Copper Rises in London After Dollar Falls to Record vs Euro
By Simon Casey and Matthew Craze
Dec. 1 (Bloomberg) -- Copper prices rose in London as the
dollar weakened to a record low against the euro, making dollar-
denominated metals cheaper for holders of the European currency.
The dollar has fallen on speculation U.S. officials favor a
weaker currency to help narrow a record current-account deficit.
The dollar today touched $1.3336 per euro, the lowest since the
euro was launched in 1999.
``The dollar overall is still providing support,'' Roy
Carson, a trader at Triland Metals in London, said in a telephone
interview. The euro traded at $1.3203 at 10:50 a.m. London time,
according to EBS, an electronic currency-dealing system.
Copper for delivery in three months rose $15, or 0.5
percent, to $3,110 a metric ton on the London Metal Exchange. The
metal, turned into electrical wiring and plumbing pipes, has
gained 10 percent in the past month as Chinese demand drained
inventories to less than three days' global use.
``The price of copper has exploded,'' Werner Marnette,
chief executive of Norddeutsche Affinerie AG, Europe's largest
copper producer, said at an investor conference in Frankfurt
yesterday. ``I've never seen before what has happened since the
beginning of this year -- this steep increase driven by physical
demand.''
Inventories monitored by exchanges in London, New York and
Shanghai have fallen about 85 percent this year to 130,277 tons.
LME stockpiles fell 0.3 percent to 59,775 tons, a day after
rising 1.1 percent. This is the lowest level since July 1990.
``Inventories are now so low that one could buy all the
current copper, lead, nickel and tin stocks for less than $500
million,'' said Nick Moore, analyst at ABN Amro Bank in London.
Copper for delivery in three months fell 0.6 percent
yesterday after some investors sold close to the so-called
resistance point of $3,140 a ton, where traders said buy or sell
orders may be clustered.
In other metals, aluminum rose $7 to $1,847 and nickel rose
$40 to $14,300. Lead rose $13 to $965 and zinc rose $7 to $1,177.
Tin rose $65 to $8,800.
--Editor: A. Brown |
