Copper at 2-week high on recovery buying

Print this page Posted on : 08-29-2009 by recycleinme.com

London, Aug. 28 Copper climbed to a two-week high on Friday, buoyed by improving economic and demand expectations, although analysts warned that weak fundamentals and rising inventories could lead to price corrections. By 0925 GMT, copper for three month delivery on the London Metal Exchange rose to $6,450 a tonne from $6,275 at the close on Thursday and compared with a session high at $6,468.50. Lead rose more than 5 per cent to a high of $2,110 a tonne, as doubts over Chinese supply also aided prices. Copper prices hit $6,480 a tonne on Aug. 14 - its highest point since early October. But highlighting underlying weak demand, copper stocks rose 1,375 tonnes to 298,925 tonnes - the highest level since June. Aluminium added $33 to a $1,917. LME inventories in the metal, used in transport and packaging, gained 625 tonnes to remain at record levels above 4.6 million tonnes. Steel making ingredient nickel traded at $19,410 from $18,755 while lead was at $2,110 from $2,010. Zinc gained to $1,883 a tonne from $1,831 and tin edged up to $14,250 from $13,995. Tin LME stocks rose 140 tonnes to 19,765 tonnes - its highest since July 2003, while zinc inventories are at their highest level since late 2005 at 434,600 tonnes.

Source : Business Line