Copper trims gains as inventories jump
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Copper trimmed gains on Tuesday as inventories showed a hefty increase, while wider economic fears dogged investors after banking shares took another battering. Prior to the data, three-month copper on the London Metal Exchange gained 2 per cent. Stocks of copper in LME registered warehouses rose by 9,600 tonnes to 208,350 tonnes - their highest since February 2007, with between 80-90 per cent of them held by one entity.
CONSUMPTION FALLING
Aluminium rose to $2,280 per tonne from $2,250 on Monday when it hit $2,235, its lowest level since early 2006. Stocks of the metal in LME warehouse at more than 1.38 million are at their highest since February 2004. ''We continue to see weakness in US consumption. European consumption is faltering rapidly and is expected to get worse,'' Barclays Capital said in a note.
''Worryingly Chinese consumption is also showing signs of slowing and we now believe it's increasingly unlikely that consumers will come back and restock through (the second half of 2008) after aggressive destocking in (the first half).''
Stainless steel raw material nickel was trading at $14,250 from $14,300 on Monday. Lead climbed to $1,655 per tonne from Monday's last bid at $1,630, tin was unchanged at $16,200 and zinc at $1,545 from $1,549.
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Source : Business Line |
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