Copper drops with equities

Print this page Posted on : 04-29-2009 by recycleinme.com

Copper fell more than 4 per cent on Tuesday, haunted by demand concerns as ongoing turmoil in the financial sector hit equities, and data showed a large surplus in the world copper market in January.

Copper for three-months delivery on the London Metal Exchange was last bid at $4,181 a tonne in rings from $4,350 on Monday when markets balked on fears a deadly swine flu outbreak could reach pandemic proportions.

But tempering nerves, LME copper stocks have been falling since February and on Tuesday dropped by 5,000 tonnes to a three-month low of 420,275 tonnes.

Cancelled warrants - material earmarked for delivery - rose to 70,125 tonnes from 67,600 tonnes the day before.

Aluminium, used in transport and packaging, traded at $1,428 a tonne in LME rings from $1,446. Demand concerns dogged the metal as inventories at LME warehouses climbed yet again. Stocks rose by 24,650 tonnes to a record above 3.7 million tonnes.

Zinc, used to galvanise steel, traded at $1,348 from $1,372, while battery material lead fell to $1,307 from $1,360. Nickel was last bid at $10,850 from $11,375.

Source : Business Line