Rise in stocks pared gains in Copper

Print this page Posted on : 05-24-2007 by recycleinme.com

Copper was steady on Monday as rising stocks capped prices after they hit a 10-week high on bullish US economic growth expectations and possible strike actions in top producer Chile, analysts said.

London Metal Exchange copper for delivery in three months was at $8,090/8,110 a tonne at 0932 GMT, down $20 against the close on Friday. Earlier, copper hit $8,212, its highest level since May9, but stocks-up 2,725 tonnes to 101,400 –later weighed on prices.

Stocks in LME warehouses account for just over two days of global consumption and are half the level seen at the end of January as demand from key consuming countries is strong. Copper prices are up by nearly 10 per cent in July supported by falling LME stocks and strikes at suppliers in Latin America.

CHINA IN FOCUS

China’s strong second quarter economic growth and comments by the IMF on the “Booming “ global economy encouraged investors and the market shrugged off China’s further monetary tightening.

China’s refined copper imports in June were 65 per cent higher than in the same period last year, but imports fell 7 per cent to 108,111 tonnes from May, data shoed.

Three-months aluminium was down $28 at $2,828/2,832. Lead, which has risen about $800 since the start of July, matched the record high of $3,500 it closed at on Friday before falling back to trade at $3,455 / 3,470.

Tin touched its all –time record at $15,700 in early trade and was at $15,500 / 15,600, up $55. Zinc shed $35 to $3,690/3,710 and nickel fell $900 to $34,150/34,350.

Source : Business Line