Lead extends gains; copper rises 1%

Print this page Posted on : 07-21-2007 by recycleinme.com

Prices of industrial metal lead extended their 100 per cent gain since the start of the year to trade at a record high on Friday as worries about supply encouraged buying, analysts said.

Metals in general were supported by strong economic growth in major consumer China, which in turn boosted mining stocks.

Lead traded up to $3,480 per tonne by 0934 GMT, $140 higher than its closing price on Thursday.

Lead prices have been supported this week by the effect of an explosion at a refinery in the US and an investigation into lead pollution that has closed Australian ports.

Tin hovered just below the record high of $15,700 per tonne it hit on Thursday, and was quoted at $15,450/ 15,550, up $100 from its close.

CHINESE GROWH

Strong economic growth in China was bullish for metals as the country needs copper and other raw materials to build modern infrastructure, analysts said.

Annual economic growth surged to an 11-1/2 –year high of 11.9 per cent in the second quarter, according to Government information.

Copper rose $80 or 1 per cent to $8,050/8,070.

Prices have been underpinned by industrial action at key suppliers in Latin America, and resumed talks to end a strike that has hampered Chilean Copper giant Codelco’s operations had little impact on prices in early trade.

Aluminium was up $17 at $2,849/2,852, nickel was $650 higher at $34,600/34,800 and zinc was up $80 at $3,650/3,670.

Source : Business Line