Copper at month's high on recovery hopes

Print this page Posted on : 07-16-2009 by recycleinme.com

Copper hit a one-month high on Wednesday as the dollar dipped against the euro and strong corporate earnings in the US lifted equities and spurred hopes that the worst of the recession has past.

Copper for three-month's delivery on the London Metal Exchange traded at $5,190 a tonne at 0935 GMT from a close of $5,045 on Tuesday. Prices of the metal used in power and construction hit a day's high of $5,191. Latest data showed copper stocks held in London Metal Exchange warehouses rose 4,200 tonnes to total 261,100 tonnes. Stocks have been falling since late February, when they stood above 500,00 tonnes.

ALUMINIUM STOCKS RISE

Among other industrial metals, aluminium was at $1,656.25 from $1,605.

LME data showed stocks of the metal, used in transport and packaging, rose 633,125 tonnes to total 4.5 million tonnes, a new record level.

Aluminium stocks have risen almost consistently this year amid the downturn in the auto sector, and while fundamentals remain poor, confidence in Chinese purchases and signs of better economic outlook have lifted aluminium demand recently.

Elsewhere, zinc was at $1,535 from $1,495, battery material lead was at $1,640 from $1,595, while tin was at $13,300 from $12,900.

Traders remain concerned about the scale of long positions in the tin market, compared with the amount of available metal in LME warehouses. Steel-making ingredient nickel was at $16,050 from $15,575.

Source : Business Line