Lead firms up on China production cuts

Print this page Posted on : 12-21-2007 by recycleinme.com

Copper prices firmed on Thursday on bargain hunting after recent losses, while lead jumped 5 per cent on news of Chinese production cuts, analysts said.

Lead for delivery in three months on the London Metal Exchange hit $2,649 a tonne, up 5 per cent, after news refiners in China had shut down more than 400,000 tonnes of lead refining capacity.

In addition, more than 200,000 tonnes of lead smelting capacity in the city in Yunnan would be shut from Dec.30.

Lead was up $104 at $2,630/2,650 by 1038 GMT against Wednesday’s close. Prices have fallen by around 17 per cent during the past month.

Three-months copper was up $100 or 1.5 per cent at $6,615/6,635. The metal, widely used in the power and construction industries, was seen trading in a range between $6,500 to $7,000 traders said.

CHINA UPS RATES

On Thursday, China raised interest rates for the sixth time this year, the latest of a series of tightening steps to cap inflation and prevent the world’s fourth –largest economy from overheating. The move underlined the authorities’ determination to cool the economy, analyst Mr. David Thurtell at BNP Paribas said.

“It bearish for metal demand from China.” he said.

But he added that it also meant that miners and refiners in China could find it harder to build new capacity.

Aluminium was at $2,433/2,436, up $5, zinc gained $12 at $2,320/2,340 and tin was at $16,200/16,350 from $16,150/16,160. Nickel was up $200 to $26,850/27,050.

Source : Business Line