Copper gains capped by outlook fears
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Industrial metals were locked in recent ranges on Friday as investors waited for more signals about the extent of economic slowdown in the US>
Benchmark metal copper at the London Metal Exchange was quoted at $6,940/6,960 per tonne at 1012 GMT, up $60 from Thursday’s close.
Earlier, it briefly ticked above 47,000 when data showed inventories in Chinese warehouses fell by more than 20 percent this week.
Prices of the metal, which have become closely linked to prospects for economic growth, are likely to be capped by pessimism among investors about the US outlook.
Copper has lost around 10 per cent since the start of November, knocked by worries about what a severe economic slowdown could do to demand for copper.
Much of the metal is used in wiring and pipes in buildings, while other industrial metals such as zinc and nickel are used in conjunction with steel in buildings cars and household goods.
Still, many in the market believe demand in China and other industrializing nations will offset lower consumption in the West.
At its current level, copper is almost $2,000 below the peak it reached in May 2006, but still around 10 per cent up on the start of this year.
Aluminium was unchanged at $2,506/2,508 per tonne, as was lead at $3,000/3,020 per tonne.
Zinc was down $5 at $2,505/2,520 tin was up $50 at $16,850/17,050 per tonne and nickel was up $100 at $27,000/27,200 per tonne.
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Source : Business Line |
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