Copper at 1-week high on weak dollar

Print this page Posted on : 08-22-2009 by recycleinme.com

London, Aug. 21

Copper rose to a one-week high on Friday as the dollar weakened and as expectations that fundamentals will improve overshadowed concerns about monetary tightening in China.

Copper for three-months delivery on the London Metal Exchange traded at $6,146 a tonne in mid-day rings from a close of $6,049 on Thursday. Earlier, the metal used in power and construction rose more than 3 per cent to $6,239 a tonne, its highest since Aug. 14.

Copper reversed earlier losses as the dollar hit a two-week low against the euro after stronger-than-forecast surveys on the euro zone manufacturing and services sectors added to the view that the region's economy is improving. A weaker dollar makes dollar-priced metals cheaper for non-US investors.

Traders noted threats to supply were reappearing and although the market is primarily focused on the demand outlook, those worries could support prices later this year.

Aluminium gains

Among other industrial metals, aluminium traded at $1,936 a tonne from $1,906. Earlier the metal used in transport and packaging hit $1,872, its lowest since late July. Global daily average primary aluminium output, excluding China, fell in July to 63,100 tonnes, but Chinese production rose to 1.088 mt, data from the International Aluminium Institute showed on Thursday.

Zinc traded at $1,835 from $1,804, battery material lead was last bid at $1,865 from $1,820, while tin traded at $13,975 from $13,800.

Nickel traded at $19,450 from $18,875. Jinchuan Group Ltd, China's largest nickel producer, lowered its nickel prices by nearly 5 per cent.

Source : Business Line