China tax plan boosts copper

Print this page Posted on : 12-28-2007 by recycleinme.com

London Metal Exchange (LME) copper rode higher on Thursday, aided by a firmer tone on oil and precious metals.

Analysts also pointed to bullish influence from China’s plan to scrap a 2 per cent import tax on refined copper.

Copper for delivery in three months on the London Metal Exchange, trading for the first time since last Friday due to seasonal holidays, was up $130, or 1.90 per cent at $6,985 a tonne by 1038 GMT. Aluminium was also firm at $2,437 per tonne.

Traders said that daily technical charts showed LME copper had gapped significantly higher from last week’s close to Thursday’s market open with resistance now seen at $7,060 and support at $6,920.

TAX CHANGES

China announced on Wednesday that it will remove import duties on refined copper, as well as on alumina and coal. The current 2 per cent import tax for refined copper will be cut on Jan 1.

Imports from Chile, a major exporter with a bilateral free trade agreement with China, are already duty-free.

During November, Chinese imports of refined copper totalled 103,410 tonnes, up 5 per cent from October but still slightly below trader’s expectations.

In other metals, zinc prices were firm with LME zinc gaining $70 to $2,485, while nickel was up just over 2 per cent at $27,575.

Source : Business Line