Copper turns hot on declining LME stocks
Copper prices edged higher by midsession on Monday, supported by falling London Metal Exchange inventories, and fund buying lifted aluminium more than 2%.
By TNN |
LONDON: Copper prices edged higher by midsession on Monday, supported by falling London Metal Exchange inventories, and fund buying lifted aluminium more than 2%.
���Stocks are down and there is news out of Zambia ��� people are taking a view that these metals are not going down,��� analyst Robin Bhar at investment bank UBS said. Copper for delivery in three months on the LME was up $45 to $8,490 a tonne by midsession.
Aluminium gained $69 or 2.2% to $3,175 after touching a fresh 21-month high of $3,183 earlier. ���There is still an appetite for commodities with fund money flowing in and stops have triggered aluminium,��� analyst Leon Westgate at Standard Bank said.
Tin was up $50 at $18,800/18,900, after matching Thursday���s record $18,900 after an industry crackdown in Indonesia. China has become an extremely bullish factor for the tin market, with the country having become a net importer of refined tin since last August, a Macquarie Bank report said.
Imports of refined tin more than doubled to 1,371 tonnes in January versus the same period last year, according to official Chinese customs figures. ���A close above $18,900 would extend the bullish sentiment with production problems supporting prices,��� an LME trader said.
Copper prices were supported after stocks fell 2,275 tonnes to 141,375 ��� less than three days��� of global consumption. The metal, used in the power and construction sectors, has gained around 26% this year, nearing the record $8,800 struck in May 2006 on strong growth in Chinese demand and ongoing fund inflows into commodities.
A slowdown in the US economy could be offset by strong demand from China with customs figures released on Friday showing a large year-on-year increase in imports of copper in January.
Zinc was quoted at $2,780/2,790 per tonne, up $40, and lead gained to $3,380/3,381 against $3,320/3,330 and nickel traded at $32,100, up $505.
Xstrata, the world���s largest zinc producer, said it was optimistic about the outlook for metals prices, saying any downturn in the US would have scant effect on China.
���Stocks are down and there is news out of Zambia ��� people are taking a view that these metals are not going down,��� analyst Robin Bhar at investment bank UBS said. Copper for delivery in three months on the LME was up $45 to $8,490 a tonne by midsession.
Aluminium gained $69 or 2.2% to $3,175 after touching a fresh 21-month high of $3,183 earlier. ���There is still an appetite for commodities with fund money flowing in and stops have triggered aluminium,��� analyst Leon Westgate at Standard Bank said.
Tin was up $50 at $18,800/18,900, after matching Thursday���s record $18,900 after an industry crackdown in Indonesia. China has become an extremely bullish factor for the tin market, with the country having become a net importer of refined tin since last August, a Macquarie Bank report said.
Imports of refined tin more than doubled to 1,371 tonnes in January versus the same period last year, according to official Chinese customs figures. ���A close above $18,900 would extend the bullish sentiment with production problems supporting prices,��� an LME trader said.
Copper prices were supported after stocks fell 2,275 tonnes to 141,375 ��� less than three days��� of global consumption. The metal, used in the power and construction sectors, has gained around 26% this year, nearing the record $8,800 struck in May 2006 on strong growth in Chinese demand and ongoing fund inflows into commodities.
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A slowdown in the US economy could be offset by strong demand from China with customs figures released on Friday showing a large year-on-year increase in imports of copper in January.
Zinc was quoted at $2,780/2,790 per tonne, up $40, and lead gained to $3,380/3,381 against $3,320/3,330 and nickel traded at $32,100, up $505.
Xstrata, the world���s largest zinc producer, said it was optimistic about the outlook for metals prices, saying any downturn in the US would have scant effect on China.
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