Copper drops on fears over flu

Print this page Posted on : 04-28-2009 by recycleinme.com

Copper fell more than 4 per cent on Monday, as fears a deadly flu outbreak could reach pandemic proportions served a new blow to equity and commodity markets battling economic turmoil.

At 1332 GMT, copper for three-months delivery on the London Metal Exchange traded at $4,285 a tonne from $4,470 a tonne on Friday but earlier hit a low of $4,252.

Battery material lead fell 6.5 per cent to a day's low of $1,341.50 a tonne from $1,435 a tonne, and was last at $1,362. Nickel fell more than 4.4 per cent to trade at $11,045 from $11,550, and hit a day's low of $10,930 a tonne.

Aluminium, used in transport and packaging, fell to $1,439 a tonne from $1,457.

Tin was at $12,120 from $12,600, while zinc eased 4.9 per cent to a low of $1,350 from $1,420 a tonne but was last at $1,358.5.

Concerns about supply were reflected in the premium for cash over three-month contracts for copper, last indicated at $12 to $16 backwardation. LME copper stocks fell by 4,275 tonnes to a three-month low of 425,275 tonnes.

Cancelled warrants - material tagged for delivery - stood at 67,600 tonnes, up from 65,800 tonnes on Thursday.

Source : Business Line