, while stocks in Shanghai dropped 19 per cent this week. Shanghai inventories fell a greater-than-expected 4,171 tonnes to 17,625 in the week ended on Thursday, their lowest in three years and enough for less than two days of Chinese consumption.

Aluminium was steady, at $2,735 a tonne from $2,730, even as inventories in LME warehouses rose 1,250 tonnes to 1.169 million tonnes, the highest level since April 2004.

Lead fell to $1,990 a tonne from $2,040 on profit-taking following two days of gains. Nickel dropped to $20,200 from $20,500.

Zinc was a touch easier at $1,795 from $1,799 a tonne, while tin fell to $20,025 from $21,150.

Source : Business Line