Lead hits year-high on fears over Chinese supply

Print this page Posted on : 08-27-2009 by recycleinme.com

Copper rose on Wednesday as economic and demand hopes fuelled investor buying, but analysts say prices have climbed above levels supported by fundamentals.

Other industrial metals followed including lead, which surged to a 1-year high of $2,110 a tonne on worries about supplies from China, after a spate of smelter closures because of pollution.

Three-month copper on the London Metal Exchange was trading at $6,378 a tonne at 0948 GMT from $6,311 on Tuesday.

Large price gains since early April have been triggered by signs of economic stabilisation, expectations of a strong demand recovery and stockpiling by the government and users in China, the world's largest consumer.

Aluminium was at $1,921 a tonne from $1,900. The metal used in transport and packaging has gained from concern about lack of nearby availability because of financing deals which have tied material up until next May.

But weighing on sentiment were comments by China's top producer, Aluminium Corp of China (CHALCO), which said privately held stocks in the country totalled 500,000 to 600,000 tonnes.

Zinc was at $1,870 a tonne from $1,852, tin at $14,100 from Tuesday's last bid at $13,990, nickel at $19,600 from $19,355 and lead at $2,105 from $2,061.

Source : Business Line