Copper at 7-week high on LME
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Copper prices jumped to fresh seven-week high on Tuesday as the dollar tumbled and the market worried about supply disruptions, while lead hit a record high on concerns about Chinese output.
Copper for three-month delivery on the London Metal Exchange was quoted at $7,745/7,755 a tonne at 0921 GMT up from $7,710 at the close on Monday. Earlier it traded at $7,805 -its highest level since May 14.
BETS ON SHORTAGES
Also in focus are stocks of copper in LME warehouses, which at around 112,000 tonnes amount to less than three days global consumption and are at their lowest since October last year.
Bullish sentiment has prompted some people to ask if copper could breach its record high of $8,800 a tonne set in May 2006.
Tight supplies are also reflected in the premium charged for material to be delivered now rather than in three months.
That premium at around $112 a tonne is down from $127 a tonne on Monday, but it is still the highest since July 2006.
Worries about future supplies are also behind lead’s meteoric 70 per cent rise this year to a record high of $2,790 a tonne on Tuesday.
Nickel was at $36,200/36,400 from $35,900 on Monday, Zinc at $3,445/3,465 from $3,460 and the bid on tin was steady at $3,875.
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Source : Business Line |
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