Copper near 3-week high

Print this page Posted on : 05-28-2009 by recycleinme.com

Copper hit a near three-week high on Wednesday, tracking a rise in equity markets as a jump in US consumer confidence gave investors optimism that demand may improve should the economic downturn approach a bottom.

By 0930 GMT, copper for three month delivery on the London Metal Exchange climbed to $4,705 a tonne from $4,660 at the close on Tuesday and compared with a session high at $4,725.

US consumer confidence soared in May to its highest level in eight months as the strain on the labour market showed some signs of easing, boosting investors' hopes of a bottoming for the US economy. The consumer confidence number ignited stock markets and dragged everything else with it.

On Tuesday, cancelled warrants fell to 43,375 tonnes from 47,625 tonnes on May 22, but offering further support to the red metal, LME inventories fell 7,300 tonnes to 319,275 tonnes.

ALUMINIUM STOCKS SOAR

Aluminium fell to $1,443 a tonne from $1,452.

The relentless rise in LME stocks continued, jumping 9,700 tonnes to a new record above 4.21 million tonnes.

Aluminium cancelled warrants were at 50,250 tonnes on May 26 compared with 47,725 tonnes on May 22.

Steel making ingredient nickel traded at $13,725 from $13,400 but also touched a high of $13,900 - its highest level since October 8. Zinc gained to $1,505 a tonne from $1,500. Battery material lead was at $1,457 from $1,445 and tin edged up to $13,984 from $13,600.

Source : Business Line