Copper sinks to 4-year low on gloomy outlook

Print this page Posted on : 12-25-2008 by recycleinme.com

London, Dec 24

Copper rebounded 1.7 per cent higher before reversing gains on Wednesday to match a 4-year low hit in the previous session as the uncertain economic outlook weighed despite a weak dollar.

The dollar slipped against the yen and a basket of currencies in thin trade as investors braced for US data that may add to the grim outlook for the nation's economy.

Figures on Tuesday showed the US housing market took a sharp turn for the worse last month.

''It's a mixed bag,'' said Mr Leon Westgate, an analyst at Standard Bank.

Volatile copper for three month delivery on the London Metal Exchange closed at $2,825 a tonne in rings from $2,870 on Tuesday and compared with a session high at $2,918.75.

Prices of the metal used in power and construction fell to a 4-year low of $2,825 on Tuesday and have fallen almost 70 per cent since a record high of $8,940 in July.

Copper LME stocks rose 3,250 tonnes to 331,450 tonnes, its highest level since early 2004.

Aluminium drops

Aluminium dipped 1.3 per cent to a low of $1,539.50 but closed at $1,540 from $1,560. LME aluminium stocks jumped 17,400 tonnes to 2.25 million tonnes.

Nickel was last bid at $9,600 a tonne from $9,750 at the close on Tuesday, lead traded at $875.50 from $870 and tin was at $9,850 versus $9,900.

Zinc traded at $1,144 versus $1,158..

Source : Business Line