Copper hits 14-month high in LME trade

Print this page Posted on : 11-24-2009 by recycleinme.com

London, Nov. 23

Copper surged to 14-month highs on Monday as investors bet on economic and demand recovery, but a 40 per cent fall in China's refined copper imports was expected to cap prices.

Three-month copper on the London Metal Exchange was at $6,965 a tonne at 1119 GMT from Friday's last bid at $6,845.

Earlier on Monday the metal used in power and construction touched $7,010 a tonne, the highest since September 2008 and a gain of about 125 per cent since January.

''The fundamentals don't seem to be particularly supportive,'' said Mr Dan Smith, analyst at Standard Chartered. ''There is a lot of investor interest in the (base metals) complex, pushing things higher.''

A weaker dollar, which makes metals cheaper for holders of other currencies has also help support copper prices.

Many investors have been piling into commodities since the beginning of April when markets started to believe the worst of the recession could be over.

Stocks up

Stocks of copper in LME warehouses at 424,925 tonnes are up about 65 per cent since the middle of July and the highest since April. Aluminium stocks at above 4.59 million tonnes are holding near the record high of 4.629 million touched on September 16.

Stainless steel ingredient nickel was at $16,950 a tonne from $16,600, zinc at $2,293 from $2,255, lead at $2,400 from $2,346 and tin at $15,090 from Friday's last bid at $14,950 a tonne.

Source : Business Line