Copper hits 9-month low on weak demand

Print this page Posted on : 09-30-2008 by recycleinme.com

A firm dollar dragged down base metal prices on Monday with copper touching a nine-month low as investors awaited a vote by the US Congress on the creation of a $700-billion government fund to buy bad debt. Copper for delivery in three months on the London Metal Exchange was untraded in official rings but quoted at $6,550/6,555 a tonne compared with $6,775 at the close on Friday. Copper earlier hit $6,610 {ndash} its lowest level since December 21, 2007 and down 2.4 per cent on the day.

Lead fell more than five per cent to a low of $1,836 a tonne. It was quoted at $1,855/1,860 from $1,960 on Friday. Three-month zinc touched $1,695 a tonne, down nearly five per cent. It traded at $1,707 from $1,770. Lead and zinc have lost around a quarter and nickel has shed 35 per cent since the start of the year.

Nickel traded at $16,700 from $17,000. Aluminium stocks continued to rise, up 2,200 tonnes, climbing above 1.37 million tonnes for the first time since early 2004, enough for 13 days of world consumption. Aluminium traded at $2,460 from $2,494.

OUTLOOK

LME copper stocks fell 1,250 tonnes, down for the six straight day as material left warehouses, but at 198,925 tonnes, stocks are still two-thirds higher than in mid-June and enough for just under four days of world consumption. Analyst assessments of weak Chinese demand growth, particularly in the domestic housing and auto industries and across the wider export sector, also weighed on the market.

Source : Business Line