Stock fall boosts LME Copper
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Falling stocks boosted copper prices on Tuesday and a new Chinese levy on lead exports propelled the metal up around four percent to a new record high.
Copper was at 0901 GMT up at $7,515/7,525 a tonne from $7,405 on Monday, when it gained nearly two per cent.
Stocks of copper at LME warehouses fell 1,650 tonnes to138,425 tonnes a drop of more than 30 per cent since early February and the lowest since last November .
“The continued drawdown of LME stocks is supporting the copper market,” said Mr. Michael Widmer, analyst at Calyon.
LEAD AT RECORD HIGH
Lead hit a new record high of $2,216 a tonne. It was last at $2,216 a tonne. It was last at $2,200/2,200 a tonne from $ 2115 a tonne on Monday and zinc was at $3,800/3,820, up from $3,780.
Both metals have been boosted by news that China will impose a 10 percent tax on exports of refined lead and increase the export tax on unwrought zinc from June 1 to try to ease its large trade surplus.
Zinc stocks at LME ware houses have fallen to around 80,000 tonnes, from above 770,000 tonnes in April 2004 and little more than two days global consumption.
Aluminium gained $13 to $2,882/2,887 a tonne, with the market watching the large number of outstanding option contracts-around 47,000 or about 1.2 million tonnes-to buy the metal at between $2,900 and $3,400 a tonne.
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Source : Business Line |
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