China stockpiling metals!!
Base Metals CatalogLondon Metal Exchange three-month copper, nickel and zinc pushed to fresh contract highs Wednesday driven by fresh investment buying on the strength of continuing concerns about supply shortages, market participants said.
Copper grazed fresh contract highs of $8,100/ton in the run-up to late kerb in London, closing just shy of that at $8,070/ton, up $255 on Tuesday's PM kerb price.
Copper bulls were encouraged by market conjecture about whether China will opt to increase its physical strategic reserves of copper rather than boost its exploration activities.
"Reports that China will be looking to accumulate metal for its stockpile only serving to add fuel to the bull fire," said Roy Carson, analyst at Triland Metals.
Illiquid trading conditions are also encouraging sharp upward price moves, particularly in copper, according to market participants.
Aluminium also benefited from momentum created by hedge fund buying, improving on yesterday's breach of the $3,000/ton level and finishing the PM kerb at $3,094/ton. Earlier prices breached fresh 18-year highs of $3,100/ton. Aluminium bulls now target the June 1988 record high of $3,272/ton, according to Roy Carson at Triland Metals.
Nickel also pushed to a fresh contract high of $20,450/ton, closing at that level at late PM kerb in London, up 2.5% on previous PM kerb prices.
Buying momentum also focused on zinc, helping push prices to fresh highs of $3,660/ton at late kerb, up $190 on the previous session close. Wider spreads encouraged fresh buying, as did the strong performance in copper, according to an analyst.
Lead prices breached resistance at $1,300/ton to finish the session up $33 on previous kerb prices at $1,312/ton.
3 months metal (prices in dollars a ton)
Bid – Ask, Change from Tuesday PM kerb
Copper 8070.00-8071.00, Up 255.00
Lead 1312.00-1313.00, Up 33.00
Zinc 3660.00-3670.00, Up 190.00
Aluminium 3094.00-3095.00, Up 83.00
Nickel 20450.00-20500.00, Up 505.00
Tin 9470.00-9475.00, Up 45.00
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