Copper at 3-week high in LME trade

Print this page Posted on : 05-30-2009 by recycleinme.com

London, May 29

Copper rose to a three-week high on Friday as the dollar fell and as reassuring data from Japan and the US supported a potential pick-up in demand. Copper for three-month's delivery on the London Metal Exchange traded at $4,765 a tonne at 0923 GMT, versus $4,755 on Thursday.

The metal used in power and construction hit a day's high of $4,790. Up nearly 8 per cent in May, copper is heading for its fifth consecutive month of gains.

Boosting sentiment, the US Commerce Department reported new orders for durable goods rose 1.9 per cent from March, the biggest percentage advance since December 2007. Stocks data was also supportive, with inventories of copper at LME warehouses falling 4,850 tonnes to 312,275 tonnes. Chinese buying has helped copper more than double in value so far this year, but analysts say demand is starting to subside as the world's biggest consumer eases off a restocking process.

Cancelled warrants - material earmarked for delivery - stood at 38,825 from 43,650.

''The continued drawdown in LME inventories is encouraging but there are some concerns it's stockpiling going on in China, said Ms Marc Elliott, an analyst at Fairfax.

ALUMINIUM STOCKS CLIMB

Aluminium stood at $1,416 from $1,412. Aluminium stocks continued a seemingly relentless rise, up by 5,125 tonnes to a record above 4.2 million tonnes.

The metal used in transport and packaging has been hammered as economic turmoil has ravaged the autos sector.

Battery material lead traded at $1,505 from $1,478. Tin traded at $13,850 from $13,650.

Lead and tin supply worries remain as latest data shows a dominant position controlling between 50 and 80 percent of cash warrants on LME stocks.

Zinc was at $1,508 from $1,475. Steel making ingredient nickel continued its flirtation with resistance towards $14,000, trading at $13,710 from $13,500.

Source : Business Line