Copper rises, but inventories cap gains

Print this page Posted on : 11-07-2009 by recycleinme.com

London, Nov. 6

Copper rose around 1 per cent on Friday, but rising inventories amplified demand concerns to restrict gains.

By 1100 GMT, copper for three-month delivery on the London Metal Exchange rose to $6,597 a tonne from $6,530 at the close on Thursday and compared with a session high at $6,620.

A weak US currency makes commodities priced in the unit less expensive for holders of other currencies. Improving macro data has helped support copper, used in power and construction, in recent sessions, analysts said.

STOCKS SHADOW

LME copper stocks continue to rise however, indicating demand has yet to recover outside China, the world's largest metals consumer and driver for metal prices this year.

The latest data showed stocks rose 5,750 tonnes to total 385,575 -- their highest level since early May.

Copper stocks in warehouses monitored by the Shanghai Futures Exchange rose 1 percent from a week earlier to 104,275 tonnes, the highest since late April, 2004. ''Fundamentals remain uncertain,'' said Mr Francois Lauras, credit analyst at Moody's. ''Demand has been supported by China but ... the Western economies haven't really picked up.''

Aluminium rose $9 to $1,934. LME stocks in the metal, used in transport and packaging, eased 3,275 tonnes to 4.54 million tonnes.

Steel-making ingredient nickel traded at $18,125 from $17,760 while battery material lead was at $2,355 from $2,340. Zinc traded at $2,228 a tonne from $2,219 and tin edged up to $15,000 from $14,950.

Source : Business Line