Copper climbs on expectation of rising OECD demand

Print this page Posted on : 02-04-2010 by recycleinme.com

Reuters

London, Feb. 3

Copper rose 1.5 per cent on Wednesday, as improving US economic data boosted investors’ confidence that OECD

demand for industrial metals could start to pick up. Copper for three-month delivery on the London Metal Exchange traded at $6,920 a tonne at 1026 GMT from a close of $6,820 on Tuesday. MONETARY POLICY Base metals prices bounced also because investors’ fears about monetary tightening in China were starting to ease. Copper was hit in late January by investors’ fears that signs of monetary tightening in China could hit demand from the world’s top consumer

of industrial metals.

Stoking the positive sentiment, stocks of copper at LME warehouses fell for a second day in a row, breaking a trend of nearly constant rises since mid-July. Stocks last fell 675 tonnes to 540,475 tonnes. At the end of last week copper

inventories rose to about 543,500 tonnes to hit their highest level since last February. Stocks of aluminium, used

in transport and packaging, dropped 6,600 tonnes, but held near a record high above 4.6 million tonnes. Aluminium traded at $2,140.75 from $2,120. Zinc was at $2,198 from $2,160, while battery material lead was at $2,148 from $2,118. Tin traded at $16,540 from $16,450 and nickel was at $18,351 from $18,300.

Source : Business Line