Copper falls on demand worries

Print this page Posted on : 09-27-2008 by recycleinme.com

Copper prices slipped on Friday, but trading was thin as the market worried about demand growth and investors awaited news of a plan to rescue troubled US banks. Copper for delivery in three months on the London Metal Exchange (LME) was down $45 at $6,885 in the second official rings. Used widely in power and construction, copper rose in early trade to touch $6,960, up 0.4 per cent. "It will be a nervous weekend while people are waiting to see how the bailout plan goes," Mr Nick Moore, commodities strategist at RBS, said.

DEMAND WORRIES

LME copper stocks fell by 350 tonnes to 2,00,175, their lowest in more than three weeks, suggesting a pick up in demand.

Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell six per cent in the week ended Thursday to 16,130 tonnes.

A 1,650-tonnes rise in aluminium stocks to 1.37 millions - their highest level since March 2004 - weighed on the metal. Aluminium was trading at $2,515 from the close of $2,509 on Thursday, when it fell to a low of $2,470, last seen on January 25.

Lead was at $1,985 per tonne from $2,015 at the close on Thursday. Tin was last quoted at $17,900-17,925 from Thursday's close of $17,600. Zinc was at $1,811 from $1,800.

Nickel was trading at $17,195 from the last quote on Thursday at $17,075/17,100, despite inventories rising to 54,342 tonnes, their highest in nine years.

Source : Business Line