London, May 6 (Bloomberg) -- Copper, aluminum and zinc
prices rose as much as 1.9 percent on hopes of an economic
recovery in parts of Asia and signs of robust economic growth in
the U.S., the world's top metals buyer.
South Korea's central bank today said its economic recovery
is gaining pace, while London Metal Exchange copper stockpiles in
Singapore warehouses have halved in the past two months. Korea is
the world's seventh-biggest consumer of copper and aluminum,
while copper taken out of a Singapore warehouse is usually
destined for China, Asia's biggest consumer.
''This is a positive development for the (metals) markets,''
said Kevin Norrish, minerals economist at Barclays Capital.
''This may be a sign that things are getting better in Korea's
domestic economy.''
Copper for delivery in three months on the London Metal
Exchange rose $30 to $1,613 a metric ton, its highest price since
Nov. 9. Copper for May delivery rose as much as 1.4 cents, or 2
percent, to 72.70 cents a pound on the Comex division of the New
York Mercantile Exchange.
Other metal markets followed copper higher on the LME.
Aluminum for three months delivery gained $16, or 1.2 percent, to
$1,369 a ton, while zinc rose $12, or 1.1 percent, to $1,090.
Still, with analysts expecting that copper production will
outstrip demand by about 400,000 tons this year, mines need to
cut output for the rally to continue.
Canada's Highland Valley Copper on Tuesday said it would
close as planned next week, though some traders doubt the
shutdown will be permanent, while others speculate the closure
might even be averted.
''The big question now is how long it will remain closed,''
said Martin Squires, analyst at Rudolf Wolff & Co. in London ''It
could be put on care and maintenance, as it's quite expensive to
close a mine. Don't be surprised if there's a last minute deal''
to keep the mine open.
--Andy Webb-Vidal in the London newsroom (44 171) 330 7743/tc |
