Copper declines in LME trade

Print this page Posted on : 05-27-2009 by recycleinme.com

Copper fell on Tuesday, pressured by falling equities and dollar strength, while concern about demand for industrial metals persisted as the global economic outlook remained uncertain. Copper traded on the London Metal Exchange for three-month delivery fell to $4,514 a tonne at 0930 GMT from $4,610 in the previous session.

Underpinning some expectations demand could plough on, stocks of copper at LME warehouses fell by 6,800 tonnes to 326,575 tonnes.

Less demand

''Demand may start to lessen, but the Chinese economic recovery is underway and I think their economy will continue to draw in new metal,'' said Mr John Meyer, an analyst at investment bank Fairfax.

The metal used in power and construction has nearly doubled in value so far this year, as Chinese buying prompted a rise in cancelled warrants that is now subsiding. And domestic oversupply in China could worsen after the State Reserves Bureau (SRB) in the world's top copper consumer reportedly sold off a small volume of its contracted copper imports over the past month and might sell up to 50,000 tonnes.

The move temporarily reverses a trend of months of buying.

China's imports of refined copper rose to a third straight record in April, stoking concerns that the world's top consumer had overbought.

Aluminium prices stood at $1,438 from $1,446.

Prices of steel material zinc stood at $1,476 from $1,517 a tonne, while battery material lead was at $1,392 from $1,435. Tin was at $13,550 from $13,650. Nickel stood at $12,575 from $12,775.

Source : Business Line