LME copper falls on higher stocks

Print this page Posted on : 11-06-2009 by recycleinme.com

London, Nov. 5

Copper fell on Thursday as yet another hefty rise in LME stocks highlighted that demand is still languish, with the metal also pressured by a rising dollar.

Copper for three-month's delivery on the London Metal Exchange traded at $6,520 a tonne at 1111 GMT from a close of $6,570 on Wednesday, as other base metals and oil also fell.

Copper inventories climbed 5,775 tonnes to 379,825 tonnes, standing at their highest level since early May.

''The Chinese have topped up and are quite heavy on stocks now,'' said Mr David Thurtell, an analyst at Citi. ''They've got plenty of reserves so there's no need for them to do lots of buying at these levels.''

He added that copper would not retest 2009 highs above $6,700 but said the metal, used in power and construction, could rally towards the $7,000 level in 2010.

Copper has more than doubled in value so far this year, supported by hefty buying by China, the world's top consumer of the metal, and helped by dollar weakness.

Aluminium dips

Aluminium traded at $1,916 from $1,921 as demand for the metal used in transport and packaging continues to suffer.

Latest data showed LME stocks of aluminium fell 2,300 tonnes to around 4.5 million tonnes, having recently declined from record highs of around 4.6 million tonnes.

Despite lofty stock levels, aluminium prices have risen by a quarter so far this year, supported by in part by dollar weakness and in part by a lack of available nearby material.

Zinc was at $2,226.75 from $2,229 and battery material lead was at $2331.75 from $2,350. Tin traded at $14,925 from $15,000 and nickel was at $17,880 from $17,900.

Source : Business Line