Stocks drawdown, firm equities pull back copper

Print this page Posted on : 01-26-2008 by recycleinme.com

Copper firmed more than 2 per cent on Friday, lifted by gains in other commodities and as a hefty drawdown in inventories and improved sentiment in the global equity markets boosted buying, traders and analysts said. European shares jumped 1.5 per cent and Asian stocks rallied more than 4 per cent as a US tax stimulus package and the prospect of further rate cuts from the US Federal Reserve helped ease fears of a looming recession.

Copper for delivery in three months rose to 7,180/ 7,200 per tonne by 0914 GMT, up $ 160 or 2.3 per cent from Thursday’s close.

‘‘ The rise is more on the back of the big drawdown in Shangahi stocks and the ongoing fall in LME stocks,’’ metals analyst Mr Robin Bhar at UBS said. Inventories in LME- registered warehouses fell 1,525 tonnes to 172,775 tonnes, down 14 per cent.

ALUMINIUM GAINS

Aluminium prices rose $ 43 to $ 2,505/ 2,509, supported by logistical problems in China.

“ The heavy snow in Henan Province has delayed transportation of aluminium to eastern and southern China,’’ said Mr Lin Yihui, an analyst with China International Futures Co. “ In addition, power shortages have caused production cuts in aluminium, leading to tight supplies in the physical market.’’

Lead rose $ 75 to $ 2,690/ 2,699.5 while nickel firmed $ 400 to $ 27,700 and zinc was $ 65 higher at $ 2,325/ 2,345. Tin was was $ 150 higher at $ 16,550/ 16,700.

Source : Business Line