Copper at week's high on fillip to equities

Print this page Posted on : 07-15-2009 by recycleinme.com

Copper prices touched a one-week high on Tuesday, reflecting gains across the base metals, as a rise in equities buoyed the market.

Overnight, Wall Street ended more than 2 per cent higher as economic optimism boosted investor sentiment, while European and Asian stocks also gained.

By 0951 GMT, copper for three month delivery on the London Metal Exchange climbed to $4,987.75 a tonne from $4,895 at the close on Monday. The metal, used in power and construction, passed the psychological $5,000 a tonne level earlier to hit $5,010.75 and is up about 60 per cent for the year.

The copper premium, or backwardation, in cash copper versus the three-month price was at about $5, its first backwardation since the start of May, suggesting tightness in the nearby market.

ALUMINIUM RISES

In other base metals, aluminium rose $29 to a $1,590.

A recent rise in cancelled warrants - material earmarked for delivery - had helped boost sentiment.

On Monday, cancelled warrants fell to 118,775 tonnes from 117,150 tonnes the session before, but LME inventories remain at record levels above 4.4 million tonnes.

Nickel traded at $15,250 from $14,725 while lead was at $1,578 from $1,555. Zinc added $40 to $1,480 a tonne and volatile tin edged up to $12,750 from $12,300.

Source : Business Line