US durable goods data drag copper lower

Print this page Posted on : 09-26-2009 by recycleinme.com

London, Sept. 25 Copper hovered near one-month lows on Friday after the release of weaker than expected US durable goods data, but a surprise fall in global inventories helped support prices. At 1328 GMT, copper for three-months delivery on the London Metal Exchange traded unchanged at $5,950 a tonne. Earlier, the metal touched $5,900, its lowest since August 19. "With Chinese imports ailing...the support keeping prices where they were was prospects for stronger demand," said Ms Catherine Virga, senior base metals analyst with CPM Group in New York. "But the market cannot ignore such a significant drop in durable goods." New orders for long-lasting US manufactured goods fell unexpectedly in August, following a plunge in commercial aircraft orders, the government reported. On the positive side for copper prices, data showed inventories in warehouses monitored by the Shanghai Futures Exchange fell 5.3 per cent from a week ago, after peaking the prior week at their highest in more than five years. In London, data showed stocks down 175 tonnes, but at 3,40,700, they are still over 30 per cent above mid-July levels. Among other industrial metals, aluminium traded at $1,813 a tonne from $1,840, having earlier hit $1,802 to match a near two-month low hit on Sept. 14. Latest LME data showed stocks fell 4,450 tonnes but remained near a record 4.6 million tonnes. Zinc traded at $1,866 a tonne from $1,864, battery material lead at $2,174 from $2,171, while steel-making ingredient nickel traded at $16,789 from $17,100. Tin traded at $14,400 from $14,350. A dominant position holding more than 90 per cent of stock warrants and cash contracts in tin has pushed up the premium for cash material over the three month price to $600.

Source : Business Line