Copper rallies to 1-week high as $ dips

Print this page Posted on : 09-23-2008 by recycleinme.com

Copper rallied to a one-week high on Monday as the dollar fell against the yen and the euro and as stocks fell in Asian warehouses, suggesting a pick-up of demand in China. Copper for delivery in three months on the London Metal Exchange was up $140 at $7,180 a tonne by 0925 GMT from Friday's close of $7,060 after hitting a nine-month low of $6,625 earlier that week.

Earlier the metal used widely in the power and construction industries hit $7,215 a tonne, the highest since Sept. 15. ''The dollar has weakened and that has helped to support base metals,'' said Calyon analyst Mr Robin Bhar.

CHINESE DEMAND

China's copper imports have fallen since the start of the year due to soft demand, rising domestic output and high prices. China's imports of refined copper fell slightly on the year to 87,168 tonnes in August, and also were down from 88,075 tonnes in July, the General Administration of Customs said on Monday. But China's implied copper demand rose 1.2 per cent in August from July, Reuters calculations show, despite fears of a widespread slowdown due to factory closures for the Olympic games.

Aluminium gained $14 to $2,549 from Friday's close of $2,535.

Lead was up $5 at $1,905 and tin $400 higher at $17,300.

Nickel was trading up $380 at $17,280 and zinc at $1,807.50.

Source : Business Line